January 11, 2021

The Top 10 Warren Buffett Stocks

 

Invest like the Oracle of Omaha with these stocks

 



Multitudes of investors want to invest like Warren Buffett. After all, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) has generated a return since 1987 to date of 11,863.86% compared to the S&P 500 Index’s return of a mere 2,954.00%

 

But what are the stocks that have been the basis of the massive market outperformance? And what has made Buffett work so well over the long history of the company that he leads?

 

Warren Buffett is one of the greatest investors of all time. And he has the report card to prove it, as just noted above. There are plenty of stories of his early years as an entrepreneur peddling door to door and like me working at a local grocery.

 

He would go on to the financial markets as a broker, working his way up at a series of firms. The basis for his public investment fortune and renown began with a series of investment partnerships, with locals investing in him and his investment process.

 

There are many bases in his investment approach. Amongst the leaders are his drive to invest in or buy companies with intrinsic value that was above the market’s price. This is when the underlying net assets that can be broadly defined as book value are higher than the stock value.

 

There have been an are plenty of companies that fit the criteria. Stock screens can easily pick out stocks that are currently trading at discounts to book value. But there is more to his method. there’s also cash generation. Generating cash is vital for companies, but consistently generating lots of cash in an efficient and predicable manner is a core necessity for a successful company and stock.

 

 

Blending these two concepts together leaves us looking for reliably profitable companies trading at a discount to intrinsic value. Those make for ideal investments.

 

And this is arguably why Berkshire Hathaway has had the long-haul market outperformance.

 

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