Why I start buying Alphabet Inc. (WKN: A14Y6H) today at 950,50€

in SteemLeo4 years ago

The most simple answer to the question above is: "Because I believe Alphabet (Google) will survive the Pandemic!" I was invested in Alphabet before this market panic started its (full?) blossom because of its simple dominance and because I see a big potential in its AI unit DeepMind. However, on the 25th of February, I sold off for 1322€ with a nice return. During these turbulent times, I put it on my watchlist trying to buy it back for a discount (in my opinion). Today, my buy orders were filled with 950,50€ per share and it will hopefully not turning our to be the falling knife that I caught. Anyway, I will another by order at 760,40€ that is -20% from the current price.
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Alphabet has a strong cash flow generation that is supporting its strong cash balance, which is around $120Bn. With this much cash a company may most probably survive an also a pandemic environment. Furthermore Alphabet's cash balance represents more than 15% of its market cap, providing a margin of safety and flexibility. Therefore I feel comfortable buying now, even though the worst may not be behind us. I spread my buys over time, try to be disciplined as there is no playbook for the current situation.

This is @no-advice

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There is no doubt Alphabet will be here long after the pandemic. It is also somewhat insulated as compared to other industries.

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