Buying Google Stock Not A Sure Bet
Fund manager Fred Kobrick believes too many people are buying Google’s stock simply because they have a warm-fuzzy feeling about the company.
“People with a lot of money in Google aren’t sure, other than that it’s a household word, why they own it,” he said. But that’s not a good reason to own a stock, he says. After all, many other tech leaders who were thought to have an insurmountable market lead eventually fell by the wayside.
Kobrick suggests Google is a risky stock-buy simply because the company has yet to expand its income stream beyond paid search.
“Google’s throwing a lot of mud against the wall to see what sticks. That’s pretty scary,” Kobrick said.
He also suggests that Google is far from being invincible and that Microsoft and Yahoo could still find a way to topple Google.