Once again, Alphabet (GOOGL, Financial) (U.S.) was a top contributor to the Fund’s performance for the quarter. In October, the company reported a strong third quarter with both revenue growth and operating margin expansion (ex-other bets) above consensus. Search revenue grew 43% and YouTube advertising revenue also grew 43% with only a modest adverse impact from Apple introducing its new operating system, iOS14. Furthermore, total cloud revenue grew 45%, and Workspace grew both seats and average revenue per seat. Lastly, management bought back $12.6 billion of stock in the quarter, on track with our expectations for the full year. We continue to believe Alphabet is an attractive holding that trades at a significant discount to its intrinsic value.
From David Herro (Trades, Portfolio)'s Oakmark Global Select Fund fourth-quarter 2021 letter.
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