Alphabet Inc (GOOG)

Trimmed, as the position hit his team's maximum weighting. Giant in the search engine space. AI is picking up. Paying 26x PE for 16% growth, a very fair PEG ratio. YouTube performing extremely well, as are hardware products/services. Additional services keep consumers looped in. Long term, should continue to perform very well.

They were lagging in AI, then put out a new AI product and shares soared. Google has its own data centres, whereas openAI must find data centres. So, Alphabet is well-positioned. And Google search is not dead.

The question was on adding to these companies. He likes them both. Amazon is a hybrid with its e-commerce side and web services. AWS controls about 30% of the world cloud services. Its valuation is reasonable with a low 30's P/E. Google has about 10% of the world cloud services and is trading at a mid 20's multiple. Had a good earnings report. There is lots of upside in both.

It dominates the search field with control of about 90% of the market. AI will reduce its hold somewhat in percentage but the market for searches will become much bigger. YouTube is by far the largest streaming service in the world with about two billion users. Other parts include Waymo, an autonomous vehicle enterprise. It will be a big participant in AI. Trades at a reasonable valuation of 25X earnings.        Buy 66  Hold 11  Sell 0

An interesting one. A lot of people are discussing overvaluation of AI stocks, and this is a great example. Yet it's still among the top 5 holdings in his fund, even though average price target is ~$264 (below trading price today). Everything in all of its business units is singing along at 100 mph.

Expects it to go higher and expects analysts to raise targets, but he doesn't want to trade out of it. So his team uses those mental trailing stops, without hardwiring it into the platform. Support should be down around $265; if it were to float down through that, he'd probably lighten up a bit.

Current levels make him kind of nervous, but it's just such a fantastic company.

Still dominated by online ads and search, so imperative that they innovate and stay relevant. Lots of irons in the fire, some of which could pay off spectacularly. 

You don't want to be a victim of your own success. For prudent risk management, if a single stock becomes an outsized portion of your portfolio, take some partial profits.

Trading at a discount to the S&P average multiple, even after this wonderful run. That's on the back of increased earnings. When earnings increase rapidly but the price does too, the valuation doesn't change, and a company can still remain a very good buy.

Depending on the day, commentary is that it's either winning or losing the AI race. It's all just noise. What matters is that they're in the AI race. YouTube, Waymo, and other initiatives are all irons in the fire.

Core holding for a very long time. Printing press for money. Debt-free balance sheet. Well positioned for the future. Recent catalyst has been that anti-trust penalties less severe than feared. Holding, as it's now above his buy price.

The question was on his opinion of these two companies. They're different sizes and in different spaces. What will the business models look like. Both should continue to do well. He owns Amazon which is among the AI leaders. Interest rates will continue to drive the markets.

Things change quickly in the space. Was viewed as AI runner-up, and now seen as a leader. Search was seen to be in jeopardy, but now that view has changed as well. He looks at valuation and steepness of revisions on earnings estimates. He's buying for new clients.

Is up 33% this year, 4.49% today alone. He made the mistake of selling it, because he feared the government would come down on them for anti-trust. Didn't happen. This and the Mag 7 have much more room to run. 

A 2 to 3 year timeline is the sweet spot for a long term investor. It is generally easier to form a thesis over three years. Acceleration is remarkable and no case has been made for a monopoly. Google can compete on the AI front and there is not as much focus on the search component. The value of the sum of its parts is greater than people realize.

It has been allowed to keep Chrome so that decision is good for the company. The legal system in the U.S. can't keep up with the fast pace in the market place, especially tech. The anti-trust laws were created over 100 years ago. Google hasn't raised or lowered prices and lots of it is free.

Great week, partially because US government announced no breakup. Cheapest of the Mag 7 at 22x PE, growing 20% a year. Negative is that ChatGPT will encroach on Search. Waymo is, by far, the leader in self-driving. Great business.

How will AI impact their search engine? So far, so good, though. Will be fine.