Top 10 Warren Buffett Companies To Invest In Right Now


On this day in economic and business history…

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) broke past 11,000 points for the first time in its history on May 3, 1999, closing at 11,014,69 points. Despite worries that this might be the index’s last major milestone for years to come, Ralph Acampora of Prudential Securities said the new record was “beautiful … and it’s going to last a long time.” However, Charles Clough of Merrill Lynch told CNNMoney he worried that the market would become overextended.


Surprisingly, one of the biggest worries allayed on this day was that of “uncontrolled U.S. economic growth” — perish the thought! The National Association of Purchasing Managers’ index, a gauge of manufacturing activity, came in at 52.8, well below expectations of 55. It seems like another lifetime, when market watchers became unnerved by the thought of an economy growing too quickly.

The surge past 11,000 was the fastest 1,000-point gain in history, reached a mere five weeks after the Dow had surpassed 10,000 points. Prior to that, the record time had been a four-month rocket ride from 6,000 to 7,000 points. Unfortunately for investors, Dow 11,000 would be difficult to overcome. After topping out at the start of the following year, the Dow would spend a decade bouncing from peak to valley, reaching 11,000 two more times: at the start of 2006 and in the spring of 2010. No one can yet say whether the third time will be the charm and the Dow will leave its 11,000-point plateau behind forever.

Top 10 Warren Buffett Companies To Invest In Right Now: Total System Services Inc.(TSS)


Total System Services, Inc. provides electronic payment processing and other services to card-issuing and merchant acquiring institutions. The company offers issuer account solutions, including processing the card application, initiating service for the cardholder, processing each card transaction for the issuing retailer or financial institution, and accumulating the account’s transactions; fraud management services; and other services, such as customized communications to cardholders, and information verification associated with granting credit, debt collection, and customer service. It also provides merchant processing and related services that comprise processing various payment forms, such as credit, debit, prepaid, electronic benefit transfer, and electronic check; authorization and capture of transactions; clearing and settlement of transactions; information reporting services related to transactions; merchant billing services; and point-of-sale equipment sales and service. In addition, the company offers issuer and merchant card solutions. Total System Services, Inc. provides its services through online accounting and electronic payment processing systems. It operates primarily in the United States, Europe, Canada, Japan, Mexico, the Caribbean, the Asia Pacific, and Brazil. The company was founded in 1982 and is based in Columbus, Georgia.


Advisors’ Opinion:

  • [By Jane Edmondson]

    One additional item of note: the stock has been a rumored take-out candidate since another large competitor, NetSpend (NTSP), received an offer to be acquired in February by global payment solutions provider TSYS (TSS).

  • [By Rich Duprey]

    Paperless payments provider Total System Services  (NYSE: TSS  )  announced yesterday its second-quarter dividend of $0.10 per share, the same rate it’s paid for the past six quarters.

  • [By Sean Williams]

    Total System Services (NYSE: TSS  )
    Buffett may have been a bit gun-shy with technology and finance stocks of late, but he could combine the best of both worlds by purchasing Total System Services, a software developer and payment processor for the credit card industry.

Top 10 Warren Buffett Companies To Invest In Right Now: Kansas City Southern (KSU)

Kansas City Southern, through its subsidiaries, engages primarily in the freight rail transportation business. It operates north/south rail between Kansas City, Missouri, and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi, and Texas in the midwest and southeast regions of the United States. The company also operates direct rail passageway between Mexico City and Laredo in Texas, serving various Mexico?s industrial cities and 3 of its shipping ports; and a 157-mile rail line extending from Laredo, Texas to the port city of Corpus Christi, Texas, as well as owns the northern half of the rail bridge at Laredo, Texas. In addition, Kansas City Southern holds a concession to operate a 47-mile railroad located adjacent to the Panama Canal, as well as operates and promotes commuter and tourist passenger services. Further, the company operates a bulk materials handling facility with deep-water access to the Gulf of Mexico at Port Arthur, Texas that stores and transfers petroleum coke from rail cars to ships primarily for export; and a railroad wood tie treatment facility. It serves customers conducting business in various industries, including electric-generating utilities, chemical and petroleum products, industrial and consumer products, agriculture and mineral products, automotive products, and intermodal freight transportation. The company was formerly known as Kansas City Southern Industries, Inc. and changed its name to Kansas City Southern in 2002. Kansas City Southern was founded in 1962 and is based in Kansas City, Missouri.


