http://www.businesspundit.com/cjr-takes-businessweek-to-task-for-short-term-focus/ Entrepreneurship, Startup Companies and Business Philosophy Fri, 03 Feb 2012 07:09:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.businesspundit.com/cjr-takes-businessweek-to-task-for-short-term-focus/comment-page-1/#comment-633 Jason Wed, 22 Feb 2006 02:30:24 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2565#comment-633 The one thing I'd like to add to all of this is that there is a big difference between a good company and a good stock. I don't think that anyone denies that Google is a highly profitable company. But at a current P/E of 73.01? A stock, like any other financial instrument, is the NPV of its future returns - if you're willing to pay that much for GOOG, you ought to be very confident that it will sustain a high-growth trajectory (if you're in it from a fundamental viewpoint). If Google doesn't live up to expectations, expect its stock to be crushed - not much room for error there. The one thing I’d like to add to all of this is that there is a big difference between a good company and a good stock. I don’t think that anyone denies that Google is a highly profitable company. But at a current P/E of 73.01? A stock, like any other financial instrument, is the NPV of its future returns – if you’re willing to pay that much for GOOG, you ought to be very confident that it will sustain a high-growth trajectory (if you’re in it from a fundamental viewpoint). If Google doesn’t live up to expectations, expect its stock to be crushed – not much room for error there.

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