His first preference is to buy whole companies. Then stocks. He also buys bonds, and other things.
“In business, I look for economic castles protected by
unbreachable ‘moats’.”
-Warren Buffett
He is also looking for companies with enduring competitive advantages.
Of course he wants a reasonable price. But he said (don't have the exact quote) he prefers a great company with a reasonable price over a reasonable company with a great price.
He doesn't try to time the market in short term.
For more on his philosophies, read his letters to shareholders in his annual reports. (see link)
