Just expanded my biz into the global search industry. My competitors: Bing and that duck. (GOOGL)

GOOGL April 28, 2025 By Brad

Investment Thesis Buy

I'm extremely proud to announce that, today, April 28, 2025, my stock market startup, Uncle Brad Enterprises, entered the search business!

Consider this my press release - Uncle Brad Inc. just bought Google! (well, about 0.0000000000001% of it, anyway)

Why?

Because Google has owned the search market for decades — and I believe it will continue to own it for decades more.

The company's grip on global search traffic is so tight that "Google" isn’t just a company name anymore — it's a verb.

But dominance alone isn’t enough.

Google also checks every financial box I care about:

  • Revenue Growth: ~18% annually over the last 10 years.
  • Net Income Growth: ~21% annually over the same period.
  • Profitability: For every $1,000 I invest today, Google generates about $55 in net income just for me.
  • Debt Discipline: Google has no net long-term debt.
  • Owner Alignment: It’s actively buying back pieces of the business from other owners, steadily increasing my ownership share over time.

Oh, and did I mention that I got a stone cold crazy good deal? Consider the following two options that I could have bought with my $1,500 investment:

  • Option #1: Buy $37 of current net income from a business that:
  • makes basically everything in the U.S.;
  • has grown its earnings by 8.7% per year over the last 10 years;
  • has grown its revenue by 6.8% per year over the last 10 years; and
  • carries about $240 of long-term debt.

or

  • Option #2: Buy $55 of current net income from a business that:
  • utterly dominates its market (search);
  • has grown its earnings by 21% per year over the last 10 years;
  • has grown its revenue by 18% per year over the last 10 years; and
  • has no long-term debt.

It's a no-brainer. Even if Option #2's growth rate gets cut in half going forward, Option #2 will still be making almost 2x as much as Option #1 in five years.

  • Option #1: S&P 500
  • Option #2: Google

And the opportunity isn't just about search anymore.

  • Google Cloud is a serious contender in enterprise cloud services.
  • It’s quietly building the digital infrastructure layer for artificial intelligence — especially for businesses, not just consumers.
  • While AI headlines get gobbled up by flashier companies, Google is positioning itself to be the backend engine that powers a huge piece of the AI economy.

My new "search" line of business, representing about 15% of the total investment by Uncle Brad Inc., should grow substantially over the coming years. I'm excited to entrust it to the highly competent managers that are making bank for Uncle Brad Inc.

Investment Criteria
For Success:

Continued dominance of search; no meaningful shift away from Google and to ChatGPT and other A.I.s by consumers for their search needs

Risks to Consider:

People shift away from Google for their search needs and to a competing platform - e.g., TikTok, ChatGPT, etc.

Anticipated Hold Period:

Long-term (3-5 years)

Investment Amount

$1500

Decision

Buy

Conviction Level

High - This division gets a corner office. Glass walls. Real plants.

Your Share of Net Income

$77.58

Competitive Analysis
Competitive Advantage

My new search biz dominates all other search. So much so that it's a verb.


And it will continue to dominate search, so long as A.I. doesn't fundamentally shift users away from search and into ChatGPT and the like.

Key Non-Financial Metrics

Development of the A.I. Mode for its search ... and then monetization of the same.

Net Income Projections
Net Income
CAGR: 21.1%
Net Income Notes:

Hard to argue with ten years of results like this. That's quite the track record.

Analyst Notes:
Dividends
Dividends Notes:

  • Not much in the way of dividends - and that's a good thing.
  • When my new biz line makes returns on invested capital like this one does, there's no point paying it out, anyway - put that cash to work instead!

Analyst Notes:
Payout Ratio
Payout Ratio Notes:

I'm thrilled that my underlings whom I've put in charge of this line of my biz have decided to reinvest most of the cash - they're good at that.

Analyst Notes:
Revenue
CAGR: 17.9%
Analyst Notes:

Demand shows no signs of slowing.

Avg Annual Growth Rate (10Y)
Analyst Notes:

My new search biz is killing it on all metrics that count.

Balance Sheet Cash
CAGR: 4.5%
Analyst Notes:

Glad to have some cash in the bank. Glad it exceeds long-term debt.

Debt
CAGR: 15.6%
Analyst Notes:

My biz's search segment doesn't even need debt to fuel its growth.

Free Cash Flow
CAGR: 17.1%
Analyst Notes:

No comments provided by the analyst.

Cash Flow from Operations
CAGR: 18.0%
Analyst Notes:

Cha-ching

Conclusion

I'm thrilled to have added a new search line of business to Uncle Brad Enterprises.


  • Monopoly on search = dominant traffic source
  • 18% revenue growth, 21% net income growth (10Y averages)
  • No net debt = balance sheet fortress
  • $55 of net income for every $1K invested
  • Relentless buybacks = growing my ownership over time
  • Cloud + AI upside = second act already happening


To do: Let it compound.

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