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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (2550)	6/18/2000
From: James Clarke	Read Replies (2) \| Respond to of 4691

I own both CAT and GPC, and consider both Buffettlike investments at the right price. I firmly believe there are cyclical Buffett stocks and CAT is one of the few. Their competitive advantages are simply enormous, and this company has grown and grown over the decades, with high return on capital over a cycle. Under 40 it looks like a steal, and I don't see it going much lower than where it is now. GPC, despite its auto parts association, is not a cyclical at all. This is just a wonderfully managed company in a boring business, trading at a great price. I bought at 20 and change in the "old economy" carnage in March, but I had also purchased shares around 26. I believe this is worth mid 30s, but they've got to stop their margin deterioration to get there. They will. Until then, a 5% yield and a good balance sheet. In GPC's annual report (at least in last year's) they are one of the few companies I know that give you a 75 year financial statement. I wish all companies did that. GPC's history is simply amazing.