Baby Buffett Portfolio: His 6 Best Long-Term Picks

AAA

The Buffett Philosophy

Warren Buffett is a proponent of value investing, which looks to find stocks that are undervalued compared to their intrinsic value. Financial metrics like price/book (P/B), price/earnings (P/E), return on equity (ROE) and dividend yield carry the most weight on the Buffett scales. In addition, he seeks out companies that have what he calls "economic moats" - high barriers to entry for a competitor who may wish to invade the market and erode profit margins.
Related Articles
  1. Investing

    Costco’s Business Model Is Smarter Than You Think

    Why is Costco so successful? What differentiates the company from its competitors and why is its profit so small compared to Wal-Mart?
  2. Investing

    Costco's 4 Key Financial Ratios (COST)

    Understand why low profitability ratios are good for Costco's business, have not hurt shareholder returns and, as a result, remain a boon to its stock.
  3. Insights

    Warren Buffett's Moat: How Sustainable is Costco's Competitive Advantage? (COST)

    Find out how Costco has leveraged its cost model and brand equity into a sustainable economic moat, which protects investors and customers.
  4. Markets

    How Buffett’s Top 7 Holdings are Performing

    A look at how legendary investor Warren Buffet's top seven holdings are performing.
  5. Markets

    The Biggest Risks of Investing in Costco Stock (COST)

    Read about some of the biggest risks of investing in Costco stock. Gain a better understanding of its business model before buying in.
  6. Insights

    Top 4 Companies Owned by Costco (COST)

    Learn about the subsidiaries that help Costco Wholesale Corporation increase sales and profits. Consider how online sales impact their financial results.
  7. Markets

    Costco Stock Climbs on Dividend Hike (COST)

    Costo's dividend is a bonus to the stock performance, which is the real gem.
  8. Investing

    China is an Untapped Growth Opportunity for Costco

    Despite recent woes, China has experienced explosive consumer consumption growth over the past decade and could be a strategic growth opportunity for Costco.
  9. Markets

    Costco’s Earnings Miss Overblown

    Costco missed earnings because of a variety of external factors. These factors are more or less inconsequential to the stock's underlying value.
  10. Markets

    For Costco Investors, Membership Has Privileges

    The geographic footprint and sales strategy of the 2nd-largest retailer in the world has made membership-only Costco a worldwide institution.
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center