Giverny Capital Asset Management Trimmed Alphabet (GOOGL) in Q3

Yahoo Finance · 2026-07-22

Giverny Capital Asset Management Trimmed Alphabet (GOOGL) in Q3 Soumya Eswaran Wed, July 22, 2026 at 8:36 AM EDT 3 min read GOOG Giverny Capital Asset Management, LLC , an investment management company, recently published its second-quarter 2026 investor letter. A copy of the letter can be downloaded here . The model portfolio returned 13.70% this quarter, compared to the S&P 500's 15.20% return. YTD, the portfolio gained 5.89%, while the index increased by 10.21%. The long-term link between stock appreciation and earnings growth is strong; Benjamin Graham described the market as a "voting machine" in the short term and a "weighing machine" in the long term. Despite the S&P 500's 10.2% rise in the first half of the year, 210 stocks lost value, indicating market anomalies. High-quality earnings compounders that benefit from AI capabilities are likely to maintain their competitive edge. Recently, the market has increasingly chased momentum. Tech giants are taking advantage of the optimism of investors amid fears of an AI bubble. Despite strong profit margins, reliance on "moonshot" investments raises sustainability concerns. The author recommends investing in both emerging tech leaders and established firms. In addition, please check the Strategy's top five holdings to know its best picks in 2026. Giverny Capital Asset Management stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2026 investor update: "Our two largest positions are Alphabet Inc. (NASDAQ:GOOGL) and Arista, which I believe have strong positions in the emerging AI economy. Alphabet has a near monopoly in search, a robust cloud data center business, a leading computer chip used in AI data centers, a highly profitable asset in YouTube and the premier autonomous driving platform in Waymo. It has built a tremendous collection of assets. As for portfolio activity for the quarter, we trimmed Alphabet and Arista. We sold 17% of our position in Alphabet in April at about $380. Management subsequently sold $80 billion of stock in a secondary offering at $350 to raise money to fund more investment in data centers. I feel we did the responsible thing in trimming Alphabet as it got to nearly 12% of our portfolio. Arista and Alphabet remain our largest positions as of June 30. The valuations on both are high enough that future returns likely will be lower than we're used to, even if the businesses continue to grow." Alphabet Inc. (NASDAQ:GOOGL) ranks third on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 265 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the first quarter, compared to 288 in the previous quarter. In 2025, Alphabet Inc. (NASDAQ:GOOGL) achieved its first-ever $400 billion annual revenue and in Q1 2026 its consolidated revenue reached $109.9 billion, up 22% or 19% in constant currency. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . In another article , we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of best quantum computing stocks to buy and hold forever. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years . Disclosure: None. This article is originally published at Insider Monkey.

AI 시장 분석

Gibney Capital Asset Management announced that its Q2 2026 model portfolio recorded a return of 13.70%, underperforming the S&P 500 at 15.20%. During this period, it reduced its Alphabet (GOOGL) stake by 17% at approximately $380, while management issued $80 billion in stock at $350 for data center investments. Investors should closely monitor Big Tech's massive AI-related capital expenditures and valuation pressures.

상승 영향

AI — Big Tech companies like Alphabet and Arista maintain a competitive edge in the emerging AI economy based on strong assets in search, cloud, and autonomous driving.

하락 영향

Big Tech — There are concerns that massive stock issuance for data center investments and high valuation pressures could lower future expected returns for investors.

AI가 생성한 분석으로 투자 자문이 아닙니다.

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