Alphabet Inc (GOOG)

They are big disruptors and are an important part of a portfolio. It is an extremely well run company and they reinvest intellectual capital to drive growth.

This is a shift to secular online advertising. Having the largest search engine, they usually garner a large percentage of any company’s advertising. In terms of actual online advertising, it only represents about 35% of their overall budget, so there is still a lot more room to grow as companies shift out of some of the more traditional forms of media on to online. Trading at about 22X forward earnings, and feels they can grow their earnings in the double-digit range. (Analysts’ price target is $967.70.)

This is one of these longer term stocks in which he accepts a bit of a pull back. It bases, breaks out, bases and breakout again. The worst case scenario is that it drops to the bottom of its base of about $700.

One of his favourite companies. Thinks it just cracked through its 52-week high. It was grinding for a little while back in 2015, because it looked like the company had gotten its eye off the ball with some of their moonshot ideas. However, the core business of ad revenue has been immense. He is not worried about this.

(Market Call Minute.) The stock has pulled back, so this is an absolute must buy.

(Top Pick Oct. 15/15, Up 20.19%) It has an excellent trend but it is rolling over a little bit. It should stop just below $780. He is holding it and thinks it will be good long term. The street likes it.

GOOGL-Q vs. AMZN-Q. He does not think AMZN-Q will pay a dividend. They are both equally interesting companies to own. AMZN-Q is going to reinvent retail. It is a unique story but you are paying a high multiple. GOOGL-Q is very interesting because if you are advertizing it is either GOOGL-Q or FB-Q and the former has a lead over the latter. They will continue to grow. You want to own both if you can find the right time. You have to expect volatility in both of them.

A huge disruptor that is changing many, many different industries. Trading at about 21X earnings and growing at about 20%. Has the ability to monetize mobile and continue to refine mobile and search and advertising along specific lines. Their ability to increasingly get into financial services, offering car insurance for example because they know exactly how you drive.

With the size of the company is the rate of growth they are able to accomplish. There is rising earnings and falling valuation. This is a nice comfortable place to be. It has consolidated for 6 months and is a good place to get in. They even have a division with a mandate to cure death.

He looks for secular structural themes that go on whether or not the economy is getting better. This is right in the centre of digital advertising. Digital advertising is still growing very rapidly and taking market share from traditional broadcast media. This is the thousand-pound gorilla. They have growth in many different areas. You don’t pay a lot for some of the “skunk works” operations they’ve got going on in the background, but that could have real value going forward. This has consolidated over the summer and sitting very close to the highs in a market that is not. This area will grow 10% a year going forward, and their growth is accelerating.

They will monetize Android at some point. They own the search space. They know everything about the consumer. Their mobile platform is growing significantly.

(Market Call Minute.) One of the finest companies around. Just a phenomenal company that is hitting it out of the park.

(Market Call Minute.) A company that continues to grow rapidly. Its multiple has come down to fairly reasonable levels. Their initiative is just as strong as it always was.

This is a simple story. Online advertising, a high growth area. Between this company and Facebook (FB-Q) they own it totally. The greatest search engine in the world. They have the Android operating system, which is on 70% of the smart phones out there, and they give it away for free. If they ever monetized it! They make great acquisitions.

(Market Call Minute) In three months time who knows, but in 5 years it will be a beautifully growing company.