3. Procter & Gamble

Buffett believes that the simple formula of "buy commodities, sell brands" has "long been a formula for business success." According to Buffett, Procter & Gamble fits in this category pretty well. Buffett had bought a $464 million stake in Gillette many years ago. Fortunately, Gillette was taken over by P&G and it has grown into a $4.8 billion worth of share in P&G. Buffett says that though commodity prices have been rising over the years, P&G has maintained its stature and has the ability to convert mere commodities into brand must-haves.