When you factor this notion into Berkshire's shift, it all makes sense. It also stands to reason that the checklist Buffett applies to buying businesses is consistent with the one used for purchasing stocks. Ten-year average return-on-equity of at least 15% and debt that is less than 2x equity: NetEase (NTES), Biogen (BIIB), Tractor Supply Co. (TSCO). Management's use of retained earnings that reflects a return of at least 12%: all companies listed above. Disclosure: John Reese and his private clients are long all stocks mentioned in this article, including Berkshire Hathaway.

Source: Forbes August 14, 2017 19:52 UTC