An in-depth review of Bill Gates' investment portfolio to date
Studying the investment habits of influential figures can provide a wealth of knowledge and information about their worldview and beliefs. In this article, we'll delve into the portfolio of a tech icon that needs no introduction: Bill Gates. As a co-founder of Microsoft, Gates has had a huge impact on the technology industry, and his investment choices reflect his business acumen and his vision for the future. From Big Tech to Logistics, Infrastructure, Healthcare, and more, I will attempt to uncover the story of each investment, seeking to uncover its strategic thought process.
Investment portfolios are often a window into a person's worldview, allowing them to understand their beliefs, forecasts, and views on various industries.
Current Portfolio of Bill Gates, Q2 2023.
Bill & Melinda Gates Foundation Trust Portfolio Period
Portfolio Date: As of March 31, 2023, 13f.
Number of shares: 22
Portfolio value: $36,462,620,000
- MSFT - Microsoft Corp. 31.05%
- CNI - Canadian Natl Railway Co. 17.74%
- BRK.B – Berkshire Hathaway CL B 16.67%
- WM - Waste Management Inc. 15.77%
- CAT - Caterpillar Inc. 4.62%
- D.E. Deere & Co. 4.44%
- ECL – Ecolab Inc. 2.37%
- KOF – Coca-Cola FEMSA SA CV 1.37%
- WMT - Walmart Inc. 1.22%
- FDX – FedEx Corp. 0.96%
- WCN - Waste Connections 0.82%
- CCI - Crown Castle International Corp. 0.52%
- SDGR – SCHRODINGER Inc. 0.50%
- CPNG-Coupang Inc. 0.41%
- UPS - United Parcel Service 0.39%
- MSGS - Madison Square Garden Sports Corp. 0.32%
- KHC-Kraft Heinz Co. 0.28%
- DHR - Danaher Corp. 0.26%
- HRL – Hormel Foods Corp. 0.24%
- ONON – On Holding AG 0.04%
- CVNA - Carvana Co. 0.01%
- VRM – Vroom Inc. 0.01%
The portfolio of the Bill & Melinda Gates Foundation is a diverse mix of technology, infrastructure, waste management, food and consumer products, healthcare and sports. But what underlies these investment decisions? Let's dive into each of his holdings to find out the reasons for his investment strategy.
MSFT - Microsoft Corp. - 31.05%
As a co-founder of Microsoft, it's no surprise that Gates' portfolio contains significant investments in the tech giant. Gates' deep understanding of Microsoft's business, direction, and technology industry has enabled him to maintain a significant stake in the company. In addition, his continued belief in the importance of technology as a transformative force in society supports his ongoing investment in Microsoft.
CNI - Canadian National Railway Company - 17.74%
Gates' investment in Canadian National Railway reflects his belief in the importance of infrastructure for economic development. Railways are critical to transporting goods, connecting markets and supporting economic growth. Bill Gates believes that as climate change continues to affect global supply chains, railroads offer a more energy-efficient means of transportation than other freight services.
BRK.B - Berkshire Hathaway CL B - 16.67%
Since Gates is a longtime friend of Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, Gates' significant stake in the company is evidence of his belief in Buffett's value investing strategy. These investments also reflect Gates' broader belief in the strength and stability of diverse, well-managed companies. In addition, most, if not all, of these shares were donated to the Gates Foundation and held as investments.
WM - Waste Management Inc. - 15.77%
Waste Management Inc. represents the intersection of Gates' interests in infrastructure, sustainability, and technological innovation. As the largest waste management company in North America, it is at the forefront of developing innovative and sustainable waste management solutions. This is in line with Gates' longstanding commitment to sustainable development and his belief in the role of innovative technologies in solving environmental problems.
CAT - Caterpillar Inc. – 4.62%
D.E. Deere & Co. 4.44%
Investment by Caterpillar and Deere & Co. stemmed from Gates' understanding of the vital role that construction, agriculture and infrastructure play in the global economy. Both companies are leaders in their respective fields and are actively involved in technological innovation, in line with Gates' belief in the transformative power of technology.
ECL – Ecolab Inc. – 2.37%
Ecolab's water, hygiene and infection prevention business is aligned with Gates' public health and sustainability interests. These investments reflect Gates' commitment to companies that address the world's most pressing health and environmental challenges.
KOF – Coca-Cola FEMSA SA CV – 1.37%
WMT - Walmart Inc. – 1.22%
Investing in Coca-Cola FEMSA and Walmart assumes a belief in the unchanging value of consumer goods. Despite the economic ups and downs, people continue to buy essential goods. The broad reach and continued popularity of these companies likely contributed to their presence in Gates' portfolio.
FDX - FedEx Corporation - 0.96%
WCN - Waste Compounds - 0.82%
CCI - Crown Castle International Corp. – 0.52%
UPS - United Parcel Service - 0.39%
FedEx, Waste Connections, Crown Castle International and UPS are all investments related to infrastructure and logistics. They highlight Gates' understanding of the importance of infrastructure in a well-functioning economy, especially in an era of rapid e-commerce growth.
SDGR – SCHRODINGER Inc. – 0.50%
CPNG-Coupang Inc. — 0.41%
Schrödinger, a software company revolutionizing drug discovery through computational chemistry, and Coupang, a South Korean e-commerce giant, are investments that highlight Gates' continued commitment to technology and innovation.
MSGS - Madison Square Garden Sports Corp. - 0.32%
This investment likely reflects Gates' interest in the entertainment industry, recognizing the vast and lucrative market that sports and entertainment represent.
KHC-Kraft Heinz Co. – 0.28%
DHR - Danaher Corp. – 0.26%
HRL - Hormel Foods Corp. — 0.24%
Continued demand for food and health products could spur investment in Kraft Heinz, Danaher and Hormel Foods. Danaher, an innovator in the field of science and technology, shares Gates' belief in the role of technology in improving the quality of life.
ONON - On Holding AG - 0.04%
CVNA - Carvana Co. – 0.01%
VRM - Vroom Inc. - 0.01%
Information about Holding AG, a footwear and sportswear brand, Carvana, an online used car retailer, and Vroom, an e-commerce platform for buying and selling used cars, shows Gates' interest in consumer-oriented and technology-focused companies transforming traditional industries. .
Key Findings
Gates' portfolio demonstrates an unwavering conviction in the dynamism of technology, embodied in his investments in companies such as Microsoft, Schrödinger and Coupang.
His stakes in Canadian National Railway, Caterpillar, Deere & Co. and FedEx focus on core infrastructure and logistics services.
Gates places great value on companies that prioritize sustainability and health, as evidenced by his investments in Waste Management Inc., Ecolab Inc. and Danaher Corp.
Gates is strategically targeting strong demand for essential consumer and health products with investments in Coca-Cola FEMSA, Walmart, Kraft Heinz Co. and Hormel Foods.
His portfolio shows interest in companies that are changing traditional sectors with technology and innovative business models, such as Carvana and On Holding AG.
Conclusion
Examining Bill Gates' investment portfolio provides a compelling picture of his beliefs, giving us a comprehensive view of his vision for the future. Its investment decisions underline a firm belief in the transformative power of technology, the strategic importance of infrastructure and logistics services, a commitment to sustainability and health, and a recognition of the continued demand for essential consumer goods.
His investments point to an insightful look at disruptive companies that are using technology to revolutionize traditional industries. Essentially, his portfolio serves as a roadmap for investors interested in understanding the investment strategies of one of the world's leading technology visionaries.
His investments provide valuable insight into his vision for the future of the world and where he believes the most important events will take place.