You might have heard that Google (GOOG) is on the verge of completing its $1.1B acquisition of Israel-based mapping company Waze. On the surface, this could be seen as a surprising move. After all, if there is one company that does not need help with its mapping software, it would be Google. Not only do Larry Page and other Google execs think they have the best mapping product available (I doubt anyone would argue that), but they also feel like no one will be able to catch up.

Apple Reinforced That Confidence

If you remember well, when Apple (AAPL) upgraded its iOS over a year ago, it was forced to come out with its own mapping software because its deal with Google was going to expire. That ended up being a disaster for Apple as the product didn’t come close to meeting expectations. Instead, it made it obvious that the only way to get good maps would be waiting on a Google app which did end up being released a few weeks later. Since then, Apple has been working extremely hard on improving its product and while everyone would probably agree that it has done just that, it’s still years behind Google’s maps.

In Comes Waze…

Waze is a unique product in the sense that it’s a mapping product used by tens of millions of users which also has a social aspect. Users tend to add and share information about traffic, road obstacles, etc. That makes it unique and explains why Apple and even Facebook (FB) are reported to have made offers in the past few months. Apple’s offer was too low and Facebook did not want Waze to keep its Israel based HQ which ended up paving the way for a Google deal. Larry Page offered a reported $1.1B and for Waze to remain independent.

Why Is Google Making This Move?

I think it’s a very fair question to ask. The main thing that buying Waze brings is the ability to keep it out of its competitors hands. Google has a competitive advantage in maps. One that can be leveraged over and over. If I take a minute and look at Facebook’s social advantage, it’s a lot more tricky to manage. Why? Because potential competitors are coming up every few months (from Instagram, to Tumblr, Vine, etc). It becomes very expensive for Facebook to keep buying these companies. On the other hand, there are only a handful of decent mapping products and it’s very expensive and difficult to build one from scratch. Waze could have been leveraged to build better Apple maps or a more precise Facebook local. Instead, for a fairly small amount of money, Larry Page just made it even more difficult to compete with Google maps.

In my opinion, this was a brilliant move by Google. In retrospect, it’s not surprising though. Was it worth +$1B for Microsoft, Apple or Facebook to get a helpful partner in competing with Google maps? Perhaps. But it was worth much more than that for Google to keep one of the few solid mapping companies out of the hands of its competitors.

What are your thoughts on the Waze acquisition by Google?

One of the aspects of personal finance that I rarely discuss because many readers are more interested in finding their stocks themselves are companies that do wealth management. They generally will have your money transferred to them and will charge an annual fee (generally % of your assets) and then they will reinvest it as best as they can. The major benefit is that it’s relatively hands-off, which may become the best option for all of us at some point.  The downside of course is that the fees would generally be higher for such options. I do have a few relatives using such services and they seem to be very happy with the results. I sometimes get tempted to offer my services against those fees but such arrangements can often not work out as planned.

How To Find Such Brokers

I’d say that in general, if they’re able to find out that you have some money to invest, they will be able to get to you. In other cases though, it can be good to look online for information. In the US, Merrill Lynch has a fairly solid reputation and can be a very decent option. While Merrill is present in most major countries, there are often more local players that have significant presence such as Investors Group in Canada and Suncorp (view the Suncorp Super Website). These brokers can typically offer all kinds of solutions that will include annuities but also custom products such as the Suncorp Superannuation.

I would not go as far as saying that this type of product is for everyone but it certainly can be useful for a certain part of the population that are looking for easy and convenient ways to have their finances taken care of.

Have You Worked With Wealth Management Shops? If so, I’d love to hear your thoughts

Good morning! Today, I’d like to wish you all the best for the New Year. I was incredibly blessed in 2012 in all possible levels and I’m very thankful. Perhaps one thing that did not go as well as I would have liked is my actual trading. I’ve had a couple of very good years prior to that and did have some good calls (including my long Facebook position). Still, I’m hopeful that I can do a better job in 2013.

I do hope you also had a good year, health, happiness and quality time with your loved ones.

Are you into New Years resolutions? I am to some degree but I guess we’re all very different.. I’m hoping to run my first marathon at some point, to be in better shape, and have more time with my familyJ May you be able to fulfill all of yours as well,

All the best, I’m looking forward to your comments and feedback in the New Year.

IntelligentSpeculator

Hey everyone, I hope you are all doing well, with a great weekend just getting started! I’m really looking forward to tomorrow’s Euro action and seeing the results of the Greek elections.. should be very interesting:) Here are some readings if you have some free time!

-Not All ETF’s Are Cheap @ BuildYourETFPortfolio
-Does investing in gold make sense? @ Dividend Ninja
-Making the case for cash @ Monevator
-Should asset allocation change with age? @ ObliviousInvestor
-House buyers: Is 20% always better? @ MoneySmartsBlog
-Washington vs The Middle Class @ TheBigPicture
-The Definitive Lesson In “New Normal” European Geography @ ZeroHedge

Dividend Investing Readings:

-The investing fee that makes a $300,000 difference @ TheDividendGuyBlog
-Starbucks (SBUX): Substantial optimism is built in @ DividendMonk

Tech Readings:

-Has Zynga Peaked? @ Wall St Cheat Sheet
-Facebook exchange, a new revenue source? @ TechCrunch

I’m a fan of Matt Taibbi’s work and while I don’t agree with everything (or perhaps even most) of his work, it is always very interesting and entertaining, you can read his latest piece about Bank of America here. Other than that, Peyton Manning is apparently down to 3 possible destinations… 49ers would be amazing:) Oh well, back to investing, here are some great readings for the upcoming week:

-Daily ranking of the world’s 20 wealthiest individuals @ Bloomberg
-Truth about technical analysis @ Long-Term Returns
-Is the increasing income gap a myth? @ AllFinancialMatters
-Target Date Funds/ETF’s, Good Products, But For Who? @ BuildYourETFPortfolio
-60% of US workers have less than $25,000 saved @ CuriousCat
-Italy said to pay $3.4B to Morgan Stanley on a derivatives loss @ Bloomberg
-The man who broke Atlantic City @ The Atlantic

Dividend Readings

-Dividend Stock Battle Can Campbell Soup Flood Heinz Ketchup @ TheDividendGuyBlog
-3 Dividend Payers Benefiting from the Network Effect @ Dividend Monk
-The Poor Rich Need Dividends? @ Dividend Mantra

Tech Readings

-The Final Facebook IPO analysis @ ZeroHedge
-Why UBS Just Cranked Up Its Apple Target To $675 @ ClusterStock