Ruane, Cunniff LP, an investment adviser managing Sequoia Strategy, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Sequoia Strategy returned 9% in Q4 compared to 2.7% for the S&P 500 Index. The Strategy delivered a return of 21.9% in 2025 versus 17.9% for the Index. In a year characterized by both strength and volatility, the Strategy outperformed the Index. The firm strives to invest in high-quality, fundamentally and financially strong businesses at reasonable prices. The Strategy is concentrated while it covers a wide range of sectors, business styles, and regions. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Sequoia Strategy highlighted stocks like Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments, and is a significant contributor to the strategy’s performance in the quarter. On February 6, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $323.10 per share with a market capitalization of $3.91 trillion. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -4.18%, and its shares gained 72.32% of their value over the last 52 weeks.
Sequoia Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:
“As for Alphabet Inc. (NASDAQ:GOOG), we had real concerns entering 2025. The company was facing potentially significant antitrust action as well as the most serious competitive threat ever to its vaunted search business in the form of generative AI. We were right to be concerned, and we had a robust debate as to whether the widening range of outcomes justified, at a minimum, a significant trimming of this longstanding and highly rewarding investment. The logic for such a move was eminently reasonable and perhaps even “intelligent.” Instead, we decided to stand pat, because our discomfort was balanced by our appreciation for the fundamental strength of Alphabet’s various businesses and its full-stack AI capabilities, which we believed afforded the company significant scope to endure regulatory action and to respond to emerging competitive threats.