Advisors’ Opinion:

  • [By John Bonnanzio]

    The fund’s top holdings are Telsa, Henry Schein (HSIC), United Rentals (URI), Gartner (IT) and Kansas City Southern (KSU).

    The fund also has some exposure to pricey biotech. Even so, this is hardly a shoot-the-lights-out growth fund as volatility is below all his mid-cap peers. To that end, this trade actually tempers risk while increasing growth exposure.

  • [By Holly LaFon]

    Another area that is intriguing to us is the North American energy sector which looks to have a number of interesting catalysts currently. While the energy sector is at present only a modest overweight in the portfolios, we have been encouraged by several trends taking place for a number of years. These positive developments are also having an impact that goes far beyond the energy sector itself. Many believe that the U.S. will become energy independent and possibly a net exporter of natural gas and oil (currently restricted by law) in the next decade. This opinion is based primarily on the development of new drilling techniques (i.e. horizontal drilling, and high pressure fracking) that have enabled companies to access oil and natural gas reserves in shale formations that were previously not economically viable. The ability to tap into this acreage is a game-changer in our view and is already having a tremendous impact on the economy. Employment rates in these mostly rura l areas surrounding the shale basins are very high and companies thus find hiring extremely competitive. Strong labor markets tend to create strong local economies. Oil States International (OIS) has been able to capitalize on this trend by providing housing and other services to oil service workers that are in demand in the area. CST Brands (CST) operates gas stations in Texas, but it is increasingly looking to broaden its product offering beyond fuel. Rail companies like Union Pacific (UNP), Canadian Pacific (CP), Kansas City Southern (KSU) and Genesee and Wyoming (GWR) have also benefited substantially. Given that shale areas are rural and often lacking infrastructure, substantial investment must be made to support drilling and production activities. Without pipelines in place, railroads have been the primary takeaway mechanism for moving production to the various clusters of refining capacity around the United States. In order to serve this demand, massive investment in railcars has been nee

  • [By Ben Levisohn]

    If January’s selloff was all about the emerging markets, February’s is all about the U.S, as fears of a weaker economy have helped drag down 3M (MMM), United Technologies (UTX), General Electric (GE), Whirlpool (WHR) and Kansas City Southern (KSU).

Top 10 Warren Buffett Companies To Invest In Right Now: STERIS Corporation(STE)

STERIS Corporation and its subsidiaries develop, manufacture, and sell infection prevention, contamination control, microbial reduction, and surgical support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. It provides steam, vaporized hydrogen peroxide, and ethylene oxide sterilizers; liquid chemical sterilant processing systems; washer/disinfector systems; general and specialty surgical tables; surgical and examination lights; equipment management systems; operating room storage cabinets; warming cabinets; scrub sinks; and other products and accessories. The company also offers connectivity solutions, such as operating room integration, workflow, patient tracking, and instrument management that allow transfer of information and images; cleaning chemistries and sterility assurance products; cleansing products, including hard surface disinfectants, and skin care and hand hygiene solutions; high-pu rity water equipment; vaporized hydrogen peroxide generators. In addition, it sells contract materials processing services using gamma irradiation and ethylene oxide technologies, as well as offers microbial reduction services based on customer specifications. Further, the company provides maintenance programs and repair services, sterilization and surgical management consulting services, information management and decision support services, and other support services, such as construction and facility planning, engineering support, device testing, customer education, hand hygiene process excellence, asset management/planning, and the sale of replacement parts. STERIS Corporation sells its products to end users, dealers, and distributors through direct field sales and service representatives. The company was formerly known as Innovative Medical Technologies and changed its name to STERIS Corporation in 1987. STERIS Corporation was founded in 1985 and is headquartered in Men t or, Ohio.


Advisors’ Opinion:

  • [By Sean Williams]

    What: Shares of Steris (NYSE: STE  )  — a manufacturer of infection prevention, contamination control, and surgical support products for the health-care industry — jumped as much as 10% after reporting better-than-expected fourth-quarter results.

Top 10 Warren Buffett Companies To Invest In Right Now: Lifetime Brands Inc.(LCUT)

Lifetime Brands Inc. designs, sources, and sells branded kitchenware, tabletop, and other products primarily in the United States. It offers kitchenware products, including kitchen tools and gadgets, cutlery, cutting boards, bakeware, and cookware; and tabletop products, such as dinnerware, flatware, and glassware. The company also provides home solutions that comprise products, such as food storage, pantry ware, spices, and home d