Alphabet Inc.
Thesis
We’ve owned Google since maybe 2010 and recently bought more, as it now constitutes about 10% of Sequoia Fund. We believe Google is a better business growing at a much more rapid rate compared to other mature businesses we sold, and it offers superior economics for a P/E that is not significantly different from those we divested.
Did it work?
The pitch is a qualitative business-quality argument — Google as a faster-growing, economically superior business at a comparable P/E to divested mature holdings — with no stated price target, catalyst, or time horizon. With no price performance data and no elapsed time provided, there is no way to measure whether the relative-growth and valuation claims played out. The thesis is plausible but unverifiable on the information given.