“Warren Buffett Retirement Plan — Most Inexpensive Stock, Most Boring Stock, and the Stock that acts like a Bond”

By Travis Johnson, Stock Gumshoe, April 28, 2010

Well, if the last ten years have taught us nothing else, we should have learned that this has been a spectacular time to promise that your investments are like Warren Buffett’s, or to sell folks on the idea of the “next” Berkshire Hathaway or Oracle of Omaha.

I’ve written about probably dozens of stocks that purport to follow in Buffett’s footsteps over the years, but it’s been quite a while … so today’s ad for Top Stock Insights, one of Ian Wyatt’s newsletters, caught my eye. Here’s what he touted in promising that he could sell you something that he calls the “Warren Buffett Retirement Plan:”

“Invest in these 3 stocks ahead of The Oracle’s May 1st Shareholder meeting for maximum profits

  • The 6% dividend yielding blue chip
  • An American micro-cap home products company
  • The bio-tech giant with growth potential”

So if these are going to make us even a little bit more Buffett-y, well, put me first in line… but as you might expect, I’d rather not shell out a hundred bucks just to find out about these three stocks. So let’s put our deerstalkers on, shall we? The game is afoot!

Clues, please:

Warren Buffett Retirement Plan Stock #1 — America’s Most Inexpensive Company

“You might own shares of Procter and Gamble (NYSE: PG), the ubiquitous home products company, but unless you bought shares in 1989 ahead of Warren Buffett, you probably haven’t made very much money.

“If you did buy before Buffett, you’d be sitting on gains of over 1,000%.

“There are no guarantees in the investment world, but if you do the work and buy the kinds of stocks that Buffett buys today, you put yourself in the position to make similar gains.

“Like with The Warren Buffett Retirement Plan stock #1: a home products company with a rock bottom PE of just nine. That’s why I call it ‘America’s Most Inexpensive Company.’

… With only around 4 million shares around, it’s tough for Warren (and other big players) to build a position without making too much fuss and actually moving the share prices by their own buying.

“And today, this company is a spitting image of Procter and Gamble. It manufactures goods in three sectors: Housewares/Small Appliance, Defense Products, and Absorbent Products. Procter and Gamble manufactures products in the Beauty, Health and Well-Being, and Household Care sectors.

“It’s based in the United States , but it has strong global sales to take advantage of growing overseas economies–just like Procter and Gamble.

“And like Procter and Gamble, it’s a simple business with very clear profit centers. You could buy this company and fall asleep for ten years and not have to worry about it–it’s what Buffett calls a Rip Van Winkle business.

“The company was founded in 1905, and they haven’t chang