If you're investing in stocks, there's a really high chance you've thought to yourself at least once, "Boy, I'd sure like to invest like Warren Buffett." The great news is that his formula for selecting winning stocks isn't rocket science. In fact, it's pretty straightforward.

Let's zero in on a few factors Buffett looks at, learn and apply them, and while we're at it let's find an incredible Buffett-like stock that he doesn't own. Hint: it's (NYSE: RACE).

Ferrari owns competitive advantages, an incredible brand, and leads rivals in many investing metrics. In fact, one key metric Buffett looks at when considering investments is return on equity (ROE). ROE essentially gauges the company's ability to make profits and gives investors insight into the core strength of the business -- the higher the ROE, the better.

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Source Fool.com