Bullish Case for Alphabet

Investment Analysis Clubs Saul’s Investing Discussions
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Please bear with me on this. I understand this is not a ‘Saul stock’ so to speak, but this value investing article presents a good thesis for the bullish case for Alphabet from a growth point of view. Hope it is of use:

So Why Not Google It…?

Just days later, we got our first hint that Buffett himself was buying Apple! Followed shortly after by that bombshell CNBC interview (here’s the transcript), where he revealed an $18 billion+ Apple investment*, the vast majority bought by him in Jan/recent months (& the rest by Todd/Ted in early-2016). What better confirmation of my assertion that value investors – even the greatest of them all, at 86 years of age – would be wise to pose such a question to themselves!?

[*Pretty sure Apple is Buffett’s largest common stock investment ever (on a cost basis). In fact, I wonder if it’s the largest stock investment ever made by a single investor (again, in terms of cost)? Sure, Todd/Ted/Charlie did provide some inspiration/feedback here, but we can be damn sure Buffett never buys anything ’til he makes his own mind up! So: Your thoughts/feedback?]

Granted, I got lucky…

Was I confident I’d see Buffett talking up an Apple position just weeks later? Um, no… [Don’t forget, Icahn announcing a multi-billion holding some years back was a huge surprise too!] And maybe I chose it specifically as the largest & most obvious/controversial value stock out there. Not to mention, the head fake I pulled: While I did summarise its attractive fundamentals/valuation, my post clearly wasn’t intended to be a detailed thesis. But hey, it was still the right question at the right time, so I’ll take the kudos!? And Buffett’s purchase now serves as great inspiration to present a genuinely compelling investment thesis here. Yeah but, just not Apple – I mean, who even needs a thesis right now when Buffett’s put so much money where his mouth is?! Instead, we’ll focus on a company which is arguably the antithesis of Apple – therefore, I ask:

So Why Not Google It…?

Continue reading:
https://wexboy.wordpress.com/2017/03/16/so-why-not-google-it…

6 Likes
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Many thanks for that, wanu, also the Lindsell Train piece link was absorbing.

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So Why Not Google It…?

https://wexboy.wordpress.com/2017/03/16/so-why-not-google-it…

Thanks for the link wanu!
Well worth the time to read this longish piece on Google.

JT ~ Google, a Core Holding

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Lindsell Train piece link was absorbing

He’s building an Anthony Bolton like reputation in the UK. I’m considering one of his funds (Finsbury). He gets growth from very boring every day high frequency low risk consumables. Almost the opposite of the tech heavy go go model we seem to be verging on here.

Ant

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I have a stake in UK:FGT and would like to increase it but it is on the list of holdings awaiting the severe market collapse; cash preferred until that time.

Given the nature of the holdings and low turnover (I assume), it is a fascinating long-term comparator against other funds with claims to excellence.

But how old are the managers? (I am always surprised this critically-important detail is not one of those absolutely front and center in fund info. One can be occasionally surprised by a successful manager going off to run a hedge fund, but a career likely drawing to an end is predictable.)

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Lindsel Train said he had another 20 Years left in him in a recent interview.
Ant

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Anthonyms, Lindsell? Or Train? That is good news if it applies to UK:FGT.

Incidentally, you don’t see many completely irrational and astonishing things in the market but the UK’s Lindsell Train Investment Trust (closed-end fund), similarly containing a bunch of blue chips, is on a premium to NAV of over 36%!