Buffett bought UnitedHealth. I bet on Caterpillar. Why Berkshire Hathaway’s picks are smarter.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 15 2025
0mins
Source: MarketWatch
Buffett's Investment Speculation: Warren Buffett is expected to disclose a significant $5 billion investment in an industrial company, with Caterpillar being the most likely candidate among others like Deere, UPS, and Honeywell.
SEC Filing Strategy: This move aligns with Buffett's previous strategies involving SEC 13-F filing confidentiality, similar to past investments in companies like Chubb and Chevron.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 775.000
Low
395.00
Averages
620.54
High
730.00
Current: 775.000
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record High Stock Price: Caterpillar's shares closed at a record high of $775 on Wednesday, up 4% from the 52-week intraday high of $756.10, lifting its market value to approximately $362 billion, reflecting market optimism regarding its turbine business.
- Analyst Ratings Optimistic: According to Koyfin, analysts have an average rating of 'Buy' for Caterpillar, with 15 analysts giving 'Buy' or higher ratings, indicating strong confidence in the company's future growth prospects.
- Retail Sentiment Shift: Retail sentiment on Caterpillar shifted from 'bearish' to 'bullish' according to Stocktwits data, with message volumes reaching 'extremely high' levels, suggesting investor optimism about the company's future performance.
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- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
- Caterpillar's Stellar Results: Caterpillar's Q4 results released on January 29 showed an 18% year-over-year revenue increase to $19.1 billion, surpassing market expectations, particularly driven by a 23% sales increase in its gas turbine division due to booming AI data center construction, with projections to double power generation equipment sales by 2030.
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- Power Generation Growth: Caterpillar's Power Generation segment saw a remarkable 44% growth in Q4, driven by strong demand for large gensets and turbines used in data center applications, highlighting the company's robust performance in the power and energy sector.
- Record High Stock Price: Caterpillar's shares closed at a record high of $775 on Wednesday, up 4% from the 52-week intraday high of $756.10, lifting its market value to approximately $362 billion, reflecting market optimism regarding its turbine business.
- Analyst Ratings Optimistic: According to Koyfin, analysts have an average rating of 'Buy' for Caterpillar, with 15 analysts giving 'Buy' or higher ratings, indicating strong confidence in the company's future growth prospects.
- Retail Sentiment Shift: Retail sentiment on Caterpillar shifted from 'bearish' to 'bullish' according to Stocktwits data, with message volumes reaching 'extremely high' levels, suggesting investor optimism about the company's future performance.
See More
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- Regulatory Termination Impact: The Trump administration officially terminates the 2009 'endangerment finding,' effectively dismantling the legal foundation for federal climate regulations, which immediately eliminates greenhouse gas emission standards for cars and trucks, signaling the end of the government-led push for mandatory electric vehicle transitions.
- Tesla Revenue Risk: With the EPA losing authority to enforce tailpipe standards, Tesla's reliance on selling billions in regulatory credits will vanish, and analysts estimate this rollback could erase margin revenue for Tesla as competitors no longer need to pay for compliance.
- Traditional Manufacturers Benefit: Traditional automakers like Ford and General Motors are projected to save over $2,400 per vehicle, providing them with an immediate competitive advantage to pivot capital from high-cost EV mandates back into their high-margin gas-powered SUV and truck lineups.
- Climate Policy Shift: The EPA administrator announced the end of federal credits for automatic start-stop technology, marking the conclusion of 'climate participation trophies' for manufacturers, emphasizing that there will be no more incentives for technologies that cause cars to stall at red lights.
See More
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- Diverse ETF Themes: Fundstrat's GRNY ETF launched in November 2024, encompasses various investment themes including value investing, despite a year-to-date decline of 0.32%, it has risen 18.31% over the past 52 weeks, indicating some market appeal.
- Overlap with Dow Jones: The GRNY ETF shares eight stocks with the Dow Jones Industrial Average, including well-known tech stocks like Apple, Amazon, Microsoft, and Nvidia, with respective weights of 2.55%, 2.16%, 2.11%, and 2.51% in GRNY, reflecting a similarity in investment strategies.
- Differing Investment Styles: The GRNY ETF employs a rules-based stock selection process focusing on stocks that meet two or more key themes, with current themes including PMI recovery, energy stocks, and cybersecurity, aimed at attracting millennial investors.
- Market Performance Comparison: In contrast to the GRNY ETF, the SPDR Dow Jones Industrial Average ETF has increased by 3.46% year-to-date and 12.08% over the past 52 weeks, showcasing the relative strength of Dow components, which may impact investor confidence in GRNY.
See More
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- Limitations of AI: AI cannot perform physical tasks such as cooking, delivering packages, or farming.
- Human Dependency: Despite advancements in AI, human involvement is still essential for various everyday activities.
See More
This Steady Dividend ETF Has Gained 10% in 2026, Driven by Caterpillar.
- Investor Patience: Investors focusing on reliable dividend payers have needed to be patient recently.
- Market Performance in 2026: In 2026, this patience is rewarded as companies like Caterpillar, Exxon Mobil, and Clorox achieve returns exceeding 25%.
See More
Heavy Equipment Manufacturers' Stocks Surge
- Strong Market Performance: In 2026, farm and construction machinery stocks are soaring double digits in a sideways market, with Paccar, Caterpillar, and Deere significantly outperforming the S&P 500, indicating robust industry recovery and heightened investor confidence.
- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
- Caterpillar's Stellar Results: Caterpillar's Q4 results released on January 29 showed an 18% year-over-year revenue increase to $19.1 billion, surpassing market expectations, particularly driven by a 23% sales increase in its gas turbine division due to booming AI data center construction, with projections to double power generation equipment sales by 2030.
- Optimistic Industry Outlook: The heavy construction equipment market is forecasted to grow at an annual rate of 6.2% through 2034, reaching $372 billion, while the agriculture equipment market is expected to recover from a downturn, projected to grow at 8.6% annually through 2035, reaching $689 billion, indicating long-term investment potential.
See More
