Auxier Focus Fund on Alphabet
Thesis
Auxier views Alphabet as a durable compounder whose underlying economics are not dependent solely on the success of the current AI investment cycle. Google Search and YouTube continue to dominate major areas of internet traffic and generate sustainable cash flows. While Alphabet participates in and benefits from AI, its established franchises provide a stronger foundation than companies whose valuations depend entirely on future AI adoption. This resilience is central to the fund's preference for enduring businesses with large competitive moats.
“Products like Google Search and YouTube continue to dominate internet traffic and generate sustainable cash flows.”
Key risks
- Alphabet is participating in the industry's very large AI capital-spending cycle, where investors are increasingly questioning long-term returns.