OK, I understand this now. I was one of those people who toned down my position when I was told in the press that he had exited. It made no sense to me that he would do that, but that is how it was reported. Oh well, I still own a good position so I'm happy to see him buying more.
CNBC reporting that Berkshire Hathaway's latest quarterly disclosure shows a new position in DE. Berkshire had been in earlier and sold out. Now they're back in. BRK completely got out of XOM and COP (goodbye oil) and increased their position in IBM(!) With good earnings and guidance Friday, it could be a beautiful week for DE. Welcome back, buddy.
I agree. It's not encouraging that the Oracle has voted thumbs down on Deere. By my calculations he broke even at best. DE is a good value stock that is counter-cycle the Ag cycle right now. I thought that would be the situation Warren likes, but then again his time horizon may be a little shorter than it used to be.
Gates owns Deere through Cascade Investments, LLC
I was thinking the same thing (Buffet buyout). The fact that DE's largest shareholder is Bill Gates (Buffet's buddy), I've always figured that Buffet would love to go out with one final big value buy - and in the case of DE, he could do it with his good pal Bill. He would be buying it near the bottom of the crop cycle. He is the Oracle.
I agree with you on the tractor in Omaha. Buffet has been saying that he's looking for another "Big Elephant" and DE (which he already owns some) is a perfect Elephant for Warren and his pal Bill Gates (#1 DE stockholder) to invest in. Remember too that Warren's son is an active farmer.
As far as I know, Buffet hasn't sold any. I am hoping that he will increase his stake. Buffet's close friend Bill Gates is currently DE's largest single shareholder so he must have advised Gates that this is a good company. If Berkshire buys more DE and management follows through with the $8B stock buyback authorized, shares of DE are going to become scarce. Never mind that it is a very well run company at the intersection of agriculture and technology.
Sentiment: Strong Buy
And back up again today! Either DE is in the market buying back shares aggressively (which would be good timing) or someone else is buying. Maybe Buffet is increasing his stake? DE is the perfect Buffet company for value oriented Buffet.
With the tumult in the Ukraine, food prices have been going up rapidly which is good for farmers and therefore DE. But the volume today seemed particularly heavy - someone buying as the stock was up nicely on this down day.
I am shocked that DE is going the same dividend for a 5th quarter. They are buying back an incremental $8B in stock and they don't have the confidence to raise the dividend? Just how tight is the cash at DE? And where are the buyback purchases? The stock is languishing and now is the perfect time to reduce stock outstanding yet volume is weak.
Thanks for the insight. I agree that this company looks solid. I heard the CEO speak on Bloomberg and he seemed sharp. Modern office arrangements is a great place to be in a continuing recovering economy. Nice dividend too.
Today SCS is up 10% on huge volume. I TOLD you someone was accumulating! Does anyone follow this board? Can we get some chat going on what is going on? Let's go people, we need to communicate on our way to riches!