Alphabet Inc.
GOOGL
position
long
Tweedy, Browne Company
Thesis
We bought Google in 2012 at a very attractive valuation of around 9-10x forward EV to EBITDA and 12-13x forward earnings. It was compounding its value at over 20%, and we believe it continues to compound its intrinsic value at a rapid rate.
Did it work?
worked
confidence: high
The long thesis on Google has clearly played out, as the stock has appreciated by an impressive 3715.1% since the pitch. Given that 175 months have elapsed, which is well beyond the typical investment horizon, the significant price increase confirms the thesis of compounding value at a rapid rate. The initial valuation metrics also suggest that the investment was made at an attractive entry point, further supporting the success of the thesis.
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