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Fund Spy

Taking a Hint From Warren Buffett

Funds with big industrial and energy stakes that may be on Warren's wavelength.

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The article was published in the September 2015 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.

Warren Buffett in August made  Precision Castparts (PCP) the biggest investment of his life by offering $37 billion for the maker of complex aerospace and power system parts. Shares of the firm had been depressed because it is partly dependent on the flagging energy industry, though it has even greater exposure to the thriving aerospace industry. Buffett is betting that energy prices will come back at some point and Precision Castparts will prove to be a bargain. He’s long made investments in companies where short-term problems make a company attractive to the long-term investor.

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Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.