Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The CAPS Screen: 5 Warren Buffett Stocks

Warren Buffett made his vast fortune buying companies with wide and durable "moats" -- long-term, sustainable competitive advantages. His Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) purchases companies that have the ability to keep competitors at bay and thus maintain unusually high levels of profitability.

With that in mind, I used our new CAPS screening tool to find potentially Buffettesque opportunities, those highly profitable companies on which the CAPS investing community is the most bullish. Below are five companies with returns on equity above 15%.

They also have:

  • Market caps greater than $10 billion
  • Trailing three-yr EPS growth rate about 10%
  • Price-to-earnings multiple below 20
  • Four- or five-star ratings, the highest possible, from our CAPS community

Remember, in the first year for which we have data, four-star companies have outperformed with an average gain of 17%. Five-stars did even better.


Share Price


Market Cap (in billions)

General Electric (NYSE: GE  )




Honeywell (NYSE: HON  )


Industrial goods


Marathon Oil (NYSE: MRO  )


Basic materials


UnitedHealth Group (NYSE: UNH  )


Health care


China Petroleum & Chemical (NYSE: SNP  )


Basic materials


Data from Motley Fool CAPS and Yahoo! Finance as of July 17.

But for Buffett, as for all smart investors, hunting for the most profitable investments doesn't end with just a screen. Like Sir Mix-a-Lot, he knows that uncovering stocks with the biggest moats requires due diligence. Come and join us on Motley Fool CAPS to let the collective wisdom of our 110,000-strong CAPS community help you make your investment decisions.

For more Foolery:

Ilan Moscovitz doesn't own any of the companies mentioned in this article. Though green, round, and soft, apparently avocado is a fruit. UnitedHealth Group and Berkshire are Inside Value and Stock Advisor selections. The Motley Fool owns shares of Berkshire. Both fruit and vegetable, The Fool's superfood disclosure policy is good for the mind, body, and soul.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 688671, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:41:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
BRK-A $215249.96 Down -250.04 -0.12%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $143.42 Down -0.41 -0.29%
Berkshire Hathaway… CAPS Rating: *****
GE $28.65 Down -0.27 -0.93%
General Electric CAPS Rating: ****
HON $109.07 Down -0.19 -0.17%
Honeywell Internat… CAPS Rating: ****
MRO $14.18 Down -0.41 -2.81%
Marathon Oil CAPS Rating: *****
SNP $75.53 Down -0.80 -1.05%
China Petroleum an… CAPS Rating: **
UNH $143.78 Down -0.91 -0.63%
UnitedHealth Group CAPS Rating: ****