A Credit Suisse team suggests that Warren Buffett should consider buying Target, CarMax or Moody’s because such companies match what the investment guru has purchased in the past.
Those companies “meet a variety of criteria Buffett often prioritizes when deciding on opting for a total buyout, including high returns on equity, a fair price, minimal debt and strong management,” CNBC recently reported.
Credit Suisse’s quantitative team screened a universe of stocks for investment characteristics Buffett thinks about such as cash flow return, income and leverage in an attempt to craft a list of possible deals for Buffett’s Berkshire Hathaway.
The analysts generated 141 potential targets across Wall Street’s sectors, ranging from consumer companies like Target (TGT) to industrials firms like J.B. Hunt Transport (JBHT) and Snap-On (SNA).
Highlighting other candidates CNBC reported that were on Credit Suisse’s list:
- Amphenol APH
- FLIR Systems FLIR
- March & McLennan MMC
- Valvoline VVV
Buffett told shareholders earlier this year that he’s been struggling to deploy Berkshire Hathaway’s $112 billion cash hoard thanks to inflated price tags, the Associated Press reported.
“2019 will likely see us again expanding our holdings of marketable equities,” Buffett said in his letter to Berkshire shareholders in February. “We continue, nevertheless, to hope for an elephant-sized acquisition. Even at our ages of 88 and 95 – I’m the young one – that prospect is what causes my heart and Charlie’s to beat faster.”
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