Berkshire Hathaway, Buffet’s Company, has boosted its stake in John Deere by about 5.6m shares to about 22.88m shares, or a 7.2% stake. Berkshire Hathaway is now the company’s largest institutional shareholder with holdings worth nearly $2bn. Deere’s stock fell 14% last year, however the stock is up 7% so far this year. This makes it one of the top performing stocks since the start of the year and easily beats Apple and Face book.

Deere will report its first quarter financials tomorrow where revenues and earnings are expected to be back significantly on the same period last year.

Deere's agriculture and turf segment, which is slightly more than three-quarters of the company's overall revenues, is forecast to show sales down as much as 20% in the quarter from the previous year.

ADVERTISEMENT

Deere has shed nearly 10,000 jobs mainly in the US over the last number of years in a bid to reduce costs during the global agricultural down turn.

It is interesting that Buffet is investing in the stock and must see it as a pretty safe dividend and perhaps feels that the bottom is finally in sight for agriculture.