IBD Long-Term Leader Cadence Design Systems (CDNS) and Monolithic Power Systems (MPWR) join Google parent Alphabet (GOOGL) on this screen of Warren Buffett stocks, based on the investing strategy of the Berkshire Hathaway CEO.
Highlighting Warren Buffett Stocks
Including GOOGL stock, CDNS and MPWR, 41 companies make this stock screen.
Building materials manufacturer Atkore (ATKR) tops the list with an impressive sustainable earnings growth rate of 90%. (The rate is computed by multiplying the company’s ROE by the earnings retention ratio, which is the percentage of earnings not paid out as dividends.)
Meanwhile, including Atkore, Builders FirstSource (BLDR) and Steel Dynamics (STLD), five companies on this screen had sustainable growth rates above 50%. Pool (POOL) and solar energy play Daqo New Energy (DQ) also earned that distinction.
Nucor (NUE) just misses that distinction with a 44% sustainable growth rate. Reliance Steel (RS) (25%) and Brazilian steel producer Gerdau (GGB) (17%) also make this screen of Warren Buffett stocks.
Retail stocks Lululemon Athletica (LULU), Boot Barn (BOOT) and Buckle (BKE) also make the cut.
Led by D.R. Horton (DHI), homebuilders have fabricated a strong presence on this screen. PulteGroup (PHM), Lennar (LEN), Meritage Homes (MTH), and Tri Pointe Homes (TPH) are on the list too.
GOOGL Joins Tech Names Among Warren Buffett Stocks
Since the Oracle of Omaha has never written a book detailing his investment strategy, there’s no definitive buying checklist. But parts of Buffett’s stock-picking strategy can be gleaned from the annual reports of Berkshire Hathaway (BRKB).
The list below highlights Warren Buffett stocks like Alphabet, Cadence Design Systems and Monolithic Power Systems in sync with Buffett’s focus on management quality and long-term growth.
Additionally, reflecting improvement in the tech sector following the trouncing it took in last year’s bear market, the screen also picks up a number of other tech names. The latest list of Warren Buffett stocks also includes STMicroelectronics (STM), PTC (PTC), Epam…