Are you looking to invest in one of the world‘s top technology giants? As an influential company with its hands in everything from search to smartphones to the cloud, Google (now organized under holding company Alphabet) has delivered impressive returns for many investors over the years through appreciation of its publicly traded stock.
But how exactly can regular investors buy shares of Google and benefit from its continued growth?
In this comprehensive guide, I‘ll walk you through all your options – from direct stock purchases to mutual funds to robo-advisors and more. You‘ll learn:
- Google‘s background, business model, and growth drivers
- The best ways to invest in Google and own shares
- Reasons Google could still present strong upside for investors
- Expert tips for evaluating and buying Alphabet stock
Let‘s dive in!
Overview: Google‘s Rise to Tech Giant Status
First, some quick history on Google. The company traces its founding to 1998 when Stanford students Larry Page and Sergey Brin launched an unassuming search engine website called "Google."
Over the next two decades, fueled by bets on emerging tech like online ads and smartphones along with aggressive expansion into related industries, Google grew exponentially into one of the world‘s most influential technology companies:
Data Source: Alphabet Annual Financials
As you can see, Google has achieved staggering revenue growth in recent decades. It now sits as the 4th largest public U.S. company with a market valuation of over $1 trillion.
Its software and technology touches billions worldwide through products and platforms like:
- Google Search – The world‘s dominant search engine rakes in advertising dollars
- YouTube– The #1 online video site serving over 2 billion monthly users
- Android OS – Powers ~75% of the world‘s mobile devices
- Google Cloud – Fast-growing cloud infrastructure and web services
- Pixel Smartphones – Google‘s flagship phones to showcase Android
- Google Maps – Mapping/navigation app used over 1 billion times monthly
But how exactly can regular investors actually buy ownership of Google and benefit financially from its ongoing success? Let‘s explore.
How to Invest in Google: Your Stock Purchasing Options
While "Google" no longer trades as its own stock, everyday investors have several options to gain exposure to its growth by purchasing shares in parent company Alphabet (GOOGL).
Main choices include:
1. Buying Alphabet Stock Outright
This involves directly purchasing Class A or Class C shares of Alphabet (ticker GOOGL or GOOG) on the public stock market via a brokerage account. It offers full exposure to Google‘s performance as Alphabet‘s largest subsidiary.
Pros
- Direct ownership of Google‘s parent company
- Benefits from stock price appreciation
- Voting rights
Cons
- Requires individual stock research/tracking
- No dividend income
2. Mutual Funds or ETFs Holding Alphabet Stock
Rather than select individual stocks, you can invest in a tech fund run by financial professionals that holds Google and other major tech stocks. Top examples include VTI, FSPTX, and FDGRX:
Data Source: Yahoo Finance
Pros
- Diversification into many stocks
- Professionally managed
- Lower investment amounts
Cons
- Less direct exposure to Google
- Expense ratios can cut into returns
3. Automated Investing Platforms
"Robo advisor" services provide premade portfolios investing in ETFs/stocks like Google automatically based on your goals. Examples include Betterment, M1 Finance, Wealthfront, and more.
Pros
- Hands-off automated investing
- Low account minimums
- Easy rebalancing
Cons
- Limited customization
- Ongoing advisory fees
There are also more complex options like buying Alphabet stock options contracts or investing in private equity Google shares. But the above cover the most common routes individual investors take.
Now let‘s explore why Google‘s parent company Alphabet may deserve a position in your investment strategy…
3 Reasons Google Could Be a Smart Tech Investment
Given Google‘s entrenched positioning across multiple fast-growing markets, many analysts and investors remain confident its stock offers upside:
Continued Revenue Growth Potential
Google is deeply embedded across emerging tech sectors like online advertising, cloud services, mobile software, AI, and more. It copes well with economic shifts. Consensus forecasts continue predicting solid revenue and EPS gains:
Data Source: Yahoo Finance
Wide Economic "Moat" Around Its Business
Google also enjoys deep competitive strengths that will be challenging for rivals to overcome. These include:
- Vast data troves to improve search algorithms and ad targeting
- Switching costs that discourage Google platform users from leaving
- A network effect where scale begets more data/users
- Aggressive spending on R&D/talent to fuel expansion
This protective economic "moat" makes disruption less likely, supporting long-term investment appeal.
Stellar Track Record of Profit Growth
Lastly, Google has achieved tremendous bottom line success already – it isn‘t some unproven tech upstart. Trailing twelve month net income has nearly doubled over the past 5 years alone as businesses continue scaling efficiently:
Data Source: Macrotrends
Its ability to monetize various services among billions of users makes Google a cash generation machine even in turbulent economies.
Of course, risks facing Alphabet stock exist too around regulation, competition in cloud/ads from Amazon/Meta, and adapting to tech shifts. But its strengths still make it a long-term winner in many investors‘ eyes.
4 Tips for Getting Started Buying Google Shares
If exposure to Google fits your investment objectives, here are some best practices as you evaluate possibly adding its stock:
1. Choose an Investing Account Provider
Carefully select a brokerage, robo-advisor, or fund provider best matching your preferences on fees, account minimums, trading abilities and so on. Fund your account to align with your risk tolerance.
2. Maintain Portfolio Diversification
Rather than overweight on any single stock, build a balanced portfolio including index funds, bonds, alternatives, and cash. Diversification helps manage overall risk.
3. Research Google‘s Latest Financials and Industry Outlooks
Before buying shares, understand Google‘s financial health, growth estimates, what macro trends may influence performance, and how government policies could affect the stock.
4. Take a Long-term, Disciplined Strategy
Google‘s stock will fluctuate daily, but focus on long-run potential based on economic moats. Cost average over time vs. market timing. Reinvest dividends and stay patient.
Proper research, diversification, and discipline gives you the best shot at generating solid returns alongside Google‘s rise. But remember all equity investing involves risks of capital losses. Weigh your personal risk appetite as you make decisions.
Best of luck with your investing journey! Please reach out with any other questions I can answer.
Disclosure: All investments involve risk. This post is intended for education around investment options, not personalized advice. Please consult a financial advisor about what may work best for your situation before investing capital.
