ChatGPT said:Google is a super-strong company with a huge moat, great growth, and a healthy balance sheet — and that’s why Buffett finally bought it.But even though Google is high quality, the stock looks pricey today, so other opportunities might offer better returns right now.
To be honest I don't like it that you advertise Google as a Buffet purchase for retail investors. Most probably it is a Ted or Todd purchase. Buffet mentioned many times during the AGMs that he doesn't touch ~30B portion of the portfolio that Ted and Todd manage. The minimum would be to point out that it is most probably not a Buffet purchase and not to go with the hype headlines.
I've written a piece that may be of interest to you concerning the 56% revenue concentration in Google Search and how this could decline due to LLM usage. It is a bit dated by now but I think the principles still hold up.
Interesting business review. There is maybe a small typo in your article
You compare EPS Growth and FCF Growth
"EPS Growth past 5 years (CAGR): 31.4% (FCF growth > 7%? ✅)
EPS Growth past 10 years (CAGR): 24.1% (FCF growth > 7%? ✅)"
Thanks! It should say EPS growth between brackets
you didnt address chatgt potential effect on GOOGL revenues
It's in the risk section!
To be honest I don't like it that you advertise Google as a Buffet purchase for retail investors. Most probably it is a Ted or Todd purchase. Buffet mentioned many times during the AGMs that he doesn't touch ~30B portion of the portfolio that Ted and Todd manage. The minimum would be to point out that it is most probably not a Buffet purchase and not to go with the hype headlines.
Hi Kristof,
I hear you. And to be honest I think you are right. I don't think Buffett is making a lot of investment decisions at Berkshire Anymore.
Are you going to the Berkshire AGM next year? Would love to see you there!
I've written a piece that may be of interest to you concerning the 56% revenue concentration in Google Search and how this could decline due to LLM usage. It is a bit dated by now but I think the principles still hold up.
https://open.substack.com/pub/armstrongap/p/googles-llm-problem?utm_source=share&utm_medium=android&r=1vxcgi
Crypto will rally next
What has that got to do with an analysis of Alphabet?
typo in the total quality score table under "valuation" : forward valuation should read 27.6x, not 42.5x
Correct. Will adjust. Thanks for highlighting!