Bill Gates’ Portfolio

Bill Gates is the co-founder of Microsoft. He is a business tycoon, philanthropist, author, and software developer. Bill Gates’ portfolio has 14 stocks, valued at $23.87 billion as of August 2021.

He has invested heavily in financial services and industrials, comprising 50.84% and 30.66% of his portfolio. Other sectors are real estate, basic materials, consumer cyclical, communication services, healthcare, and consumer defensive.

Stocks in Bill Gates’ portfolio

Grupo Televisa SAB

Bill Gates’ portfolio has 1,68,79,104 shares worth $ 24,10,34,000. The stock is 1.01% of the entire portfolio.

Grupo Televisa is a Mexican mass media and multimedia company that produces content in Spanish. Analysts have maintained a BUY rating with a target price of $19 for Q2 FY22. The massive recovery of the advertising segment will accelerate the revenue growth by 5% in the quarter.

In May, the board had declared a dividend of $0.078 per share. The stock had delivered a return of 58.2% in 2020. The dividend yield stood at 0.70%.

The share prices of Grupo Televisa jumped after the announcement of the company merger with Univision. The deal is worth $4.8 billion, combining the leading media businesses in the Spanish-speaking markets. It will also help the company dominate the Spanish streaming service and improve profitability. From the long-term perspective, consolidation will persist in the media sector, which will also help the new entity to merge with a large company.

Grupo Televisa SAB

Ecolab Inc

Bill Gates holds 43,66,427 shares of the company, valued at $89,93,53,000. The stock represents 3.77% of the portfolio.

Ecolab is a food safety company in the USA. It provides services in hygiene, water, and energy technologies.

Restaurants, schools, commercial facilities, and hotels use their products.

In Q2 2021, the EPS was $1.22, in sync with analysts’ estimates. The annual dividend is $1.92 per share with a dividend payout ratio of 47.76% for 36 years. The stock will OUTPERFORM with a target price of $260. The dividend yield is at 0.89%.

Recently, Ecolab announced sustainable solutions for advanced recycled plastic feedstocks as humans are becoming more inclined towards eco-friendly ways of living. The program also offers unique field expertise to the downstream energy and chemical markets. Moreover, it will help companies preserve their existing equipment and lower their capital costs. In addition, the solutions will ensure feedstock stability and flowability.

Ecolab has also acquired Purolite, a fast-growing provider of high-end ion exchange resins for purification and separation of pharma and industrial applications.

Ecolab Inc

FedEx Corporation

The company is 1.87% of Bill Gates’ portfolio. The number of shares is 14,93,712. The value of shares is $44,56,19,000. FedEx has increased its dividend by 36.84% over the past three years. The annual dividend is $3 per share, yielding 1.34%.

Recently, the subsidiary of FedEx- FedEx Logistics started its services in South Korea to support its strategy of expanding its services in fast-growing economies.

The company faces constrained logistics infrastructure and ship cargo space and air capacity at a premium price. Moreover, they faced hindrances because of COVID-19 restrictions and workforce shortage.

FedEx provides global logistics services. The volumes boosted because of surging home deliveries growth which allowed the management to increase prices. The renewed pricing was a welcoming change, reflecting commitment towards better returns on capital invested.

FedEx Corporation

Walmart

Bill Gates has invested $1,07,18,52,000 in Walmart. He bought 76,00,706 shares, comprising 4.49% of the portfolio.

Walmart is a retail and whole business in the USA. The company manages hypermarkets, supermarkets, and cash and carry.

The price target is $170 because of the company’s robust business performance across all segments.

The EPS stood at $1.78, beating the estimates of $0.21. The company pays an annual dividend of $2.20 per share, yielding 1.58%.

The pandemic has brought challenges to all businesses, small or large.  The main issue for Walmart was to ensure adequate staffing to meet the demand during COVID-19 restrictions. It increased their salaries, with raises, bonuses, compensation packages during the tough times. It raised wages for 1,65,000 employees- $15 per hour for entry positions. In February, they raised the wages of 4,25,000 employees.

