Invest 50k in Google shares now and leave for 5yrs. Whats it worth

[dsurin66]

Nobody obviously has the answer but if one invests 50,000 usd in Google class A shares on Nasdaq now and doesnt touch it for 5 yrs. How much is the share holding worth in 5 yrs.

Google is solid as a rock and evidently one of the strongest companies (financially) in the world.

What do you think?

[Anthony5]

Sorry I can't help you, as I dropped my crystal ball the other day.

[rocketboybkk]

How about Facebook

Bono invested years ago & his shares earned him more than U2 did!

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[Anthony5]

How about Facebook

Bono invested years ago & his shares earned him more than U2 did!

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Bono invested in FB long before it went public.

Something completely different from buying shares on the stock market.

[impulse]

Still waiting for my Pets.com stock to make a comeback...

[suzannegoh]

Nobody obviously has the answer but if one invests 50,000 usd in Google class A shares on Nasdaq now and doesnt touch it for 5 yrs. How much is the share holding worth in 5 yrs.

It will be worth $26,142.87 less brokerage fees.

[tolsti]

According to the MacWalen school of investment eh Susanne?

[OnMyWay2]

If you have 5 years I would go with the beaten down steel companies. look at AKS it's at about 3 right now in my opinion it could easily go to 15.

I doubt you could see that kind of return in Google.

[rocketboybkk]

How about Facebook

Bono invested years ago & his shares earned him more than U2 did!

Sent from my iPhone using Tapatalk

Bono invested in FB long before it went public.

Something completely different from buying shares on the stock market.

He still got more than you

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[Anthony5]

How about Facebook

Bono invested years ago & his shares earned him more than U2 did!

Sent from my iPhone using Tapatalk

Bono invested in FB long before it went public.

Something completely different from buying shares on the stock market.

He still got more than you

Sent from my iPhone using Tapatalk

What kind of an answer is that, did I say that I ever owned a single share in FB?

It's clear that you're too dumb to understand what venture capital is.

Bono is a partner in a private equity firm that invest in start up companies. The value of his stake in FB probably ten folded in a single day when FB started to trade publicly.

Edited September 5, 2015 by Anthony5

[innerspace]

You cannot buy shares in google anymore. Yes still trading as GOOGL but the shares are now of a newly formed company called Alphabet. Google is just one of several subsidaries.

[Lukecan]

Historical return of s&p 500 is ~%10 , so it will most likely be worth around 70k

[ldnguy]

Just because it's a solid company doesn't mean the share price will rise. The shares could already be overvalued, so may go down when people come to realize that they're overvalued. You need to buy shares when they are undervalued and sell when they're overvalued.

5 years is a long time in terms of tech and internet stuff. Google might be doing great now, but it could easily be displaced in 5 years time.

[DogNo1]

Anything can happen. Betting on just one company is very risky. Better to invest $10,000 each in a diversified portfolio. Conditions can conspire to make the whole market drop for a long time so a 20-30 year time horizon would be wise. Study up and don't expect to get rich on only one stock except, perhaps, BRK-B or BRK-A. Good luck.

[wow64]

OP why dont you google the answer.

Sent from my c64

[dean008]

Nobody has the answer.... but I will ask the question anyway

[slipperylobster]

If being a solid company was the only variable in getting a good return (in five years)...then fine.

Problem is, the stock market (as a whole) can take a dive..including that solid company...whenever an upredictable event occurs. A catastophe (such as 9/11), threat of war, National financial disaster etc.... could erase your earnings. This could happen simultaneously with an unforeseen personal expense (divorce, marriage, death of a close relative, etc)....which could force you to withdraw money from the stock when it was low.

You definitely would want to diversify your portfolio....to minimize negative effects of unforeseen variables.

[fey]

we are at an all time high right now, so would be pretty foolish to start buying now.

you don't seem like the brightest bulb around...

google is a strong company, BUT almost all of it comes from one thing, online ads. that's a very dangerous positon to be in.

one patent away from a competitor like facebook or ms, and the whole show is over. that's why they keep buying up every company that could potentially innovate something to challenge.

Edited September 5, 2015 by fey

[Sayonarax]

The markets about to go tits up.

[topt]

The markets about to go tits up.

Tits up sounds so much more positive than tits down...............

[chingmai331]

Last year about this time Alibaba was the equity rage. The IPO was 'over the moon' as a monster company full of chinese hope and hoopla. How could anyone not want to be part of financial history.

What's the result after one year of trading on the NYSE? BABA has lost 28% of its IPO value.

Google or ABC...XYZ may do likewise, despite your claims or delusions.

[Anthony5]

we are at an all time high right now, so would be pretty foolish to start buying now.

you don't seem like the brightest bulb around...

First of all we are not at an all time high, though we were there in July of this year, and we have also been at an all time high every month of the 28 months before that.

