Latest InsideMicrosoft Posts: InsideGoogle: Sell, Sell, Sell! Or Don't... .comment-link {margin-left:.6em;}
Monday, November 15, 2004
Sell, Sell, Sell! Or Don't...
Google's second lock-up period expires tomorrow, so you have less than three hours to get out before it gets rough. Of course, with the stock currently up about four bucks, that may seem like a stupid proposition. The fact of the matter is that tons of Google shares will become available over the next few months, and there is legitimate concern that an increase in supply will have a decrease in demand (Economics 101). Of course, Google is a very good stock, no matter what the pundits tell you, and I think any decrease would be temporary. Also, it depends on when you got in. If you just bought Google, you might want to sell it. If you bought it in August, hold on to your stock. If an $85 stock goes up to $200, then falls to $135, what do you call that? A profit. For early investors, Google can fall 20% and they'll be fine. New investors will panic. Try to remember, folks, Google is a long-term stock, and any small changes won't seem so significant in the larger picture.
(via Search Engine Lowdown)

Hello Nathan, I like your blog very much, I read it every day and I find it very informative and original, e.g. the Picasa/Hello comments :) But sometimes your investing insights are not quite appropriate ;) In this entry you say:

"Also, it depends on when you got in. If you just bought Google, you might want to sell it. If you bought it in August, hold on to your stock. "

All else being equal, it makes absolutely no difference if you bought it one minute ago or 2 months ago. Your decision to sell it must only be influenced by your opinion about the future of the stock. If the price goes down, it goes down for everybody, no matter where they bought it ;)
I probably should have been a little more clear. See, if you bought it in August, it was a lot cheaper, so if you already doubled your investment, and it has a temporary bump, you could hold on to the stock and feel fine. If you bought it last week, you have already lost money, and you stand to lose a little more. You might be best off selling now and buying it again when it stablilizes. I would advise everyone to not buy Google at least until after the lock-up ends, as it is likely to see-saw between 150-200 for the next few months.
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