We might want to consider the possibility that Greg and Warren are right and it is the doomsayers that are wrong.

Whatever else you might say about Google, it should be hard to miss that for over 20 years (since it went public) Google has seen both its share price and its annual earnings grow at 20% real CAGR (that is, with inflation taken out). Of course that could stop at any time. Just as Coke's growth could stop anytime. Just as Am Ex's growth could stop any time. Just as Apple's growth could stop any time. But is it the way to bet, for any of these companies, that their growth will just stop? So far, for many decades looking back, it has NOT been the way to bet.

With a real DCF of 4% or so, Google needs to keep growing like that for another 4 or so years, and then it could stop and grow only at the rate of inflation forever, and it would have proved to be a great investment. So on the off chance that Google is actually well positioned to flag good investment opportunities for growing its own business, It is probably a GREAT investment at its current stock price.

To the extent any of Berkshire's investments have ever been described as "understandable businesses", Google seems to be a great investment, very Bersshire-like.

And worrying about Bubbles is essentially just market-timing which is officially frowned upon at Berkshire's front offices.

R: