In the July 26 Strategic Tech Investor, we explained why we believed that search-giant Google Inc. (NasdaqGS: GOOG) was a “must-own” stock.
Using the five rules we created to identify the biggest-potential stocks, we told you how the Mountain View, Calif.-based tech innovator was continuing to position itself as a company that will continue to create wealth for its stockholders.
Not long after, several folks wrote in to say that Google’s $885 share price made the stock too pricey for them to own.
We countered with the same response we always make to such comments: On a given amount of cash, a 30%, 50% or 80% return will net the same profit – no matter if that cash is invested in a $50 stock or a $550 stock.
And, with Google, we’re already on our way: The share price has already advanced 15%, meaning that $885 stock is already trading north of $1,000 a share, and closed Monday at $1,015.
Sometimes, you’ll find, the stocks that appear the most expensive actually turn out to be the cheapest at the time you buy them.