Credit Suisse, a Swiss investment bank, has analyzed Buffett's successive financial options through Berkshire Hathaway, which involves large holdings or 100% buyouts. The Swiss bank analyzed Buffett's investment profile and prepared some tips for the average citizen to invest as effectively as the American philanthropist.
In this way, Credit Suisse has shaped five strategic investment pillars used by Buffett for a proprietary structure called HOLT. According to the Business Insider, the company is defined as an "objective structure for comparing and evaluating companies", and so far, it has been able to analyze about 20 thousand companies.
The bank guarantees that Buffett's methods are five: high returns on equity and high returns on net tangible assets; demonstrate power of gains and ability to cope with inflation; to employ a minimum or non-existent debt in the capital structure of the company; buy the business for a fair price; strong and simple management to realize the business.
According to the US newspaper, Credit Suisse's suggestions are based on the cash flow return on investment. "In analyzing Buffett's acquisitions at HOLT, this investor acquires large companies with stable margins whose long-term price drops dramatically. This means that companies are cheap, "the Swiss bank said in a recent note.