Billionaire Bill Gates has 88% of his portfolio in these 5 stocks

It’s hard to argue against billionaire Bill Gates’ investment decisions.

At just 68 years old, he is now worth $138.6 billion thanks in large part to the success of Microsoft.

These days, after stepping down as CEO of the tech giant, he has vowed that “the vast majority of my fortune will go to helping as many people as possible.” Supporting this goal is the Bill & Melinda Gates Foundation Trust, whose mission is to “create a world where every person has the opportunity to live a healthy and productive life,” as stated on its website.

So far, according to the Trust, it has donated approximately $59 billion to help cure disease, save lives and help millions of people in need of care.

Helping, the Trust holds a substantial stake in dividend-paying companies such as Microsoft (NASDAQ:MSFT), Berkshire Hathaway (NYSE:BRK-B), Waste Management (NYSE:WM), Canadian National Railway (NYSE:CNI), Caterpillar (NYSE:CAT), Deere (NYSE:DE), Walmart (NYSE:WMT), and FedEx (NYSE:FDX) to name a few. Of the top stocks, about 70% of the portfolio is heavily invested in five stocks, which include:

Key points about this article:

• Supporting Bill Gates’ pledge that “the vast majority of my fortune would go to help as many people as possible,” the Bill & Melinda Gates Foundation Trust has so far donated approximately $59 billion.
• Over 88% of the Trust’s portfolio is made up of five top stocks. These are all healthy dividend-paying giants.
• Keep your portfolio well protected with these safe and secure stocks. You may also want to grab your free copy of “2 Legendary High-Yield Dividend Stocks”.

Microsoft: 32.7% of shares

Microsoft is the largest holding company of the Bill & Melinda Gates Foundation Trust, which owns 34.8 million shares of the tech giant, valued at more than $15.5 billion.

Last trading at $432.60, Microsoft could rally aggressively, especially with Azure Cloud becoming one of the fastest-growing cloud infrastructure providers. Even its move into generative artificial intelligence has been exciting, with Evercore ISI analysts noting that Microsoft’s AI revenue could reach $143 billion by 2027.

Even more impressive, the tech giant just declared an 83-cent dividend, paid on Dec. 12 to shareholders of record since Nov. 21. The board also authorized share buybacks of up to $60 billion. Helping, analysts at Mizuho just reiterated an outperform rating on the stock, with a price target of $480 per share.

Berkshire Hathaway: 21% stake

Another one of the Trust’s top holdings is Warren Buffett’s Berkshire Hathaway. At the moment, it owns about 24.6 million shares, valued at more than $10 billion.

Since inception, Buffett’s Berkshire shares have averaged annual returns of about 20%, which is roughly double the rate of the S&P 500 over the same time frame. Given the success of Berkshire Hathaway and its massive cash pile of $276.9 billion as of the second quarter, it’s no wonder it makes up a large portion of the Foundation’s investments.

Waste management: 15.7% of shares

Waste Management is one of the largest environmental services companies in the world. Provides waste collection, disposal and recycling in North America. Also, its stock makes up a good portion of the Gates’ Trust Fund. The Trust currently owns 35.2 million shares, valued at over $7.5 billion. It also has a yield of 1.4% at the moment.

We also have to consider that WM’s revenue remains steady, even with economic slowdowns. After all, millions of people still need waste collection, disposal and recycling.

Canadian National Railway: 13.6% of shares

The Gates’ Trust also owns 54.8 million shares of Canadian National Railway, which is valued at about $6.47 billion. Not only does the railroad stock have strong growth ahead, but it also has a strong history of dividend growth. With a current yield of 2.11%, the company is on track to pay a dividend of 84.5 cents on September 27 to shareholders of record since September 6.

Also, while the company lowered its 2024 profit guidance due to work stoppages and wildfires, it appears that most of the negativity was priced into the rebounding stock.

According to Reuters, “Its operations have now recovered after several months of uncertainty,” the company said. The company now expects adjusted diluted earnings per share (EPS) to grow in the low single-digit percentage range, compared to its previous guidance of mid-to-high single-digit percentage growth.”

Caterpillar: 5.14% stake

The Bill & Melinda Gates Foundation Trust also owns just over 5% of Caterpillar, with 7.35 million shares, valued at just over $2.44 billion. Caterpillar also yields about 1.6% and recently paid a dividend of $1.41 on August 20th. The next dividend payment should be in November.

“Caterpillar has paid a cash dividend every year since the company’s founding and has paid a quarterly dividend since 1933. Caterpillar has paid higher annual dividends to shareholders for 30 consecutive years and is recognized as a member of the S&P 500 Dividend Aristocrats index. ” as stated on the company website.

Even better, the earnings weren’t too shabby. In its latest report, Caterpillar’s EPS of $5.99 beat expectations by 45 cents. Revenue, while down 3.5% year-over-year, topped $20 million.

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