Walmart

Canadian National Railway Company

Bill Gates’ portfolio has 1,39,07,283 shares of Canadian National Railway, worth $1,46,77,47,000. It represents 6.15% of the portfolio.

It is Canada’s first freight railway company with a 20,000-mile network. Analysts suggest that the stock will OUTPERFORM with a target price of C$160 (Canadian dollar). In Q2 2021, it posted a EPS of C$1.49, beating the estimate of C$0.01. The quarterly dividend stood at C$0.615 per share, with a dividend yield of 2.4%. The dividend payout ratio is 48.99%.

Canadian National Railway Company

Waste Management

Waste Management is 10.94% of Bill Gates’ portfolio. Bill Gates holds 1,86,33,672 shares amounting to $2,61,07,64,000.

Waste Management Inc is waste management and environmental service company in North America. It offers services like waste disposal, dumpster collection, recycling, etc.

It is the second-largest holding in Bill Gates’ portfolio.

The EPS is $1.27, exceeding the estimates of $0.08. The company’s revenue is $4.48 billion, representing growth by 2.58% sequentially. The annual dividend is $2.3, yielding 1.49%. The company has an 18-year record of consistent dividend growth.

The target price is $159. The stock has provided returns of 34.1% in the past year.

Waste Management

United Parcel Service Inc

The number of shares is 28,01,790 worth $58,26,88,000. It represents 2.44% of the portfolio.

United Parcel Service is a supply chain management company in the USA. It uses a hub-and-spoke model for its operations.

The company’s highlight is the pricing model with a capital-disciplined approach.

Analysts suggest a target price of $225. The stock has provided 12.02% returns in 2021.

The dividend is $ 4.08 per share, yielding 2.24%. The EPS is $3.06, beating the estimates of $0.25.

The company will remain a long-term as well as a core holding. They took profits and resized their positions to reflect the risk-reward price increase in stock. Despite the near-term momentum, analysts have trimmed their holdings. The long-term risk is difficult to quantify as their competitor Amazon might disrupt the dynamics of the industry.

The near- and medium-term outlook of UPS is optimistic and bullish.

United Parcel Service Inc

Caterpillar Inc

Bill Gates’ portfolio represents 9.26% of this stock. The number of shares held is 1,01,56,756 worth $2,21,04,15,000.

Caterpillar manufactures mining and construction equipment. It also develops energy-related engines, locomotives, and industrial gas turbines.

The stock has provided an EPS of $2.6, beating the evaluation of $0.19. There was revenue growth of 29% on a YoY basis.

It yields at 2.28%, with an annual dividend of $4.44 per share. The analysts have maintained a BUY rating with a target price of $270.

The company’s operational efficiency is improving because of LEAN implementation, optimized manufacturing footprint, and enhanced service mix. The gap between potential and actual results is narrowing, which drives margin expansion.

But the business is cyclical, which can lead to large swings in the short term. However, the long-term prospects with sustainable earnings are the most significant edge while investing in such businesses. Caterpillar has the potential to turn into a high-quality company at an attractive price when today’s enthusiasm turns.

Caterpillar Inc

Crown Castle International Corp

Bill Gates holds 50,86,680 shares of Crown Castle amounting to $99,24,11,000. It comprises 4.16% of the entire portfolio.

It is a real estate investment trust that invests in shared communication infrastructure in the USA. The company recorded revenue growth of 9.7% YoY. The revenue in Q2 2021 is $1.58 billion. It pays an annual dividend of $5.32 per share, yielding 3.13%, to its shareholders. Additionally, Morgan Stanley lifted its target price to $213. In 2021, the growth rate was 6.68%.

The company will benefit from a 5G leasing cycle. Crown Castle is a leading performer, owner, and operator of wireless communication infrastructure in the USA.

