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How to Find the Next Warren Buffett Investment

Why some companies are Warren Buffett Stocks. Patterns and key insights into Warren Buffett’s investment success.

Warren Buffett Lubrizol Investment. Why Warren Buffett acquired Lubrizol (NYSE: LZ) for 9 billion. Lubrizol is a company with great pricing power. It controls 35 percent of sales in an industry with only four major players, and has made significant improvements in its operating margins over the past few years. It also demonstrated pricing power [...]

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Warren Buffett ISCAR Investment. Why and how Warren Buffett invested in ISCAR Metalworking Companies, an Israeli company. Buffett acquired 80% of Iscar Metalworking Companies for $4 billion in cash in 2006. Iscar is an international company based in Israel, and makes precision metal-cutting tools. Its primary customers are in the auto and aerospace industries. The [...]

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Warren Buffett PetroChina Investment (NYSE: PTR). Buffett invested $488 million in PetroChina and made close to 9x his investment in 5 years. The principles of value investing do not just work in the United States; they work anywhere there are markets where there is a Mr. Market who tosses irrational prices at you every day. [...]

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Warren Buffett Johns Manville Investment. Why Warren Buffett invested in Johns Manville at 5x EBIT, at an opportune time when Johns Manville was out of favor on Wall Street. Buffett acquired Johns Manville for $1.8 billion in 2000. Johns Manville is America’s biggest manufacturer of fiber glass building insulation, commercial roofing membranes and roof insulations, [...]

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Warren Buffett Justin Industries Investment. Why Warren Buffett invested in Justin Industries, a producer of bricks and boots based in Texas. Buffett acquired Justin Industries for $570 million in cash in 2000. Justin Industries is the leading maker of Western boots and a premier brick producer in Texas and five neighboring states. Buffett liked this [...]

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Warren Buffett MidAmerican Energy Investment. Why Warren Buffett invested in MidAmerican Energy. Buffett acquired 76% of MidAmerican Energy for $2 billion in 1999. MidAmerican Energy is a utility company based in Iowa. Investments such as MidAmerican Energy are examples of investments in companies that generate stable but not spectacular returns. They have high capital expenditure [...]

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Warren Buffett General Re Investment. Why Warren Buffett invested in General Re and eventually acquired it in 1998. In one of the largest deals in history, Buffett acquired General Re for $22 billion in Berkshire stock in 1998. The purchase price represented a 29% premium to General Re’s closing price. The all-stock nature of the [...]

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Warren Buffett NetJets Investment. Why Warren Buffett invested in NetJets. This Warren Buffett investment is one of Warren’s favorites; flying on jets is one of his few ‘guilty pleasures’. Buffett acquired NetJets for $725 million in 1998, with 50% in cash and 50% in stock, after having been NetJets’ customer for three years. The company [...]

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Warren Buffett Dexter Shoe Investment. Why Warren Buffett invested in Dexter Shoe, and why he later came to regret this investment. Buffett acquired Dexter Shoe in 1993 with $420 million worth of Berkshire stock. Dexter made $40 million in pre-tax earnings then from selling popular-priced men’s and women’s shoes. Warren Buffett Investment in Dexter Shoe [...]

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Warren Buffett Wells Fargo Investment. Why Warren Buffett invested in Wells Fargo. Buffett bought 1.6% of Wells Fargo in 1989 and another 8.4% in 1990, at less than 5x after-tax earnings and less than 3x pre-tax earnings. His average buy-in price was approximately $58 a share – this would later become one of Buffett’s best [...]

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