Top 5 Stock Picks of Leon Lowenstein’s Lionstone Capital Management

2. Alphabet Inc. (NASDAQ:GOOG)

Lionstone Capital Management’s Stake Value: $35,305,000

Percentage of Lionstone Capital Management’s 13F Portfolio: 9.23%

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) stock represents 9.23% of Lionstone Capital Management’s Q3 portfolio, with the firm owning 13,246 shares in the tech corporation, worth $35.3 million as of the third quarter of 2021. 

Robert Joseph Caruso’s Select Equity Group is the largest Alphabet Inc. (NASDAQ:GOOG) stakeholder as per Insider Monkey’s records, holding a position worth $96.79 billion in the company. Overall, the Q2 database maintained by Insider Monkey suggests that 155 funds were bullish on Alphabet Inc. (NASDAQ:GOOG). 

Alphabet Inc. (NASDAQ:GOOG) posted Q3 results on October 26, with an EPS of $27.99, outperforming estimates by $4.75. Similarly, the $65.12 billion revenue exceeded analysts’ consensus estimates by $1.83 billion. As a result of the solid Q3 performance, Jefferies analyst Brent Thill on October 27 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,500 from $3,325 and kept a Buy rating on the stock. 

Here is what Oakmark Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:

“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”