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    Google: Now The Perfect Stock For Buffett

    Mon, 02/06/2012 - 17:23 EDT - Seeking Alpha
    • BRK.A
    • GOOG
    • Valuable Insights

    By Valuable Insights:
    Google (GOOG), one of the premier growth stories of our generation, has been transformed into a value stock (at roughly 12x 2012 EPS ex-cash )- in fact, it's become so cheap, and underappreciated, that it's become the perfect stock for Warren Buffett and Berkshire Hathaway (BRK.A), and we believe it's increasingly likely that Berkshire will soon become a major shareholder. Google meets the following key Buffett criteria:

    1. Dominant brand with incredible global brand equity.
    2. Deep, wide and growing moat around core business.
    3. Management/owners focused on long-term value creation rather than short -term goals.
    4. Mr. Market is selling shares at a significant discount to intrinsic value due to an incorrect/myopic analysis of underlying earnings power.

    In addition, Google is large and liquid enough for it to be worth Buffett's time and effort - a large position could actually be impactful to the Berkshire portfolio. Following Berkshire's recent purchase of IBM (IBM)Complete Story »

    • Original article
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