5 Best Stocks to Buy Today According to Value Investor David Abrams

4. Alphabet Inc. (NASDAQ:GOOG)

Abrams Capital’s Stake Value: $391 million

Percentage of Abrams Capital’s 13F Portfolio: 8.5%

Number of Hedge Fund Holders: 156

Alphabet Inc. (NASDAQ:GOOG) is Google’s holding company, as it owns not only the renowned search engine but also other companies and products such as YouTube and Google Cloud.

Mr. Abrams’ hedge fund had a stake of $391 million in Alphabet Inc. (NASDAQ:GOOG) during last year’s third quarter, which represented 8.5% of its portfolio and came courtesy of 146,440 shares. For the same time period, 156 out of 867 hedge funds also had a stake in the company according to Insider Monkey’s research.

For its fiscal Q3, Alphabet Inc. (NASDAQ:GOOG) earned $65 billion in revenue and $27.99 in GAAP EPS, beating analyst estimates for both. The company’s price target was raised to $3,200 from $3,000 by Morgan Stanley in a November 2021 analyst note, which shared optimism for the recovery in advertisement spending.

Alphabet Inc. (NASDAQ:GOOG)’s largest investor according to Insider Monkey’s research is Chris Hohn’s TCI Fund Management who owns 2.9 million shares worth $7.8 billion.

Giverny Capital mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter, stating that:

“During the quarter we trimmed two positions, (which includes) Alphabet, after significant run-ups. Alphabet remains our largest holding at a 9% weight. When it rose above a 10% weight in late July, we brought it down a bit. I won’t automatically trim a position when it reaches the 10% threshold, but Alphabet nearly doubled from the summer of 2020 to 2021 and it felt responsible to take some gains.”