Top 3 Stocks That Fit Warren Buffett's Investing Style
Warren Buffett is recognized as the greatest investor of this era. His expertise in investing and financing has made him one of the wealthiest people in the world with a fortune worth over $80 billion. Warren Buffett’s company, Berkshire Hathaway, has produced a compound annualized return of 20.8% for over 50 years. This is considered to be the bellwether standard for investors to achieve. He has done this by investing in companies that have a proven record of stability and profitability while staying away from trendy companies and speculative investment strategies. His buy-and-hold value investing strategy has proven to be very successful. A closer look at Warren Buffett’s investing strategy shows that it is not too complicated. He is an investor and not a trader in that he doesn’t care about hourly, daily, weekly, or monthly stock price swings of his investments. He is a pure fundamental investor, not a technical investor. Some of the characteristics Warren Buffett looks for companies he is considering making an investment in include: • Trustworthy management who act in the best interest of the shareholders • Low debt-to-equity ratio with increasing profit margins • Minimum return-on-equity of 15% for the past 10 years • Minimum return-on-total-capital of 12% for the past 10 years • A strong economic moat – name recognition or industry dominance • The intrinsic value of company stock must be a minimum of 25% below the market value of the stock