The stock market is pushing to record highs as investors await tax cuts and fewer business regulations promised by President Donald Trump. Those gains can mean that discounted equities are hard to find, but there are a few that billionaire Warren Buffett likes, according to Motley Fool.

“Buffett no longer makes all of the investment decisions at Berkshire Hathaway -- he has turned some of those duties over to his younger deputies,” the investment website says. “But if we look at what Berkshire owns, we can choose from the list to see which are good buys this February.”

Motley Fool has three recommendations for stocks that have a competitive advantage, strong cash flow and are easy to understand.

1. Apple Inc. (AAPL): “The company has spit out $53 billion in free cash flow over the past year alone, and it has only needed to use 23 percent of that to pay its dividend. Currently yielding 1.8 percent today, there's clearly lots of room for that to grow. But perhaps most importantly, the stock is still much cheaper than the market. It trades for 16 times trailing earnings and just 13 times free cash flow.”
2. General Motors (GM): “Buffett likely appreciates just how high the barriers to entry are in the auto industry, as this makes the moat surrounding the company formidable….But this company is much more disciplined than its defunct predecessor: Cost controls are much tighter — with the company choosing to slow down production in the face of waning demand. That discipline means the company should be able to weather any downturn and emerge much stronger.”
3. Visa (V): “As more vendors accept Visa worldwide, shoppers are incentivized to use the card. And as more shoppers use the card, vendors are incentivized to accept it. It's a virtuous cycle that helped revenue grow by 25 percent last quarter -- though acquisition of the company's Europe operations helped there, too.”

Meanwhile, the market’s record highs are alarming to some observers.

Former Reagan economic adviser David Stockman warns savvy investors not to be swept away by the jubilation of stocks.

The former Reagan Budget Director told CNBC that traders are living in a "fantasy land" that can't last — and Trump's policies will derail the market for years to come.

"What's going on today is complete insanity," said Stockman, who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

"The market is apparently pricing in a huge Trump stimulus. But if you just look at the real world out there, the only thing that's going to happen is a fiscal bloodbath and a White House train wreck like never before in U.S. history," he said.

Since the election, the S&P 500 Index has rallied more than 8 percent, the Nasdaq about 6 percent and the Dow Jones Industrial Average a whopping 10 percent. Last week, all three benchmarks rallied to new record highs.

Stockman predicts that those gains may be lost for these three reasons:

1. Most of Trump's actions "[have] nothing to do with the economic agenda" he's proposed
2. A debt ceiling debate looms for March 15 in Congress
3. The current rally that has gone on for way too long, and a correction is far overdue

• Former Treasury Official: 3 Reasons to Avoid Financial Stocks
• BofA: Tech Companies Most Likely to Benefit From Trump Tax Holiday