Book Excerpt: 'Google and the Mission to Map Meaning and Make Money'
Similarly, the really smart money -- the venture capital companies that helped the company set up six years ago -- were not selling much, if any, of their stake after the IPO. That is a significant vote of confidence in Google's technological leadership since 1997 and business acumen since 2000.
If buying shares in Google as a long-term investment is a good idea, and has done much better than expected in the short term, the mid-term could be troubled. Though Google's IPO priced its shares at only two-thirds of Yahoo's value, Yahoo itself and the whole Internet sector looks historically overvalued. If there is a severe correction, then Google's share price will suffer, too.
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