BUY Conviction3/5 Analysis quality75/100 if concerned about market pullback or current GOOGL overvaluation
The YouTuber suggests buying Google preferred shares (GOOGM) as a way to gain exposure to Alphabet with some downside protection, especially if one is concerned about a market pullback or the current overvaluation of GOOGL. The 6.25% dividend yield provides a meaningful return, and while it caps upside compared to the common stock in strong bull scenarios, it offers better returns in flat or down markets. This is presented as an alternative entry point for those interested in Google but wary of its current stock price.
“If we are interested in investing in Google, and let's say we're a little bit concerned about the market pulling back over the next couple of years... it could make sense to jump in and buy the preferreds.”