I've really been enjoying participating in the Rising Stars real-money portfolio project for Fool.com so far. My latest buy for my Rising Star portfolio is Google, which fulfills my search for high-quality companies that keep many stakeholders in mind in different ways.
My writeup could have been a LOT longer. I could have reminisced about things like... how Gmail revolutionalized Web mail, at least in the sense that it pushed all Internet email products to have unlimited storage. Remember when you only had a few MB of storage? Delete, delete, delete. It's been a long time since we've had to worry about that, and we have Google to thank.
Or how, over the years, this stock looked so incredibly overvalued and overhyped, and suffered from some "issues", such as its difficulties making many of its ancillary products other than its core Web search/advertising work in a financially meaningful way. Over the long years, I've had my share of questions about the company and used to write about them a lot for Fool.com, although Google's no longer my regular beat.
Anyway, it's been a long string of years since Google's famous IPO (with its truly awesome letter to shareholders), of course. And now my position's changed on this one; I think it looks pretty reasonably priced for a successful, major tech company, and has a lot of very positive attributes that make it a good stock idea.
Meanwhile, the recent negativity after Google's "disappointing" quarter struck me as particularly interesting. So many news headlines have been talking up companies that are reporting "record profits" here lately; I have to wonder how many of those companies are cutting so many corners in their workforce and their services that for the long haul, they're actually tearing themselves to shreds.
So Google still shows impressive top-line growth, invests in R&D (and in employees, recall the 10% bonuses last fall) and everybody FREAKS, right? So, to my way of thinking, the timing's right for Google.
Anyway, here's my reasoning: Rising Star Buy: Google.