Cramer Evaluates Warren Buffett Stock Picks

On today’s Wall Street Confidential video on TheStreet.com, Jim Cramer evaluates Warren Buffett’s stock purchases.

In the last 3-years if you buy what he has bought on the announcement date (13D filings) you would have actually lost money.  In years before that you would have made money chasing his picks on the announcement that he had acquired a stake.  There may be a thought that he has either lost his edge or that he is taking such a long-term view that it is hard to profit from it.  While this was discussing the Warren Buffett picks, they did note some strategies on how to use his picks. 

Cramer noted this on USG (USG) but maybe you can be successful in buying these after big drops when he is in there.  They also noted the UnitedHealth (UNH) that trades at 1-times its growth rate and Cramer thinks this has value even after the ongoing issues over the last year.  Humana (HUM) was one that Cramer says is in a good spot.  There is also a concentration of regional banks, and they noted USBancorp (USB) that Cramer said was a Peter Lynch method of adding it up.  Cramer also noted the raid in regionals going on.  Fifth Third (FITB), Wachovia (WB), and SunTrust (STI) are all up and that is an interesting call on USB that Cramer says he will do some work on for his TV Show.  Ingersoll Rand (IR) is one that Cramer said he botched by buying at the height of the commodity boom after they told him they were not levered to housing when they really were.  They talk about more picks so you can listen in.

Jon C. Ogg
March 7, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.