Mega-Billionaire Bill Gates Is Loading Up on Deere & Company (DE)

Page 1 of 2

Per a 13D filing this week, Cascade Investment upped its stake in Deere & Company (NYSE:DE) by three million shares, good for a 12% expansion. Cascade’s last major purchase of Deere came in August of 2011; at the time Gates’ firm owned 24.5 million shares. Cascade’s ownership of Deere has now moved from 5.8% of Deere’s outstanding shares to 7%.

Cascade Investments is the investment company responsible for managing the majority of Bill Gates’s wealth, which is controlled by Gates and managed by Michael Larson. Both billionaires Warren Buffett and Ken Fisher are also top fund owners of Deere, with Buffett being the top owner at the end of 3Q (check out other Warren Buffett-Ken Fisher picks).

An Interesting Microsoft Corporation (MSFT), Google Inc (GOOG) Showdown

Deere is the farm and heavy equipment manufacturer that is expected to grow revenues by 5% in 2013 after a 13% gain in 2012. The equipment company expects high crop prices and strong farming income to drive it sales growth. There is still much uncertainty in both the construction and farming sectors, based on a poor economic backdrop and roller coaster-like weather conditions, but third quarter financials showed equipment sales growth of 14% year over year and EPS of $1.75 (up 13 cents yoy). Deere saw a vast downturn in its business beginning in 2008, but a rebound in core markets has pushed the stock up by 60% since the its bottom.

One of the best peers for Deere is CNH Global NV (NYSE:CNH), another large company that manufactures both farm and construction equipment. CNH presents interesting volatility – with a 2.7 beta – that might concern some investors, but it in part, has helped push the stock price up 35% year to date. Fiat made a recent bid to combine with CNH while buying the 12% of shares it does not own; this move could slow aggregate growth and temper investors’ expectations. Fiat’s trucking business has seen continued weakness – coupled with CNH’s lackluster farm business – that will mean more trouble for the duo. Fiat recently upped its offer to include a $10 dividend to CNH shareholders in addition to its 3.8-to-1 share proposal plan.

Caterpillar Inc. (NYSE:CAT) is the world’s leading construction equipment manufacturer and is another key competitor of Deere. Revenues are expected to be up 12% this year, followed by a 3% gain in 2013, after a 41% advance was posted in 2011. A better global economy led to robust growth in CAT’s machinery and power system businesses over the past couple of years. Although global economic uncertainties have recently started to limit CAT’s sales, there should be ongoing growth due to accelerated equipment replacement, due to above-average levels of depreciation in its North American segment. On top of that, sales growth is expected to rise from product demand related to the development of emerging markets. Bill Gates loves CAT, taking a new position in 3Q of over 10 million shares via his trust (see Bill Gates’s newest picks).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!