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Chicago Bridge & Iron Company N.V. (CBI), Wells Fargo & Co (WFC): Three Reasons Why Warren Buffett Hates Bonds

Chicago Bridge & Iron Company N.V. (NYSE:CBI) also has a visible growth trajectory with a $25.5 billion project backlog. The company’s purchase of Shaw Group last year for $3.3 billion has also allowed Chicago Bridge & Iron Company N.V. (NYSE:CBI) to expand into nuclear infrastructure construction.

In other notable transactions, Berkshire also added to its positions in American business icons such as Wells Fargo & Co (NYSE:WFC), International Business Machines Corp. (NYSE:IBM), and Wal-Mart Stores, Inc. (NYSE:WMT).

These are businesses with competitive advantages. Defensive moats that will will allow these companies to crank out profits for shareholders for the next five, 10, or 50 years.

Foolish bottom line

Buffett has admitted that he would consider buying bonds under the right circumstances. There are conditions when bonds offer potential for great returns such as if a particular corporate credit issue has been mispriced or there’s room for substantial appreciation if interest rates fall. But that is definitely not the case today.

The article 3 Reasons Why Warren Buffett Hates Bonds originally appeared on and is written by Robert Baillieul.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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