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.

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    Top ETFs for Investing in Coffee

  2. Forex

    The Impact of 401(k) Outflows on Advisors

  3. Investing

    Go Green with a Investment in Green Bonds

  4. Fundamental Analysis

    4 Utility Stocks that May Stay Bright

  5. Professionals

    Are Stock Buybacks Always Good for Shareholders?

  6. Fundamental Analysis

    Making Sense of Netflix's Balance Sheet

  7. Mutual Funds & ETFs

    The Top 3 ETFs For Investing in Australia

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!