One of our core investing mantras is this: buy companies with durable moats, market dominance in oligopoly industries, steady growth, high profit margins, and strong free cash flow—but only at reasonable prices. Then hold them long-term.
We’ve covered many of these names before. Recently, a few of them saw their share prices pull back—or at least lag behind the broader market—giving us a fresh chance to revisit them.
Here are five stocks we believe remain attractive right now, in no particular order:
#1 Domino’s Pizza (DPZ)
We first wrote about Domino’s when the share price was at $362, in end-2023. That was even before Buffett bought the stock in Q3 2024—and in Q1 2025, he added more. His average price is $449.82, and the current share price of $454 is not far off. Even after a 30% gain from our first coverage, the stock remains undervalued compared to our fair value estimate of $469. Given that Buffett has built a position in it, that goes to show the quality of Domino’s business and its reasonable valuation.
Software Eats World But People Eat Domino's Pizza
Without checking, make a guess which stock delivered a higher return in the last 10 years?