It has 40,000 towers in its portfolio. It had also announced its investments in 5G spectrums much sooner than the anticipated time.

Crown Castle International Corp

Coco-Cola Femsa SAB de CV

Bill Gates’ portfolio has 62,14,719 shares amounting to $32,89,45,000. It represents 1.38% pf the entire portfolio.

Coco-Cola Femsa SAB de CV is a Mexican multinational beverage company that operates the Coco-Cola bottling space.

Goldman Sachs has maintained a BUY rating with a target price of $70. It reported revenue growth of 10.9% on a sequential basis. The revenue in Q2 2021 was $47.7 billion. It provides an annual dividend of $2.46 per share, yielding 4.53%. Moreover, in the past year, it has delivered a return of 27.06%.

Coco-Cola Femsa SAB de CV

 

Berkshire Hathaway Inc

It is the highest valued stock in Bill Gates’ portfolio, amounting to $12,14,14,02,000.

The stock is 50.87% of the entire portfolio. Bill Gates holds 4,36,86,679 shares of Berkshire Hathaway.

Berkshire Hathaway Inc is a multinational company with diversified subsidiaries engaging in insurance, energy generation, freight rail transportation, retailing, distribution, and manufacturing.

The revenue has increased by 11.99% on a YoY basis. The businesses have helped to increase the operating profits by 18%. Despite the supply sider crunch, the railroad earnings were more than the estimates

The business has experienced higher demand for its products but has faced elevated material prices, freight and other input costs. But, the manufacturing, retailing, and servicing space reported the third-highest profit since 2009. This strength compensated for the losses faced in the insurance business, where the underwriting loss widened to $78 million.

Berkshire Hathaway Inc

Schrodinger Inc

Bill Gates has 68,91,664 shares in his portfolio worth $52,48,84,000. It represents 2.21% of the portfolio.

Schrodinger is a multinational company in the USA focusing on the life and material sciences. The kit has a pipeline of internal and collaborative drug programs. The company’s revenue rose by 15.71%. The net loss per share was $0.49, but estimates were $0.39 per share.

In addition, the shares have lost almost 32% since January 2021 versus the S&P 500′ gain of 24.7%. But, the company is engaging with the global leaders in the pharma space, which suggests a shift in the drug discovery paradigm and the need to incorporate computational approaches in all projects.

Schrodinger Inc

Coupang Inc

Bill Gates’ portfolio represents 1% of this stock with 57,14,285 shares worth $23,89,71,000.

Coupang is a South-Korean e-commerce company incorporated in the USA. In the recent quarter, gross profit growth was 62%, and revenue growth was 48%. The customer growth was 20% on a YoY basis.

The advertising revenue tripled in the quarter. Moreover, the company invested $95 million in operational costs and incremental labour. Additionally, the fulfilment centre infrastructure costs for its grocery delivery service rose by 90%. The company offers a Rocket Delivery where packages get delivered within 24 hours.

Coupang Inc

Alphabet Inc

Bill Gates’ portfolio has 21,491 shares worth $5,83,63,000. The stock represents 0.23% of the entire portfolio.

Alphabet is a technology multinational headquartered in the USA. It is the parent company of Google and its subsidiaries.

Alphabet Inc breached $2 trillion in market value due to a rebound in spending on digital ads and growth in its cloud business. Alphabet trades around 24 times PE, making it cheaper than Amazon.com Inc. and Microsoft but more expensive than Meta Platforms Inc.

The attractive COVID-19 rebound, increasing YouTube engagement, and monetization are signs of recovery. The results beat the estimates due to robust advertising spending. Analysts expect the company’s EPS to reach nearly $130 in 2023.

Alphabet Inc

Conclusion

To sum up, one can conclude that Bill Gates’ has a diversified portfolio. In addition, it is necessary to rebalance the portfolio regularly and stay engaged with the investments made. Lastly, start investing early and maximize what you can afford to invest.

Recent Articles

Related Stories