Google (GOOGL, Financial), which had for a time been an underperformer while seemingly the rest of the tech sector rallied, is transitioning into a new phase of fiscal responsibility with the hiring of Ruth Porat, former chief financial officer of Morgan Stanley (MS). She is the key variable that brings greater professionalization in the massive company’s financial conduct, which means a greater focus on returning cash to shareholders instead of chasing founder ideas that are outside Google’s core business. With the recent announcement of the establishment of Alphabet Inc. as a parent company, which effectively separates Google from all the other non-core businesses, it appears that a new era of financial stewardship has begun. The increased clarity that this reorganization provides is a boost to our view that Google scores well in our three-prong investment criteria.
From the Wintergreen Fund (Trades, Portfolio) semiannual report 2015.
