TThe best firms could be too good to remain that way. Blessed with excellent economics and seemingly impregnable market positions, everyone would need to own their quality if it weren’t for 2 recurring problems:
- Evaluation – Unless the corporate or its industry is latest (think Google owner Alphabet when it went public in 2004) or there may be some sort of crisis (like Warren Buffett exploited together with his American Express). buy in 1964), you sometimes should pay a generous multiple of future money flows to purchase the shares.
