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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!