This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ETFs for Potential Buffett Targets

NEW YORK ( TheStreet) -- Even in the face of daunting economic headwinds, billionaire investor Warren Buffett has remained unwaveringly bullish in his view of the U.S. economic recovery.

At the start of the week, in comments made at Fortune magazine's Most Powerful Women Summit, Buffett reiterated his optimism, pointing to the impressive performances of Berkshire Hathaway (BRK.A - Get Report) notables like Burlington Northern Santa Fe Rail Railroad.

Looking ahead to final months of 2011, Buffett's foresees continued strength. Excluding Berkshire's housing branch, which the investor feels is still facing steep hurdles, Buffett expects many of the largest businesses under his watch will see record, or near-record earnings this year.

Given this rosy forecast, it will be interesting to see how Buffett intends to position himself to benefit in the months ahead. With nearly $50 billion in cash sitting on the sidelines, the investor's elephant gun is loaded and ready to fire. Analysts, commentators and Buffet fans have been itching to see when and where he intends to pull the trigger.

Although, on a number of occasions Buffett has provided clues as to what he looks for in attractive acquisition targets, attempting to actually pinpoint where he will eventually spend his cash is a difficult task.

In a recent report from Bloomberg, over 30 companies were found to share the qualities Buffett has historically looked for in attractive opportunities. These firms run the sector gamut, ranging from spice giant McCormick (MKC - Get Report), to oil and gas driller Noble (NE - Get Report), to entertainment retailer GameStop (GME).

Companies comprising this list are not confined to U.S. borders, either. Indonesia's Bumi Resources and Norway's Yara International are some of the international names scoring spots as well.

Speculating over which company will receive a blessing from Buffett can be a fun exercise. However, when it comes to investing, I encourage those investors looking to mimic the Oracle of Omaha to avoid trying to pick out his next big purchase.

ETFs offer a better alternative for fans of the Nebraska native. Using these products, investors can not only attempt to gain exposure to possible Berkshire acquisition targets, they can also construct a strong, stable portfolio that will perform well in the event that the investor's optimistic forecast plays out.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NE $14.32 0.00%
BRK.A $217,000.10 0.00%
IEZ $46.69 0.00%
IYK $105.08 0.00%
MKC $77.33 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs