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Does Google Offer Investors a Competitive Advantage?

By Tim Beyers – Feb 24, 2014 at 5:33PM

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The search king starts a new fund in an effort to cash in on its knowledge of the world around us.

Anyone who doubts the usefulness of Google's (GOOGL -0.90%) mission to organize the world's information isn't paying enough attention, Fool contributor Tim Beyers says in the following video.

Certainly, better ad targeting is part of the strategy; yet there are also bigger themes at work. Earlier this week, the company formally introduced Google Capital to the world. The goal? Complement Google Ventures with a fund aimed at investing in companies further along in their development, but which could still benefit from a fresh infusion of capital.

What makes this particular project interesting is how the fund will invest. In a recent interview with Bloomberg, Google Capital partner David Lawee said that the idea of building a successful investment firm that "leverages the insights of Google" is a "20-year vision."

Tim finds the language curious, and potentially disruptive. How so? Imagine partners and analysts at both Google Ventures and Google Captial armed with reams of data about emerging trends the rest of us have yet to see. Investing into those situations could produce massive returns, Tim says, and ample rewards to Google shareholders.

Now it's your turn to weigh in. Do you believe Google's investing teams have a built-in competitive advantage? Please watch the video to get his full take, and then leave a comment to let us know where you stand, and whether you would buy, sell, or short Google stock at current prices.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Google. The Motley Fool owns shares of Google. 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.

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