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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (31635)	7/28/2008 11:44:37 PM
From: Jurgis Bekepuris	Respond to of 78748

Here is something I wrote to a friend about GOOG and MSFT (mostly unedited): I am afraid that GOOG is going the path of diworseification (like MSFT btw). I.e. they have a cash cow. Then they try to grow in other areas. And they throw billions into them with almost zero return. Both MSFT and GOOG are doing this. And this is not good for shareholders. Right now MSFT is much more attractive than GOOG valuation wise (GOOG was higher when this was written). And BTW, MSFTs earnings have grown faster than GOOGs in the last year (there are some special items, not sure how important they are). Google is now growing only at 20% and their ROE also is pretty low (perhaps due to cash pile). Macro-wise GOOG owns advertising on the net. MSFT still owns PC OS and Office and some business segments.