Allstate Corp (NYSE: ALL) I have already posted Hot tips for Warren: Allstate & Mercury Insurance and made it known that I think this would be a good fit and a good value for acquisition. Allstate sells insurance through its own agents in local storefronts throughout the country. It could be combined with H&R Block (NYSE: HNR) in one storefront. Berkshire owns 9% of H&R. Tax consulting and insurance can be integrated and would create a synergy improving the bottom line of both companies. The closure of storefronts, the recapturing of the Allstate dividend, the increased sales and the currently low price of Allstate shares make this my favorite Berkshire play. Allstate's closing price yesterday was $63.28. It is capitalized at $38 billion, approximating the mountain of cash Buffett is sitting on. The 14% net profit margins would more than double the return Berkshire Hathaway is getting on the cash and the insurance premium float from Allstate being invested by Buffet would increase profits at the company as well. This is the deal Buffett should make, and soon.

• Price/Earnings (TTM) 7.79
• Price/Sales (TTM) 1.11
• Price/Book (MRQ) 1.87
• Price/Cash Flow (TTM) 7.89

Pulte Homes (NYSE: PHM) has suffered along with the rest of the homebuilders as sales of condominiums and single family residences has tanked. Pulte has reported a major reduction in earnings and would not even hazard a guess as to the outlook for the next few quarters. I say perfect, buy it now Warren. This company is one of the premier homebuilders in the United States. It has major interests in the southeast region of the county and is heavily into senior living developments. That is a growing business and will continue to grow. Berkshire Hathaway already owns manufactured home assets and these together could play a major role in changing how housing is designed, built, and managed as a resource. Pulte's closing price yesterday was $26.15 and it is capitalized at $6.6 billion meaning that Berkshire Hathaway could acquire it with its lunch money.

• Price/Earnings (TTM) 21.02
• Price/Sales (TTM) 0.49
• Price/Book (MRQ) 1.14
• Price/Cash Flow (TTM) 10.51

Fortune Brands (NYSE: FO) Buffett should buy this company just for the name alone. It seems to me that the conglomerate he has assembled over the last 40 years is the real fortune brands and he has made a greater fortune with his companies than anybody else including this one. Fortune, like Berkshire Hathaway, is a holding company. According to AOL Money and Finance, it is a leading US producer and distributor of distilled spirits (Jim Beam, DeKuyper, Knob Creek, Maker's Mark) and golf equipment (Titleist, Cobra, FootJoy, Pinnacle).

However, Fortune's largest segment is home products and hardware, where its holdings include Moen faucets, MasterBrand cabinets, Master Lock padlocks, and Therma-Tru doors. In 2005 it acquired former Allied Domecq brands Sauza, Courvoisier, Canadian Club, and Clos du Bois. The home products tie into Berkshire's existing businesses and my suggestion that it acquire Pulte. The golf equipment does as well given the leisure activities of seniors and how this might be integrated into new community development. Perhaps a new business -- Berkshire Hathaway 'Pro-Shops'...and it could put an H & R Block / Allstate office adjacent to it...now I'm getting really creative. The alcohol business is booming internationally and will continue to do so, given there are very few players in the market. Fortune's closing price yesterday was $80.37 and it is capitalized at $12.3 billion. This is a good fit and a good use of capital.

• Price/Earnings (TTM)15.94
• Price/Sales (TTM) 1.48
• Price/Book (MRQ) 2.55
• Price/Cash Flow (TTM) 11.76

Emerson Electric (NYSE: EMR) is a company that has reported strong growth for decades, is well managed, has worldwide manufacturing and distribution plants and makes the kind of products that are used every day at home and in industry, including a host of electrical, electromechanical, and electronic products. Emerson's closing price yesterday was $46.43 and it is capitalized at $37.1 billion, not small change. But if Berkshire Hathaway wants to make a major acquisition, this stable company would be a great buy with low risk and high returns plus the 2.25% yield would go straight to the bottom line of Berkshire which does not pay a dividend.

• Price/Earnings (TTM) 20.73
• Price/Sales (TTM) 1.92
• Price/Book (MRQ) 3.76
• Price/Cash Flow (TTM) 14.63

Nucor Corp (NYSR: NUE) is one of the leading steel producers in the country and every billionaire should own a steel company. Just look at the Mittel family of India. They are major players on the world market having taken over Arcelor and it is not likely they will stop there. They own steel companies everywhere including the United States. This is an industry that has undergone major disruption and change over the last twenty years. It has enjoyed stronger-than-average pricing power over the last few years, but the share prices still reflect fears of a downturn. Nucor's closing price yesterday was $65.93 and it is capitalized at $19.8 billion. I say strike while the iron is hot and acquire Nucor before a bidding war takes place.

• Price/Earnings (TTM)11.31
• Price/Sales (TTM) 1.33
• Price/Book (MRQ) 3.91
• Price/Cash Flow (TTM) 8.69

These companies are listed in the order of my preference for Mr. Buffett's consideration. Warren, if you want to discuss any of my ideas over lunch, I am available to meet at any time.