Author: John Rotonti

Bastion Fiduciary portfolio manager John Rotonti and Morningstar analyst Krzysztof Smalec discuss Linde’s corporate history, business model, competitive position in the global industrial gas market, its competitive advantages, management team, backlog (2/3 of which is renewable/decarbonization projects), growth opportunities, long-term take-or-pay contracts, pricing power, margins and returns on invested capital, risks, and more.Watch here or on YouTube​:https://youtu.be/3EvM5IA8lRM?si=EDJGM5XSq9DDTtHh Listen To This Episode on Spotify, Apple or YouTube Click the icons below to listen to this podcast: Spotify Apple Youtube Disclaimer: This video is intended for informational purposes only and does not constitute tax, financial, or legal advice. Investing carries risks, including potential…

John Heins, Director of the C.T. and Kelley Fitzpatrick Center for Value Investing at the University of Alabama and owner and publisher of Value Investor Insight, discusses teaching value investing, designing a value investing curriculum, hosting an annual value investing conference, and publishing a highly-recognized investing newsletter for the last 20 years.Watch here or on YouTube​:https://youtu.be/lQH_3Bn_Osk?si=ixsA3Fz4jdAYFrWj Listen To This Episode on Spotify, Apple or YouTube Click the icons below to listen to this podcast: Spotify Apple Youtube Disclaimer: This video is intended for informational purposes only and does not constitute tax, financial, or legal advice. Investing carries risks, including potential loss…

Bastion Fiduciary portfolio manager John Rotonti and Morningstar senior analyst Brett Castelli discuss GE Vernova’s corporate history, business model, competitive position in the power and electrification end markets, its competitive advantages, management team, growth opportunities, pricing power, margins and returns on capital, risks, and more.Watch here or on YouTube​:https://youtu.be/05qg1WdvmTs?si=OMzoFSyIJvFhiCNy Listen To This Episode on Spotify, Apple or YouTube Click the icons below to listen to this podcast: Spotify Apple Youtube Disclaimer: This video is intended for informational purposes only and does not constitute tax, financial, or legal advice. Investing carries risks, including potential loss of principal. Consult a qualified professional for…

Watch on YouTube Source: 7investing on YouTubeWarren Buffett is widely-credited with characterizing competitive advantages as moats that companies will aggressively build & vigorously defend to protect themselves from attacks by others.And while the software industry offers many advantages (such as fast growth and quick iteration), it is very difficult to build a moat in this sector. That’s perhaps one of the key reasons for the recent “SaaS-pocalypse”, where many software stocks have sold off due to the emerging threat of AI and technological disruption.So where do we go from here? Are software stocks now a compelling buying opportunity? Or are…

KLA Corporation’s (Nasdaq: KLAC) second quarter fiscal 2026 revenue increased 7%, its non-GAAP operating margins expanded 50 basis points to 42.8%, and its non-GAAP EPS grew 8% year-over-year. KLA’s tax rate came in higher than expected. At the guided tax rate, non-GAAP EPS would have grown nearly 10%.It generated a trailing twelve month return on equity (ROE) of 101%, which is down from its five-year average of about 110%. The lower, but still incredibly high ROE, is due to lower leverage (a lower debt-to-equity ratio). To better understand how KLA is able to generate such high ROE please read my…

Trane’s (NYSE: TT) full-year 2025 revenue increased 7%, organic revenue increased 6%, adjusted operating margins expanded 90 basis points, and adjusted EPS grew 16% to $13.06. It generated a return on equity (ROE) of 34%, which is in-line with 2024 levels.Free cash flow (FCF) increased 3.5% to nearly $2.9 billion, resulting in an FCF margin of 13.5% and FCF conversion on adjusted net income of 98%. Trane returned over $2.3 billion to shareholders as dividends and buybacks in 2025 compared to about $2 billion in 2024. In 2025 Trane increased the dividend by 12% (dividend up 77% since March 2020)…

Amphenol (NYSE: APH) generated another year of record sales, adjusted operating margin, free cash flow (FCF), and adjusted EPS. Amphenol’s sales have more than doubled in the last four years with growth being driven by strong technology tailwinds (electronification) and its differentiated acquisition platform, and the company is clearly executing at an exceptionally high level. Not bad for a 94-year old business (doubling the size of the business in 4 years), and an example that textbook DCFs struggle to properly value a competitively advantaged, adaptable corporate culture and an acquisition platform that serves as an almost unbounded long-term growth engine. But…

GE Vernova’s (NYSE: GEV) full-year 2025 organic revenue grew 9% and adjusted EBITDA margins expanded 260 basis points (or 210 basis points on an organic basis). Free cash flow (FCF) increased 118% to $3.71 billion (up from about $1.7 billion in 2024) meaning that its FCF margin nearly doubled from around 5% in 2024 to nearly 10% in 2025. The $2 billion increase in FCF was driven by both higher profits and aggressive management of working capital (this management team understands the balance sheet can be a source of cash flow), which more than offset higher investments into long-term growth (R&D…

Bastion Industrial and Infrastructure Portfolio Fourth Quarter 2025 LetterCorporate management is the most powerful source of optionalityBy John Rotonti, Portfolio ManagerThe Bastion Industrials and Infrastructure model portfolio launched on January 24, 2025. In the full-year since inception (through the market close on Friday January 23, 2026) the portfolio appreciated 23.74% net of a 1% fee, compared to the S&P 500 which returned 14.80% during the same time period. The model portfolio return was generated while maintaining a high-teens to 20% cash position throughout the year in a money market fund yielding about 4%. The good fortune for a new portfolio manager…

TE Connectivity’s (NYSE: TEL) first quarter fiscal 2026 sales increased 22%, organic sales increased 15%, adjusted operating margins expanded 180 basis points, and its adjusted EPS grew 33% year-over-year. TE generated $608 million in Q1 free cash flow (FCF) which equates to an FCF margin of 13% and FCF conversion on GAAP net income of 81%. It returned over 100% of FCF in the quarter to shareholders as dividends and buybacks. Its digital data network sales (which includes its AI business) grew 71% and its energy sales (think electrical grid hardening) expanded 88%. Energy sales growth included the Richards acquisitions.…