5 Stocks Warren Buffett Loves
"The ultrarich, including me, will forever pursue investment opportunities," argues the Oracle of Omaha. "Maybe you'll run into someone with a terrific investment idea, who won't go forward with it because of the tax he would owe when it succeeds. Send him my way. Let me unburden him."
Buffett's close is only half tongue-in-cheek. Buffett already has his two favorite stock pickers, former hedge fund managers Todd Combs and Ted Weschler, at the helm of Berkshire Hathaway's (BRK.A) mammoth $75 billion equity portfolio. But only a handful of new investment opportunities popped up on the team's radar in the most recent quarter -- that's why it's worth taking a closer look at what everyone's favorite octogenarian billionaire is buying right now.
To do that, we're scouring Berkshire's latest 13F filing.
Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. By comparing one quarter's filing to another, we can see how any single fund manager is moving their portfolio around -- and what investments are faring the best for them. More importantly, we can figure out what names the big money likes the most right now.
So, what companies made that made Berkshire's "buy" list are worth watching? Here's a look at five stocks you should buy to be like Buffett .
Deere & Co.
Buffett and company's biggest new buy is agricultural equipment giant Deere & Co. (DE) . Deere is hardly an under-the-radar buying opportunity -- with a $33 billion market capitalization, this blue chip stock is a name that everybody already knows. But the team at Berkshire still likes Deere enough right now to shell out the cash for 3.98 million shares. That carries a value of $328 million right now.
Deere is the most recognizable name in agricultural and construction equipment -- most of the people wearing those signature green John Deere hats haven't sat in a combine before, much less plowed a field. But that brand strength is critical for Deere. It keeps the brand at the front of commercial clients' minds, and hit helps to fuel sales for the firm's consumer products. Deere has never been the price leader. Instead, it's focused on harnessing a quality reputation and the latest technology to sell tractors and combines. The strategy has worked well for DE, and maintaining that valuable brand gives it an edge that rivals don't have.