Author: John Rotonti

Let’s start with a few quotes that highlight new revenue growth opportunities (and even a new serviceable addressable market) and the high margin profile of the company…“Growth of advanced packaging supporting heterogeneous chip integration has led to a new meaningful served market for KLA. What was once a rounding error in wafer fab equipment is now, according to KLA internal estimates, an approximately $11 billion market, growing faster than core WFE. This is particularly true as chip density shrinks and the processing required for packaging increases risk for our customers. For KLA, this creates a new served available market that will augment the company’s revenue…

Growing up in New Orleans, John Rotonti thought his family was wealthy. After all, he and his sisters went to an expensive private school and their family frequently vacationed in Europe and Hawaii. Soon after he started attending the University of Richmond, the façade of his family’s wealth started to crumble.Currently a portfolio manager at Bastian Fiduciary and author of the investing newsletter “JRo’s Notes”, John shares:How he started to figure out his family had money problemsThe unique challenge of starting an MBA program in 2009His favorite heist moviesThe question about AI that investors should be askingListen To This Episode…

Let’s start with a few quotes, as I sometimes do…“I would like to remind you and the whole team why we are winning businesses at this pace. I think it’s important we talk about it. We have this success because we have the broadest portfolio of electrical products in Electrical Americas. We have all the solutions and services. We count on strong channels. And we also have deep customer intimacy, so we co-design future technologies with our customers. And this allows us to be a leader in several end markets. I’m not talking only about data centers, but we also…

On this episode, we discuss:Why have an investment checklist?Questions to ask in the research processFlexibility in Investment AnalysisOverriding the Checklist: Real-World ExamplesIdentifying Generational Investment ThemesThe Industrial Revolution and AI’s RoleValuation in the Investment ProcessPortfolio Management StrategiesListen 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 personalized recommendations and to ensure compliance with applicable tax laws and regulations.

Let’s start with three quotes because Duke deserves the spotlight…“We’re trying to be a compounder of earnings and give good guidance for multi years and decades in fact.” – Earl ‘Duke’ Austin, CEO Quanta Services“We’ll continue to buy great family companies. It made a huge difference in how we think about it. The culture and the company mean so much more than anything else. We start there and then does it fit the strategies next and then the financials will be after. As far as I’m concerned, we pay a nice, what I consider, multiple for a great company.” – Earl ‘Duke’ Austin“I mean…

TE Connectivity (NYSE: TEL) generated records for full-year fiscal 2025 sales, adjusted operating margin, free cash flow (FCF), and adjusted EPS. TE Connectivity’s full-year sales increased 9%, organic sales increased 6%, adjusted operating margins increased 80 basis points to 19.7%, and adjusted EPS grew nearly 16% to $8.76 year-over-year. The company’s FCF increased 14% to $3.2 billion, which equates to an FCF margin of nearly 19% and FCF conversion of 123% on adjusted net income. The 14% growth in FCF is especially impressive because TE Connectivity increased its fiscal year 2025 CapEx by 37% to support growing demand in its industrial…

Vertiv’s (NYSE: VRT) Q3:2025 sales increased 29%, organic sales increased 28%, adjusted operating margins expanded 220 basis points, and adjusted EPS grew 63% year-over-year. Vertiv generated incremental operating margins of roughly 30%, which is in-line with several of our other high-quality, profitable growth, industrial technology holdings. Third quarter free cash flow (FCF) grew 38% from the same period in the prior year, equating to an FCF margin of 17% and FCF conversion on GAAP net income of 116% (its FCF conversion on non-GAAP earnings was about 95%). Over the trailing twelve months Vertiv generated a return on equity (ROE) of…

Amphenol (NYSE: APH) once again generated records for quarterly sales, adjusted operating margin, free cash flow (FCF), and adjusted EPS. Amphenol’s Q3:2025 sales increase 52% (and 41% organically), its adjusted operating margin expanded 560 basis points, and its adjusted EPS increased 86% year-over-year. The large margin increase was driven by operating leverage on strong sales volumes, pricing power (more on that below), and Amphenol’s ability to improve margins at acquired businesses. Importantly, on the earnings call Amphenol’s CFO Craig Lampo said, “I think all of the segments have the ability to continue to grow their margins and continue to expand…

Bastion Industrial and Infrastructure Portfolio Third Quarter 2025 LetterBuy Greatness and HoldBy John Rotonti, Portfolio ManagerThe Bastion Industrial and Infrastructure model portfolio launched on January 24, 2025. Since that inception date through the end of Q3:2025 (a period that represents a little over eight months) the portfolio appreciated 16.87% net of a 1% fee, compared to the S&P 500 which returned 10.62% during the same time period. The model portfolio return was generated while holding roughly 20% cash in a money market fund yielding about 4%. I place no importance on short-term results (even results that flatter me), and I…

KLA Corporation’s (Nasdaq: KLAC) June-quarter-ending fiscal year 2025 revenue increased 24% to over $12.15 billion and operating leverage (with 40% to 50% incremental operating margins) and share buybacks helped power full-year non-GAAP EPS growth of 40% to $33.28. The company’s free cash flow (FCF) also grew 24% to over $3.7 billion, which equates to a FCF margin of 31% and FCF conversion on GAAP net income of 92% and conversion on non-GAAP net income of 84%.KLA generated a trailing twelve month (TTM) return on equity (ROE) of 101%, which is roughly in line with its five-year average through FY 2024 of…