Do not invest in expensive stocks or fall prey to mob enthusiasm. Berkshire Hathaway has $116 billion in cash. Warren Buffett and Charles Munger make selections with specific attributes in names they buy. Apple stands at $30 billion but it is unlikely that Hathaway would buy this with their $116 billion. Buffett owns Delta Air Lines, Inc. United Continental Holdings, Inc. and more.
General Electric stock is a possible Buffett investment category since it is near $14 today although if it is near $12, and $10 which seems unlikely, it would be bought. You see it was at $22 previously but today’s $14 price seems unrealistic. Berkshire may not want to buy the entire company, but it could buy a stake in it at 50%. Berkshire’s stock strategy is to buy them inexpensively.
Stock must not be expensive, which is Buffett’s main strategy. Buffett’s’ standards include investments such as L’Oreal, Adidas, Black Rock, Inc. BLK. Cognizant Technology Solutions Corp. Henkle AG& Co. Nike, Inc. Public Storage and SAP SE. Start considering alternative plays about the stocks you want. Bargain hunters look for stocks with low prices, even as the market will favor stocks that are undervalued. Buffett chooses stocks only because the company has potential. Buffett doesn’t seek capital gain but ownership in companies capable of generating what they earn consistently. The company must have avoided debt. Are profit margins increasing? How long has the company been public? Buffett buys companies that have existed for 10 years. Is the company offering something unique? Is the stock undervalued? What would it be worth if the company was broken up today? Buffett must see the company as one that has value. Buffett’s investment style is like a bargain hunter. He doesn’t make lavish expenses, living in a modest manner at all times.