After successfully owning Alphabet (GOOG, Financial) from 2015 to 2020, we purchased the company again in 2022 as tech stocks broadly faced weakness. Alphabet was especially punished due to fears of increased competition entering the AI space, and we felt those worries were overdone. This market narrative quickly flipped in our roughly one-year holding period with Alphabet now being viewed as a likely AI winner, and we sold the position at a gain as the share price re-rated and the market was now overlooking a worse competitive and regulatory outlook.
From Mason Hawkins (Trades, Portfolio)' Longleaf Partners Fund second-quarter 2023 commentary.
