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Most Managers Don’t Own Enough Google And Facebook — Does Yours?
If a fund has FB in it's top 10 holdings and it's not even a technology fund, I avoid it. Heck, for a tech fund, I don't want a large holding in FB or any social media site for that matter. FB in particular I despise and consider a 'fad' and a 'herd' trade for fund managers. (Not a FB user, either)
GOOG is more a tech infrastructure play in my view, and I have no problem with holding it (which I do). But social media like FB, LinkedIn, Twitter, etc? They're nothing special imho, and I'm a career geek. Couldn't care less about them financially or for their 'role' in the 'tech' world.....Facebook is not a 'tech' company in my view anyway - it's a consumer communications & consumption company.
I agree on FB. As for Google, I think there is a great deal of potential in a lot of what Google is doing and the Google of 5-10 years from now I think may look very different than the Google of today (nothing against the Google of today, which is a very solid company.) That said, I do think there's a point here where Wall Street is losing patience with Google and the calls for returning money to shareholders via an Apple-like dividend have grown louder.
The other point of interest about Google is that the spread between GOOG (no vote) and GOOGL (voting rights) shares has widened noticeably since the company paid out the price for the spread between the two share classes that was agreed upon after the C class shares were distributed. It was generally around $5, then started widening as the date approached. Now the spread is $20-25 +/-. Kinda interesting.
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GOOG is more a tech infrastructure play in my view, and I have no problem with holding it (which I do). But social media like FB, LinkedIn, Twitter, etc? They're nothing special imho, and I'm a career geek. Couldn't care less about them financially or for their 'role' in the 'tech' world.....Facebook is not a 'tech' company in my view anyway - it's a consumer communications & consumption company.
The other point of interest about Google is that the spread between GOOG (no vote) and GOOGL (voting rights) shares has widened noticeably since the company paid out the price for the spread between the two share classes that was agreed upon after the C class shares were distributed. It was generally around $5, then started widening as the date approached. Now the spread is $20-25 +/-. Kinda interesting.