Posted on Saturday, March 11 2006 @ 22:46 CET by Thomas De Maesschalck
An ex Google employee has a rant on why people buy Google's stock.
Just as there are many reasons one might want to buy a share of a car, there are many reasons one might want to buy a share of a company. The company might pay dividends, or it might offer the potential of paying dividends in the future. If you buy a big enough share you can have a real say in how the company is run. Even if you don't have the wherewithall to buy a big enough share to let you run the company, your small share might be sought out by someone who does have the means to buy a controlling interest. Or being a shareholder might entitle you to certain special privileges. (We own some stock in a winery that gives a 30% discount to its shareholders. We've made back our original investments many times over on wine discounts alone. The stock also pays dividends.)
You can read more over
here. I don't fully aree with him but he's right that you shouldn't buy Google's stock just for bragging.
