Warren Buffett Will Buy This Stock Next

Updated from 10:19 a.m. EDT

Warren Buffett has a challenging problem. He has too much money. Berkshire Hathaway (BRK.A Quote - Cramer on BRK.A - Stock Picks) has $50 billion cash in the bank. In order to show improving earnings, Buffett has to put that money to work and have it make more money for him.

He needs to buy stocks that go up and companies that improve their book value and cash flows. He needs to take in insurance premiums that he never gives back as payments (in other words, the insurance company should be conservative on the risks it takes, something Buffett has been notoriously good at for 40 years). And all of his current businesses, such as MidAmerican, NetJets, Fruit of the Loom, Dairy Queen, etc. need to do well.

Buffett has so much cash, though, that it's hard to find a suitable investment to satisfy his voracious appetite. He can't just make tiny investments, like buying 1% of a company, and hope it does well on the stock market. He has to swallow companies whole and trust that he's paying a cheap enough price for a good enough management, that the company satisfies his desires for growth.

Some things he won't do, however.

• He'll stay out of China (no Baidu (BIDU Quote - Cramer on BIDU - Stock Picks) for him).
• He loves health care; his recent investments in Sanofi-Aventis (SNY Quote - Cramer on SNY - Stock Picks) and Johnson & Johnson (JNJ Quote - Cramer on JNJ - Stock Picks) are examples, but I don't think he'll buy those companies outright.
• He'll stay out of Internet tech (despite once owning bonds on both Amazon.com (AMZN Quote - Cramer on AMZN - Stock Picks) and Level 3 Communications (LVLT Quote - Cramer on LVLT - Stock Picks), I can't see him making an extensive foray into this arena).
• He'll probably not swallow up any of his bank investments (Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks), US Bancorp (USB Quote - Cramer on USB - Stock Picks) or Bank of America (BAC Quote - Cramer on BAC - Stock Picks) are all underwater this year but represent good investments).
• And while I'm sure he's a big fan of his bridge partner Bill Gates' company, Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks), he'll probably leave that one alone also. (Note: Gates is on the Berkshire board.)

Stockpickr has come up with two investment ideas for Buffett. Hint: Think food and real estate.

OK, fine. They're ConAgra Foods(CAG Quote - Cramer on CAG - Stock Picks) and First Industrial Realty(FR Quote - Cramer on FR - Stock Picks).

To read more about why we think Buffett should consider these stocks next, please click here.

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A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

• Stocks related to drilling the Marcellus Shale
• MLPS with yields above 7%
• Microcaps trading for less than tangible book
• Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other hedge fund managers on my list.