WWBB: What Would Buffett Buy? 6 Household Names With Strong Sales
Warren Buffett has long been known for his affinity for recognizable brands and American icons like Coca Cola (KO). His methodology includes finding companies that are household names, have proven track records, and plenty of repeat business. So it shouldn't come as much of a surprise to see his firm, Berkshire Hathaway Inc. (BRK.A), in the headlines with 3G Capital Management LLC announcing a proposal to buy Heinz for a cool $23 billion.
Given Buffett's preferences, should we have seen this coming? With this hindsight in mind we looked for stocks we think Buffett would consider going forward. We used the Kapitall Super Screener to sort through stocks in the S&P 500 with strong historical performance and consumer-friendly names. Strong performance doesn't necessarily mean "high growth" or even "high yield." Companies in the list below have steadily increased sales over that last 5 years and have slowly paid out dividends to loyal shareholders. Consequently, the stocks below aren't exactly penny stocks; you get what you pay for. And that's a steady stream of future cash. These companies are here to stay and generate returns for years to come.
The potential for these mature companies is reflected in the large number of positive analyst ratings. Strong buy ratings on these stocks are an extra reassurance that these stocks can meet their sales growth targets.