Google, as a stock

Pre-Alphabet, Google investors were <i>already</i> exposed to all of the company&#x27;s non-core businesses. The reorganization is designed to provide shareholders with a cleaner, more transparent structure while giving Google the ability to more easily operate its various businesses independently. If one of Alphabet&#x27;s independent companies takes off, the structure could also make it easier for it to engage in transactions that reward Alphabet shareholders.<p>When you invest in a new venture fund, you&#x27;re not buying anything at book value. You&#x27;re providing capital and trusting that the folks who are going to deploy it will be able to achieve a return consistent with your goals. Most funds charge an annual fee of 2% of assets under management and investors are locked in for at least 10 years, so there&#x27;s no free lunch. Given that the multiples in the private market today are even more pronounced than in the public markets, investors in venture funds are effectively paying significant premiums too.<p>Bottom line: if you like the core Google business and want some exposure to the craziest ideas in Silicon Valley, Alphabet might be attractive. It&#x27;s definitely not comparable to a venture fund but still might be as close as your average retail investor will ever come to a Bay Area venture fund. Who knows, it could become the next-gen Idealab if Larry and Sergey have their way.