Billionaire Cathie Wood is aggressively investing in Bill Gates' preferred stock Pick
Loose Cannon Assisstant:
Cathie Wood Takes an Unusual Gamble - Investing in Bill Gates' Pet Project
Give it to Cathie Wood, she don't shy away from the unconventional. Known for her daring bets on tech disruptors, the ARK Invest boss recently took an unexpected dive into the world of agriculture. The surprise? It's a company that doesn't normally float her boat - Deere & Co, one of Bill Gates' favorite stocks. But why's this old-school heavy machinery manufacturer on her radar now?
Cathie Goes Agricultural - What's the Big Deal?
If you're wondering how technology-focused Wood ended up in overalls, consider this: At the Consumer Electronics Show in January 2025, Deere & Co surprised everyone with a slew of autonomous machines and tech solutions for agriculture, construction, and landscaping. And with the growing specter of worldwide hunger, these innovative tools are likely the lifelines these industries need.
But is the stock a steal now? Not really. With a P/E ratio of 24 and financial issues from the previous fiscal year, it's starting to look more like a money pit. Analysts predict a 25% drop in revenue and EPS to $19.32 this year, but a rebound is possible in 2023. And while it's not the cheapest gal on the block, Deere still pays a dividend of 1.41%.
Why Cathie Can't Get Enough of Bill's Stock
Gates has been bullish on Deere for a while, with the Bill & Melinda Gates Foundation Trust holding onto the stock since 2021's third quarter. Wood may be bitten by the same bug, drawn into Deere's orbit by the growth potential presented by its new tech lineup.
Side Track: Wondering what the wealthy and the wise are up to? Check out these thought-provoking reads: "Burnt Fingers": Why Warren Buffett might snub German stocks right now" or "Dice Roll": Could this ETF offer over 45,000% returns? Bill and Cathie are super bullish.
And now, let's dive deeper into why Deere's new tech push is turning heads:
Innovations on the Horizon
Autonomous and Semi-Autonomous Equipment
Get ready for smarter, safer farms and construction sites, thanks to Deere's new autonomy tech. Watch out for autonomous tractors and smart machinery making precision agriculture and construction more efficient than ever. To boost this breakthrough, Deere recently introduced the Vision Processing Unit (VPU), a technology that processes images in real-time for superior machine autonomy.
Smart Technologies and Safety Features
Deere is also upping the ante with advanced features like SmartDetect Digital and SmartWeigh. SmartDetect provides real-time alerts for enhanced safety and site planning, while SmartWeigh offers precise payload measurements for streamlined operations.
Sustainable Powertrain Innovations
Don't forget about eco-friendly upgrades. Deere's e-drive technology, featured in its 744 X-Tier Wheel Loader, combines an engine and electric variable transmission for improved fuel economy while maintaining strong performance.
Tomorrow's Tech, Yesterday's Profits?
While Deere's current profit outlook might be lackluster, its long-term potential shines bright. The company's focus on modernizing its tech infrastructure, promoting flexible and sustainable solutions, and leveraging enterprise data may attract discerning investors like Wood and Gates.
In conclusion, Deere's bold strides in autonomous technology and sustainability offer a promising path forward for investors seeking long-term growth, even if the stock might not be an absolute bargain right now. If you're tempted to join Cathie and Bill Gates in their agricultural adventure, remember to consider the risks and potential rewards before making a move. After all, unconventional investments can sometimes yield the biggest returns!
- Cathie Wood's recent investment in Deere & Co, a companyknown for its technology innovations in agriculture, shows her continuing interest in technology-focused businesses.
- The autonomous machines and tech solutions Deere & Co unveiled at the Consumer Electronics Show in January 2025, along with their focus on sustainable powertrain innovations, represent a potential draw for tech-savvy investors like Cathie Wood and Bill Gates.
