Google is my ‘Newman’ Stock

When I shorted stocks a lot (the dumb days), Capital One $COF, Fannie Mae $FNM, Harley Davidson $HOG and Best Buy $BBY were my go to stocks. They drove me bonkers. They were my ‘Newman’ stocks. I lost way too much money over time to bother adding up and way too much hair.

Now I rarely short stocks. It truly makes no sense to short stock when you can use levered ETF’s for short-term hedging.

My ‘Newman’ stock is now a stock I have been trying to own and that’s been $GOOG. I can’t catch it right.

There is probably no great reason to own the stock from a technical or fundamental point of view, so I should just leave it the f$^&%k alone.

They have an insanely great core business of search.

But, they are fighting battles on too many fronts.

I can read the rest of my life and not know whether the Motorola purchase was good or not. Eventually the market votes. I do know that no matter what they do with it…flip it to Intel, use it for patents, aggressively go after retail, let it whither, the market is just saying we have no idea.

It is going on my DO NOT OWN/TRADE list for a long time.

They are fighting way too many battles. The market is telling me that much.The money will be made by the gamblers that can figure out how this one plays out. For now it’s a messy and potentially deadly battleground. As a small investor, I need and YOU need to pick the easier battles.


  1. Clay Franklin says:

    I’ve been wanting Google to be my long term winner and just don’t buy or sell it timely. Hold and forget is not a good thing IMO as I learned in 2000. I hope I own it if it goes to $2,000 but it causes a lot of anxiety to own it. Long GOOG but wish I sold at $620.

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  3. AR says:

    Great video and fun analogy! Google have the cash reserves and talent to fight battles on several fronts. Smartphones and other mobile devices represent the future of the internet (and new revenue streams). Android ensured that there was revamped competition in the smartphone arena which lead to better products for the end-user. Apple in particular perked up – obviously. The rate of innovation that we have experienced may not have been as vigorous if it were not for Google’s entrance to the smartphone market. The result of this competition is a base generation of devices which allow excellent access to, and promotion of, the web. Who is to benefit most (revenue-wise) from a monstrous global uptake of mobile devices that can access the internet? Google! The acquisition of Motorola is an inadvertent expansion of it’s excellent core business, albeit a bold and risky one. Mobile ads are the future of advertising and they’re laying the base foundation to capitalise on this growth. I would be buying/holding and forgetting about GOOG’s technicals for a few years. They’re making the right bets and boldly doing so with future growth in mind. They’re not worried about short term fluctuations in profit like a lot of other companies are. It’s what innovation is all about. I’d be buying them all day if I could! But I can understand your viewpoint – why get involved in a stock when market sentiment is volatile/unsure about it.

  4. RacerRick says:

    I bought $goog went it dropped into the $300s, so I cannot sell.

    But I lost money on MOT in the 90s…and I made myself promise to never buy it again. 
    But out of frustration/anger, I should do it.

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