Wednesday, February 01, 2006

Doing the Google Gulp

Over the past few weeks, I sold several hundred shares of Google. I did not forecast the big drop yesterday but in a few aggressive accounts I simply traded out of the Google in order to invest more in faster moving stocks. After yesterday's big decline, I will probably be doing the Google Gulp again today.

With Google's VOIP service almost ready for prime time and with the expected growth in TV and Music, it does not seem to be a hard swallow after a 12% decline in price. We will have to see how the stock opens, but at one point in after market trading the stock was off $80 per share.

I hope no one is upset that I did not write about the Google sells. Marilyn and I have been very busy for the past few weeks so my blogging time was reduced. Besides, I offer to help manage accounts at no charge. Knowing that I have studied investments for 43 years (my Dad taught me much of what I know when I was 12 to 15 years old), several folks allow me to help them manage accounts.

I have not taken the time to calculate the results from 2005 but several of the accounts I manage did spectacularly well. I am very optimistic about 2006. The big problem is that the markets are very segmented. I was looking at the list of new highs the other day and most of the stocks were not common names. This market is one where you make a lot if you are in the right stocks, lose a lot if you are in the wrong stocks and have mediocre performance if you are broadly diversified.

Yahoo, Google and Ebay are all well off their highs. These companies will grow their way to higher highs. With prices down, it should be a good time to add shares.