9 companies Warren Buffett should consider buying

I limited it to companies in the S&P 500 with market values between $5 billion and $20 billion. They had to be trading at reasonable valuations, have strong balance sheets and a great track record when it comes to profits.

Finally, I immediately excluded the tech sector. After all, this was criterion number 5 from Buffett: “Simple businesses (if there’s lots of technology, we won’t understand it.)”

Forty companies came up. Here are nine that seemed the most intriguing.

  • Hormel Foods
  • (HRL)

  • Principal Financial Group
  • (PFG)

  • BorgWarner
  • (BWA)

  • Kansas City Southern
  • (KSU)

  • Ralph Lauren
  • (RL)

  • J.M. Smucker
  • (SJM)

  • McCormick & Co (MKC).
  • Southwestern Energy
  • (SWN)

  • H&R Block
  • (HRB)

But if Berkshire does wind up buying any of them over the next few years, I’d gladly accept a small finder’s fee from the Oracle and Charlie!

Related: Berkshire is one of Motley Fool’s best stocks to buy

Related: Buffett dumped Big Oil. Dumb move?

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