Alphabet (GOOG) Contributed 4.7% to Giverny Capital Asset Management’s 2025 Growth

Core Insights - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500's 2.66% return, and year-to-date returns were 12.58% compared to the index's 17.88% [1] - The firm faced challenges due to an underweight in large technology companies and an overweight in smaller niche leaders, despite strong earnings growth and capital returns from portfolio companies [1] - The market's focus on AI investments has overshadowed the actual benefits of portfolio companies, which are excelling in earnings growth [1] Company Highlights - Alphabet Inc. (NASDAQ:GOOG) was highlighted as a leading contributor in Giverny Capital's Q4 2025 investor letter, with a stock price of $338.66 and a market capitalization of $4.088 trillion as of January 29, 2026 [2] - Alphabet Inc. achieved a one-month return of 7.40% and a 52-week gain of 64.72% [2] - The company reported a 30% increase in earnings for 2025, compounding in the high teens since 2021, supported by its diverse portfolio including Google Services, Google Cloud, and AI initiatives [3] Investment Sentiment - Alphabet Inc. ranks 7th among the 30 most popular stocks among hedge funds, with 186 hedge fund portfolios holding its shares at the end of Q3 2025, up from 178 in the previous quarter [4] - The company achieved its first-ever $100 billion in revenue in Q3 2025, indicating strong financial performance [4] - While Alphabet Inc. is recognized for its potential, the firm suggests that certain AI stocks may offer greater upside potential with less downside risk [4]