$2.5m follower assets
Started a 1% Position in $CAT
Director David Maclennan bought $131,892 worth of $CAT today for an average price of $219.82. According to Google he "only" makes $282k a year. This represents a significant chunk of his annual salary.
The shares I just bought were at an average price of $213.9
Who else likes $CAT?
Of course, my favorite metric, is earnings yield is over 5%. They are also repurchasing shares and paying off LT debt.
Why do you look at Earnings yield instead of FCF yield ?
@stonkmetal I want a company with a strong competitive moat. EBIT, EPS, operating income, etc. are all very strong signs of a comapny that is able to organically grow their business through their earnings. I like FCF yields and they're probably my next favorite metric behind earning's yield. The earnings yield is more "raw". FCF has some funky things were repurchasing shares is a negative and creating new debt is a positive. Also, in my experience companies with a high earnings yield will have a high FCF yield in the future.
@conorvalue Thanks for your thoughts. Looking into financial engineering is something I have on my agenda. Goes both ways it seems (FCF and earnings)
$CAT is at the top of my watchlist. If things hold up as they are, I’ll probably start a position in January