With the exception of Warren Buffet, Larry Ellison, Jeff Bezos, Elon Musk, and Bernard Arnault, Bill Gates is the sixth richest person in the world. His estimated net worth of ~$ 106 billion is an enormous sum of money. Not unexpectedly, the Bill 3 billion, according to a recent 13F filing.
The vast majority of us can only dream of having that kind of wealth. Still, there is one commonality between the average investor and the world’s richest individual.
All of us are searching for quality stocks to purchase and hold onto over time. For this reason, it is helpful to examine the Bill’s stock holdings.
By clicking the following link, you can download our comprehensive list of all 24 Gates Foundation stocks, along with crucial statistics like price-to-earnings ratios and dividend yields:
Note: 13F filing performance is different than fund performance. See how we calculate 13F filing performance here.
The Bill Additionally, a large number of the stocks increase their dividend payments to shareholders over time.
With the table of contents below, you can jump to the analysis for each of the top 24 stocks held by the Gates Foundation. The stocks are arranged from largest to smallest positions in the portfolio.
Microsoft Corporation was established in 1975 and is based in Redmond, Washington. It develops, produces, and markets hardware and software to consumers and businesses. Microsoft has a $3 market capitalization, making it a mega-cap stock. 1 trillion.
It provides cloud services, video games and gaming hardware, operating systems, business software, and software development tools.
Leading provider of video game content, Activision Blizzard, was purchased by Microsoft on October 13, 2023, for $68. 7 billion.
Microsoft released its fiscal year 2024 second quarter financial results on January 30, 24 (the company’s fiscal year ends on June 30). %20The%20business%20grew%20its%20revenue%20by%2018%%20compared%20to%20last%20year%E2%80%99s%20quarter.%20
Productivity and the Intelligent Cloud drove growth. Sales of Azure, Microsoft’s high-growth cloud platform, grew 30%.
As a result, earnings-per-share grew 26%, from $2. 33 to $2. 93, and exceeded the analysts’ consensus by $0. 16. In 20 out of the previous 22 quarters, Microsoft has outperformed the analysts’ consensus.
To view a preview of page 1 of our three-page Sure Analysis report on Microsoft, click this link:
It makes sense that the third-largest individual holding in the Gates Foundation’s investment portfolio is Berkshire Hathaway stock. It’s safe to say the money is in good hands. Under Warren Buffett’s leadership, Berkshire transformed from a financially troubled textile manufacturer to one of the biggest conglomerates globally.
Today, Berkshire is a global giant. It is involved in almost all major industries, including manufacturing, retail, energy, railroads, insurance, and finance, and it owns and runs dozens of businesses. It has a market capitalization of almost $790 billion.
The organization can be divided into five categories: joint control companies like Kraft Heinz (KHC) and Pilot Flying J; marketable publicly-traded securities including substantial stakes in companies like American Express (AXP), Apple (AAPL), Bank of America (BAC), Coca-Cola (KO), and Wells Fargo (WFC); wholly-owned non-insurance subsidiaries like Dairy Queen, BNSF Railway, Duracell, Fruit of the Loom, NetJets, Precision Cast Parts, and See’s Candies; and lastly the company’s enormous cash position.
Buffett usually assesses Berkshire’s performance in terms of book value in the company’s annual letters to shareholders. An accounting metric called book value calculates an organization’s assets less its liabilities. The resulting difference is a company’s book value. This serves as a stand-in for a company’s intrinsic value, which Buffett considers to be the most crucial financial indicator.
Berkshire doesn’t pay shareholders a dividend. Buffett and his business partner Charlie Munger have consistently argued that they can generate wealth faster than what shareholders would receive from a dividend.
Although those seeking dividend income may find Berkshire stock unappealing, few businesses have nearly as impressive of a track record as Berkshire.
Bill Gates, the co-founder of Microsoft and philanthropist, is known for his innovative thinking and investment prowess. His investment portfolio, managed by the Bill & Melinda Gates Foundation, holds a diverse range of stocks across various industries.
This article delves into the Gates Foundation’s portfolio analyzing the top holdings and exploring the reasons behind their investment choices. We’ll also discuss the potential impact of these investments on the future of the foundation and its philanthropic endeavors.
Top Holdings in the Gates Foundation Portfolio
The Bill & Melinda Gates Foundation’s portfolio is heavily concentrated in a few key holdings As of March 14th, 2024, the top five holdings are:
- Microsoft (MSFT): 33.98% of the portfolio
- Berkshire Hathaway (BRK.B): 16.80% of the portfolio
- Canadian National Railway (CNI): 16.29% of the portfolio
- Waste Management (WM): 14.92% of the portfolio
- Caterpillar (CAT): 5.10% of the portfolio
These holdings represent a significant portion of the foundation’s assets, highlighting the importance of these companies in its investment strategy.
Reasons for Investment Choices
The Gates Foundation’s investment choices are guided by several key factors:
- Long-term growth potential: The foundation seeks investments in companies with strong track records and promising future prospects.
- Sustainable competitive advantages: The foundation prefers companies with durable competitive advantages, such as strong brands, dominant market positions, or unique technologies.
- Alignment with philanthropic goals: The foundation considers the alignment of its investments with its philanthropic goals, such as supporting environmental sustainability, improving global health, and reducing poverty.
Potential Impact of Investments
The Gates Foundation’s investments have the potential to generate significant returns, which can be used to further its philanthropic mission. Additionally, the foundation’s investments can contribute to the growth and success of the companies it invests in, creating positive economic and social impacts.
