Total AssetsBoth Google and Amazon have investment income from Anthropic. Google's investment income is more complex, so we cannot simply conclude that its PE ratio is cheap, as the current PE does not reflect the true capability of its fundamental business. In fact, after excluding one-time investment income from both companies, Google's PE is approximately 25-30, and Amazon's is around 27-30. This is not expensive, but it is certainly not ridiculously cheap like a no-brainer bargain.
P/E ratio: Google 17, Amazon 21. Are they currently undervalued among the Magnificent Seven?
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." In his early years, Old Bar followed his teacher Graham and preferred "cigar butt" investing—buying ordinary companies at cheap prices. Later, influenced by Munger, he shifted focus to company quality, willing to pay a fair price for excellent businesses. "Price is what you pay; value is what you get." The stock price paid and the intrinsic value obtained are two different things. The key to investment is ensuring that the price paid does not exceed its actual value. Even good companies need a good price, but a fair price is not necessarily the lowest price...
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