Billionaire Bill Gates: An Inside Look at His Investment Strategy
You’ve likely heard of Bill Gates, the co-founder of Microsoft and well-known philanthropist. After leading Microsoft for over 25 years, Gates shifted his focus to charitable work. With a net worth of $105.8 billion, he ranks as the 14th richest person globally. Yet, Gates plans to give away most of his wealth to help others, focusing on creating a world where every person can live a healthy, productive life through the Bill & Melinda Gates Foundation Trust.
Let’s delve into Gates’ investment portfolio and the four core stocks that make up 81% of his $48 billion holdings:
- Microsoft: 30%
The largest holding in Gates’ portfolio is Microsoft, a company he founded and transformed into a tech giant. With a stake valued at $14.3 billion, the Foundation owns around 35 million shares. Microsoft’s expansion into cloud services and AI products positions it for sustained growth and innovation. Gates’ continued belief in Microsoft’s potential reflects his long-term commitment to the company’s success. - Berkshire Hathaway: 23%
Warren Buffett’s Berkshire Hathaway is another significant holding, embodying Gates’ value of diversification and reliable dividends. With a stake exceeding $11 billion, Berkshire Hathaway offers a broad range of businesses and assets, backed by Buffett’s unmatched track record in investing. The Trust benefits from the stability and steady returns generated by this investment. -
Waste Management: 15%
Gates’ affinity for companies with pricing power and recurring revenue is evident in the Trust’s sizable investment in Waste Management. With shares worth $7.2 billion, Waste Management’s focus on waste collection, recycling, and sustainable energy aligns with Gates’ vision for sustainable solutions. Its consistent dividend payments and revenue growth make it an attractive pick for income investors. -
Canadian National Railway: 13%
Gates’ preference for railroads is reflected in the Trust’s substantial stake in Canadian National Railway, valued at $6.2 billion. Canadian National’s efficient transportation network and environmental benefits make it an appealing long-term investment. With a history of dividend increases and strong barriers to entry, Canadian National Railway offers stability and growth potential.
Gates’ investment strategy mirrors his philanthropic mission, focusing on companies that align with his values and long-term vision for positive change. As investors, we can learn from Gates’ approach to investing in companies that not only generate returns but also contribute to a sustainable and prosperous future for all.
