Alphabet Inc (GOOG)

Really excelled. They control the "pipes", and now the chips (via Tensor, though it's more for software than hardware), and the eyeballs on screens. They have it all. He's trimmed only because his firm never puts more than 10% in any one stock.

Sergey Brin returning has been a game-changer; he's taken out the bureaucracy and slowness--Google had not executed in recent years. We see his presence in the share price now.

Prefers Alphabet to Nvidia and is a bigger holding for him. Eventually, there will be competition for Nvidia, whose margins are much too big.

Up 70% this year. So well integrated vertically--YouTube, internet search and ads.

It went from AI loser to AI winner over the past year, yet still trading at a low PE. They posted great numbers. People are positive over Gemini 3. ChatGPT did not take over search from Google. Also, YouTube continues to do well. People don't give enough credit to Waymo's driverless cars. GOOG will continue to do well. They have a great cloud business, too.

Is a winner as rotation in leadership happens out of Nvidia and into this name. Could be further upside here. A year ago, people hated Google.

Like many, ChatGPT blew him away three years ago, but now he's migrating to Gemini, which has unbelievably dethroned ChatGPT. GOOG shares have rocked 68% this year as many realize that GOOG was undervalued vs. the rest of the Mag 7. Then, GOOG went into overdrive as people saw Gemini 3 and were blown away. GOOG already had an advantage, because GOOG knew how to link their search engine to Gemini seamlessly. Genius.

At the very top of the trend you have AI and the hyperscalers such as GOOG, AMZN, and MSFT. They're putting the boots to software companies. GOOG has produced a quantum computing chip, which calculates millions of times faster than AI chips.

You want to have at least one of these hyperscalers in your portfolio. If quantum computing becomes reality in the next 5-10 years, those are the names that will dominate the space.

If you're worried about the bubble bursting, then it's important to be disciplined. Buy it, and if it doubles in price you take half off the table. That protects your downside over time.

Not extremely priced, but reasonably priced. Between 20-25x PE going forward. Lots of great underlying growth. Gushing cash, and sees that ramping up. Spending a lot on AI. Whether AI works or not, still going to be gushing cash from its other businesses. GOOG has taken off, while META has actually dropped quite a bit. 

Has risen from above-average in his relative strength ranking to this top 10, the best among the Mag 7. Is less volatile than its peers than Nvidia or Amazon, for instance. Is more steady Eddy at a time when investors want stability.

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.