Four Companies Growing as Economy Sinks

Billionaire Warren Buffett says investors should buy stocks they understand and companies with competitive advantages that will help them grow in a limp economy.

With that in mind, here are four companies I rated "buy" in 2008 that I remain optimistic about this year. These companies operate in transparent markets and have strong financial positions, which we believe will help them outperform competitors and major indexes.

Green Mountain Coffee Roasters (GMCR Quote) is benefiting from the decline of Starbucks (SBUX Quote). The company sells brewers to homes and offices "at cost," but profits from the "K-Cups," single-serving coffee packs, the machines use. As the economy weakens, office workers are choosing free coffee over $5 lattes. That shift helped boost the company's first-quarter net income 392% as its revenue jumped 55.8%. The stock has gained 12.4% in the past six months. ...