Warren Buffett's 13 Favorite Growth Stocks
NEW YORK (TheStreet) -- Warren Buffett is considered the most respected and successful investor. Often called "The Oracle of Omaha" for his impressive investing prowess, he is among the world's wealthiest people.
Buffett studied under the legendary Benjamin Graham at Columbia University who had a major impact on Buffett's life and investment strategies.
Buffett is chairman of Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK.A) which he built from a textile company into a major corporation with a market cap over $200 billion. Under Buffett's leadership, Berkshire shares averaged a 21.4% compounded annual gain in per share book value from 1965-2006.
He follows a value investing strategy that is an adaptation of Graham's approach: Discipline, patience and value consistently outperforms the market. His moves are followed by investors worldwide. Buffett seeks to acquire great companies trading at a discount to their intrinsic value, and to hold onto them for a long time. He will only invest in businesses that he understands, and always insists on a margin of safety.Regarding the types of businesses Berkshire likes to purchase, Buffett has said,"We want businesses to be one that we can understand, with favorable long-term prospects, operated by honest and competent people, and available at a very attractive price." What follows are Buffett's top 13 growth stocks as of March 31, 2014. 1. Chicago Bridge & Iron Company (CBI)
Shares Held by Warren Buffett's Berkshire Hathaway: 9,550,000
Value of Holdings: $832 million
Portfolio Weighting as of 3/31/2014: 0.79%
10-Year EBITDA Growth Rate: 24.40%
Chicago Bridge & Iron Company provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries. TheStreet Ratings team rates CHICAGO BRIDGE & IRON CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHICAGO BRIDGE & IRON CO (CBI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
- You can view the full analysis from the report here: CBI Ratings Report
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