Warren Buffett May Look At Buying These Companies (SYY, VFC, DHR, MRO, AFL, NUE)
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Berkshire Hathaway's (NYSE: BRK.A) Chairman told Bloomberg Television last week that he’s now most likely to pursue U.S. acquisitions/deals after the S&P 500 Index sank to the lowest level since 1996 this month. While rival bidders may not be able to borrow money, Buffett has $25.5 billion in the bank.
Buffett looks to spend between $5 billion to $20 billion on an acquisition, according to Berkshire's 2008 annual report. Warren prefers "simple" businesses with pretax profit exceeding $75 million, "consistent earnings power," "good" returns on equity and little or no debt.
Bloomberg speculated that Buffett's renewed focus on U.S. buyouts may have him take a serious look at companies like Sysco Corp. (NYSE: SYY), VF Corp. (NYSE: VFC) or Danaher Corp. (NYSE: DHR).
Sysco is North America’s largest distributor of food to restaurants; VF is the world’s several popular and large clothing brands; and Danaher, maker of Craftsman tools, are among 46 companies that meet his standards, according to data compiled by Bloomberg.
There are 46 U.S. companies with market value between $5B and $20B, profit exceeding $75 million, a return on equity exceeding 10% and a debt-to-equity ratio less than 50%, Bloomberg data show. Bloomberg feels that Sysco, VF Corp and Danaher are the sort of 'easy-to-understand' businesses that Buffett covets.
Sysco trades for 12.7 times profit of the past 12 months, VF Corp trades at 10 times and Danaher 13.2.
Among the companies meeting the criteria, 12 have price-to- earnings multiples of no more than 7. They include Marathon Oil (NYSE: MRO); Aflac (NYSE: AFL); and Nucor (NYSE: NUE)
The Bloomberg report did say that depressed valuations of his portfolio companies may lead Buffett to increase stakes in companies he already owns, such as Wells Fargo (NYSE: WFC).
Buffett looks to spend between $5 billion to $20 billion on an acquisition, according to Berkshire's 2008 annual report. Warren prefers "simple" businesses with pretax profit exceeding $75 million, "consistent earnings power," "good" returns on equity and little or no debt.
Bloomberg speculated that Buffett's renewed focus on U.S. buyouts may have him take a serious look at companies like Sysco Corp. (NYSE: SYY), VF Corp. (NYSE: VFC) or Danaher Corp. (NYSE: DHR).
Sysco is North America’s largest distributor of food to restaurants; VF is the world’s several popular and large clothing brands; and Danaher, maker of Craftsman tools, are among 46 companies that meet his standards, according to data compiled by Bloomberg.
There are 46 U.S. companies with market value between $5B and $20B, profit exceeding $75 million, a return on equity exceeding 10% and a debt-to-equity ratio less than 50%, Bloomberg data show. Bloomberg feels that Sysco, VF Corp and Danaher are the sort of 'easy-to-understand' businesses that Buffett covets.
Sysco trades for 12.7 times profit of the past 12 months, VF Corp trades at 10 times and Danaher 13.2.
Among the companies meeting the criteria, 12 have price-to- earnings multiples of no more than 7. They include Marathon Oil (NYSE: MRO); Aflac (NYSE: AFL); and Nucor (NYSE: NUE)
The Bloomberg report did say that depressed valuations of his portfolio companies may lead Buffett to increase stakes in companies he already owns, such as Wells Fargo (NYSE: WFC).
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