I have worked for them for 29 years. CAT has been one of my best investments over the years. But, I have never held more than 8% of my portfolio in the stock. Diversification my friends.
Sorry I just saw this comment. I frequently buy one share of things when I'm first starting a position or even when I'm starting to build it up, depending on how much cash I have coming in at any given time and what the share price is. Laughing at somebody for buying a share of a quality company is lame tbh. In my experience it's usually done by folks with either zero shares or not willing to talk about their actual portfolio because they're too afraid to be criticized. Nobody I've met who's actually building for their future and not just larping online has ever made fun of someone else for doing the same, regardless of how much or what level they are at. But hey what do I know
I bought a pair of cat boots from acedemy 3 years ago. They actually have other sources of revenue that we don’t even think about. Cat is one of the 10 companies i have been dca into weekly
Thank you. I will just drip my 150+ shares until I finally pull the trigger, possibly using Rule of 55 next year. Tired of taking call for the past 25 years. Would love to at least cut back to part time and start pulling the fruit of my labor. Thanks for the fantastic content.
Thanks for another great video, Matt. And CAT is a solid one that I’ve also been considering to add into my positions. Just noticed one thing, your portfolio has a lot of overlap with DJA index - AAPL, MCD, AXP, UNH, WMT, V. And now CAT. Did you mean to build yourself a more selective version of Dow? Or just a natural result of applying similar methodology when picking stocks?
Thanks. I didn't do that on purpose, I actually didn't even notice lol. The DJIA methodology doc says this as the criteria: "While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors." So...yeah I guess 🤷🏻♂️. How weird though because companies like VZ and DIS are there too lol
Hi Matt, how interesting I put CAT on my watch list about a month ago. 226$ was very tempting but I held from buying. Long term I think it is an excellent stock (and we already own some). I love to see that they are looking into the future by researching other industrial equipment that might be electric. I am thinking with the current situation internationally and in the USA the stock might take a hit. Here in Canada we have an investment tool called the TFSA account that will be capped-up in January and that is when I dump some $$ into the account that I will use to invest during 2024. The ctock usually rally up at the end of the year s0 we shall see if my prediction on CAT will come true in January.
Yeah I wouldn't be surprised if it actually went down for a while as some of this fiscal policy starts getting more and more scrutinized. But long term I think they are solid, and we'll just see how things go.
@@mattderron 🙂, note I am not trying to "time the market" or "time that particular stock". On a say 5-7 year cycle holding CAT it is likely a win to buy most of the time. I just want that stock in what we call TFSA accounts in Canada and so it (favorably?) delays my purchase ;-). Thanks for the reply. I wonder how back-and-forth comment affects the YT algorithm ??? 🙂
It came down from pre-market highs, but CAT has definitely been crushing it. Would've been even nicer if I had a higher allocation to it like I wanted! It's a good lesson in "just because it already went up a lot doesn't mean it's not still undervalued"
Get outta my head Matt.....I bought CAT on 11/3 @ $240 and change. Just kidding. I like hearing your comments on stocks that I've bought. Good job as usual.
Thanks for that analysis Matt...CAT is one that I was looking at....have it on my watchlist and this analysis you provide was very helpful in my overall analysis...I like the diversification angle you took with adding to your portfolio...
