Bespoke Speaks: Google (GOOG) and Shanghai PE Ratio

Bespoke Investment Group's blog is one of my favorites. Run over there and bookmark it - tons of interesting stuff to sift through, especially for a data lover like me.

They have 2 interesting articles I am bringing over here

1. Google (GOOG) is now the 12th largest US company by market cap @ $187 Billion and should pass Berkshire Hathaway (BRK) by 9:32 AM tomorrow. Johnson & Johnson (JNJ), Chevron (CVX), and Cisco Systems (CSCO) are all within spitting distance at under $200 Billion. It only looks like a matter of time (days?) before Google slides into spot #8 among all US companies - in 1 part amazing, on another level think if all the advertising on TV belonged to 2-3 companies, and 1 company was far and and away the most dominant - how much would it be worth? Apparently about $200 Billion and growing.

I am still curious if the slowdown in financial sector companies will dent Google's armor. That theory seems so far away and forgotten now....

2. Here is a historical graph of Shanghai's historical PE ratio, over the past decade. It shows that the current 50s range was actually surpassed around '00, when the index topped at 60. So the good news is there is more room to run historically. The bad news? After topping out around 60 the PE ratio dropped to below 20 by 2005 - could it happen again? Never say never. But until then, ride the wave.

Long Google in fund; no personal position