From Nasdaq: 2025-06-21 03:55:00

Seth Klarman’s Baupost Group hedge fund has returned an average of 20% per year over 30 years, despite value stocks being out of favor. Klarman remains flexible in applying value investing, focusing on mispriced stocks like the Magnificent Seven, with one trillion-dollar stock catching his attention.

Alphabet, the only Magnificent Seven stock Klarman likes, traded below the S&P 500’s average valuation. Regulatory risks and AI competition pose challenges, but strong growth potential in Google Cloud and Waymo make Alphabet an attractive investment. Klarman increased Baupost’s Alphabet stake by 46% in Q1, seeing it as a bargain among the group.

Investors looking for the best stocks to buy right now may want to consider Alphabet. Despite regulatory challenges and competition in AI, Alphabet’s Google Cloud platform and Waymo present significant growth opportunities. With a forward P/E close to 18, Alphabet’s stock appears undervalued compared to its peers in the Magnificent Seven.

For those considering investing in Alphabet, it’s worth noting that the Motley Fool Stock Advisor team identified 10 best stocks to buy now, with Alphabet not among them. Historically, Stock Advisor’s recommendations have outperformed the S&P 500 significantly, offering potential for substantial returns in the long term. Join Stock Advisor to access the latest top 10 list and maximize investment opportunities.



Read more at Nasdaq: Billionaire Seth Klarman Holds Just 1 “Magnificent Seven” Stock in His Hedge Fund’s Portfolio — and He Just Bought More