To The Moon

$Applied Materials(AMAT)$ $Norfolk Southern(NSC)$ $Adobe(ADBE)$ $Johnson & Johnson(JNJ)$ $Eli Lilly(LLY)$ $Caterpillar(CAT)$

Today, we’ll be discussing nine companies that politicians and members of Congress are actively buying right now. Previously, I made a video explaining why politicians often rank among the top investors in terms of performance. If you haven’t seen it yet, I recommend checking it out to understand why paying attention to their stock purchases can be so insightful.

In this video, I’ll go over the stocks these politicians are investing in and share my opinion on whether each stock is a “buy” or a “pass.” Let’s dive in, starting with the first company on the list.

Stock #1: Applied Materials (Ticker: AMAT)

Applied Materials is indirectly tied to the AI movement. Senator Mullen from Oklahoma and Representative Marjorie Taylor Greene from Georgia purchased shares back in December, likely at a price between $169 and $170 per share. Since then, the stock has dipped by approximately 3.8%.

All this information is publicly disclosed, so informed investors can keep track of what politicians are buying. While Applied Materials posted an 8% gain last year, it underperformed compared to the S&P 500, which was up 24.7%. The stock is currently hovering near its 52-week low, which may explain why Congress members are showing interest—they might see potential that others don’t.

Stock #2: Norfolk Southern (Ticker: NSC)

Norfolk Southern operates in the railroad and transportation sector. Representative Greene also purchased shares of this company. Last year, its performance was flat, starting the year at $232 per share and closing around $234 per share. Despite this, Norfolk Southern has a strong economic moat due to the scale and difficulty for competitors to enter its market.

Stock #3: Adobe (Ticker: ADBE)

Adobe was another purchase by Representative Greene. The stock performed poorly last year, with a decline of 22.8%. Interestingly, it seems that Representative Greene and I purchased Adobe around the same time when it hit its 52-week low.

Stock #4: Johnson & Johnson (Ticker: JNJ)

Johnson & Johnson, a pharmaceutical and medical devices company, saw a 10% drop in its stock price last year. Representative Greene purchased shares, perhaps seeing an opportunity during this dip.

Stock #5: Eli Lilly (Ticker: LLY)

Eli Lilly had a strong performance last year, with a 25% gain. Representative Greene likely purchased shares during one of its small dips, showing keen interest in this thriving pharmaceutical company.

Stock #6 and #7: Microsoft (Ticker: MSFT) and Amazon (Ticker: AMZN)

Both Microsoft and Amazon were purchased by Representatives Greene, Pete Sessions, and Michael Guest. Microsoft’s stock was up a staggering 133% last year, while Amazon gained 48%. The difference in performance is notable, but both companies remain powerhouses in their respective industries.

Stock #8: Hershey (Ticker: HSY)

Hershey’s stock dipped 12% last year, yet Representative Greene saw potential and purchased shares.

Stock #9: Caterpillar Inc. (Ticker: CAT)

Caterpillar performed well last year, with a 26.5% gain, aligning closely with the S&P 500. Representative Greene also added this stock to her portfolio.

Now, let’s briefly evaluate each stock to determine whether it’s a “buy” or a “pass”:

• Applied Materials: A “buy” for me when trading between $150–$155. It’s positioned to benefit from AI advancements and increased manufacturing in the U.S.

• Norfolk Southern: A “buy” in the $205–$210 range due to its strong economic moat.

• Adobe: Highly undervalued, and I’ve done a deep dive analysis showing its long-term potential. A definite “buy.”

• Johnson & Johnson: While currently under performing, it’s worth monitoring for future opportunities.

• Eli Lilly: A solid “buy” due to its strong performance and growth prospects.

• Microsoft and Amazon: Both are solid buys, with Microsoft being especially impressive.

• Hershey: A cautious “pass” for now due to its recent performance.

• Caterpillar: A solid “buy,” especially for those looking for stability in line with market performance.

Johnson & Johnson

This one is an easy pass for me. As a pharma company, I’m not interested in investing. If you’d like to hear more detailed thoughts on this, check out my recent video on the pharmaceutical industry. Coming from my experience as a former strategy leader, it’s a firm pass.

Eli Lilly

Eli Lilly has a strong portfolio with patents and drugs that create a solid economic moat, but I’m still not interested. This is also a pass for me.

Microsoft

I was surprised by Microsoft’s performance in 2024 compared to the S&P 500—it wasn’t stellar. Either the market isn’t bullish on its future potential or it sees better opportunities in companies like Nvidia. Personally, I think Microsoft could drop to around $400 per share. If it does, I’ll add more to my collection. Microsoft is one of the rare “buy-and-hold-forever” companies. Its business model is incredibly sticky, and I see it staying relevant for years to come.

Amazon

While I believe Amazon is a great company with solid fundamentals, I think it’s currently fairly valued, so it’s a pass for me. I used to invest in Amazon, but unless the price dips to around $120 and they introduce a dividend (unlikely within the next five years), I’m not buying. As a value investor, I look for good companies at good prices, and Amazon doesn’t fit the bill for me right now.

Hershey

Hershey presents an interesting situation. Cocoa prices are at all-time highs, eating into the company’s margins. Hershey is even exploring lab-made cocoa to replace natural ingredients in its candy. Despite this temporary setback, I see it as an opportunity to pick up shares of a premium consumer goods stock. Hershey has consistent demand, whether people are celebrating or going through tough times. For me, it’s a buy whenever it dips below $170 per share.

Caterpillar

Caterpillar is a key player in infrastructure and green energy projects. While I haven’t done a deep dive yet, I believe it will perform well over the next few years. I plan to explore this company further, but I’d consider it a buy in the $280–$290 range.

Just because I rate a company as a buy doesn’t mean I’m actively purchasing shares right now. My ratings are based on the current share price and business metrics. I also understand why politicians might be buying these stocks—they often have insights the general public doesn’t.

Final Thoughts

Before wrapping up, I’d like to share something: If you can be anything in this world, be kind. It’s often said, and it may sound cliché, but as I’ve grown older, I’ve realized how many people are selfish, bitter, or negative. The world would be so much better if we all made an effort to show more kindness to those around us.

Kindness isn’t a weakness; it’s a strength. Like a candle lighting another, being kind spreads positivity without costing you anything. You never know what someone might be going through, so your kind words or actions could mean the world to them.

I know this might feel out of place in a discussion about stocks, but it’s important. Let’s make this year about building each other up and choosing positivity over negativity. That’s who I want to be—a person who uplifts others, stays optimistic, and spreads kindness.

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