Saturday, January 6, 2007

Google shares face a constant 2006

Shares of Google went from $414 to $460 last year. This still can be seen as a rise, but compared to the moves in 2004 and 2005 its just a mere 9%, with this Google is falling behind on the Dow Jones Index. Google's market value is almost 150 billion dollar, which is way overrated from my perspective. Okay, they have a well running advertising agency running which is delivering ads for the biggest part of the Internet. But Google's power will shrink when a new company comes with a bright idea on how to develop the Internet, and then Google will collapse just like Yahoo! shares did in 2000 and 2001. So keep in mind when you're about to buy Google shares that you're buying an air balloon.

My own shares had a great week. Dutch telecom operator KPN managed to rise from €10.77 to €11.30. This is equal to a 5% rise. So this first week of trading already earned me my interest I would have got over a year time from my bank (3%).

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