BBH's Core Focus on Google
By homing in on Google's core revenue-generating operations, BBH manager Tim Hartch sees a value proposition in the online firm, with Google's other investments being gravy.
Shannon Zimmerman: So let's talk a little bit about your approach both at Core Select and the new fund, Global Core Select. In some ways, it's a nontraditional value approach, to the extent that folks are looking at value, and saying, "Oh, these are the sectors that value investors typically favor. This is the price/earnings ratio that a value investor is going to be attracted to." That's not really your style. You're really an absolute value shop, and you are looking at the discount between what you think a company is worth--it's intrinsic value--and what the market has priced it at. So in some ways, that kind of explains my next question I think, what's a company like Google doing in a portfolio like this?
Tim Hartch: Well, we think Google is a great fit. In fact, it's a top-five position in both of our two portfolios. So we believe it has a fabulous culture, it has a very good management team, it has a dominant position in search, a very strong, obviously, position with Android, and a lot of innovative technology and opportunities going for it. And it's a very cash-generative business with a great balance sheet.
Shannon Zimmerman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.