(3.) What is Buffett Buying Right Now?

Over the past few decades, Buffett has amassed a fortune by investing in some of the world's greatest companies, including Coca-Cola and Procter & Gamble. But if you really want to profit form Buffett's investing genius, then might be interested in what he's buying RIGHT NOW.

Here's a closer look at a few of Buffett's more recent purchases . . .

CarMax (NYSE: KMX) -- Buffett recently invested $500 million into this promising retail stock, buying 21 million shares.

General Electric Co. (NYSE: GE) -- In an unexpected move, Buffett bought $3 billion worth of GE preferred shares. These shares will provide Buffett with an annual dividend yield of 10%. The legendary investor bought into this blue-chip company on very favorable terms in a deal The Wall Street Journal "vintage Buffett."

Goldman Sachs Group (NYSE: GS) -- Berkshire Hathaway just bought $5 billion in perpetual preferred shares of Goldman and received warrants to buy $5 billion more at $115 each any time during the next five years. (A warrant allows its holder the right to buy shares during a certain time for a set price.) Goldman has taken only $4.9 billion in subprime writedowns so far, a tiny fraction of the $29.1 billion recorded by Merrill Lynch (NYSE: MER) or the $37.7 billion incurred by UBS (NYSE: UBS). It also hasn't posted a quarterly loss since its IPO in 1999.

Sanofi-Aventis SA (NYSE: SNY) -- Buffett recently upped his stake by +8% in this French pharmaceutical company and currently holds a total of 3.9 million shares. Soon after Buffett reported his additional purchase, SNY announced it would be replace its CEO with experienced veteran Chris Viehbacher, executive director and president at GlaxoSmithKline (NYSE: GSK).

Constellation Energy Group (NYSE: CEG) -- Berkshire Hathaway's MidAmerican just crafted a deal to acquire Constellation for $4.7 billion. Constellation represents an additional 9,000 megawatts of power generating capacity, with three nuclear power plants. While it's true that Buffett will be taking Constellation off the market, that doesn't mean there aren't similar opportunities out there for smart investors. For instance, Constellation wasn't the only energy company Buffett bought this year, he also added NRG Energy to his portfolio.

NRG Energy (NYSE: NRG) -- NRG is the newest addition to the Berkshire Hathaway portfolio. Buffett picked up a little more than 3.2 million shares of the wholesale power generation company. While NRG is the only utility in the portfolio, Berkshire itself became one of the largest utility companies in the U.S after it acquired MidAmerican Energy and PacifiCorp.

Burlington Northern Santa Fe (NYSE: BNI) -- Burlington Northern boasts monopoly control over some of the most valuable railroad lines in the U.S. Buffett has already invested over $5 billion in BNI, and he's buying even more shares, bringing his total stake in the company up to nearly 20%.

UnitedHealth (NYSE: UNH) -- UnitedHealth offers health insurance products as well as services related to employer-managed healthcare plans. Berkshire's stake in UnitedHealth is relatively small at less than 0.5% of the company's outstanding stock. But Berkshire has been buying UNH lately, recently adding 1.2 million shares to its portfolio.

POSCO (NYSE: PKX) -- It's also easy to see why Buffett might admire a company like POSCO, the world's third-largest steelmaker. This undervalued market leader has a dominant stranglehold on the South Korean steel market, and it's also fueling the economic boom in China. In mid-2007, we learned that Berkshire had shelled out $572 million to acquire a 4% stake in PKX.

US Bancorp (NYSE: USB) -- Berkshire Hathaway has increased its stake in this bank by 45.6 million shares since the end of 2006 - making it one of the biggest share position buildups Buffett has ever amassed. US Bancorp has everything Buffett loves, and it yields just over 5%.

Ingersoll-Rand (NYSE: IR) -- This is a classic Buffett value play: he has bought a business he would be thrilled to hold at a rock bottom price. This $12 billion maker of climate-control systems, industrial equipment and security technology is trading at just 3.4 times earnings. But with a backlog of orders worth a billion dollars its prospects look good.

(4.) What is Buffett Selling?

Anheuser-Busch (NYSE: BUD) -- Buffett recently sold 20 million shares of the iconic brewer. He also helped arrange its sale to Belgium's InBev in a $52 billion deal.