This work investigates the characteristics of industry preferences in Buffett’s investment style, which is an equally important source of Buffett’s Alpha. A five-factor model (CH-5) that consists of three factors for China’s market (CH-3) and the factors betting against beta (BAB) and quality minus junk (QMJ) is constructed to empirically analyze A- shares in China’s stock market and China’s mutual funds. The findings of the research are as follows: (i) BAB and QMJ, which represent Buffett’s investment style, have significant returns in China’s A-share market; (ii) compared with the CH-3 model, the CH-5 model that incorporates BAB and QMJ has a more explanatory power for mutual fund returns in China; (iii) the Alpha under the five-factor model (CH-5) developed in this work has a significant predictive effect for the cross-sectional returns of China’s mutual funds.