Well if you look at the interview, the next question is about large purchases and that those require review. I.E. These two items were very small when they were bought, Youtube (the example given) wasn't and requires evaluation to make sure it will pay off.

Pulling this quote out of context is trying to make it look like Schmidt wasn't in the know. When in reality at the time these were bought they were very tiny, and only grew into the "power-houses" they are now under Google's tenure.