Long-term growth investing centers on picking high-quality companies with competitive advantages and large runways ahead, while not caring as much about today’s P/E ratio.
That’s because over the long term, high-quality stocks should win out. Even Warren Buffett’s late business partner, Charlie Munger, once noted that a company’s return on capital should reflect overall returns over a long-enough period, even if you pay a “fancy-looking price” in the present.
In that light, the following three growth companies look like solid long-term buys today, even after good runs off their April bottoms.