Apple Inc. (AAPL), Netflix, Inc. (NFLX), Cliffs Natural Resources Inc (CLF), And Stocks Buffett Would Never Buy

8. Dendreon Corporation (NASDAQ:DNDN) Many investors consider biotech investing too volatile and too risky. If you have followed Dendreon Corporation (NASDAQ:DNDN)’s stock performance over the last five years, you probably wouldn’t argue with that notion. The company does not have a huge basket of drugs to bolster earnings while developing new home-run products. As the company continues to burn through cash and be weighed down by debt, the threat of shareholder dilution will keep many major investors, including Buffett, far away from the stock.

9. Herbalife Ltd. (NYSE:HLF) Despite his unearthly success, Buffett remains remarkably humble; this is exactly why he would never jump into the debacle that surrounds Herbalife Ltd. (NYSE:HLF), which has become a medium for a hedge fund ego-fest. After the company was thrust into the spotlight by Bill Ackman and Carl Icahn, many assert that the company is essentially an illegal pyramid scheme because of its opaque multi-level marketing strategy. I’ll stop at “scheme” and “opaque.” Buffet ain’t buying.

10. DryShips Inc. (NASDAQ:DRYS) Some pundits and investors called Buffett crazy when he plowed over $30 billion into a railroad. Could Buffett further increase Berkshire’s exposure to the industrial transportation and logistics business by buying stake in an ocean transporter? Maybe, but it won’t be via DryShips Inc. (NASDAQ:DRYS). The company has been flailing in the wind since the financial crisis as it has struggled to generate free cash flow. Solvency questions have been raised, and the debt-heavy balance sheet will strike fear into the hearts of equity investors.

The article 10 Stocks Warren Buffett Would Never Buy originally appeared on Fool.com.

David Hanson owns shares of Apple and Whole Foods Market. The Motley Fool recommends Apple, Baidu, Berkshire Hathaway, Intuitive Surgical, Netflix, and Whole Foods Market. The Motley Fool owns shares of Apple, Baidu, Berkshire Hathaway, Dendreon, Intuitive Surgical, Netflix, and Whole Foods Market and has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd.

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