In the Oakmark Fund's 1st-Quarter Commentary 2024, Deere & Company (DE, Financial) was highlighted as a new holding. The fund, managed by William C. Nygren and his team, identified Deere as a leading manufacturer of agricultural equipment with a strong market presence in North America and Brazil. Despite its robust brand and technological capabilities, Deere's stock price has recently fallen due to concerns about a potential downturn in the agriculture business cycle. The fund sees long-term opportunities for Deere as global food demand increases while agricultural land and labor decline, positioning the company to benefit from the need for increased farm productivity.
"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 Fund, Q1 2024 Fund Letter
Read full letter at gurufocus Bill Nygren's Oakmark Fund 1st-Quarter Commentary 2024 Q1 page.
