DEDeere & Company

Deere makes agricultural machinery, and its revenue follows farm incomes rather than the number of mouths to feed.

A combine or tractor is a decade-long purchase, decided on the basis of last year's harvest and current grain prices. High corn and soy prices give the farmer money and he replaces equipment; when prices fall he defers and repairs. Hence pronounced cyclicality unrelated to the general economy.

The second segment is construction and forestry equipment, tied to infrastructure programmes and housing. The third and growing one is precision agriculture: satellite positioning, autosteer, variable-rate application, sold by subscription. That part turns an equipment sale into recurring revenue.

The dealer network and a finance arm lending to buyers are separate assets: the first is hard to replicate, the second supports sales while adding credit risk in a downturn. Deere pays a dividend and buys back stock actively.