The Greatest Risk We Face: To Again Falling Into a Recession

The Problem A spate of frightening headlines has led to two troubling declines in financial instruments.  The first, of course, is the decline in equity prices that has everyone worried about their financial futures.  This drop in stock price is in everybody’s face and therefore commands prime time attention by the media.  Of course, the[…]

Warren Buffett Said Ignore Political and Economic Forecasts

There’s certainly no shortage of pundits, prognosticators and even self-proclaimed prophets ready and willing to bombard us with dire forecasts about our future.  We get a day in the market like Monday, August 8, 2011, and “Chicken Little” shows up everywhere to include radio, television, newspapers, magazines and the Internet.  Yet somehow, we survive it[…]

Illinois Tool Works (ITW): Innovation, Growth, Above-Average Yield and Low Valuation: (Part 7 of 7)

Illinois Tool Works (ITW) is a diversified industrial manufacturer with a history of growth through innovation, and through acquisitions.  A quote from their introductory video sums up Illinois Tool Works’ business units very nicely: “if it’s wrapped, scrapped, fastened or welded; built, connected, balanced, or sliced; decorated, packaged, labeled or protected; chances are Illinois tool[…]

Johnson Controls (JCI) Price Chart V Bottom Spelled Victory and Huge Profit (Part 6 of 7)

Introduction This article is Part 6 of a 7-part series that is looking at the incredible opportunity that a cyclical company can represent as earnings recover coming out of a recession. A primary objective of this series of articles is to illustrate that price drops of well-established companies are usually temporary even after earnings are cyclically weak.[…]

Ingersoll-Rand Corp. (IR) If Only You Bought On the Bad News? (Part 5 of 7)

We have long held the investing philosophy that the best companies to invest in, are those that have the most consistent and highest earnings growth over time.  This philosophy is oriented to the long-term buy and hold investor.  In other words, we feel that companies with the best long-term track records are the most likely[…]

Caterpillar Inc. (CAT) Piling Up Profits: Part 4 of 7

Introducing Caterpillar Inc. (CAT) Caterpillar Inc. (CAT) is known and recognized worldwide for their construction equipment, farm machinery and heavy duty trucks.  Like most industrial companies, their business can be very cyclical at times.  However, the company is capable of generating strong profits when times are good.  The following description is taken directly from their[…]