In this video, Motley Fool analyst Brendan Byrnes gives us three reasons why Caterpillar (NYSE:CAT) is the kind of company investors love to be a part of. Each one is a fundamental of good investing. The company is big enough to make use of its better supply chain and superior products to bully even fierce competitors with its prices. It looks great financially with an attractive dividend and a historically low P/E ratio at only nine times earnings. And a couple of recent major acquisitions are looking very positive for long-term growth for the company in new high-margin sectors.

Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of Joy Global. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.