DE - The Deere Investment Thesis
2024-05-30 15:17:09 ET
Summary
- Deere & Company is currently undergoing a transformation from a good to a great business.
- The company has a long history and focuses on the agricultural and construction industries.
- I share the 6 prongs to my investment thesis.
Introduction
Many know Deere & Company (DE) as an American cyclical, low-growth stalwart, but they miss the transformation the company is currently undergoing that will likely transform it into a better business and an appealing investment going forward (not to say that the company has also been a great investment in the past). This article aims to briefly review the company’s history, what it does, and outline my investment thesis. Of course, how one interprets the investment thesis greatly depends on one's investment horizon. This article is not intended for shorter-term oriented investors or those chasing a “ quick buck .”
Without further ado, let’s get started with the company’s history.
Deere’s history
Deere has a very long corporate history. Founded in 1837 by blacksmith John Deere in Molines, Illinois, the company decided to set foot in the agricultural industry . Mechanization was not a thing back then, so it focused on innovation in farmers' existing tools. These tools were typically operated by horses. ...
The Deere Investment Thesis