Alphabet Inc (GOOG)

Tons of runway ahead. Google search, Gmail and Youtube make up 80% of their revenue. They are an advertising giant. Would still buy it.

Amazon is growing on the advertising and could be a threat. He would be cautious because of that.

Added shares during the pullback as it dropped below 1100. Google still has a long way to run and the parent company has growth potential in many new areas. Grows its top line over 20% annually. Regulatory scrutiny, such as antitrust scrutiny, is the biggest risk for the company.

(A Top Pick Feb 8/17, Up 24%) It has been a great place to be. Their other areas are a drag, like autonomous driving and so on. It would be nice to see them get the ‘other’ bets’ size down and give more disclosure. They have enormous cash to repatriate.

32 quarters in a raw for 20% plus revenues growth. Amazing margins. They are killing on digital ads. (Analysts’ price target is $1271.39)

Great company. Ranks it third among the FANGs. Ranks Facebook and Amazon higher. Can't comment in detail about Google's recent tax hit due to U.S. tax reforms, except it's a one-time thing. Don't buy or sell based on deferred taxes.

FANG stocks have very expensive valuations, and in many cases, it is indicative of the light stage in the market where the economy is flowing through the higher growth names. They are also the natural fund flows for a lot of ETF's. If we get a correction, the very expensive stocks tend to come under pressure significantly. He recognizes this is a great company, but would tend not to buy it here. As an alternative, consider Infosys Technologies (INFY-N).

(A Top Pick Jan 26/17. Up 37.38%.) This is a search and social media, and uses different tactics to attract users. It is starting to grow into its multiple. Trading at less than 30X 2018 earnings, so it is not expensive.

Out of the FANG stocks, this is probably the one he likes the most. Long-term their position is pretty unassailable. They are the leader in search as well as a number of other businesses. It just continues to grow and put up more and more earnings. Starting to get a little pricey, but is still his favourite, and thinks it will go higher.

It's amazing how incredible the company has been. He wonders if there will be regulations cracking down on the kind of monopoly behaviour they have. This would have to be a lot lower in price for him to own it.

Feels this is one of his best ideas, and would have no hesitation in buying this, even though the fang stocks have had an amazing move. This is such a dominant business, and they have so many wonderful assets. The moat around YouTube is incredible. A very attractive stock.

It’s a business he really likes. One of their favorites in the FAANG stocks. They’ve been very consistent growers and you’re still not paying up considerably to own that growth. They have a lot of different growth drivers. They are a leader in artificial intelligence. He likes their handset business which he thinks hasn’t had much attention and thinks it could eat some of Apple’s share. (Analysts’ price target $1178.)

He likes it. Quite a good company. Has shown a long history of return on capital that’s really quite impressive. But getting slightly worse, return on capital has gone down but stock price has gone up. That would generally be counterintuitive normally. The stock would go down. But they have so much cash on their balance sheet that the returns do get dragged down. If you take out the cash all of a sudden you realize that the return on capital is outstanding. It’s a stock you have to own. It’s so good, they are changing the world, they make a ton of money.It’s an amazing company.

This has been very, very good. There are multiple engines in it. Doesn't think people in this age can do anything without using this. Valuation is something he has always struggled with. If it ever had a pullback, it’s something he would seriously look at.

This has done extremely well on the price side, but its valuations have become less and less expensive, which means the fundamentals are growing at a faster pace than the price. Last quarter, they reported a year-over-year revenue growth of 24%.