We recently compiled a list of the Billionaire George Soros’ Long-Term Stock Picks. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against George Soros’ long-term stock picks.
George Soros is one of the most influential figures in finance, philanthropy, and global affairs. As the founder of Soros Fund Management and the Open Society Foundations, Soros has achieved monumental success as a hedge fund manager while using his wealth to champion democratic values, human rights, and social causes worldwide. Soros was born in Hungary during World War II, and his family survived Nazi occupation by securing false identities and hiding from persecution. In 1947, Soros fled Hungary and moved to England, where he studied at the London School of Economics. After graduating in 1952, Soros worked in various merchant banks before moving to the United States.
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Soros began his career in finance in New York City, where he gained experience in arbitrage and securities trading. In 1970, he founded Soros Fund Management, which later became the Quantum Fund, one of the most successful hedge funds in history. Between 1970 and 2000, the Quantum Fund generated an average annual return of over 30%, making it one of the best-performing funds in history. In 1992, Soros became famous as the man who broke the Bank of England. He bet against the British pound, anticipating that it would be devalued due to economic pressures. His position netted him a profit of $1 billion in a single day, cementing his status as a legendary investor. As of the end of the third quarter of 2024, his net worth is estimated at $7.2 billion. The 13F portfolio of his hedge fund is worth more than $6.9 billion.
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For this article, we selected stocks by combing through the 13F portfolio of Soros Fund Management at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Soros Fund Management’s Stake: $85.9 million
Alphabet Inc. (NASDAQ:GOOGL) is a California-based technology company that owns and runs the internet search engine Google. The following key aspects make this company a standout investment. Firstly, strong profitability and improved cost management, reflecting the company’s operational efficiency, are witnessed in the report for the third quarter of 2024. For instance, total operating income increased by 34%, and operating margin percent expanded by 4.5 percentage points to 32%. Additionally, net income increased 34%, and EPS increased 37% to $2.12, which demonstrates the company’s ability to generate higher earnings for shareholders, signaling strong financial health and potential for sustained growth. Secondly, the integration of advanced AI technologies across all its platforms is a great initiative. The launch of the advanced Gemini chatbot and its improved search engine capabilities would adapt to the changing needs of the world and enhance user experience. Moreover, Google has taken a significant step in its sustainability efforts with a forest carbon removal deal from a Brazilian startup, Mombak. The tech giant aims to buy 50,000 metric tons of carbon credits by 2030 to bolster its fight against climate change.
Overall GOOGL ranks 3rd on our list of George Soros’ long-term stock picks. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
