Tactics vs. Logistics: Military Wisdom for the Long Term Investor – Intel Corporation (INTC), Nucor Corporation (NUE), Donaldson Company, Inc. (DCI)

Another obvious behemoth in this category is Intel Corporation (NASDAQ:INTC). Intel Corporation (NASDAQ:INTC)’s buyback history is consistent and has proven well placed, unlike companies that have haven spent huge sums on buybacks when their stock is at historical highs. Intel Corporation (NASDAQ:INTC) has stumbled, and lost market share to more than one nimble competitor, but their massive R&D budget and capital spending for future capacity inspire confidence that Intel Corporation (NASDAQ:INTC) is anything but static. Intel Corporation (NASDAQ:INTC) is a different animal than some others in the tech space, such as Dell or Hewlett Packard, which have been hobbled by commoditization or muddled business goals, and may never recover.

A third company that meets the criteria is lesser known filter-maker Donaldson Company, Inc. (NYSE:DCI). Its mobile and industrial filtration products add value with their premium quality and a smaller footprint, a big consideration as engineers vie for efficiency in tight engine designs, or plant managers organize the shop floor. Donaldson Company, Inc. (NYSE:DCI) declares itself a technology driven company–probably not the first thing that comes to mind with filters–and they mean it; their R&D goals stretch out for several years. They look years ahead keep a technical lead in a niche that some would call boring, but I would call mission-critical. As icing on the cake, their executive compensation policy ensures their officers and directors have skin the game with ownership policies that align their incentives with stockholders for the long term.

Could I be wrong?  Of course, and with any investment you need to keep on top of developments at the company that would undermine your original thesis. Should I buy more now?  The prices that these stocks become a good buy are debatable, but buying when they are at multiyear lows will always be a good move, and in this vein I’ve been adding to my position in Intel Corporation (NASDAQ:INTC).  What the stock price will do in the short term is a question to the tactical experts; I’m holding on for a decade or longer.

The article Tactics vs. Logistics: Military Wisdom for the Long Term Investor originally appeared on Fool.com and is written by Anthony Reilley.

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