So you think it were all idiots who have been buying in the past two and a half year?

[Langsuan Man]

Why invest in a company that doesn't pay dividends, just on the hope and prayer that it will continue to go up in share value.

http://www.dividend.com/how-to-invest/why-google-goog-doesnt-pay-a-dividend/

My portfolio pays me approximately $1,000 US per month, so I don't worry about the ups and downs of the market, just let the cash keep rolling in

[Anthony5]

Why invest in a company that doesn't pay dividends, just on the hope and prayer that it will continue to go up in share value.

http://www.dividend.com/how-to-invest/why-google-goog-doesnt-pay-a-dividend/

My portfolio pays me approximately $1,000 US per month, so I don't worry about the ups and downs of the market, just let the cash keep rolling in

A dividend paying company usually pays a certain percentage of the share price as dividend. So if the share price goes down, so does the dividend.

Still don't worry about the downs of the market?

[Langsuan Man]

Why invest in a company that doesn't pay dividends, just on the hope and prayer that it will continue to go up in share value.

http://www.dividend.com/how-to-invest/why-google-goog-doesnt-pay-a-dividend/

My portfolio pays me approximately $1,000 US per month, so I don't worry about the ups and downs of the market, just let the cash keep rolling in

A dividend paying company usually pays a certain percentage of the share price as dividend. So if the share price goes down, so does the dividend.

Still don't worry about the downs of the market?

You sound like Whalen School of investing

Have been doing quite well despite the "down" market. Dividends are paid out of company's profits and companies profits are not related to stock valuation. Your dividend payout is based upon the number of share you own, not the purchase or current price of those shares

Google is one of the few tech companies that does not pay dividends and that is because Larry Page et. al don't need the cash and wish to continue to use their companies profits to continue to invest in new technologies

http://www.dividend.com/how-to-invest/why-google-goog-doesnt-pay-a-dividend/

[WorkingTourist]

Google’s earnings per share (EPS) for the last 12 months were $21, so at its current valuation (of $600 per share), I consider it high.

Personally I sold half my shares in Google not so long I go. I kept the other half, because the company might still surprise, but so far they have come up with dozens of new products over the last decade, but no new significant revenue source or business model.

[PCA]

Google’s earnings per share (EPS) for the last 12 months were $21, so at its current valuation (of $600 per share), I consider it high.

Personally I sold half my shares in Google not so long I go. I kept the other half, because the company might still surprise, but so far they have come up with dozens of new products over the last decade, but no new significant revenue source or business model.

absolutely, Google won't be more than a dead duck within the next few or more than just a few years.

The steal company mentioned from another member posting in this thread before is way much better, maybe not a 15 bucks stock but a doubler within 2 years or so. However there's no rush right now to buy any shares as you'll get them cheaper - all of them.

[balo]

Google can not be trusted just because they hit the market so well the last few years. I predict that google will just be a name within 10 years, and nothing special.

[DirtyDan]

I agree with DogNo1's statement in post #14... there's no get rich quick scheme and I feel that 5 years for an "investment" timeline is pretty short term. Without knowing your details I'll wager some interwebs advice (because we're all experts here, right?).

1) is this just an extra 50K you have for playing the market or is it a sizeable chunk of your entire portfolio?

2) How much do you already have in American Tech stocks? You want to remain diversified.

3) What's your tax situation going to be when you sell these stocks and have to pay capital gains on them? Will the income affect your retirement pension? These capital gains are considered INCOME and will count towards oiverall income when OAS or government run pension schemes are considering your annual income amount...

4) A couple posters have suggested blue-chip dividend stocks. What would happen if you made the $2K / year on dividends (assuming 4% pa on $50K)?

5) how vital is this cash to you in 5 years? Could you handle market volatility if the share price dropped to 40% of value and you had to wait another 5 years for it to bounce back (hopefully)?

Personally, my retirement portfolio (a couple decades away form needing) is weighted heavy on energy and oil stocks at the moment simply because they're in the downturn of what's always been a cyclical market. If I needed those funds within 5 years, I'd be a little nervous about their market value when the time comes to cash them in. 20 years from now, not worried at all. Letting it all ride on an single American tech company is not investing, it's gambling.

Because there are many variables to consider, you need to talk with a Certified Financial Planner (not some Primemerica person with a 4 hour course on mutual funds or an Edward Jones salesman that has to roll his accounts every few months to make commissions - but an actual registered professional).

Good luck.

DirtyDan

Edited September 8, 2015 by DirtyDan

[WorkingTourist]

Letting it all ride on an single American tech company is not investing, it's gambling.

I generally agree with what you say, but I consider gambling to be when you haven’t done the proper research. Gambling does not turn into investing just because you increase the number of randomly picked securities to invest in, although the odds might be more in your favor.

Likewise, picking a single stock can be investing, if you have done the proper research on the stock.