i bought CAT too, last week - at 252$! too bad you sold WM, it's a reliable business (although, they have market only in US and Canada)! what do you think of other industrials, such as DE or TSCO? if a 10-15% drop comes, i'll invest in them! this second half of year i focused on beaten health and staples stocks, next year i hope tech will drop too, so i can open positions on the,! ;)
Awesome video.. I’ve never owned CAT shares.. congrats to everyone’s success! Amazing company.. there’s other common companies on our job sites .. but Deere 🦌 & CAT 🐛 are the most common for us. Alberta, 🇨🇦
I would probably say it's closer to fair value than overvalued, but it has run up a lot in just the last 4 to 6 weeks. I thought it was undervalued when I made this video which is why I bought. I guess the best way to answer it is this - I wanted to add to my Caterpillar position in December but I decided not to yet because it has run up quite a bit and I had other companies in my portfolio that looked to be at even more attractive levels. So I bought them instead. Long-term I obviously believe CAT is a strong company, otherwise I wouldn't have bought them. In terms of current valuation though - you'll have to decide for yourself based on how long you plan to hold. If you're planning to hold for years, I think current valuation is investable (16 P/E, 12.5 P/CF) but I wouldn't be surprised if there is some volatility since they are a cyclical company and they've run up quite a bit over the past month. Hope this helps
I actually just analyzed UNP and CP and I wasn't as impressed with them as others are (I know many super investors hold them). Likely one of my videos for next week will talk about it
I did a video on WM and why I sold a while back. Their sustainability investments won’t bear fruit until 2026 and are weighing on their FCF. At the valuation they were at I didn’t see the upside. I bought Apple with those funds and plenty people thought WM would outperform Apple at those prices. We’ll see. Ultimately I had questions about the viability of the sustainability investments and overall growth. But they’ve obviously been a great performer historically. I sold Lowe’s too this year, so maybe it’s me lol
Another great video and company. Im with you in picking up HSY at these levels to hold long term. How do you feel about companies that do not pay out directly buy indirectly via buy-back, like ULTA? I mean: if a company buys back 50 % only half the stocks are left and assuming same value your stock goes up 100 % If instead it payed out the 50 % for you to re-invest, you would only be up 50 %. Its a kind of magic ;-)
I have worked for them for 29 years. CAT has been one of my best investments over the years. But, I have never held more than 8% of my portfolio in the stock. Diversification my friends.
That's awesome!
I bought one share of CAT about a year ago for $177. I've been very happy with it, just wish I'd bought more.
lol one share
Sorry I just saw this comment. I frequently buy one share of things when I'm first starting a position or even when I'm starting to build it up, depending on how much cash I have coming in at any given time and what the share price is.
Laughing at somebody for buying a share of a quality company is lame tbh. In my experience it's usually done by folks with either zero shares or not willing to talk about their actual portfolio because they're too afraid to be criticized.
Nobody I've met who's actually building for their future and not just larping online has ever made fun of someone else for doing the same, regardless of how much or what level they are at. But hey what do I know
Caught it at $167. I wish I could buy more right now!
I wanted to buy it at 178. Didn't have enough cash. Still may buy.😊
Actually love this! Would love more like this ❤
I bought a pair of cat boots from acedemy 3 years ago. They actually have other sources of revenue that we don’t even think about. Cat is one of the 10 companies i have been dca into weekly
I used to have a CAT rugged phone .. it was awesome for construction work.
Bought a full position of CAT near the end of March 2020, could not have timed it any better. I don't get this lucky often.
Very nice!
Thank you. I will just drip my 150+ shares until I finally pull the trigger, possibly using Rule of 55 next year. Tired of taking call for the past 25 years. Would love to at least cut back to part time and start pulling the fruit of my labor. Thanks for the fantastic content.
Thanks for another great video, Matt. And CAT is a solid one that I’ve also been considering to add into my positions.
Just noticed one thing, your portfolio has a lot of overlap with DJA index - AAPL, MCD, AXP, UNH, WMT, V. And now CAT.
Did you mean to build yourself a more selective version of Dow? Or just a natural result of applying similar methodology when picking stocks?
Thanks. I didn't do that on purpose, I actually didn't even notice lol. The DJIA methodology doc says this as the criteria:
"While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors."
So...yeah I guess 🤷🏻♂️. How weird though because companies like VZ and DIS are there too lol
I have a bit of Cat . It is not moving in the right direction right now. But I might keep it for a bit
Look also at Deere, it's currently undervalued.
Hi Matt, how interesting I put CAT on my watch list about a month ago. 226$ was very tempting but I held from buying. Long term I think it is an excellent stock (and we already own some). I love to see that they are looking into the future by researching other industrial equipment that might be electric. I am thinking with the current situation internationally and in the USA the stock might take a hit. Here in Canada we have an investment tool called the TFSA account that will be capped-up in January and that is when I dump some $$ into the account that I will use to invest during 2024. The ctock usually rally up at the end of the year s0 we shall see if my prediction on CAT will come true in January.
Yeah I wouldn't be surprised if it actually went down for a while as some of this fiscal policy starts getting more and more scrutinized. But long term I think they are solid, and we'll just see how things go.
@@mattderron 🙂, note I am not trying to "time the market" or "time that particular stock". On a say 5-7 year cycle holding CAT it is likely a win to buy most of the time. I just want that stock in what we call TFSA accounts in Canada and so it (favorably?) delays my purchase ;-).
