The Ignorant Investor

Today's earnings report from Google paints a picture of a company making money hand over fist in the growing market of online advertising. I admit, I never saw this market coming. I don't know how big it's going to get. I'm constantly amazed at just how profitable it is. Seems like basic capitalistic principles should kick in and competitors Microsoft and Yahoo should be undercutting Google's massive profit margins in the hope of raising market share. So far, though, it just doesn't seem to be happening. Maybe these three are making so much money that they don't see a need to engage in some kind of price war like the damned economists say they're supposed to be doing. Damn those economists and their worthless economic theories.

So once again, Google's price is shooting up and I'm on the sidelines. The people-who-leap-in are once again justified in their anticipations; no matter what price you buy at, the stock just keeps going up. I have only one thing to say at this point: ARGHHHHHHH!!!

Yet I am sticking with my original forecast: the price of the stock has outstripped the long-term market for its product. Yes, the numbers continue to be against me. And no, I am not yet about to hang myself for not buying the stock. That's next quarter, when the company will announce that it has quadrupled revenues as all the cash spent by Madison Avenue on television, radio, and print advertising is now being driven up to a loading dock at Google Headquarters and dumped out in tall, shiny piles of gold doubloons.