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  "documentTitle": "Alphabet (GOOGL)",
  "authorId": "20_TCI_Fund",
  "authorName": "Christopher Hohn",
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  "presentationDate": "2022-11-15 00:00:00",
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  "notes": "This is a formal letter from TCI Fund Management to Alphabet's board.",
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      "text": "Alphabet should follow Apple's capital allocation strategy and become \"cash neutral\" over time through increased share repurchases.",
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      "kind": "paragraph",
      "text": "The biggest component of Other Bets is Waymo. Unfortunately, enthusiasm for self-driving cars has collapsed and competitors have exited the market.",
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      "text": "Over the last five years, Other Bets has generated only $3 billion of cumulative revenues but incurred a massive $20 billion of cumulative operating losses. Alphabet’s investments in Other Bets have been unsuccessful.",
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      "kind": "paragraph",
      "text": "Summary: In a new era of slower revenue growth, aggressive cost management is essential. We look forward to your announcement of a clear action plan as a matter of urgency.",
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      "text": "We welcome Alphabet’s increased share repurchases, which are now at a run-rate of $60 billion per year. Nevertheless, Alphabet still has over $116 billion of cash on the balance sheet.",
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      "text": "Alphabet’s share price is down 34% year-to-date and the stock is trading on only 16x 2023 EPS.",
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      "text": "Yours sincerely, Christopher Hohn, Managing Director",
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      "kind": "quote",
      "text": "\"We have looked at this every way you can and we just see the profitability a long way out.\" — Ford and Volkswagen (regarding their self-driving car venture)",
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      "text": "Share buybacks should be increased",
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      "text": "Reduce losses in Other Bets",
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