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Thanks for posting, this is a really interesting read. Its not 12mins and everyone should give it a read.
I am a fan of Alphabet and have join 1st in holding terms. This just makes me believe in them even more.
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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