This podcast episode analyzes VeriSign (VRSN), a domain registry manager with a near-monopoly on .com and .net domains, highlighting its high profit margins and the recent investment by Berkshire Hathaway. The speaker explains VeriSign's role in internet infrastructure, its business model (charging annual fees for domain registration), and the competitive landscape. He discusses potential risks, including cybersecurity threats and the impact of evolving internet usage (e.g., rise of apps), and concludes by evaluating VeriSign's valuation, suggesting a potential investment at a price below $190-$200 per share due to its predictable cash flows and low growth. The speaker emphasizes the importance of considering price when evaluating a low-growth, high-profitability company like VeriSign, comparing it to a bond with predictable returns. A key takeaway is that VeriSign's pricing power, while limited by regulatory constraints, offers significant upside potential.
