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."

2. Viacom Inc. (VIAB)

Shares Held by Warren Buffett's Berkshire Hathaway: 7,607,000
Value of Holdings: $646 million
Portfolio Weighting as of 3/31/2014: 0.61%
10-Year EBITDA Growth Rate: 23.90%

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Viacom Inc. is an entertainment content company that connects with audiences in over 160 countries and territories and creates compelling television programs, motion pictures, short-form video, applications, games, consumer products, social media and other entertainment content.

3. National Oilwell Varco Inc. (NOV)

Shares Held by Warren Buffett's Berkshire Hathaway: 8,880,000
Value of Holdings: $691 million
Portfolio Weighting as of 3/31/2014: 0.65%
10-Year EBITDA Growth Rate: 23.20%

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National Oilwell Varco, Inc., is a provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry.

TheStreet Ratings team rates NATIONAL OILWELL VARCO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NATIONAL OILWELL VARCO INC (NOV) 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 solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

4. Precision Castparts Corp. (PCP)

Shares Held by Warren Buffett's Berkshire Hathaway: 1,977,000
Value of Holdings: $499 million
Portfolio Weighting as of 3/31/2014: 0.47%
10-Year EBITDA Growth Rate: 19.40%

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Precision Castparts Corp., is a manufacturer of complex metal components and products that provides investment castings, forgings and fasteners/fastener systems for critical aerospace and power applications.

TheStreet Ratings team rates PRECISION CASTPARTS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate PRECISION CASTPARTS CORP (PCP) 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 revenue growth, expanding profit margins, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

5. DaVita HealthCare Partners Inc. (DVA)

Shares Held by Warren Buffett's Berkshire Hathaway: 37,621,000
Value of Holdings: $2,590 million
Portfolio Weighting as of 3/31/2014: 2.4%
10-Year EBITDA Growth Rate: 15.00%

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DaVita HealthCare Partners Inc operates kidney dialysis centers and provides related lab services mainly in dialysis centers and in contracted hospitals across the U.S. It also operates other ancillary services and strategic initiatives.

TheStreet Ratings team rates DAVITA HEALTHCARE PARTNERS as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DAVITA HEALTHCARE PARTNERS (DVA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

6. Deere & Co. (DE)

Shares Held by Warren Buffett's Berkshire Hathaway: 3,978,000
Value of Holdings: $361 million
Portfolio Weighting as of 3/31/2014: 0.34%
10-Year EBITDA Growth Rate: 11.30%

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Deere & Company operates in three business segments: agriculture/turf, construction/forestry, & financial services. The company helps customers to be more productive as they help to improve the quality of life for people around the world.

TheStreet Ratings team rates DEERE & CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DEERE & CO (DE) 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 attractive valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

7. International Business Machines (IBM)

Shares Held by Warren Buffett's Berkshire Hathaway: 68,355,000    
Value of Holdings: $ 13,157 million  
Portfolio Weighting as of 3/31/2014: 12.4%
10-Year EBITDA Growth Rate: 10.60%

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International Business Machines Corp. is an Information Technology (IT) company. It creates business value for clients and solves business problems through integrated solutions that leverage information technology & knowledge of business processes.

TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

8. Costoco Wholesale Corp. (COST)

Shares Held by Warren Buffett's Berkshire Hathaway: 4,333,000
Value of Holdings: $484 million
Portfolio Weighting as of 3/31/2014: 0.46%
10-Year EBITDA Growth Rate: 10.10%

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Costco Wholesale Corporation is engaged in the operation of membership warehouses in the U.S. and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority-owned subsidiaries in Taiwan and Korea.

TheStreet Ratings team rates COSTCO WHOLESALE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate COSTCO WHOLESALE CORP (COST) 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 revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

9. Coca-Cola Co. (KO)

Shares Held by Warren Buffett's Berkshire Hathaway: 400,000,000
Value of Holdings: $15,464 million
Portfolio Weighting as of 3/31/2014: 14.6%
10-Year EBITDA Growth Rate: 10.00%

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Coca-Cola Co manufactures, distributes and markets non-alcoholic beverage concentrates and syrups.

TheStreet Ratings team rates COCA-COLA CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate COCA-COLA CO (KO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

10. Wal-Mart Stores Inc. (WMT)

Shares Held by Warren Buffett's Berkshire Hathaway: 58,052,000
Value of Holdings: $4,437 million
Portfolio Weighting as of 3/31/2014: 4.2%
10-Year EBITDA Growth Rate: 9.30%

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Wal-Mart Stores Inc, operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club in three categories retail, wholesale and others.

TheStreet Ratings team rates WAL-MART STORES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WAL-MART STORES INC (WMT) 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 revenue growth, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

11. Exxon Mobil Corporation (XOM)

Shares Held by Warren Buffett's Berkshire Hathaway: 41,129,000
Value of Holdings: $4,017 million
Portfolio Weighting as of 3/31/2014: 3.8%
10-Year EBITDA Growth Rate: 7.50%

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Exxon Mobil Corporation is engaged in energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.

TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate EXXON MOBIL CORP (XOM) 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 attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."

12. American Express Co. (AXP)

Shares Held by Warren Buffett's Berkshire Hathaway: 151,610,000
Value of Holdings: $13,649 million
Portfolio Weighting as of 3/31/2014: 12.9%
10-Year EBITDA Growth Rate: 6.90%

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American Express Co is a payments, network and travel company, which offers credit payment card products and travel-related services to consumers and businesses.

TheStreet Ratings team rates AMERICAN EXPRESS CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMERICAN EXPRESS CO (AXP) 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 revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

13. Moody's Corporation (MCO)

Shares Held by Warren Buffett's Berkshire Hathaway: 24,669,000
Value of Holdings: $1,956 million
Portfolio Weighting as of 3/31/2014: 1.9%
10-Year EBITDA Growth Rate: 6.20%

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Moody's Corporation is a provider of credit ratings, credit and economic related research, data and analytical tools, risk management software and quantitative credit risk measures, credit portfolio management solutions and training services.

TheStreet Ratings team rates MOODY'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MOODY'S CORP (MCO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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