Bangalore: Warren Buffett surely knows investing and his choice of stocks is something most investors around the world swear by. So, here are 5 most favourite stocks of Buffett as given by the Wizard himself in his letters to the shareholders of Berkshire Hathaway, as reported by Matt Koppenheffer of the MotleyFool -

1. IBM

Buffett bought a hefty stake in IBM last year. He explains this step by saying that “their financial management was equally brilliant, particularly in recent years as the company's financial flexibility improved. Indeed, I can think of no major company that has had better financial management, a skill that has materially increased the gains enjoyed by IBM shareholders. The company has used debt wisely, made value-adding acquisitions almost exclusively for cash and aggressively repurchased its own stock.” So, IBM tops Buffett’s favourite stocks because of its excellent financial management.