3 More All-American Companies That Made Buffett Billions

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In the following video, Jeremy Phillips interviews Austin Smith, who talks about three more Warren Buffett favorites.

The first is Wal-Mart. At $3.4 billion, this is a smaller Buffett position that most, but Austin says this stock helped create the Buffett we know. Buffett identified Wal-Mart as a great stock early on but missed a golden buying opportunity by sitting on the sidelines after a small uptick in the share price. He did buy the shares later, but he eventually revealed that his delay cost him $10 billion in potential profit. The lesson? Don't let a small price increase change how you're investing. 

The second is American Express, a $9.7 billion position, and the third is GEICO.

Austin says Buffett doesn't try to predict which companies will continue to have moats in the future but instead looks for companies with well-developed, well-known moats and with managers who can take advantage of those moats. He notes that Coca-Cola, IBM (a pick Buffett made in the past 18 months), and now Heinz already had long-established moats when Buffett bought their shares.

Buffett made billions buying great companies and letting Mr. Market work its magic. If you're on the lookout for the next great batch of companies that could explode higher, check out Top Stocks of 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and it includes Chief Investment Officer Andy Cross' top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, 100% free report.

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  • Report this Comment On March 23, 2013, at 9:49 AM, BDF958 wrote:

    Rear view mirror history. Tell me what he is going to do next and will be more interested.

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