The value-oriented investment management firm, Silver Beech Capital, has released its second quarter 2023 investment letter. A copy of the same can be dowloaded here. With Year-to-date returns in stuff competition with the S&P 500, this firm is definitely showing signs of strength and foresight.

Its best picks for 2023 are Asbury Automotive Group (ABG), Playa Hotels & Resorts (PLYA), Alphabet Inc. (GOOG,GOOGL), with exited positions on First Citizens BancShares, Inc. (FCNCA)

and Arbor Realty Trust, Inc. (ABR).

First Citizens Bank were responsible for purchasing the remaining assets, deposits and loans of Silicon Valley Bank, the US lender that failed in March.

Silver Beech Capital is under the impression that Google is being undervalued and that the stock should be trading at 30% more. Therefore, they are saying that it is trading at about 3/4 of its true value.

They had this to say in a public statement:

“We have long admired Google. Silver Beech invested in the company during the second quarter at an attractive valuation as market concern over the company’s AI strategy eclipsed the reality that Google is a high-quality company with years of growth ahead. In short, we believe that Google is a high-quality company with strong returns on capital and growth prospects, trading at a valuation substantially cheaper than peers, and in fact, cheaper than the broader S&P 500. We believe Google’s intrinsic value is more than 30% greater than its June 30 share price.”

The question on everyone’s minds right now — Is Google a growth stock or a value stock?