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3 Warren Buffett growth shares you can buy right now

Tristan Harrison

I think that Warren Buffett is one of the best investors in the world.

He has mostly stuck to investing in the USA for a variety of reasons, but he’s missing out on some good ASX businesses.

There are several growth shares on the ASX I think he would be interested in:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment conglomerate which operates in a fairly similar way to Berkshire Hathaway. Soul Patts makes sizeable investments into growing listed businesses such as Clover Corporation Limited (ASX: CLV), Palla Pharma Ltd (ASX: PAL) and Apex Healthcare Berhad.

The investment house also invests in unlisted businesses such as swimming schools, resources, agriculture and luxury retirement living.

Over the 15 years to July 2019, Soul Patts delivered an average total shareholder return (TSR) of 11.6% per annum, outperforming the All Ordinaries Accumulation Index by 2.6% per annum.

As a bonus, it has a grossed-up dividend yield of 4%.

Premier Investments Limited (ASX: PMV) 

Warren Buffett is a fan of businesses with good brands, indeed Berkshire Hathaway itself owns several clothing businesses.

Premier Investments is one of the best-performing retail businesses on the ASX with a number of brands like Just Jeans, Jay Jays, Peter Alexander and Smiggle. It also owns stakes in Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR), although Myer’s best days are probably behind it.

The company has been steadily growing its underlying earnings before interest and tax (EBIT) as well as the EBIT margin.

Premier Investments is predicting global growth for Peter Alexander and Smiggle which could drive earnings and the dividend higher this decade.

It currently has a grossed-up dividend yield of 5%.  

Brickworks Limited (ASX: BKW) 

One of Berkshire Hathaway’s larger divisions is building products, so Brickworks seems like it would be a good fit.

Brickworks is the leading brickmaker in Australia and it is also one of the biggest players in the country when it comes to roofing, masonry and cement. Building products is a good industry to be in with the Australian construction market turning around.

The building products company owns a large stake of Soul Patts and it also owns a 50% stake of an industrial property trust with Goodman Group (ASX: GMG).

Finally, Brickworks just acquired some brickmakers in the US so it’s actually competing a little with Berkshire Hathaway in the huge American market.

It currently has a grossed-up dividend yield of 4.1%.

Foolish takeaway

I believe all three of these shares would be attractive to Berkshire Hathaway and would be a good fit for your portfolio. At the current prices I’d probably go for Soul Patts.

The post 3 Warren Buffett growth shares you can buy right now appeared first on Motley Fool Australia.

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Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020