Warren Buffett's Berkshire Hathaway holds many excellent long-term investments. But that doesn't mean that it invests in every stock that the billionaire investor is a fan of. There are many stocks Buffett is fond of that aren't in Berkshire's portfolio, including Microsoft (NASDAQ: MSFT) and Ferrari (NYSE: RACE). Here's why these stocks are ones Buffet has mentioned as companies he liked that could also appeal to investors.

One company that seems as though it should be a slam-dunk Buffett stock is Microsoft. The business has a huge sustainable competitive advantage, or moat, which Buffett seeks out when investing in stocks. Many of its products lack significant competition, allowing the company to dominate in many areas. For example, its Office suite, which includes Microsoft Word and Excel, is unparalleled, and it's normally the default for businesses.

And over the years, the tech company has expanded its operations to get bigger and more successful. In 2016, it acquired social networking company LinkedIn, and most recently, it closed on it is acquisition of video game giant Activision Blizzard, which makes the popular Call of Duty games.

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Source Fool.com