100 best money moves you can make

Our annual guide to the best stocks and funds, credit cards, career moves, retirement strategies, and much more.

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12-14. Best Buffett stocks to buy
12-14. Best Buffett stocks to buy
Revere the Oracle of Omaha? Then you know he's concerned about the market's increasingly lofty valuations. (The price/earnings ratio of the S&P 500 is 17.9.) We pored over the stocks he holds through Berkshire Hathaway -- which itself has a P/E of 25.0 --to identify three that offer the best values now.

Johnson & Johnson
P/E: 14.1
1-year return: 27.7%
% of BH portfolio¹: 2%1
With health insurance soon to cover more Americans, demand for pharmaceuticals should rise, says Morningstar analyst Damien Conover. And J&J boasts a robust pipeline of new drugs.

Wal-Mart
P/E: 15.2
1-year return: 8.9%
% of BH portfolio¹: 2%
Thanks to bargain-seeking consumers, the discount retailing king should prosper even if the recovery remains weak, says Peter Benedict, an analyst at Robert W. Baird & Co.

Wells Fargo
P/E: 13.6
1-year return: 119.9%
% of BH portfolio¹: 11%
Buffett recently added to his huge stake in this well-run West Coast bank, which has already repaid its bailout money.

NEXT: 15-18. Best steady eddies
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Last updated May 12 2010: 10:39 AM ET
Source: Bloomberg, Baseline, 2009 Berkshire Hathaway filings, and shareholder letter
Returns for the 12 months ended March 31. P/Es are trailing 12-month. ¹Percent of Berkshire's publicly traded portfolio, which does not includewholly owned companies such as Geico.
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