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Would You Rather Own Google or Indonesia?
11-10-2005, 08:30 PM
Post: #1
Would You Rather Own Google or Indonesia?

This story ran on Bloomberg Financial News today and raises an interesting point about the power and value of the internet:

Quote:By William Pesek Jr.
Oct. 11 (Bloomberg) -- Faced with poverty, surging oil prices
and terrorist threats, many of Indonesia's 235 million people
probably never noticed the milestone. Ditto for global investors,
who care more about such things.
In April, Google Inc. surpassed Indonesia's entire stock
market in value.
Think about it. A seven-year-old company that produces no
physical products is now more valuable than the equity of
Southeast Asia's biggest economy. Indonesia is an archipelago of
some 18,000 islands holding natural resources --including oil --
that make the world's richest nations salivate. Google is, well,
an Internet search tool.
It raises an intriguing question, and one Mark Matthews, a
Singapore-based director at Merrill Lynch & Co., posed this week
in a sales note to clients: Which would you rather own: 100
percent of the Indonesian equities market or Google?
A bit existential perhaps, but a question that focuses the
mind and gets at a bigger point. Matthews' take on it? Indonesia
is the clear winner.
``Indonesia is a hairy asset to be sure,'' he wrote. ``It has
African levels of corruption, thousands of islands spread out over
three time zones, Islamic extremists. But judging by the market's
ability to withstand the most recent mini-crisis and Bali bombs,
this is in the price. So there is upside if they can eventually
get it right. And it is something real.''

Seems pretty ridiculous to me and in large part is probably down to the fact that alot of US investors use google every day, but dont know what, or where Indonesia is.

I think if I was Larry Page and Sergey Brin, I'd just sell all of my google stock and go and buy Indonesia.

What would you do?

"You can put lipstick on a pig...but it's still a pig!!!"
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11-10-2005, 08:43 PM
Post: #2
Would You Rather Own Google or Indonesia?
I'd buy Indonesia and set up a new search engine for half the price over there and make even more money! :w00t:

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11-10-2005, 08:45 PM (This post was last modified: 11-10-2005 08:48 PM by karenh.)
Post: #3
Would You Rather Own Google or Indonesia?
I'd buy Indonesia and my reasons are simple.

Indonesia has vast and plentiful natural resources. Valuable ones too. By definition, you can't make "natural resources" nor can you compete with them if you don't have them. Unfortuantely of course, it also has natural disasters and is populated by people - and they are unpredictable and troublesome - but they can be managed to an extent if the right direction and incentives were put in place.

Google is merely the headrunner in a very competitive market. They are the market leader now, but technology moves so fast that there is nothing to say that they will stay ahead of the game in five years time. Theirs is the more vulnerable wealth.

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11-10-2005, 08:47 PM
Post: #4
Would You Rather Own Google or Indonesia?
Very interesting, and I was surprised to realise that I wasn't in the least surprised to read those facts - if you get what I mean?

I love Indonesia, but I am not blind to the problems there, and they are enormous. It is all built on a string of volcanos, it has horrendous earthquakes (causing the Tsunami), and some regions are still rife with cannibalism - not a pretty picture! It is also has more Muslims than any other country in the world, and the endemic problems that brings. Just this week they set fire to many Christian churches in one region, and that is a normal, everyday thing sadly. It is also (in Kalimantan, Borneo) very much into slash and burn of the jungle, so much of the time the air quality is lousy, and lethal.

For all that? I would still take it over Google and have that roller-coaster ride!

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11-10-2005, 09:47 PM
Post: #5
Would You Rather Own Google or Indonesia?
check this out


http://media.putfile.com/On-The-Streets-Of-America-3




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12-10-2005, 08:46 AM
Post: #6
Would You Rather Own Google or Indonesia?
How hilarious is that Slipper! :laugh:

"You cannot teach people anything. You can only help them discover it within themselves."
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12-10-2005, 08:57 AM
Post: #7
Would You Rather Own Google or Indonesia?
ROTFLMAO .....It is almost unbelievable :laugh: :laugh:
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12-10-2005, 09:11 AM
Post: #8
Would You Rather Own Google or Indonesia?
Sadly, that is very close to the truth for most Americans, they really only do see the world as "Coast to shining Coast", the rest is just an also ran.:sad:



Was funny though! :thumbsup:

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12-10-2005, 10:03 AM
Post: #9
Would You Rather Own Google or Indonesia?
That's a tough one. On the one hand, Google isn't likely to be here as long as Indonesia so Indonesia would make more sense for the long term. On the other hand, Indonesia is a long way away and would take a long time to get round.

I'd go for Google. :thumbsup:
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12-10-2005, 02:29 PM
Post: #10
Would You Rather Own Google or Indonesia?
er heloo.... it be Google

Indon-what?

I d take a kick ass search engine over a tin pot group of crazies any day

and as for the climate?

rubbish

Google kicks indonesia's sorry raggedy ass all over the park and back up the tunnel.

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