If Google Falls 99.9999999 Percent…

Feedback in:

“I can see your point of view, but your ideas about what it means to invest or “Buy and Hold” as you put it are wrong. Value Investors do have exits, but those exits are fundamental to the cash-flow producing Asset. Basically to answer your question if Google falls 99.9999999 percent, while still remaining fundamentally as profitable as it was when i bought it at $700, I will buy the whole company. Who wouldn’t want to acquire 10 billion dollars in profits for a few dollars.”

Come on. The whole value/buy & hold/long only investing approach was sold as a ‘set it and forget it’ investing mentality by the mutual funds and fundamental talking heads. It doesn’t work.

I do agree with your example though. I would buy it like that fairy tale too!

5 thoughts on “If Google Falls 99.9999999 Percent…

  1. 1. GOOG falling 99.9% while remaining fundamentally sound would be proof that investing on fundamentals only is wrong.
    2. I think in reality GOOG would fall 99.9% right before it declared bankruptcy.
    3. I sold it in January when it broke its uptrend.

  2. I’d much rather buy it at 800 than 99.99% lower – I love traders who say “if it fell to that level i’d fill my boots” – if it fell to that level there would be a reaon – Id be a seller if google fell 99.99%

  3. What a ridiculous example to support value investing. If that level of income was guaranteed then Google would never fall by 99.99%. Plenty of other buyers, including Google themselves would have stepped in long before that. If it’s fallen by 99.99% then there is likely a very good reason that it WON’T have the same level of profits, and is probably on the fast track to bankruptcy.

  4. Just remember Enron. It was a tremendous “buying opportunity” all the way down, right up to the point that fraud was uncovered.

  5. Russell,

    Same here…continues to be one of my best performing shorts…when it drops 99.9999999%, I’ll cover 🙂

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