Six Buffett-Style Takeover Picks

Warren Buffett said in his recently released annual letter that he’s on the lookout for potential acquisitions for his Berkshire Hathaway, and in a recent column MSN’s Michael Brush uses’s research to highlight some possible targets.

“To find stocks he might favor, I started with a list from the investment company Validea, which has programmed computers to mimic Buffett’s actions,” Brush writes. “With the help of my favorite Buffett experts, I narrowed down Validea’s list to a few names by identifying the ones with the qualities Buffett likes the most. These include a protective moat that keeps competitors away; pricing power; an easy-to-understand business; and a history of family ownership.”

Among the companies Brush highlights: spice giant McCormick. “With well-known brands like Lawry’s and Old Bay — not to mention its namesake and many other store labels — McCormick controls half the spice market in North America, and it’s more than twice as big as its closest competitor,” Brush writes. “This dominant position gives McCormick two traits Buffett loves: Pricing power and a wide economic moat.”

Other picks Brush highlights include insurer Aflac and farm equipment retailer Tractor Supply. To find out all six of the firms he discusses, click here.

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