Some recent fussing over Google (GOOG) has followed from an unlikely source—the Berkshire Hathaway (BRK.A) annual meeting. During a Sunday press conference, Charlie Munger quipped that “Google has a huge new moat. In fact I’ve probably never seen such a wide moat.”
Unfortunately, Charlie’s brevity and the reporters’ lack of curiosity leave the reader to surmise what he really means. Warren Buffett kindly filled a bit of the gap when he added that Google’s search-linked advertising is “incredible.”
At a basic level, their observations are hard to dispute. Any time a brand name enters our common lexicon, one can assume that their product has attained sufficient “share of mind” to command pricing power. Even the most ardent Yahoo-er (YHOO) would not be so uncouth as to “yahoo” the web for an answer.As if seeking confirmation, many leaped to conclude that Buffett and Munger now find Google a great investment.
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