In this article, we will look at 5 blue-chip stocks to buy according to billionaire Richard Chilton. If you want to read about Richard Chilton’s investment philosophy and his hedge fund’s performance, you can go to 10 Blue Chip Stocks To Buy According To Billionaire Richard Chilton.
5. Alphabet Inc. (NASDAQ:GOOG)
Chilton Investment Company’s Stake Value: $91 million
Percentage of Chilton Investment Company’s 13F Portfolio: 2.18%
Number of Hedge Fund Holders: 160
The parent company of the prominent and widely used search engine, Google, Alphabet Inc. (NASDAQ:GOOG) is a California-based tech conglomerate. One of the largest tech companies in the world based on revenue, it is a part of the Big Five tech firms. As of Q1 2022, Chilton Investment Company owns 32,749 shares of the tech giant, valued at approximately $91 million.
On June 1, Morgan Stanley analyst Brian Nowak lowered the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,000 from $3,270 and maintained an Overweight rating on the shares. The analyst lowered estimates in the internet space to reflect a more conservative online advertising and e-commerce view amid “rising macro and micro uncertainty.” Given the probability of a recession, the analyst states that he is taking a more “pragmatic approach” with his online ad and e-commerce estimates.
At the close of Q1 2022, 160 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) with stakes worth $29.58 billion. This is compared to 158 positions in the previous quarter with stakes worth $36.62 billion.
Farrer Wealth Advisors mentioned Alphabet Inc. (NASDAQ:GOOG) in its first-quarter 2022 investor letter. Here is what they said:
“We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)