Saturday, December 28, 2013

Like big tractors? Like Deere

Deere is a company that might be worth studying a bit and even buying shares. By all measure they seem undervalued or fair valued. They pay a good dividend and consistently and the shares have stayed at around $90 since 2011 despite the overall market showing much better returns. This is in a world where Monsanto has risen consistently year on year and while not exactly aligned they both play in similar markets. Surely if the value of fertilizer is rising then the vehicles used to spread it should too?

I was reading recently a series of articles by a man who has taken the value concepts and put them to work on companies today and Deere was one of the companies closest to Grahams ideas.

Of course in a falling market everyone will fall but this seems  a good place to invest a portion, you may not get stellar growth but you will get those satisfying dividends of 2.5% and people seem unlikely to stop buying tractors and Deere tops the market. When I drive around Scotland all I see is Deere.

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