The ASX may be unfamiliar territory for Warren Buffett, the outgoing CEO of Berkshire Hathaway.
But if the Oracle of Omaha turned his eye to the ASX 200, he would use his long-standing investment principles to guide his decisions.
As such, Buffett would look to buy quality businesses with durable moats, strong returns on capital, and competent management.
Here are three ASX shares Buffett might be tempted to add to his portfolio.
Buffett has shown a soft spot for banks that dominate their markets, have strong deposit bases, and lend conservatively.
CBA ticks those boxes.
It's Australia's most profitable bank, has demonstrated a solid return on equity, and has a strong balance sheet.
Its massive retail banking footprint gives it a wide economic moat, and its focus on technology offers scope to drive efficiencies further.
With consistent dividends and a track record of weathering economic downturns, CBA would likely appeal to Buffett's taste for stable, cash-generating businesses.
Still, with the CBA share price at an all-time high, Buffett would likely wait for a better buying opportunity before adding the bank to his portfolio.
CSL is a global biotech leader in blood plasma therapies and vaccines.
Its global distribution network, cutting-edge R&D, and long product life cycles would likely appeal to Buffett.
The fact that the business has a wide moat and its management team has an impressive track record would also be viewed favourably by Buffett.
CSL has also delivered consistent earnings growth for years, reinvesting profits into innovation and expansion.
Like Buffett's investments in Johnson & Johnson and Bristol Myers, CSL offers exposure to healthcare with defensible margins and long-term tailwinds.
With CSL shares currently trading at a discount to their 10-year average, Buffett may be further encouraged to take a closer look at the company.
In some ways, Wesfarmers resembles a mini Berkshire Hathaway.
The diversified conglomerate owns high-performing retail assets, including Bunnings and Kmart, in addition to its industrials and chemicals divisions.
Buffett could be particularly interested in the company's capital discipline and shareholder-first mindset.
Wesfarmers generates strong free cash flow and reinvests wisely, acquiring quality businesses and divesting when appropriate.
That approach resembles Berkshire's strategy of buying great businesses and holding them forever while always hunting for the next opportunity.
If Buffett were looking for ASX-listed companies to invest in, he'd likely steer clear of hype stocks and focus on high-quality, cash-rich businesses with enduring competitive advantages.
Commonwealth Bank, CSL, and Wesfarmers tick many of the boxes on a value investor's checklist.
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