In Our 2024 Investment Strategy for Equities, we introduced our DIVOS™ strategy and during this today’s market turmoil, we initiated a very small position in GOOGL (Alphabet/Google) and intend to hold and accumulate this stock for the foreseeable future.
Here’s how we think it fits our DIVOS model.
Demographics
Google is used by nearly everyone on the planet at some point. Whenever we travel around the world, google is our first stop for research followed by YouTube. When we arrive at our destination, our Uber/Taxi driver almost always uses google maps on an android phone. Google is totally ubiquitous and it can create code, establish services and deploy worldwide virtually instantly.
Income
Alphabet doesn’t currently pay a dividend and that’s fine because not all of our stock holding will pay dividends, we need growth stocks to complement our dividend portfolio but hope that Alphabet will eventually pay a dividend at some point in the future. Alphabet has generated an amazing $425k net income per employee in 2023 and as 50 million boomers retire over the next few years, they will be well positioned with younger workers eager to develop the best services in the world.
Value
As of the time of this post, GOOGL dropped over 12 percent and while we think GOOGL is still a little bit over valued, we did execute our trade with as a buy-write to lower our cost which means we expect GOOGL to drop further over the next quarter. We will very slowly accumulate shares from here and wait for corrections to buy bigger chunks of GOOGL.
Options
GOOGL has an options market and we look forward to selling cash secured PUTS and sell covered calls on this stock to squeeze more value and profits out of this equity. As of 25th of Oct 2023 the call option table below and we have specific price points to accumulate over time.
S&P 500
GOOGL is a member of the S&P 500 and is categorized as Communication Services and serves as a diversification point in our portfolio.
We’ll let you know as we accumulate more and it may be a while since the stock is very volatile right now but we’ve been expecting this correction for a long while now. Remember to be greedy when others are fearful and be fearful when others are greedy. To keep up to date, stay tuned, stay profitable and stay solvent…