Warren Buffett and Berkshire Hathaway have been buying this year — both in terms of stocks and whole companies (like Lubrizol). And in his latest article for Forbes.com, Validea CEO John Reese looks at a handful of companies and stocks that Buffett should have an eye on.
Reese notes that Buffett has pointed out a number of qualities he looks for in investments, including steady earnings power, low debt, and high returns on equities. Those three criteria are all part of Reese’s Buffett-inspired “Guru Strategy” on Validea.com. He uses that strategy to analyze some companies that have been raised as possible Berkshire buys — like agriculture giant Archer Daniels Midland — and to highlight others that may better fit the bill, like logistics and transportation company C.H. Robinson Worldwide.
“There are obviously a number of other issues that go into a company like Berkshire making a big acquisition, but these firms at least appear on paper to be good fits — and good places for stock investors to look,” Reese says of Robinson and two other stocks that get high marks from his Buffett-based model. To see the full article and the other Buffett-esque stocks, click here.