Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 Fool.com 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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.