What is the top company with the strongest moat in the world?
For those of you who dont know what moat is, having a business moat makes a business hard to be replicated due to the high barriers of entry. Therefore, competition decreases for the particular company.
Over the years, even Warren Buffet himself has said that Company "Moats" are being torn down due to technology advancement. For example, a car company back in the 80's would be a company with strong moat. However, in todays time, there are so much of car manufacturing startup's such as Lucid Motors and Tesla that there is no more Moat for car manufacturing companies.
However, this one company has the most durable moat in the entire world for the past 24 years since 1997: Alphabet (GOOGLE'S holding company)
Just ask yourself, is there any other business that can replicate Google? Google only has a handful of competition, Microsoft Bing, Yahoo Search and Baidu. And not could beat Google as Google has 92.4% Market Share.
Heres are my key takeaways on the company:
●Earnings have grown a rate of 24% Per Annum since IPO
●It has 5.4% of Debt-to-equity Ratio. 12.84B USD in debt. However it has a cashpile of 135.86B USD. It is financially very healthy!!
●It is among the top 3 company in the world, with a market cap of 1.9 Trillion USD. It also has a very remarkable CEO: Sundar Pichai.
●It has planned a 50 billion stock buyback these year, which will further increase its stock price.
●Revenue and Earnings are stable and solid over the years and will continue to remain solid.
●My valuation based on Free Cash flow of FY20 and 8% growth rate (As Google has reach max saturation) with a discount rate of 5%, each class A share should be valued 3159 USD. (10% Undervaluee)
Bottom Line:
I believe in alphabet achieving new heights as the company is amazing! I do not own any shares, buy I do intent to buy once a correction/market crash takes place. Alphabet will be a fantastic addition to my portfolio. Will wait for it to be undervalued for about 20% before buying.
免责声明:上述内容仅代表发帖人个人观点,不构成本平台的任何投资建议。
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