Caterpillar Inc. (CAT): Bill Gates' Top Stock Pick for Long-Term Growth

Alright, listen up, fellow investors! If you're looking for a stock that's got the potential to make you some serious cash in the long run, you've got to check out Caterpillar Inc. (CAT). That's right, the very same company that Bill Gates has been raving about, and for good reason. So, let's dive in and see what all the fuss is about.

First things first, Caterpillar is a global leader in the construction and mining equipment industry, with a market share of around 50%. That's right, folks, they're the big dog in this game. And with a strong brand, extensive dealer network, and a focus on innovation and sustainability, it's no surprise that Caterpillar has been crushing it in the market.

Now, let's talk about why Bill Gates is so bullish on CAT. For starters, Caterpillar's commitment to sustainability is a major factor. The company has set ambitious goals to reduce its greenhouse gas emissions and water usage, and it's investing in electric and hybrid powertrain options for its equipment. As customers and investors increasingly prioritize sustainability, Caterpillar's eco-friendly initiatives can help the company gain a competitive edge and attract more customers.

But it's not just about sustainability – Caterpillar's financial performance has been nothing short of impressive. In 2024, the company reported record adjusted profit per share and strong ME&T free cash flow. Sales and revenues for the fourth quarter of 2024 were $16.2 billion, a 5% decrease compared with $17.1 billion in the fourth quarter of 2023, but operating profit margin was 18.0% for the fourth quarter of 2024, compared with 18.4% for the fourth quarter of 2023. Adjusted operating profit margin was 18.3% for the fourth quarter of 2024, compared with 18.9% for the fourth quarter of 2023. Full-year sales and revenues in 2024 were $64.8 billion, down 3% compared with $67.1 billion in 2023, but operating profit margin was 20.2% in 2024, compared with 19.3% in 2023. Adjusted operating profit margin was 20.7% in 2024, compared with 20.5% in 2023. Full-year profit was $22.05 per share in 2024, compared with profit of $20.12 per share in 2023. Adjusted profit per share in 2024 was $21.90, compared with adjusted profit per share of $21.21 in 2023.