3 Buffett Stocks to Avoid Like the Plague

Few investors on Wall Street are more influential than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. That's because almost no one can hold a candle to the Oracle of Omaha's investment track record. Since the beginning of 1965, Berkshire Hathaway's stock has averaged an annualized return of 20.3%, which more than doubles up the broad-based S&P 500's 10% annualized total return (total, as in including dividends paid) over the same period. As a whole, Buffett has overseen more than $400 billion in value creation for shareholders, and an aggregate gain of 2,744,062% in Berkshire's stock.

But Warren Buffett isn't perfect. Even the best investors in the world make mistakes from time to time. For instance, his company's stake in U.K. grocer Tesco resulted in sizable losses. Meanwhile, Buffett's decisions to sell Disney on two separate occasions decades ago has cost the Oracle of Omaha a would-be fortune.

Though a strong case can be made that the vast majority of the 49 stocks/ETFs held in Buffett's portfolio are headed higher, three Buffett stocks stand out for all the wrong reasons and are worth avoiding like the plague.

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Source Fool.com