In the Oakmark Global Fund's 2nd-Quarter Commentary 2024, Deere & Company (NYSE:DE, Financial) was highlighted as a new purchase. The company is recognized for its dominant market share and technological capabilities in the agricultural equipment sector, despite recent stock price pressures.
"Deere & Company is a leading manufacturer of agricultural equipment with dominant market share positions in North America and Brazil. Despite its brand strength, technological capabilities and distribution advantages, the company's stock price has recently come under pressure due to investor fears of a trough in the current agriculture business cycle. Longer term, however, world population and food demand are expected to increase annually with land and labor devoted to agriculture set to decline each year. As a technological leader, we believe Deere is well-positioned to benefit from this dynamic as farms will need to become more productive. We also like that the company's management team has a strong track record of growing the business organically through cycles, continuously improving returns on invested capital and returning capital to shareholders. We believe Deere is worth about the same P/E as high-quality industrials, so we were excited to buy it at roughly two-thirds that level." — Oakmark Global Fund, Q2 2024 Fund Letter
Read full letter at gurufocus David Herro's Oakmark Global Fund 2nd-Quarter Commentary 2024 Q2 page.
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