Google announced that it was changing the name of the company to Alphabet, creating a structure that would encompass multiple parts.
All shares of Google will automatically convert into corresponding shares of Alphabet, which will continue to trade under the stock ticker symbols GOOG and GOOGL. Shares in Google soared 5% in after hours trading. The new structure is said to be similar to Warren Buffett’s Berkshire Hathaway, which wholly owns a number of diverse holdings and has stakes in several others.
Alphabet's structure.
- Google’s health companies like Life Sciences
- Calico, a division investigating aging and other diseases,
- Non-Google divisions of Alphabet will also include X lab
- Wing, its drone delivery effort,
- Nest, its “internet of things” division,
- Fiber, high-speed Internet service in a number of American cities.
- Investment arms, such as Google Ventures and Google Capital.
The main investment secret: profit is less important than pace of growth.
