One of the subsidiaries Calico is a healthcare company focusing on longevity this is still Google after all. While Google X contains their moonshot bets such as driverless cars, drones and unfortunately Google Glass. It will be useful to shine a light on the growth potential of these other businesses. At the moment we don't even know how much is being spent on these so called moon-shots. We will also be able to value Alphabet at a sum of the parts.
I think the best part is giving Larry Page more time to think big rather than managing people. Larry Page is the Edison of our generation a mix between an inventor and entrepreneur. It will be interesting to see what he comes up with next. He has previously spoken how much he admires the Berkshire Hathaway model of giving businesses independence Larry also gains his own with this move. He spoke last year about broadening Google's vision of organizing the world's information. With Alphabet he will be in the business of starting new businesses. Larry likes to invest in technologies so useful that people use them twice a day like a toothbrush. They have a lot of alphabet letters left to fill let's see what they come up with next!
Jason
Decisive has a long position in Google (GOOG) or Alphabet.The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.
