WSJ ran an article this morning by Dennis K. Berman on possible takeover candidates for Warren Buffett’s Berkshire Hathaway.
In selecting the companies, Berman used criteria laid out by Buffett himself in his shareholder letter. Buffett is exact on his target criteria: big, industrial businesses with near-monopoly positions and solid sales growth; at least $75 million in pretax income; market values of about $5 billion to $20 billion.
The following companies are said to fit the bill:
Illinois Tool Works (ITW) Automatic Data Processing (ADP) Kennametal Inc. (KMT) Expeditors International of Washington Inc.(EXPD) Schindler Holding Corp. (SHLRF) W. W. Grainger (GWW)
Read the full text at WSJ here
Watch the video from WSJ on the subject:
And CNBC discussion on the same topic: