Warren Buffett's Stock Picking List

1.      Advo Inc.

2.      American Brands

3.      American Express

4.      Amerada Hess Corp.

5.      American Home Products

6.      American Safety Razor

7.      Anheuser-Busch

8.      Bear Stearns

9.      Bristol-Myers Squibb Company

10.  Campell Soup

11.  Capital Cities Communications

12.  Circuit City Stores

13.  Coca-Cola Bottling Company Consolidated

14.  Coca-Cola Enterprise

15.  Coca-Cola FEMSA

16.  Cox Communications

17.  Dean Witter Discover

18.  Disney

19.  Dunn & Bradstreet

20.  EXXonMobile

21.  Freddie Mac

22.  Gabelli Equity Trust

23.  Gallaher Group

24.  GEICO

25.  Gennett Corporation

26.  General Electric

27.  Gillette

28.  H & R Financial Services, Inc

29.  Hershey Foods

30.  HRPT Properties Trust

31.  International Flavors & Fragrances

32.  IPG

33.  JDN Realty

34.  Justin Industries

35.  Knight-Ridder

36.  Leucadia National

37.  Liz Claiborne

38.  Loews Corporation

39.  MBIA Inc.

40.  Mcdonald

41.  Media General Inc.

42.  Mercury General Corp.

43.  Merill Lynch & Compay, Inc.

44.  Morgan Stanley Group

45.  Netstle

46.  New York Times

47.  NIKE

48.  Ogilby & Mather

49.  Panamerican Beverages

50.  Pepsi

51.  Philip Morris

52.  Premier Industrial Corporation

53.  Property Capital Trust

54.  Progressive Corp.

55.  Ralston Purina Group

56.  Seagram Co.

57.  Suntrust Banks

58.  Thomson Corp.

59.  Tiffany & Co.

60.  Times Mirror

61.  Torchmark Corp.

62.  USG Corp

63.  UST Inc.

64.  Wal-Mart Stores

65.  Warner-Lambert Company

66.  Washington Post

67.  Wells Frago

WARREN BUFFETT'S INVESTMENT PRINCIPLES

 1. The company should be soundly managed. Tests of good management include:

• Share buybacks: Has the company been buying back its shares, and if so, has it bought them responsibly?
• Good use of retained earnings: Has management wisely used retained earnings to increase the rate of return to shareholders?
• Sticking to what you know: Does the company invest in and operate businesses within its area of expertise?

2. The company has demonstrated earning capacity with a likelihood that this will continue. Tests of earning capacity include:

• Company growth: Have the earnings per share and sales per share of the company shown consistent growth above market averages over a period of at least five years?
• Dealing with inflation: Does the company have the ability to maintain or increase profitability by raising prices?
• Capital expenditure: Is the company going to regularly require large capital sums to ensure continuing profitability?
• Brand names: Does the company sell brand name products that are likely to endure?

3. The company should have consistently high returns. Warren Buffett would look at both:

• Returns on equity
• Returns on capital

4. The company should have a prudent approach to debt: Is the company, looking at both long-term debt, and the current position, conservatively financed?

5. The businesses of the company should be simple and the investor should have an understanding of the company: Is the business of the company easily understood?

High quality companies worth to put under my watchlist

Health Care
ABT
ACL
AMGN
AZN
BMET
BSX
BMY
LLY
DNA
GSK
GDT
JNJ
MDT
MRK
NVS
PFE
SNY
SGP
SYK
UNH
ZMH

Consumer Services
HRB
HD
LOW
SYY
WMT
WAG
EBAY

Business Services
ADP
CTAS
EFX
EXPD
FDC
FISV
GYI
RX
MCO
PAYX
TSS
UPS

Financial Services, Insurance/Asset Management
AFL
AC
AXP
BRK.B
BLK
EV
MMC
PGR
SLM

Financial Services, Banks/Finance
BK
COF
C
FNM
FITB
FRE
NTRS
STT
WFC

Software
ADBE
ADSK
INTU
MSFT

Hardware
AMAT
CSCO
DELL
IBM
INTC
LLTC
MXIM
QCOM

Media
CMCSA
DJ
JW.A
MHP
WPO

Consumer Goods
MO
BUD
AVP
FUN
KO
CL
G
HDI
HSY
ISCA
PEP
PG
WWY

Industrial Materials
MMM
GD
GNTX
PBI
UTX

Energy
KMI
KMP