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I would like to share with you on my thoughts on the lastest purchase of Google by Berkshire Hathaway.

3 Undervalued Wide-Moat Stocks You May Be Overlooking

By Charlie Tian

Warren Buffett built the Berkshire Hathaway empire by acquiring companies with strong, lasting competitive advantages — businesses capable of defending their profits, thriving through economic cycles, and outlasting rivals.

An economic moat protects a company’s long-term profitability by preventing competitors from chipping away at its returns. Buffett has famously described these durable business models as “economic castles with unbreachable moats.”

With many tech stocks surging this year and now trading at stretched valuations, we’re shifting our focus to wide-moat, non-tech companies that we feel still offer compelling value. Here are three that stand out:

Visa Inc.

Moat-score: 9/10

Visa Inc. possesses a robust, wide moat due to its dominant market position, strong brand, and extensive network effects. It benefits from significant customer switching costs, superior distribution, and pricing power, supported by continuous innovation and regulatory barriers.

Visa is modestly undervalued as measured by GuruFocus Value shown in the chart below.

 

Mastercard Inc.

Moat score: 9/10

Mastercard has a robust wide moat due to its strong brand, extensive network effects, and significant customer switching costs. Its global payment network provides durable cost advantages and pricing power. The company's consistent innovation and R&D capabilities further solidify its market leadership and sustainable market share.

Similar to Visa Inc., Mastercard is also undervalued as measured by GuruFocus Value.

Berkshire Hathaway

Moat-score: 10/10

It’s no surprise that Berkshire Hathaway ranks at the top with the highest moat score. The company holds an exceptionally strong competitive position, supported by its diverse collection of businesses, powerful brand reputation, and meaningful pricing power. It also benefits from economies of scale, a superior distribution network, and steady innovation across its many subsidiaries.

More on Moat:

Common sources of moats include:

  • Brand Power 

  • Network Effects

  • High Switching Costs 

  • Cost Advantages 

  • Efficient Scale

To measure the strength and sustainability of these competitive advantages, GuruFocus created the Moat Score — a quantitative framework that evaluates profitability, returns on invested capital, and consistency over time.

In conclusion, with high-quality tech stocks now trading in overvalued territory, we’re shifting our attention to non-tech names. The three companies discussed here all possess wide economic moats—moats that have driven their strong historical returns—and each currently appears undervalued. It may be a good time to take a closer look.

Disclosure:  I hold positions in these three companies in my personal accounts and also in other accounts that I manage as an investment advisor. 

Data source: GuruFocus.com. Date: 11/24/2025


About: Charlie Tian, Ph.D. is the founder and Chief Executive Officer and portfolio manager of GuruFocus Investments, LLC, an SEC-registered investment management firm.

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