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Warren Buffett: How to Replicate His Success

close-up photo of investor Warren Buffett
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Warren Buffett is widely regarded as the best investor of all time. The Oracle of Omaha has earned an incredible fortune over the years, almost entirely through long-term investing.

Over the years, the have been plenty of stocks that Buffett has bought and sold. And many of the companies he has bought throughout the years, he still owns to this day.

Naturally, as any investor would experience over a lifetime of investing, Buffett’s investments have had various outcomes.

There have been some strong gains as well as investments that may not have worked out but taught him valuable lessons.

Then there are his best investments, such as well-known companies like GEICO, the massive insurance company, and Coca-Cola, one of the most recognizable brands in the world. Both companies he continues to hold to this day.

Warren Buffett’s most successful investments

There are a few qualities to look for in stocks that can help identify whether or not they’re worth an investment.

Some of the most important qualities include trying to find businesses in industries that will be around forever. You’ll also want to buy companies that have a competitive advantage over their peers. This combination of leading companies in high-quality industries will produce some of the best long-term investments.

For example, insurance is an industry that will never cease to exist. And back in the 1950s, when Warren Buffett first began to buy GEICO stock, he was doing so because it had a unique business model that gave it a significant competitive advantage.

Coca-Cola is another high-quality company in an industry that will be around forever. It’s an industry where branding is key. Buffett found a gem in one of the most popular brands there is and has held it for years.

There are several other high-quality investments that Buffett has made, and they all fit the same bill. Apple is a great example, and it’s one of Buffett’s more recent investments, showing that this strategy is timeless.

A top Canadian stock to buy today

So, if this strategy works so well, what are some of the top Canadian stocks to buy today? There are plenty of high-quality Canadian stocks to consider today. One of the very best opportunities to consider, though, has to be Alimentation Couche-Tard (TSX:ATD.B).

There are several reasons why Warren Buffett’s strategy for buying stocks would include a company like Alimentation Couche-Tard, the gas station and convenience store operator, as a must-buy.

First off, it’s got an impressive and lengthy track record of success. The company has grown rapidly for years, showing that management can continue to source and make great deals to acquire operations and help increase its revenue.

The company operates in a highly defensive industry that isn’t going anywhere. Plus, with all the acquisitions it’s made in the past, and now its shift to focus more on organic growth, the company’s rapidly increasing size continues to act as a major competitive advantage.

Not only is Couche-Tard working hard to build brand loyalty among consumers, but as it continues to grow in size, the company can continue to find cost savings with scale, while many of its smaller competitors can’t.

Over the last decade, the stock has gained more than 900%, showing the incredible growth that it can achieve. So, if you’re looking to buy stocks that Warren Buffett would appreciate, Alimentation Couche-Tard is one of the best in Canada.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.

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