Long-Term Stock Portfolio: 5 Best Stocks for 20 Years

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) stands as a prominent technology giant. At the core of its operations lies Google, a search engine that handles billions of queries every single day. The firm also encompasses an array of video streaming and productivity platforms, including Youtube. Additionally, the company engages in the sale of electronic devices such as smartphones, ultra-thin notebooks, and speakers. The tech giant has been a part of value investor David Abrams portfolio for half a decade.

Bank of America analyst Justin Post reaffirmed his positive outlook on Alphabet Inc. (NASDAQ:GOOG) stock on May 11. With a Buy rating and a price target of $128, Post acknowledged the significant value brought by the firm’s AI integrations to both new and existing products.

According to Insider Monkey’s first quarter database, 155 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 152 funds in the preceding quarter. Harris Associates is the biggest stakeholder of the company, with 36.90 million shares worth $3.8 billion.

Mairs & Power Growth Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2023 investor letter:

“As we have mentioned in previous months, we have slowly reduced our underweight position in the Technology sector over the past several years, as we have added a number of names that fit our investment strategy. Many of these investments had impressive returns in the quarter and our relative performance in the tech sector was a bright spot. Four out of our top 5 performing names in the quarter were either Technology or Technology-related names, including: NVIDIA (NVDA), Alphabet Inc. (NASDAQ:GOOG), Littelfuse (LFUS), and Microsoft (MSFT). The stocks all benefited from a positive shift in investor sentiment in the quarter toward growth stocks, reversing last year’s trend. NVIDIA, Alphabet, and Microsoft also all benefited from their exposure to artificial intelligence and the headlines garnered from the widespread launch of ChatGPT a large language model developed by Microsoft partner, OpenAI. In the current tight labor market, there is a lot of enthusiasm around the efficiency this technology could bring to many industries. Alphabet and Microsoft are working furiously to build it into their products and NVIDIA has benefited as it currently has the best hardware to train and run large AI algorithms.”