Which companies would you own if you could own them at some historical attractive price? In other words, ignoring current quoted prices, what companies are on your watch list for long-term (multi-year or decade) ownership?
I'm talking about companies that have the usual traits (moat, durability, pricing power, high ROIC, etc.) but not necessarily high growth, just adequate growth with respect to ROE.
Here's my list with a note/explanation of why for each one:
GOOG – Moat (search), growth (YouTube), high margins, high ROIC, best engineering workforce in the world
COST – See Nick Sleep's description of the business
NVDA – Moat (hardware IP + SW stack), rapidly expanding TAM, pricing power, high margins, high ROIC
MSFT – High margins, high ROIC
VRSN – Regulatory monopoly, 80% gross margin, 60% EBIT margin, extremely high ROIC, buyback machine
BRK.B – Slow but consistent grower, management aligned with shareholder interests long term, owns terrific assets, avoids bad assets (capital allocation)
NVR – No debt, secular grower in a cyclical industry, high ROIC, “buyback machine”
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