9 companies Warren Buffett should consider buying The berkshire hathaway ceo made it clear in his annual letter to shareholders saturday that his firm is still looking to buy more companies. He wrote that berkshire is"A sprawling conglomerate, constantly trying to sprawl further"And listed the criteria that he and vice chairman charlie munger use to determine if an acquisition is a good fit. Those criteria are on page 23 of the letter in case you are interested.Basically, berkshire is looking for solid companies with little debt and a history of delivering strong earnings and returns on equity. "The larger the company, the greater will be our interest:We would like to make an acquisition in the $5 20 ralph lauren outlet billion range,"He wrote, basically signally that he wants to do more sizable deals. With this in mind, i ralph lauren online store set up a screen on factset to try and find companies that buffett and munger might find appealing. I limited it to companies in the s 500 with market values between $5 billion and $20 billion.They had to be trading at reasonable valuations, have strong balance sheets and a great track record when it http://www.ascoe.it/ comes to profits. Finally, i immediately excluded the tech sector.After all, this was criterion number 5 from buffett: "Simple businesses(If there's lots of technology, we won't understand it. )" Forty companies came up.Here are nine that seemed the most intriguing.Smucker H block Why these deals could make sense.Hormel, smucker and mccormick all strike me as companies firmly in the buffett culinary wheelhouse. Remember that berkshire owns heinz(Along with private equity firm 3g)As well as see's candies, dairy queen, giant food distributor mclane and the pampered chef. Principal financial seems like a compelling fit with geico.Yes, berkshire has some exposure to life insurance through its general re unit. But a combination of principal's expertise in life insurance and retirement planning services with geico's auto insurance policies could rival metlife as a one stop consumer insurance powerhouse. Appeals to the car junkie in buffett.We know how much he loves his cadillacs.And gm stock.Berkshire also recently announced plans to buy privately held auto dealer van tuyl group. So why not dive deeper into the auto supply chain with a prominent parts company like transmission systems maker? Kansas city southern is a railroad that has been a rumored takeover target for years due to its access to mexico. Berkshire already owns megarailroad burlington northern santa fe, which has been mentioned in the past few years(Both before and after buffett bought it in 2010)As a possible acquirer. So has union pacific, the other big western railroad which is also located in buffett's backyard of omaha. Ralph lauren may not seem like a typical buffett play.But it's a brand name that is well known and fits all the other criteria.

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