Alphabet Inc (GOOG)

If you have a 5 to 10 year timeframe then you could get it. This is a great company that is not exposed to tariffs. They are exposed to regulatory risks, however.

The go-to name in tech, in online advertising (and better than Facebook). They could monetize assets like Android and YouTube for billions. They have excess cash flow they're putting into areas like self-driving car, Waymo. (no dividend,
Analysts' price target: $1,393.13)

Has one of the best balance sheets in the world. Their business model is not slowing down. They have so much going on. Looks real good long term.

AMAZON or GOOGLE? Neither. As a value investor, he can't justify the high valuations of the FANG stocks. Value will become more important in the coming years. Momentum has had its day. These stocks can be vulnerable.

Valuations have been dropping to a more reasonable level even though growth is very brisk. Revenues grew 26% last year. It is becoming a mature company. Targeted advertising is still nascent, a boon for advertisers, and the transition from traditional advertising models to digit is far from completed. (Analysts’ price target is $1364.89)

This is the stock they have picked in the large cap tech stock sector. They continue to report very strong numbers. Cloud based business is performing very well. Would wait for a pull back to buy.

Google vs. Alibaba: He owns both. Both have leadership in the West and China, respectively. Under 25% of Google's revenue stream comes from the search engine, then they re-invest it. The search engine is like a piggybank and takes up a huge proportion of overall online advertising revenue. Similarly, Alibaba is dominant in China. They have long runways (as noted in how Google reinvests revenue from searches). As for Trump's tariffs, these are nickels and dimes against the big scheme of themes--unless the tariff war escalates.

(A Top Pick March November 6/17 - Up 9%) People spend hours on YouTube or pages. A great story. Mobile advertising. What is not to like. They have been smart with their acquisitions.

(A Top Pick May 28/18 Up 7%) A powerful company that continues to deliver. An 84% percent annualized return thus far, he says. His analyst is neutral today, but he feels it is still a core holding. Revenue grows at 8% a year, earnings growth of 20% a year trading at a 20 times multiple make this a good investment.

Entry point now? The way to think about it is that it’s like a utility. One of their favourite technology investments. When the name is synonymous with the task, that’s a dominant position. Stock has had a great run, but it’s not expensive at 16-17x PE. They’re innovating, investing in all kinds of businesses, they have YouTube which isn’t fully monetized yet. Market pullback is a good time to look at it, but it’s also a difficult market. A great company. You could start a position now and take a very long-term view. Comfortable it’ll be higher in 5-10 years.

Entry point now? The way to think about it is that it’s like a utility. One of their favourite technology investments. When the name is synonymous with the task, that’s a dominant position. Stock has had a great run, but it’s not expensive at 16-17x PE. They’re innovating, investing in all kinds of businesses, they have YouTube which isn’t fully monetized yet. Market pullback is a good time to look at it, but it’s also a difficult market. A great company. You could start a position now and take a very long-term view. Comfortable it’ll be higher in 5-10 years.

(A Top Pick May 14/18, Up 4%) This is a space that continues to grow. He likes that people are coming to their ecosystem.

This company is a search engine ad company, but they also have investments in the cloud and AI, where they are a leader. They have 33 quarters of over 20% growth – phenomenal. He likes the company, but says it could be subject to a pullback when the technical cycle peaks.

Bought it a couple of years ago. They’d be buyers below $1100. As the leader in search engines, they’re going to garner digital advertising dollars as advertising budgets move from traditional spaces to online. Other divisions have promising businesses, such as the driverless car unit. They’re in a secular growth area. Expecting growth of high teens for the foreseeable future. Managed topline growth of 20% plus despite their size. Brought in more financial discipline, reasonable valuation, lots of cash on balance sheet.

(August 1, 2017, Up 15%) One of his largest holdings. 20% revenue growth. There's a lot of investing in alternative business is the criticism, but it's a solid, core holding.