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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (70534)	6/23/2022 12:08:09 PM
From: bruwin	Read Replies (1) of 78764

"Caterpillar Inc (CAT) is still expensive but one company I would like to own." CAT's fundamentals look quite good. According to Buffett's "Buy" criteria, i.e. the "Equity Bond", CAT is still a "Buy" at $183. This is likely to remain so because a component of that criteria is the AAA Corporate Bond Rate. Not that long ago it was in the region of 2% to 2.5%. It now sits at 4.4% and will undoubtedly increase going forward seeing as the "formula" is (Pretax Income)/(No. of Shares)/(AAA Rate) ........ Looking at CAT's price performance it could very well currently be at a "Support" of around $180/share ....

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