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Practical Advice from

7 Companies Warren Buffett Should Buy Now

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The calls for Warren Buffett to start paying a dividend continue to get louder as Berkshire Hathaway Inc. (BRK.A, BRK.B) piles up the cash.

With almost $100 billion in cash as of June 30, Buffett faces a similar problem that successful money managers face when they have too much money to invest and not enough good opportunities to put the funds to work. It’s a problem that could become quite severe if Buffett doesn’t hurry up the pace of M&A transactions — something I discussed before its Aug. 4 earnings release.

I thought Berkshire Hathaway would deliver more than $107 billion in cash in Q2 2017; its cash stash came in at $99.7 billion, a stone’s throw from triple digits. You can expect the company to go over $100 billion in the third or fourth quarter barring any significant deals that close in time.


Frankly, it might be wiser for Buffett to spin off $30 billion of the excess cash plus McLane Company, its wholesale distribution business. The separately traded company would be run by his chosen (but yet unnamed) successor, which would allow it to begin succession planning while buying some smaller businesses that might not fit the Berkshire Hathaway M&A criteria.

What businesses might those be? Here are seven companies Warren Buffett should buy now, all of them with market values of less than $20 billion.

Prices and data are from the original InvestorPlace story published on August 14, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: Quiz: How Well Do You Really Know Warren Buffett

This slide show is from InvestorPlace, not the Kiplinger editorial staff.


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