Bought 5 shares of Google (GOOG) a few weeks ago @ $US 699.83 - the highest share price at which I have bought any stock. Even though the stock has fallen to around $600, I think the stock is still cheap and a good long term investment.

So why did I buy it?After being in the states for almost 1 year now, I have watched Google's share price continue to appreciate. It is continually in the media (good and bad publicity) and is now a common name worldwide - heck, its even an official word in the English dictionary. So apart from not wanting to miss the ride on one of the hottest global technology companies, here's why I decided to take the plunge :-

- Even at current prices, most analysts are saying the stock has got a long way to run. The consensus target is around $US 750 for this year, and $US 1000 by the end of next year.

- It's PEG ration is 1, this means that's its earnings are growing fast enough to justify its high valuation. It also has a lot of cash for future acquisitions and should be able to whether a slowing US economy better than most other companies due to it's business model and overseas exposure.

- The on-line ad market is a global market that is growing exponentially. Currently on-line advertising makes up about 2-5% of all ad dollars spent worldwide, which means that there is a lot of growth potential. Google is essentially an on-line advertising company driven by it's superior search engine. It is the best positioned to take advantage of the on-line advertising growth given its search engine domination.

- Google is already involved in other areas - Google Maps, Google Applications - however none of these is bringing in much revenue yet, just supporting the advertising model. However, recently they have been talking about launching the G-phone and in final negotiations with some leading US wireless (mobile) telecommunication companies about selling handsets tailored to its new G-phone operating system. This should provide Google with an extensive reach to consumers (70% of people here have a mobile phone) in the U.S. market to sell their advertising. Their objective is to also make applications and services as accessible on cell phones as they are on the Internet. Eventually this model can be rolled out overseas - where the mobile phone coverage/saturation is even higher than America. Australia's has about a 90% mobile phone saturation. Asian countries like Japan and South Korea are even higher. Lots of growth potential.

- I didn't buy a huge amount. My total cost was $3500, which is not a small sum, but not an amount which will bring me to financial ruin if I lose it. So I plan to hold the stock for a long time and hopefully watch the stock go to $US 1000. I will also look to buy more stock - 1 at a time - if more positive news emerges.

- Most importantly I think that the management and employees at Google are smart people. From what I have read, they have a great culture and belief in their company's future. Google reminds me of Microsoft 15 years ago - I missed out on that play, and don't want to be left out this time around.

Some good articles with more details about Googles future are :

1. Wall Street Journal Google Story

2. Google Tops $700 mark

3. AP - Googles Future