I think you, and the other responses, missed it. First, the company needs some sort of moat along with the ability to expand the moat. That is really hard to d

I think you, and the other responses, missed it. First, the company needs some sort of moat along with the ability to expand the moat. That is really hard to do in a software world when things can change so quickly. There is a long list of other things, such as how complex the business is, the quality of the managers, the ability to reinvest capital, minimal need for additional capital expenditures, and so on. As Berkshire has grown larger these requirements have shifted. What made the early success of Berkshire was taking the cash that the original textile company had, buying an insurance company, and then other companies that delivered great cash flow (See’s Candies, and newspapers to keep it simple.) A lot of the moats that made those original businesses are less possible today, newspapers being the prime example. I’ll just skip the rest and say what I think are great examples today: Valve/Steam Unity Epic (unreal engine) Google (the search/ads side) Amazon, as long as it continues to be well run and doesn’t venture in to anti-trust territory Apple, not quite, but their moats have gotten much stronger Airbnb Price paid for these is another matter. If a company has terrible or negative cash flow and/or weak or non existent moats, then even a bargain price may be a terrible deal.