Warren Buffett once quipped, "Only when the tide goes out do you discover who's been swimming naked." The adage certainly seems applicable in the current market environment. Most investors perform well when the market is rising. But when the market is down, it's more readily apparent which investors have the best approaches.

We've seen some large, well-known companies deliver disappointing quarterly results in recent weeks. However, there are some noticeable exceptions that make Buffett look quite astute. You might even say that the latest earnings reports from Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX) show that the Warren Buffett way still works.

Buffett focuses on businesses instead of stocks. The legendary investor adamantly insisted in his annual letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders earlier this year that he and his longtime business associate Charlie Munger "are not stock-pickers; we are business-pickers." 

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Source Fool.com