“Buffett's Google bet is a durable compounder with high return on capital, a strong moat, and a rock-solid balance sheet — a safer long-term alternative to Treasuries.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTit's simply a company that has a strong competitive position with a rock-solid balance sheet, maintains a high return on capital, and has done so for a very long time giving it the long-term compounder status.
Why
for every dollar that Google invests into growing its own business operations, they're able to get a very good profit from it.
They have been a very long-term compounder, and that gives them an enormous advantage today.
They're more likely to be a winner based on the record. They're probably 90% of or 95% of what gets merchandised through Wall Street.
after Q1 this year had 127 billion in cash or treasuries with just 77 billion in long-term debt. And for 2025 produced 73 billion dollars in free cash flow.
Google might just be a financial fortress that he thinks will generate a better return over the long run than say the 3-month US Treasury at a 3.8% annual yield.
Risk
I don't like it as well as at least four or five other businesses that we own.
The structured call
The receipt
Publish-day price $$326.56 · the claim is anchored to the moment it was said.
