If I had to start my investment portfolio over from square one, my first pick would be a world-class innovator and a pillar of stability. Just in case I never got around to filling out that portfolio with a deeply analyzed set of diverse stock picks, the initial pick should be able to weather dramatic changes in the global economy and its specific target markets.

Am I asking too much of the first ticker in a freshly rebooted portfolio? Not if that stock is Alphabet (GOOG 0.32%) (GOOGL 0.37%).

The parent company of online services giant Google can serve all of these roles for many years to come. In particular, I can't wait to see what Alphabet will do with artificial intelligence (AI) over the next couple of decades.

Alphabet shows other companies what flexibility looks like

It's easy to mistake Alphabet for a one-trick pony. However, nothing could be further from the truth. This company was built to change with the times, even driving the sea change from the front lines in many cases.

It's true that services under the Google banner account for the lion's share of Alphabet's revenue -- 89% in the second quarter of 2023, for example -- but this company isn't all about online search and advertising anymore. In fact, even the Google division includes alternative revenue streams.

Google's operations range from the YouTube video service and Android mobility business to the DeepMind AI group. Although Google Cloud might seem like part of its operations due to its name, Alphabet actually reports its sales separately.

Google is a valuable brand name, and it makes sense when Alphabet attaches it to a variety of internet-based products and services. At the same time, the Alphabet umbrella also lets the company coin new brands when the service at hand doesn't quite fit Google's profile. For example:

  • The health technology operation formerly known as Google Life Sciences has been known as Verily since 2015. Google co-founder Sergey Brin recently said that Verily is profitable thanks to a plethora of high-profile collaborations and a successful health insurance service.
  • Calico is Alphabet's medical research arm, targeting a deeper understanding of human aging. Like Verily, Calico runs many research projects together with top-shelf biotech and medical science companies.
  • The self-driving vehicle business called Waymo has been pushing the envelope in fields like autonomous driving, AI-powered sensor analysis, and automated fleet management since 2009.

None of these projects are natural fits for the Google brand, which is why Alphabet chief financial officer Ruth Porat converted the monolithic Google business into the conglomerate we know as Alphabet today. This way, the company can pursue next-generation research ideas in pretty much any field without confusing consumers with a diluted Google brand.

Recent changes

Alphabet is ready to shift its business focus along with evolving consumer tastes and business trends. And it looks like the company is preparing to swing for some new fences right about now. You see, Ruth Porat has a new job, and it's all about driving Alphabet's non-Google businesses to new heights.

Remember, Porat was the genius behind the Alphabet rebranding and reorganization. She is bringing that magic touch and deep business insight to her new role as president and chief investment officer. In other words, she is second in command to Alphabet CEO Sundar Pichai and explicitly in charge of steering Alphabet's future investments. Her new duties include hands-on control of the "other bets" division, where you find brands like Calico, Verily, and Waymo.

For nearly a decade, she has championed these operations through moves like the Alphabet shuffle. Now she's taking their reins, and the navigation system is set to a deeper engagement with projects not named Google. It's a logical next step for Porat and Alphabet, underscoring the company's game-changing flexibility.

Porat's promotion comes at an exciting time, as Alphabet -- and any IT business worth its salt -- is putting its back into AI ideas. Today, Porat has the power to direct Alphabet's AI research and development strategy through targeted budgets and buyouts. She will also be more involved in deciding which hitherto unknown Google AI tools are ready for a public unveiling with specific business goals. The keys to the AI kingdom are in skillful hands.

If I could own only one stock, this is exactly the kind of long-term survivor I'd want by my side. And if I'm starting a fresh investment portfolio, Alphabet is the ultimate foundation for a more diverse approach. This isn't just a good buy in any market. Alphabet is the perfect cornerstone for a long-term investment strategy.