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Peter H's avatar

Thanks so much for this interesting take. I am really aligned with your thoughts on long term prospects and the potential for each of these companies. As I have only recently been investing, I have a much larger holding in AGCO compared to Deere as I feel the valuation is currently better and the long term opportunity greater. However, Deere is an outstanding company and so I do have smaller holdings in that. I also see little to be gained by holding CNH or any other agtech company for that matter given what I get from AGCO and DE.

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ShowMeTheValue's avatar

I think Deere was a very solid investment when they briefly traded below $350 last month. I've been quite happy to buy below $370 (although they are obviously already quite a sizeable holding for me, so I don't want to buy too much more at the moment).

As I mention in the article, I'm also bullish on AGCO, but I do think AGCO have just taken a reasonably large risk with their PTx venture. I think they look good at the moment, although I expect the market to continue to soften, and I probably won't increase my exposure too much more until I see how the JV is shaping up.

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