Alphabet Inc (GOOG)

A wonderful company. A toll road on the Internet. Advertising demand should increase as the economy improves. Online sales are still in its infancy. He prefers Apple (AAPL-Q).

(Market Call Minute.) Great brand but expensive.

Trading at a reasonable valuation. Good revenues and earnings.

(Market Call Minute.) A juggernaut. The more eyeballs they can get, the better. Mobile is great for them. Has been misunderstood in the past because paid clicks have been down. You should be looking at volume, which is the key.

(A Top Pick Aug 21/12. Up 17.93%.) His outlook on this one came from the way they were changing their advertising model. It is amazing way they are able to say to their customers 1) here’s what you are doing 2) here is what you are now willing to do and 3) here is how you are going to do it. This got a lot more traction than he had expected. Strong balance sheet. Biggest risk would be the innovation risk.

(Market Call Minute) Take profits next year to defer taxes.

Had a significant run in a short period of time. Upside on a reasonable sort of valuation metric is probably $1150-$1200. If you like those odds, then it is fine to Hold. They have the dominant market share in search but some of their enhanced programs seem to be working in bringing in ad revenue. A momentum stock and once the market throws it back out of favour, the stock can easily trade back down.

(Top Pick Aug 29/12, Up 47.63%) Biggest holding in all his funds. One of the cheapest plays on this new technology. They should split it but doesn’t know if they will. Larger server manufacturer in the world, just using them internally.

Apple (AAPL-Q) versus Google (GOOG-Q)? Thinks you can own both of these. Both are good companies. This one gives you good leverage to online advertising. There is the potential of them monetizing the Android system. They come out with innovative products. Big cash balance and there are opportunities for them to grow in the mobile space.

His 3 picks today are all technology related. He is seeing earnings and revenue growth over time and a global move towards more mobile telephone technology. This company is the largest search engine provider and one of the largest global advertisers. One of the most innovative companies in the world. Have $60 billion of cash on their balance sheet. Own the largest operating system, Android, for all mobile technology. They own You Tube and may start televising NFL football for a subscription service.

Trading at 20X forward earnings which is a reasonable multiple for this company.

This is a technology conglomerate. Involved in every aspect of technology including web, searches and mobiles. Creating an android operating system which is open and is getting the most adoption. Trading at around 18X earnings.

They have taken ideas that people questioned could be monetized and then did that well, and then expanded into mobility. The market is getting caught up in the metrics of Google. The volume has increased dramatically. They are doing great in mobile. Android was their entry point.

Likes their innovativeness. Employees get to spend 20% of their time on projects that they want to look at. Likes the package of their various projects. Trading at only 15-16 times earnings.

This is one of the great growth stories out there. If it dropped down to the $830 range, he would probably add to his holdings. They are so dominant. Earnings are growing.