“The Levi Strauss Strategy”

Caterpillar Inc. said it will buy mining giant Bucyrus International Inc. for about $7.6 billion as the heavy-equipment giant looks to bolster its mining-equipment production.

–“Caterpillar to Buy Bucyrus”; Wall Street Journal (11/15/2010)

What do corporations do when the price of metals — both base and precious — double and triple?

Start digging.

Or, in the case of Caterpillar, buy a company that makes digging equipment.

Call it the Levi Strauss strategy: there’s as much (or more) money to be made selling supplies and equipment to the gold diggers, as there is in digging for gold.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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