Dollars and Jens
Wednesday, September 29, 2004
When you're right 52% of the time, Part II
Do you remember that I said I'd take a profit when Google was at 100, just over a month ago? I do.
Well, as the Wall Street Journal so helpfully points out (subscription required), it closed yesterday at 126.86, up $8.60 after — I'm not making this up:
Yesterday came the expected backing for the stock, in the form of positive recommendations, by five of the underwriters of Google's initial public offering. Those underwriters gave the company their highest stock ratings and predicted share gains. (Brokerage firms not affiliated with the IPO haven't been as kind.)Well, as the T-shirt says, never underestimate the power of stupid people in large numbers. I'm not short, nor do I encourage you to be — to paraphrase Keynes, Google's price can certainly stay irrational longer than most of us can stay solvent. But I'd be even happier to take the profit now.