Warran Buffett always remind us that many of his long term holdings in Berkshire Hathaway were bought not at the cheapest price. In fact, chart wise they would have looked expensive.

However, the great thing about the businesses he bought is they have features that make them able to earn great cash flow for a prolong period.

So much so that such a good company he is willing to pay fair or even moderately above fair value for it.

Such companies should typically have high Return on Assets (ROA) or Return on Equity (ROE). Not only high, but a history of consistently high ROA and margins.

How do they do that? Because of certain economic moats.

Amazon at 179 times earnings

Vitaliy Katsenelson, a CIO whose known for his value investing methodology, has this article in Institutional Investor on why amazon may be worth 179 times earnings.

He cites Josh ...