Is Alphabet (GOOG) A Great Stock Pick for the Long-Term?

Oakmark Funds, an investment management firm, published its “Bill Nygren Market Commentary” fourth-quarter 2021 investor letter – a copy of which can be seen here. In the letter, Bill Nygren talked about Oakmark’s view on cryptocurrency, and why Oakmark calls itself a value investor. They also talked about the current investment opportunity, as well as how they differ from other investment firms. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Oakmark Funds’ Bill Nygren Commentary, in its Q4 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG) and discussed its stance on the firm. Alphabet Inc. is a Mountain View, California-based multinational technology conglomerate holding company with a $1.8 trillion market capitalization. GOOG delivered a -3.84% return since the beginning of the year, while its 12-month returns are up by 59.90%. The stock closed at $2,782.62 per share on January 13, 2022.

Here is what Oakmark Funds’ Bill Nygren Commentary has to say about Alphabet Inc. in its Q4 2021 investor letter:

“For Alphabet, we add back its research spending on Waymo and “other bets” and add an asset for the value of those money-losing ventures. We also value cash separate from the business because if you valued cash at a normal P/E today, you’d be valuing it at pennies on the dollar. When we make our adjustments to Alphabet’s financials, we own its wonderful search business at less than the S&P multiple, which we consider to be a bargain.”

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Our calculations show that Alphabet Inc. (NASDAQ: GOOG) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. GOOG was in 156 hedge fund portfolios at the end of the third quarter of 2021, compared to 155 funds in the previous quarter. Alphabet Inc. (NASDAQ: GOOG) delivered a -1.61% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on GOOG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.