"I like to go for cinches. I like to shoot fish in a barrel. But I like to do it after the water has run out."
-- Warren Buffett

History seems to show that good investing doesn't necessarily mean picking out complex situations and basing your investment thesis on Nobel-level math. In fact, as the recent financial crisis has shown us, too much complexity can often end in calamity.

In an effort to track down companies that may fall into Buffett's "fish in a barrel" category, I've turned to The Motley Fool's CAPS community. Using CAPS' stock screener, I looked for companies that are earning 10% or more on their equity, have insiders owning a piece of the company, aren't over-levered, and have high ratings from CAPS members.


CAPS Rating
(out of 5)

Return on Equity

Insider Ownership

Debt-to-Equity Ratio

Coca-Cola (NYSE:KO)










Under Armour (NYSE:UA)





Source: CAPS.

While the three companies above aren't meant to be formal recommendations, they are a good point to start further research. And on that note, let's take a closer look.

Coke is a bad choice if you're looking for a stock that's going to quickly double or triple your investment. But Coke is tough to beat when it comes to companies that have a strong business, are financially sound, and are easy to understand.

In its most recent quarter, Coke's operating results were far from inspiring. Revenue slipped 4% from a year ago and operating income fell 2%. But dig a little deeper and we can see exactly why Coke is worth owning.

For starters, the company's balance sheet is rock solid with $8.8 billion in cash against $5 billion in long-term debt. Cash flow during the quarter clocked in at an impressive $6.3 billion and only $1.4 billion of that needed to be spent on capital projects.

And maybe most notably, one of the main contributors to Coke's poor operating results was currency fluctuations -- specifically a stronger dollar versus last year. As the U.S. tries to pull itself out of an economic morass, it seems highly likely that the dollar could take a hit, which would benefit companies with heavy international exposure, like Coke.

In the world of tech, Oracle may not get as much press as companies like Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) because it's not consumer-facing. But don't make the mistake of overlooking this software behemoth.

Oracle is led, and 23% owned, by the hard-driving Larry Ellison. He has not only made Oracle the name in business database software, but he has proven to be one of the few head honchos out there -- maybe along with Cisco's (NASDAQ:CSCO) John Chambers – who can make acquisitions very worthwhile.

The company is solid financially. In fact, so much so that it recently decided to start using its $20 billion-plus stockpile of cash and investments to start paying a dividend. Tough economic times haven't skipped over the company, but you can bet when the global economy starts recovering, businesses will be opening their wallets for Oracle.

Under Armour
If you dream of owning a young Nike (NYSE:NKE) with plenty of growth still ahead of it, Under Armour may be your best bet. At about one-twentieth the size of Nike, Under Armour still borders on being a small cap, but its gear and distinctive logo have gained considerable muscle in the sports world.

To be sure, Under Armour's stock is hardly cheap at nearly 30 times expected 2010 earnings, but investors have high hopes for future growth. On CAPS, 2,429 members think the stock will outperform the rest of the market.

CAPS All-Star Alzo10 became an Under Armour bull last summer, and had this to say:

... [Under Armour] has built an incredibly loyal customer base among hard-core athletes. In fact, go on most college campuses today and talk to the athletes and they'll likely respond that they prefer [Under Armour] to [Nike] and any other brand products.

Like Nike, [Under Armour] has hooked them young, and is becoming a dominant player. [Under Armour] is what Nike was 25 years ago.

I expect significant growth out of [Under Armour] in the next 5 years as they bring more and more products online for the weekend warrior. OR, I see Nike buying these guys if they're smart.

Getting down to business
Now the CAPS community wants you. Do you think these stocks make sense? Or is the community off base in its faith? Head over to CAPS and join the 145,000 members already sharing their thoughts on thousands of stocks.

Concerned a stock in your portfolio doesn't make sense? Check out my three signs of a terrible investment.

Coca-Cola is a Motley Fool Inside Value recommendation and a Motley Fool Income Investor pick. Google and Under Armour are Motley Fool Rule Breakers selections. Apple is a Motley Fool Stock Advisor pick. Under Armour is a Motley Fool Hidden Gems selection. The Fool has written covered puts on Oracle. The Fool owns shares of Oracle and Under Armour. Try any of our Foolish newsletters today, free for 30 days

Fool contributor Matt Koppenheffer owns shares of Coca-Cola, but does not own shares of any of the other companies mentioned. You can check out the stocks that he is keeping an eye on by visiting his CAPS page or you can connect with him on Twitter as @KoppTheFool. The Fool's disclosure policy is chillaxin' because it's too busy to chill and relax separately.