In this video, Blake Bos describes one reason to buy and two reasons to sell Caterpillar. The big reason to buy is Caterpillar is because it is the dominant company in heavy mining and industrial vehicles. Its dealer and support network and brand strength are unparalleled in the U.S. However, the company is vulnerable to commodity prices and macroeconomic forces, which it has not always anticipated well. Lastly, Caterpillar's long-term success depends on its success in China. The company faces significant challengers in Chinese companies and Sumatsu Heavy Industries.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand-new report. Just click here to access it now.

The article 1 Reason to Buy and 2 to Sell Caterpillar originally appeared on

Blake Bos has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Increase your money and finance knowledge from home

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Add a Comment

*0 / 3000 Character Maximum