Core Growth Stocks for Your Portfolio – Google Inc (GOOG)

Video ad spending is also projected to explode over the next three to five years. According to eMarketer, online video spending is set to grow from $4.14 billion in 2013 to $8.04 billion by 2016. YouTube, the number one video service on the Internet, will take most of the growth in this category.

Risks to watch

Of course, the technology landscape is evolving and Google Inc (NASDAQ:GOOG) could find itself on the wrong side of the next major development. Google itself illustrates just how fast this industry is changing. Only 15 years ago the company was nothing more than a university science project.

Here’re two key risks to watch out for.

First, new technology could reduce the effectiveness of search. Index spammers could reduce the integrity of the company’s search results, propriety document formats could prevent the search engine from accessing content, and new technology could block advertisements.

Second, new legislation could impede the company’s growth. Today, Google rules over the Internet like a 21st century robber baron. But recently the company has come under scrutiny from governments, who see the company’s moat not as a strength but as a threat because of its anti-competitive implications. Google is routinely under review for privacy issues, piracy, and copyright infringement. Investors may be better served listening to gossip from Washington D.C. than Silicon Valley.

Foolish bottom line

In the case of Google Inc (NASDAQ:GOOG), its strategic positioning is what sets it apart from its peers. Because Google commands a dominant position in several high-growth sectors of the economy, this company belongs as a core holding in your portfolio.

The article 7 Core Growth Stocks for Your Portfolio – Google originally appeared on Fool.com and is written by Robert Baillieul.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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