4 “back Door” methods for Investing in Google without buying a single share
If you are not keen on investing in Google stock due to its high price or your questions about the future of the company, there are actually several ways in which you can “invest” in Google without buying any shares in the Internet giant. Here are a few (usually less expensive) options for your investment dollars that are related to Google’s ever-growing spread in business:
Google Inc has made several high-profile investments in recent years, and you can possibly bank on the wisdom of their choices and know that these chosen few are getting huge cash injections that they will hopefully put to good use. Among the recently blessed are Universal/EMI/Sony Music, as Google has partnered with them (and several independent labels) to create Google Play. Universal’s leaders expect the new service to produce a “rich new revenue stream for its artists,” while several notable groups such as Coldplay and Pearl Jam are pumped about putting out exclusive concerts on the new stream. Investment in most music ventures in recent years has not been profitable, but perhaps Google will find a formula to correct the flat and dipping earnings in that sector of entertainment.
Partner with Google
Some companies have benefited from partnering with Google Inc in different arrangements that sometimes involve big investments, construction of buildings and other forms of cooperation; others involve simply a sharing of technology to the mutual benefit of both parties. Among the “partners” of Google in recent year have been Britain’s Sky Broadcasting and Time Warner AOL, both of which earned Google’s confidence and might be worthy of yours, too. Keep an eye out for Google’s “partners” in days and years to come. If Google doesn’t swallow them, they might be worth a look.
New Technology Rollouts
When Google wants to roll out a new form of technology, it often needs partners to make it work. Keep an eye on the news to see what Google is planning and whom it needs to work with to make it happen. A recent example of this was Google’s idea to create a substitute for paywalls on media pages. For that venture, it partnered with Pandora, AdWeek and several newspapers. Knowing first whom Google Inc needs to try out its new ideas can help you to be first in line to invest in the partners.
Vision for the future
The industries in which Google Inc invests have featured both hits and misses, but the large amounts that Google pours into these areas justify a consideration of them as investment possibilities, if for no other reason than Google has been right more than wrong over the years. Besides, can you think of another company that has been more correct in either predicting or creating trends? I didn’t think so! Notable recipients of Google money have been clean energy investments, in particular solar power. Recurrent Energy happily received $94 million from Google to build four solar power projects near Sacramento in recent days, and wind power is another of Google’s persistent interests, although some of its windmill projects do not look very lucrative right now, that doesn’t seem to hurt the Google stock price. Perhaps Google’s leaders have been listening to T. Boone Pickens, or perhaps they understand the younger “green” generation better than most; in any case, clean energy might be a possible stock for you to invest in as Google pours hundreds of millions into the industry. As Google’s assistant treasurer has said, “We believe investing in the renewable energy sector makes business sense, and hope clean energy projects continue to attract new sources of capital to help the world move towards a more sustainable energy future.” Those aren’t just words-Google is putting its money where its mouth is.
To find out more about where Google Inc is investing, you don’t have to dig around too hard. Its large projects are splashed all over the media, and its smaller ventures are detailed at the Google Ventures website. There, you can pick around and learn more about the various entrepreneurs that Google has selected for its largesse. You then have a couple of choices: you can join with Google in backing these young companies, or you can found a similar enterprise and appeal for Google’s money as well. If these other companies don’t suit you, you can always buy small lots of Google stock, and most likely it will be a good long term hold.