It's a sure bet that most investors, even those who regularly devour financial media, were until recently not familiar with Heico (HEI 0.16%). The specialty industrial components maker is a decades-old enterprise that operates an unglamorous business and rarely generates attention-grabbing news.

Yet it's been quite the outperformer at times, and if anyone likes a solid yet under-the-radar stock it's Warren Buffett. Heico's relative obscurity ended forever when the master investor's Berkshire Hathaway first took an equity stake in the company earlier this year. Recently, it loaded up on a little more Heico. Here's a look at whether it's a good idea for us to follow Buffett's lead and pick up some of those shares too.

A high-flier that somehow cruised under the radar

Heico's roots date back to the late 1950s. The modern company consists of two businesses, the larger flight support group (FSG), and the electronic technologies group (ETG). The former concentrates on providing aftermarket parts and services for many different types of aircraft. As for electronic technologies, the unit does what it says on the label, supplying such components to a range of clients in sectors such as space and defense.

In the trailing-12-month period from the third quarter of this year, FSG brought in 67% of the company's $3.8 billion in revenue. Fifty-five percent of that total derived from the commercial aviation industry.

As a company, Heico is an old hand at producing and supplying its wares; it likes to grow through complementary acquisitions too. It isn't shy to point out that its revenues have marched determinedly higher from $26 million in 1990 to that $3.8 billion. It added that headline net income headed upwards from $2 million in the former year to $478 million in the 12 months reaching back from fiscal third quarter.

In fact, it has only rarely booked a quarterly net loss. Speaking of the bottom line, Heico recently posted its all-time high quarterly net sales and net income figures (of more than $992 million and over $136 million, respectively) in said quarter. It's little wonder that this unfamous stock has enjoyed quite the bounce this year with savvy investors buying into it eagerly.

Although we don't yet know the exact reasoning for Buffett and Berkshire to plow into Heico, we can assume that these most fundamentals-focused of all investors were drawn to that sustained good performance.

The celebrated financier and his team are also well aware that we're in a world in which travel has been hotly popular, supporting strong demand from the commercial airline segment. Meanwhile, wars and rising tensions in global hot spots boost the business of the defense sector.

It doesn't hurt that Heico is also a consistent and reliable dividend payer, having paid semi-annual distributions 92 consecutive times since 1979. The catch is that the company's dividend yield is rather low, at less than 0.1%.

Opportune timing

Berkshire first loaded up on Heico in the second calendar quarter of this year, amassing a slightly over 1.04 million share stake in the company valued at just over $185 million at the end of that period. It topped this off with a small buy of 5,445 shares the following quarter, at the conclusion of which the full stake in the rising-star stock was worth nearly $214 million.

It's notable that while the third-quarter purchase was quite small, it was one of only three equity buys Berkshire made during the three-month stretch. Buffett and his crew were far more busy selling stock than purchasing it, with "only" $1.5 billion in buys against $34.6 billion in divestments. So the fact that it considered adding to that Heico stake at all strongly indicates a high regard for the company.

I think that's entirely justified. Heico has demonstrated clearly that it is a very competent, capable business that serves its various client bases well. It's also in a sweet spot where not one, but two of those bases (airlines and defense companies) are currently experiencing timely upswings. The dividend yield could be higher for sure, but that's hardly a dealbreaker. Like Berkshire, I believe Heico stock is a buy these days.