For Investors Only -- This Is Not An Investment Site -- This Is For My Own Amusement -- July 19, 2022

I am trying, with great difficulty, to re-balance my portfolio. It's over-weighted in oil and I'm trying to move out of energy.

I have a very good monthly revenue stream and I invest twice a month, during the first week and during the third week, or thereabouts. 

I remain fully invested.

I prefer dividend-paying stocks for a specific reason. 

My current allocation:

• Buffett-like, blue-chip, Fortune 500, value: 50%.
• tech, mostly semi-conductors, chips, growth: 30%
• energy (oil and gas); dividends and free cash flow: 20%.

I am looking for big manufacturers of which I started with very little (or, better said, none).

In that category, I'm looking for "vehicle" manufacturers.

Automobile companies: I won't invest in.

• these companies are going to spend inordinate amounts of money to move to "all" EV
• expenses are only going to get much, much worse
• automobile companies will look for market share; they will sacrifice margins and profit to get there
• CEOs, deep down, know that EVs will kill their companies, but group think will not allow them to say that, or change direcction
• I think Ford recognizes that which explains their new 700-hp Raptor.
  

So, the question is where, what industry, will not spend money on a losing proposition, EVs? 

That was answered by a reader, this past week, unbeknownst to the reader:

• US farm equipment; and,
• heavy construction

Why:

• neither industry can move to EVs
• not that they "won't"; they can't;

Lots of heavy industry manufacturers overseas, especially Germany and South Korea, but they're going to be crushed by high energy prices. 

The one exception: the US. Lots of cheap energy.

A lot of manufacturing is going to move from Europe to the US.

Quick: name any heavy manufacturing that can outperform .... Deere and Caterpillar.

That's what I thought.

Deere (DE):

• P/E: 16
• pays: 1.5%:
• 52-week high: $450
• 52-week low: $280
• today, after a 4% rise: $310
• quick: who wouldn't buy?
• a $450-stock now going $310
  

Caterpillar (CAT):

• P/E: 15
• pays: 2.7%:
• 52-week high: $237
• 52-week low: $167
• today, after a 4% rise: $179
• quick: who wouldn't buy?
• a $240-stock now going for $180

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

On another note, spend some time on this post. I accumulate shares in BRK but his 52-ticker portfolio does not impress me.