MSFT & GOOGL Still Undervalued? Molly Pieroni Sees Hidden Mag 7 Value
Why It Matters
The interview shows that deep, owner‑like analysis can reveal hidden value in mega‑caps and niche firms, guiding investors toward resilient, long‑term allocations amid market froth and rate uncertainty.
Key Takeaways
- •Microsoft remains undervalued despite decades of steady growth.
- •Alphabet's AI and chip ventures add hidden upside for investors.
- •U‑Haul's dual trucking and self‑storage model hides intrinsic value.
- •Yacktman favors long‑term ownership, ignoring short‑term market hype.
- •Energy and defense exposure buffers portfolio against potential rate hikes.
Summary
During a live NYSE interview, Molly Perrone, president of Yacktman Asset Management, explained why she still views Microsoft, Alphabet and even U‑Haul as undervalued despite record‑high S&P and Nasdaq levels. She emphasized a value‑oriented, owner‑like mindset that prioritizes risk‑adjusted returns over short‑term price swings.
Perrone highlighted Microsoft’s decades‑long transformation from a stagnant 2003 stock to a cloud‑driven leader, noting the firm’s dominant market position and continuous innovation. Alphabet’s deep scientific moat, from DeepMind to emerging chip initiatives and free‑cash‑flow businesses like Waymo and YouTube, provides “hidden value” beyond headline earnings. U‑Haul’s two‑business model—trucking and self‑storage—creates a valuation gap, as the storage side’s multiples suggest the trucking operation is effectively free.
She quoted, “We’ve owned Microsoft since 2003 when everyone left it for dead,” and added, “Alphabet’s AI and chip work are unmatched, offering upside we can’t see in the price.” Regarding U‑Haul, she said the company’s internal NAV reveals a “very interesting business” that the market overlooks.
The discussion implies that disciplined, long‑term investors can uncover opportunities in large‑cap tech and niche assets even when the market appears frothy. With uncertain rate trajectories, Yacktman’s exposure to energy and defense also serves as a hedge, reinforcing the case for fundamentals‑driven allocation.
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