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

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

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!