Billionaire Chris Rokos’ Top 5 Stock Picks

4. Alphabet Inc. (NASDAQ: GOOG)

Shares of Alphabet outperformed the broader market trend in 2021 amid an improving outlook for ads revenue. Chris Rokos’ hedge fund first initiated a position in Alphabet during the third quarter of 2020 and added to its existing position in Q4.  The firm held 81,324 shares of Google parent Alphabet at the end of the latest quarter.

GoodHaven Capital Management, a concentrated portfolio investment management firm, stated in the Q4 investors’ letter that Google is likely to extend the growth trend in 2021. Here is what GoodHaven Capital Management said:

“Alphabet’s family of digital advertising platforms continues to quickly recover from the global economic downturn in the spring and as we expected earnings growth has resumed. In a surprise to nobody, the U.S. Department of Justice, FTC, and many state enforcement agencies are marching forward on their myriad of anti-competitive legal actions against Alphabet. We think these issues are manageable though hardly trivial. By the way, we own parts of businesses, and there are always things to worry and think about that might impact those businesses. Often, the more important things to focus on get less attention from prognosticators. At Alphabet, for instance, we have long focused on the inter-play of their historic relationship with Apple – where Alphabet appears to pay Apple at least $7 billion/year to be the default search engine on all iOS devices. This relationship figures prominently in some of the enforcement action(s) but until recently was less frequently discussed. It was, however, something we had long spent time considering and the type of deeper analysis we focus on for all our companies. Alphabet’s top line grew a very impressive 15% in Q3 2020 with many aspects of digital advertising still depressed from COVID-19. That implies that other parts of the Alphabet ecosystem – such as Cloud, Google Play and YouTube grew faster. Google shopping’s decision earlier this year to reduce listing barriers appears thoughtful. We’d think that growth overall at Alphabet could accelerate in 2021. At a below market adjusted P/E multiple we see plenty of upside over time.”