Everyday billions of people go their computers and begin a search, many of them use Google because it is fast, it has a clean front page and it was institutionalized by many teachers. Let start with google, although their are other search engines in the marketplace. Have you ever wondered how Google became the search engine that it is? A book called The Search – How Google and its rivals rewrote the Rules of Business and Transformed our Culture by John Battelle, published by Portfolio Books, NY, 2005 will give you understanding of how we go to where we are.

Google started out as a tech company with an elegant solution to searching information from the internet. It order to generate revenues it added the adwords and other advertising to its sites. Sometimes it gets it right and you are very happy the ads appear, sometimes you do not want the ads. The ads pay the bills and if you are the person buying and make a purchase those ads are worth more to the advertiser. Google’s search engine has to balance the two.

Over the years, Google has developed to other ventures and elements such as allowing for its employees to spend 10 to 15% of their time on personal projects which could help the company has lead to enhancing the services of google. In all industries, the company has to be at the right time the market values the company for what it was doing. In the early days of the internet, the value was number of subscribers and companies were valued on the number of subscribers. Then the market changed and began to pay for the number of subscribers who actually bought something and Google was in a great position to capitalize on the change in valuing tech companies. The linkage between adwords and search lead Google to a market leader and search cost pennies, ads cost dollars which means as long as people around the world trust Google’s search solutions, the company will continue to churn out money.

Linking to dividend paying stocks, one of the reasons people buy cigarette companies is the cost of cigarettes is pennies, the selling price is dollars, how can they not make money? It turns of investing, finding Google type companies is rare but once they are reasonably successful, the risk factor drops quickly and reward factor continues to produce for you and your portfolio.

There are more questions than answers, till the next time – to raising questions.