Auxier Focus Fund on Alphabet Inc.
Thesis
Alphabet fits Auxier’s definition of an enduring compounder with a strong underlying business. While the company benefits from AI, the fund argues that its core economics do not depend on AI succeeding to the same degree as many peers. Google Search and YouTube continue to dominate internet traffic and generate sustainable cash flows. This gives the position both AI participation and a substantial cash-generating base outside the newest technology cycle.
“Products like Google Search and YouTube continue to dominate internet traffic and generate sustainable cash flows.”
Key risks
- The broader hyperscaler group is facing investor scrutiny over the long-term profitability of heavy AI capital spending