Why Google Might Keep Flying in 2014

Does this analyst make a good case? Or is it just more noise from Wall Street?

Jan 15, 2014 at 9:43AM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Google (NASDAQ:GOOGL) gained slightly this morning after Nomura Securities initiated coverage on the Internet search giant with a buy rating.

So what: Along with the buy rating, analyst Anthony DiClemente planted a price target of $1,300 on the stock, representing 13% worth of upside to yesterday's close. While value investors might be turned off by Google's strong share price over the past year, DiClemente believes there's more room to run given the strong operating momentum still working in its favor.

Now what: Nomura expects Google to post full-year EPS of $44.15 in 2013 and $53.68 in 2014.

"We believe that there are three key reasons to own Google: 1) Google's Android operating system is winning the mobile platform war, providing Google with a superior business model across services; 2) Google's monetization of the local ad market represents a material forward driver; and 3) growth in Google's media assets (Google Play, YouTube, Chromecast, and Google Fiber) bode well for media content-related revenue streams," noted DiClemente.

More importantly, with Google still trading at a forward P/E in the low 20s, there certainly seems like enough room to buy into those trends.

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Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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