Bill Gates, co-founder of Microsoft (NASDAQ: MSFT) and one of the world’s wealthiest individuals, has focused much of his attention on philanthropy through the Bill & Melinda Gates Foundation. Despite this, the Foundation Trust has built a concentrated investment portfolio, with 81% of its $48 billion in assets held in just four key stocks. Here’s a closer look at these holdings.
1. Microsoft (30%)
Unsurprisingly, the largest chunk of the Gates Foundation’s portfolio is Microsoft, the company Gates built. Microsoft, a tech powerhouse, has expanded beyond software into cloud computing and artificial intelligence. With growth fueled by AI services like its Azure Cloud, Microsoft is positioning itself to capture a significant share of the emerging AI market, projected to generate $143 billion in revenue by 2027. Additionally, its dividend growth since 2004 and a stock price surge of 202% over the past five years make it a staple of Gates’ portfolio.
2. Berkshire Hathaway (23%)
Gates’ strong connection to fellow billionaire Warren Buffett is reflected in the Foundation’s large holding of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock. With over $11 billion invested in Berkshire, the Trust benefits from Buffett’s diversified portfolio and steady dividend income. The company’s $277 billion in cash and its vast collection of subsidiaries make it a reliable investment, and Buffett’s track record continues to be a key asset for the Foundation.
3. Waste Management (15%)
Gates has also placed a significant bet on Waste Management (NYSE: WM), a company benefiting from society’s need to handle waste. With over 35 million shares valued at $7.2 billion, Waste Management’s recycling operations and landfill gas-to-energy projects align with Gates’ interest in sustainable and environmentally friendly businesses. The company’s 21-year history of dividend growth and recurring revenue model make it an attractive long-term investment.
4. Canadian National Railway (13%)
Rounding out the portfolio is Canadian National Railway (NYSE: CNI), with nearly 55 million shares valued at $6.2 billion. Gates’ affinity for railroads mirrors Buffett’s belief in their efficiency and environmental benefits. Canadian National connects key trade routes across North America, offering both a strong economic moat and significant environmental advantages. Its consistent dividend increases since 1995 and low payout ratio provide ample room for future growth.
A Highly Concentrated Strategy
While Gates is focused on philanthropy, the Foundation Trust’s highly concentrated portfolio reflects a deep conviction in a few standout companies. These stocks are diversified across technology, industrials, and essential services, providing stability and growth potential as Gates continues his mission to use his wealth for the greater good.
