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They are following a simple Microsoft style Command and Conquer approach to the Internet much in a similar fashion to how the software and OS market was won early on.
The key isn't to invent necessarily but to innovate and provide solutions to the questions people ask the most. Also to provide solutions to questions people haven't asked yet to be ahead of the curve.
While I don't own a single damned shared of Google stock I would be way long on their stock still even at what may say is an inflated price.
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