WARREN BUFFETT Quote : Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
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Friday, October 11, 2013

4 Stocks Warren Buffett and smart money love

 By Jake Mann and Meena Krishnamsetty

By now you probably know the story. Hedge fund activity is worth paying attention to if you know where to look. By tracking a little over 500 of the best money managers in existence today, we at Insider Monkey focus on the elite due to the market-beating potential of their stock picks (see the data behind this strategy).

On any given weekday, there can be 25 to 50 publicly disclosed hedge fund trades, so we're parsing down the important ones for you, for the second week of October. Due to the fact that it is easier to piggyback buying than selling activity (there are many reasons why an investor would choose to sell), we'll focus on the bullish activity of the past few days. Here are four such hedge fund buys to keep an eye on.

Goldman Sachs

This was the least surprising move in the past few days, but is still worth discussing. On Tuesday afternoon, Warren Buffett and Berkshire Hathaway publicly disclosed their passive stake in Goldman Sachs GS +0.03% . The position represents 2.8% of Goldman's outstanding stock, worth about $1.99 billion at current prices. The reason this wasn't a shock to the market was because the move was pre-announced in late September as a result of Buffett's decision to exercise warrants bought in 2008.