Quality over valuation has always been the tenet of successful investing. But what if there are 2 companies with comparable qualities and significant valuation?
From your valuation, it seems that you are not a swing trader. However currently construction machinery purchases are declining. So maybe the CAT is not ideal to buy in a short run, because its stock price is pretty high. Here is the correlation between CAT income vs total sales in construction machinery equipment: https://drive.google.com/file/d/1bSeTVHOwT-rF4ikk8Ofq4QqlhHvDbqsD/view?usp=sharing
From your valuation, it seems that you are not a swing trader. However currently construction machinery purchases are declining. So maybe the CAT is not ideal to buy in a short run, because its stock price is pretty high. Here is the correlation between CAT income vs total sales in construction machinery equipment: https://drive.google.com/file/d/1bSeTVHOwT-rF4ikk8Ofq4QqlhHvDbqsD/view?usp=sharing
Yeap. Valuation is pretty high atm..