One Family's Blog

Google: A Hard Sell For Superior Returns

You are absolutely correct. The calculation should use nominal GDP. That number for 2006 was $13.2T. 10 years out, it will grow to $21.5T at 5%. Google valuation will have to be between 5.4% and 12.6% depending on the growth assumption of 23% and 34% respectively - again, a highly unlikely scenario...

We have changed our blog post to reflect this as well - www.onefamilysblog.com .

Thanks a lot for pointing out this error.

Regards,
One Family's Blog