Arohan’s investing life

Appears that Google is now a more valuable company than stalwarts of American industry such as Procter and Gamble, Bank of America, Cisco, Berkshire-Hathaway and Chevron. I can not yet comment on the value appeal of Google stock (on the first blush seems pricey, but of course I will have to delve into it much deeper), but I will add this: each of the companies with such large market capitalization took multiple generations to reach it.

Except of course, Berkshire Hathaway

But WB took much longer time to reach to this level than Google did

Which brings us to an interesting question: Are the Google guys much better value compounders than Warren Buffet?

The question is not as silly as it sounds. Every for profit enterprise is basically a capital allocation machinery. Some companies do it better than others. While most companies tend to stick close to their ‘area of competency’, there are countless examples of companies who have completely reinvented themselves with new opportunities for profit. Nokia is one example, Corning is another

And Google itself is trying to morph itself into a multi-line of business behemoth

So I pose the question again: Is Google a better value-compounder than the Buffet-Munger duo?

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