Caterpillar (CAT)

His opinion is that we're in a structural bull market for materials, and that's when picks and shovels tend to do well. This name is dominant. Generator business has been selling into data centres. Pulled back on concerns about data centres. Lots of cash, production growth. A buying opportunity. 

He's adding during this pullback. They blew it out of the water this quarter. It's cheap--it's maturing to the point where it deserves a higher valuation. If it pops, he will write calls. Is a long-term investment.

A top industrial name in his portfolio. Great valuation at 30x forward PE, 25% earnings growth rate. Global leader not just in construction and mining equipment, but in engines, generators, industrial turbines, and backup power systems -- the physical horsepower behind the digital economy.

Feeds into the need for AI data centres and so forth. Also benefits from infrastructure modernization, manufacturing reshoring, electrification, and critical minerals development. These are all super-cycles driving demand. Just raised full-year revenue outlook for Q2 earnings, which exceeded expectations. Very strong backlog. Yield is 0.76%.

He sold most of it. Trading at 35x forward PE is insane for a highly cyclical, capital-intensive company. It should be around 15x PE. We don't know how long this rally will last, but CAT has always been cyclical. He expects them to report a good quarter, though.

It's not just an AI story, it's also power generation, mining, and infrastructure. It's a multi-year play. Shares are up 65% this year. It's price to perfection now and would buy it only on weakness.

Not just heavy yellow machinery anymore. Increasingly tied to power demand, electrification, industrial expansion, and the theme of reshoring. Sales targets for power generation segment have increased. 

Backlog is ~$63B, very strong revenue visibility. About 25% earnings growth rate over next few years. Yield is 0.68%.

Their 50-day average has been rising since last summer. If you own, ride that 50-day and let the market tell you when the rally's over.

He bought; is very bullish. All the infrastructure play flows through CAT. If the stock splits, it will go much higher. Is up 142% this year, and 70% of this move is from AI. A short position in this in outlandish; a stock like this doesn't usually grow to the sky.

They actually build the data centres, but the moment the hyperscalers say they're pulling back on that spending, watch out.

It hit a new high yesterday. He sold part of his position. Is not cheap now at a high valuation. It's purely an AI trade.

It hit a new high yesterday. He's been trimming into strength so that he creates dry powder.

Hasn't owned, as it's always been too cyclical. Safer way to play mining. Ran so fast, so quickly. PE multiple north of 30x, so a lot of positive things are already baked in. FCF yield is very small. Growth profile quite robust, but if that were to get hit then valuation would come off.