Bill Gates, once the wealthiest individual globally due to the tremendous success of Microsoft, has now transitioned into a philanthropic powerhouse. Through the Gates Foundation, he aims to donate the vast majority of his wealth by 2045, focusing on global health improvements, poverty alleviation, and reducing inequality.
The foundation has a significant stock portfolio valued at approximately $36 billion. Interestingly, Microsoft’s stock is not among its top holdings. Instead, the foundation emphasizes value stocks, with an impressive 59% of its portfolio allocated to just three key companies.
1. Berkshire Hathaway (NYSE: BRK.A, BRK.B) – 25.4%
Berkshire Hathaway is a cornerstone of the Gates Foundation’s investments. Each year, the foundation receives shares from Warren Buffett, which significantly bolsters their stake in the company. Currently, the foundation’s holdings in Berkshire exceed $9 billion. Despite recent declines in stock value following Buffett’s resignation announcement, the company remains robust due to its substantial liquid assets, which include $373 billion in cash and Treasury bills.
2. WM (NYSE: WM) – 18.6%
WM, formerly known as Waste Management, is one of the longest-held stocks in the foundation’s portfolio. The company operates an extensive network of transfer stations and landfills, making it difficult for competitors to replicate its model. Their latest acquisition of Stericycle has broadened their services into healthcare waste management, enhancing profit margins significantly.
3. Canadian National Railway (NYSE: CNI) – 15%
This railway company boasts a vast network that connects Canada to the Southern U.S., providing efficiency in freight transfer. Although it faced challenges from tariffs imposed during recent political climates, the company has adapted by increasing grain shipments and other intermodal services. Management is optimistic about future revenue growth as tariff pressures lessen.
Investors looking to emulate Gates’ strategy should consider the principles of investing in companies with strong fundamentals and economic moats. With careful consideration, these three companies offer intriguing opportunities for growth and stability.
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