Warren Buffett's core rule: buy wonderful companies at fair prices and hold forever.
Here's one that passes the test:
$GOOGL at $346
The moat is real: Search, YouTube, Android. Billions of daily users. No credible replacement in 20 years.
Operating margin: 33%
Return on capital: 25%
Free cash flow: $53B
Net cash: $122B
Revenue still growing 24% at this scale.
This is the kind of setup that compounds: dominant platforms, pricing power, capital efficiency, and growth that hasn't stalled. The market keeps waiting for the slowdown, but the machine keeps printing cash.
Here's one that passes the test:
$GOOGL at $346
The moat is real: Search, YouTube, Android. Billions of daily users. No credible replacement in 20 years.
Operating margin: 33%
Return on capital: 25%
Free cash flow: $53B
Net cash: $122B
Revenue still growing 24% at this scale.
This is the kind of setup that compounds: dominant platforms, pricing power, capital efficiency, and growth that hasn't stalled. The market keeps waiting for the slowdown, but the machine keeps printing cash.