The Bill & Melinda Gates Foundation’s portfolio reflects a strategic approach to investing, balancing long-term growth potential with alignment to its philanthropic goals. By investing in companies with strong fundamentals and sustainable competitive advantages, the foundation seeks to generate returns that can be used to make a positive impact on the world.
Frequently Asked Questions
What is the total value of the Gates Foundation’s portfolio?
The total value of the Gates Foundation’s portfolio is not publicly disclosed. However, based on the holdings listed in its 13F filings, it is estimated to be in the tens of billions of dollars.
How does the Gates Foundation manage its investments?
The Gates Foundation’s investments are managed by a team of professional investment managers. The foundation also has an investment committee that oversees the overall investment strategy.
What are some of the other companies in the Gates Foundation’s portfolio?
In addition to the top five holdings listed above, the Gates Foundation’s portfolio includes investments in a variety of other companies, including:
- Deere & Company (DE)
- Ecolab (ECL)
- Coca-Cola FEMSA (KOF)
- Walmart (WMT)
- FedEx (FDX)
- Waste Connections (WCN)
- Schrodinger Inc. (SDGR)
- Crown Castle International (CCI)
- Coupang Inc. (CPNG)
- Madison Square Garden Sports Corp. (MSGS)
- United Parcel Service (UPS)
- Anheuser-Busch InBev SA/NV (BUD)
How can I invest like Bill Gates?
While it is not possible to replicate the Gates Foundation’s investment portfolio exactly, individual investors can learn from its approach by focusing on long-term growth potential, sustainable competitive advantages, and alignment with their own values.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Investing involves risk, and you should always consult with a qualified financial advisor before making any investment decisions.
#16—United Parcel Service (UPS)
Dividend Yield: 4.2%
Percentage of Bill Gates’ Portfolio: 0.2%
The logistics and package delivery business United Parcel Service provides a range of services, such as distribution, ground and maritime freight, insurance, and financing. Its operations are split into three segments: U. S. Domestic Package, International Package, and Supply Chain & Freight.
The company’s competitive advantages have played a major role in its sustained growth despite possible global economic headwinds. UPS is the largest logistics/package delivery company in the U. S.
It functions as a near duopoly because FedEx is currently its only significant rival. Although Amazon (AMZN) is growing its own logistics company, UPS is still a client of theirs.
UPS released its fourth quarter 2023 results for the period ending December 31, 2023, on January 30, 2024. For the quarter, the company generated revenue of $24. 9 billion, a 7. 8% year-over-year decrease.
The U. S. Domestic segment (making up 68% of sales) saw a 7. 3% revenue decrease, with International also posting a 6. 9% revenue decrease and Supply Chain Solutions seeing an 11. 4% decrease.
Adjusted net income equaled $2.47 per share, down 32% year-over-year.
UPS now expects revenue of about $92. 0 billion to $94. 5 billion and a combined adjusted operating margin of 10 percent 0% to 10. 6%.
Additionally, leadership expects capex of $4. 5 billion, as well as $5. 4 billion in dividend payments.
Download our most recent Sure Analysis report on UPS by clicking this link (a sample of page 1 of 3 is displayed below):
#6—Deere & Company (DE)
Dividend Yield: 1.6%
Percentage of Bill Gates’ Portfolio: 3.0%
Deere The business also manufactures machinery for forestry and construction. Deere was founded in 1837.
Deere released its financial results for the first quarter of fiscal 2024 in mid-February (2/15/24). Sales decreased by 4% over the previous year’s E2%80%99s quarter, partially offset by a decline in the production’s sales. The increase in demand for construction equipment was a contributing factor.
Earnings-per-share dipped 5%, from $6. 55 to $6. 23, but exceeded the analysts’ consensus by $1. 02. According to management, there is still a high demand for goods that enable farmers to produce more with less effort. However, compared to the prior quarters, the last two have shown a significant slowdown.
With volume sales expected to return to mid-cycle levels as a result of this slowdown, Deere reduced its already meager guidance for this fiscal year, estimating earnings of $7 50-$7. 75 billion (vs. previous guidance of $7. 75-$8. 25 billion).
Download our most recent Sure Analysis report on Deere by clicking this link (a sample of page 1 of 3 is displayed below):
Dividend Yield: 1.0%
Percentage of Bill Gates’ Portfolio: 2.5%
Ecolab was created in 1923 when its founder, Merritt J. Osborn, invented a new cleaning product called “Absorbit”. With the help of this product, carpets could be cleaned without requiring businesses to close for carpet cleaning. Osborn founded a business centered on the Economics Laboratory, or Ecolab, product.
Ecolab released its financial results for the fourth quarter of its fiscal 2023 in mid-February (2/13/24) Organic sales increased by 6% over the previous year’s E2%80%99s quarter, primarily as a result of double-digit growth in the institutional segment and the elimination of pests.
Owing to significant price increases and marginally lower product costs, adjusted earnings per share increased by 2022%, from $1. 27 to $1. 55, and exceeded the analysts’ consensus by $0. 01.
Moreover, management gave guidance for earnings per share of $6 due to strong pricing and positive sales momentum. 10-$6. 50 in 2024, implying 17%-25% growth.
Additionally, it stated that it was confident in raising the operating margin in the next years from 2016 to 2020. With the robust sales momentum, we anticipate $6 in earnings per share. 40.
Download our most recent Sure Analysis report on Ecolab by clicking this link (a sample of page 1 of 3 is displayed below):