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) 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. ...