In the Oakmark Select Fund’s Q1 2024 commentary, Deere & Company (DE, Financial) was highlighted as a new addition to the portfolio. The fund managers, including William C. Nygren, emphasized Deere's strong market position as a leading manufacturer of agricultural equipment, particularly in North America and Brazil. Despite recent stock price declines driven by concerns over a potential downturn in the agriculture business cycle, Deere is seen as well-positioned to capitalize on long-term trends of increasing global food demand.
"Deere & Company is a leading manufacturer of agricultural equipment with dominant market share in North America and Brazil. Despite its brand strength, technological capabilities and distribution advantages, the company's stock price has recently fallen due to fears about a downturn in the agriculture business cycle. Longer term, world population and food demand are expected to increase annually yet land and labor devoted to agriculture are expected to decline. Deere seems well-positioned to benefit from this dynamic as farms will have to become more productive. We were pleased to purchase shares in Deere at a low double-digit multiple of our estimate of normal earnings power." — William C. Nygren, Oakmark Select Fund, Q1 2024 Fund Letter
Read full letter at gurufocus Bill Nygren's Oakmark Select Fund 1st-Quarter Commentary 2024 Q1 page.
