S&P: 49 stocks Warren Buffett might buy

Standard & Poor’s has created a stock screen that uses the criteria that Warren Buffett says he uses in evaluating stocks, and it has found 49 stocks that Buffett might buy. Link is here.

One of Buffett’s most important criteria, of course, is that he must understand the business.

This means that individual investors trying to apply his screen also should buy stocks in companies whose businesses they understand.

Wonder how many industries most individual investors understand? How many do professional money managers really know well?

Can you learn an industry by reading a blog, news story or analyst report? Perhaps you can if you read several articles and reports about several companies in the same industry.

For example, I’ve been catching up on the energy business lately. No surprise. Haven’t we all? I’m to the point where I have opinions about some energy companies and sectors, and I even own a pipeline company, Kinder Morgan (KMP).

So it just takes a little homework.

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