Thanks for the reply.
I wonder how back-and-forth comment affects the YT algorithm ???
🙂
CAT just smashed earnings. Another quality stock pick.
It came down from pre-market highs, but CAT has definitely been crushing it. Would've been even nicer if I had a higher allocation to it like I wanted! It's a good lesson in "just because it already went up a lot doesn't mean it's not still undervalued"
good video man. more of these! ;)
Thanks! If you haven't seen the previous ones, I have a whole playlist of individual stock analysis videos like this one!
Get outta my head Matt.....I bought CAT on 11/3 @ $240 and change. Just kidding. I like hearing your comments on stocks that I've bought. Good job as usual.
Thanks for that analysis Matt...CAT is one that I was looking at....have it on my watchlist and this analysis you provide was very helpful in my overall analysis...I like the diversification angle you took with adding to your portfolio...
No worries, glad it was helpful!
i bought CAT too, last week - at 252$!
too bad you sold WM, it's a reliable business (although, they have market only in US and Canada)!
what do you think of other industrials, such as DE or TSCO? if a 10-15% drop comes, i'll invest in them!
this second half of year i focused on beaten health and staples stocks, next year i hope tech will drop too, so i can open positions on the,! ;)
i was always wondering if the caterpillar fashion brand belongs to them as well?
Caterpillar work wear? Pretty sure it does lol
I wonder if dealer networks will continue to be a MOAT in the future
What do you think would be the biggest impact to it going forward?
Awesome video.. I’ve never owned CAT shares.. congrats to everyone’s success!
Amazing company.. there’s other common companies on our job sites .. but Deere 🦌 & CAT 🐛 are the most common for us.
Alberta, 🇨🇦
CAT has been one of the best in terms of timing for sure lol
Hi Matt, what do you think of CAT at the current price of $285.74? Is it overvalued at this point?
I would probably say it's closer to fair value than overvalued, but it has run up a lot in just the last 4 to 6 weeks. I thought it was undervalued when I made this video which is why I bought.
I guess the best way to answer it is this - I wanted to add to my Caterpillar position in December but I decided not to yet because it has run up quite a bit and I had other companies in my portfolio that looked to be at even more attractive levels. So I bought them instead.
Long-term I obviously believe CAT is a strong company, otherwise I wouldn't have bought them. In terms of current valuation though - you'll have to decide for yourself based on how long you plan to hold. If you're planning to hold for years, I think current valuation is investable (16 P/E, 12.5 P/CF) but I wouldn't be surprised if there is some volatility since they are a cyclical company and they've run up quite a bit over the past month. Hope this helps
@@mattderron Thank you Matt, appreciate it. I am holding for now :)
Great video! I’m surprised you didn’t choose a railroad like UNP or CSX for industrials exposure.
I actually just analyzed UNP and CP and I wasn't as impressed with them as others are (I know many super investors hold them). Likely one of my videos for next week will talk about it
@@mattderron that would be great. I’m also curious why you exited out of WM or considered RSG. Industrials is tricky with all of their debt.
I did a video on WM and why I sold a while back. Their sustainability investments won’t bear fruit until 2026 and are weighing on their FCF. At the valuation they were at I didn’t see the upside. I bought Apple with those funds and plenty people thought WM would outperform Apple at those prices. We’ll see. Ultimately I had questions about the viability of the sustainability investments and overall growth. But they’ve obviously been a great performer historically. I sold Lowe’s too this year, so maybe it’s me lol
Great video, to pricey for me
Thanks!
Another great video and company. Im with you in picking up HSY at these levels to hold long term. How do you feel about companies that do not pay out directly buy indirectly via buy-back, like ULTA? I mean: if a company buys back 50 % only half the stocks are left and assuming same value your stock goes up 100 % If instead it payed out the 50 % for you to re-invest, you would only be up 50 %. Its a kind of magic ;-)
I’m not against adding a company that doesn’t pay a dividend as long as they are buying back shares or are just a really compelling growth story
Right now I would purchase Deere.
CAT is a bit steep now
Look at MCHP
too cyclical for me - look at the chart it goes up and down up and down - good company though
Great for DCA when down
If DCA under 200 MA weekly, over the past 3 years would of been up 175%. 40% year over year