Caterpillar, Deere, Cummins, Parker Hannifin, Illinois Tool Works. Cyclical demand + capital-intensive - but the best operators (TransDigm, Watts Water, Roper) compound at software-like rates.
Industry leader
CSW Industrials, Inc. CSW
Buffett-Fit: 66/100
Industrial machinery quality is measured by aftermarket-revenue share (parts + service compound after equipment sale) + installed-base lock-in. The 'razor-blade' operators (TransDigm, Roper, IDEX) build 30-50% gross margins out of mission-critical components that customers can't substitute. Look for ROIC above 20% sustained through a full industrial cycle.
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Educational framework analysis only. Not investment advice, not a recommendation, not personalized to your situation. Always do your own research.