$MA is a fantastic business to own.
During the latest earnings call, they revealed that 60% of VAS revenue is now network-linked
Even if VAS has lower margins, its high growth and incremental margins are the reason it's operating margin has expanded from 53% to 57% in '25
@DimitryNakhla Iโve been so tempted to buy either one but I havenโt because Iโve been adding to $MA & $MELI
Any preferences between $SPGI or $MCO Dimitry?
Whatโs the typical life cycle of an $ASML machine once itโs in operation?
๐๐% ๐จ๐ ๐๐ฅ๐ฅ ๐ฅ๐ข๐ญ๐ก๐จ๐ ๐ซ๐๐ฉ๐ก๐ฒ ๐ฆ๐๐๐ก๐ข๐ง๐๐ฌ ๐๐๐๐ ๐ก๐๐ฌ ๐ฌ๐จ๐ฅ๐ ๐ข๐ง ๐ญ๐ก๐ ๐ฅ๐๐ฌ๐ญ ๐๐ ๐ฒ๐๐๐ซ๐ฌ ๐๐ซ๐ ๐ฌ๐ญ๐ข๐ฅ๐ฅ ๐ข๐ง ๐จ๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง ๐ญ๐จ๐๐๐ฒ.
$ASML is what a ๐ก๐๐ฎ๐๐ง๐๐ ๐ข๐ค๐๐ฉ looks like in practice. Many investors understand that $ASML has a monopoly on EUV lithography. Perhaps very view appreciate just how many compounding layers sit beneath that headline.
๐๐ก๐ ๐๐ง๐ฌ๐ญ๐๐ฅ๐ฅ๐๐ ๐๐๐ฌ๐: These machines endure. Decades on the floor of the worldโs most advanced semiconductor fabrication facilities. Thatโs not just a sale. Thatโs an ongoing business relationship. And as the installed base continues to grow, the business becomes more valuable โ not just in the year of the sale, but compounding over the long term. More machines in the field means more servicing, more upgrades, and deeper entrenchment with every customer.
๐๐จ๐๐ฎ๐ฅ๐๐ซ ๐๐๐ฌ๐ข๐ ๐ง & ๐๐ฉ๐ ๐ซ๐๐๐๐ฌ: A machine installed 10 years ago can receive an upgrade today that markedly improves its productivity. Customers arenโt just buying a machine โ theyโre buying a platform that gets better over time. The purchase decision becomes easier knowing that the machine you buy today can be continuously upgraded over many years โ rather than becoming obsolete. For $ASML, that means the revenue opportunity doesnโt end at the sale. It extends across the entire life of the machine.
๐๐ง๐ ๐จ๐ข๐ง๐ ๐๐๐ซ๐ฏ๐ข๐๐ข๐ง๐ : The relationship doesnโt end at upgrades. $ASML services these machines throughout their entire lifecycle โ maintenance, support, and optimization that keeps the worldโs most critical semiconductor infrastructure running. This creates a recurring, high-margin revenue stream that compounds quietly in the background alongside new machine sales. The more machines in the field, the more valuable this stream becomes over time.
๐๐๐๐ก๐ง๐จ๐ฅ๐จ๐ ๐ข๐๐๐ฅ ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐: The machines are so complex they require three jumbo jets to transport. And by most estimates, the next closest competitor is roughly a decade behind. And $ASML isnโt standing still. $ASML continues to innovate. As of February 2026, $ASML achieved a major breakthrough โ developing a 1,000-watt EUV light source, nearly doubling the power of current 600-watt systems. By 2030, that translates to 330 wafers per hour โ a 50% increase in productivity. A moat that isnโt just wide today but is actively being widened.
๐๐จ๐ฐ ๐๐๐ซ๐ ๐ข๐ง๐๐ฅ ๐๐จ๐ฌ๐ญ ๐จ๐ ๐๐ซ๐จ๐๐ฎ๐๐ญ๐ข๐จ๐ง: Once the capital cost of a fabrication facility is depreciated, the marginal cost of running these machines is relatively low. $ASML participates in the upside of that efficiency through ongoing upgrades and servicing โ without bearing the cost.
This is not a company with one moat. Itโs a company where each layer reinforces the next.
___
๐๏ธ Business Breakdowns: ASML Competing with Mooreโs Law (Mar 6, 2026)
"A rule of ๐for a lot of things in life is that everything that can break will eventually break. So if many things rely on one thing working and that thing breaks, you are counting the days to catastophe".
@morganhousel
$GOOGL MoS relies on many "things" reducing that risk.
You sure youโre not under-appreciating Googleโs long-term potential?
When you buy $GOOG $GOOGL you own:
TPUs
Gemini
Waymo
YouTube
DeepMind
Google Cloud
7% stake in SpaceX
14% stake in Anthropic
Quantum Computing
Android & Play Store
Google Workspace
Google Search
Maps & Waze
Other similar companies in quality to $COST, $ISRG, $ROL, $MCO, $SPGI, $TDG, $CTAS or $FICO?
Trying to increase my current watchlist of best in class companies
@ThinFloat For sure youโre missing some key variables within what I consider to be โQualityโ
Of course having a great balance sheet is one of them, but not the only one to look for in a business.