Bill Gates’ Investment Strategy: A Deep Dive into His Foundation’s Portfolio
Bill Gates, the co-founder of Microsoft (NASDAQ: MSFT), has transitioned from technology mogul to philanthropist, channeling much of his wealth into the Gates Foundation. Notably, the foundation’s investment strategy is heavily influenced by value investing, a philosophy largely advocated by Warren Buffett, a close friend and mentor. This blog post explores the foundation’s portfolio, which is significantly concentrated in three primary stocks, accounting for an impressive 59% of its total marketable equities.
The Major Holdings in Gates’ Portfolio
Gates’ investment philosophy is built on the principle that investing in a small number of high-quality businesses can yield substantial returns over time. Here are the three stocks that dominate the portfolio:
1. Berkshire Hathaway (NYSE: BRK.B) – 28.5% of Assets
Berkshire Hathaway, chaired by Warren Buffett, is a cornerstone of Gates’ investment strategy. Each year, Buffett donates a substantial number of shares to the foundation as part of his philanthropic efforts. Currently, the Gates Foundation holds approximately 21.8 million shares valued at around $11 billion. Berkshire’s diverse portfolio, which includes numerous well-managed companies, provides a solid foundation for long-term growth.
Despite recent fluctuations, its insurance segment demonstrated resilience, with underwriting earnings up 3% in 2025. The stock currently trades at about 1.55 times book value, reflecting its steady growth potential.
2. WM (NYSE: WM) – 17% of Assets
Formerly known as Waste Management, WM holds a significant place in the foundation’s portfolio. The firm operates over 260 landfills, granting it a competitive edge in the waste disposal industry, which is characterized by substantial regulatory barriers against new entrants.
WM’s operating margin reached 31.5% in 2025 due to price increases and improved automation, indicating its ability to capitalize on market dynamics effectively. Although there were concerns about its 2026 revenue growth forecast, the company’s established market position offers room for sustained profitability.
3. Canadian National Railway (NYSE: CNI) – 13.3% of Assets
Canadian National Railway is another key asset in the foundation’s portfolio. It has benefited from increasing consolidation within the rail industry and boasts a strategic geographical advantage with tracks stretching across Canada and into the U.S. This positioning allows for significant revenue generation, especially from grain transport, which saw an uptick despite external pressures such as tariffs.
As of now, the foundation holds approximately 51.8 million shares valued at about $5.1 billion. The management’s outlook for 2026 suggests flat revenue, yet operational improvements and a share buyback program promise to enhance shareholder returns.
What Investors Can Learn
While replicating the Gates Foundation’s portfolio dollar-for-dollar is unrealistic for most investors, the underlying lesson is clear: focusing on a few exceptional companies can yield greater benefits than spreading investments across numerous average ones. Long-term, patient investors can build wealth by acquiring shares in businesses with strong competitive advantages and reliable cash flows.
In conclusion, Bill Gates’ investment strategy is a testament to the effectiveness of value investing. By concentrating his portfolio in a select few high-quality stocks, Gates exemplifies a disciplined approach that prioritizes long-term growth and financial sustainability. For continuous updates and insights, visit Stock Market News. Additionally, for effective stock portfolio management and retirement investments, consider exploring Stock Portfolio Management services.
