Bill Gates' Stock Portofolio
The key elements of a $38.9B stock portfolio
In the dynamic world of finance and investments, few names carry as much weight as that of Bill Gates. Widely recognized as the co-founder of Microsoft and a global philanthropist, Gates is not only a tech visionary but also a seasoned investor with a strategic eye for wealth management. Beyond the realm of software and computing, Gates' stock portfolio is an interesting glimpse into the vision of the billionaire investor who is known to invest not only by profit potential but also to address global challenges.
In his portfolio, concentration is the key
The $38.9B portfolio consists of 74 stocks. But its top 6 positions represent more than 90% of the portfolio.
This huge concentration is not new. In Q4 2014, Berkshire Hathaway accounted for more than 59% of the porfolio. And Microsoft wasn’t even in the top 10. Since then, the portfolio has been rebalanced and Microsoft is now the first holding.
Top 10 stocks presentation
Microsoft MSFT 0.00%↑ / 31.88% of the portfolio for $12.4B
Berkshire Hathaway $BRK.A / 20.28% of the portfolio for $7.9B
Canadian Natl Railway CNR 0.00%↑ / 15.26% of the portfolio for $5.9B
Waste Management WM 0.00%↑ / 13.80% of the portfolio for $5.3B
Caterpillar CAT 0.00%↑ / 5.16% of the portfolio for $2.0B
Deere&Co DE 0.00%↑ / 3.80% of the portfolio for $1.5B
Ecolab ECL 0.00%↑ / 2.27% of the portfolio for $0.8B
Coca-Cola Femsa KOF 0.00%↑ / 1.25% of the portfolio for $0.5B
Walmart WMT 0.00%↑ / 1.25% of the portfolio for $0.5B
Fedex FDX 0.00%↑ / 1.04% of the portfolio for 0.4B
What inside the other part of the portfolio?
Among the 64 other stocks, we can find:
Members of the magnificent seven: NVidia, Amazon, Google
A lot of growth big caps: Visa, Unitedhealth, Adobe,
A lot of defensive big caps: Home Depot, Pepsico, American Tower, Target, Procter&Gamble, Kraft Heinz
Healthcare is also well represented: Thermo Fisher, Amgen, Anthem, CVS, Johnson&Johnson, Pfizer
Some bets: Chubb, Carvana
Defense sector has also several stocks: Norfolk Southern, Raytheon, Lockheed Martin
Disney is the smallest position with less than $1.4M (or 0.0036% of the portfolio).
3 key findings after looking at this portfolio
Concentration is king. Bill Gates' portfolio exhibits a strategic concentration, with a focus on technology, healthcare, and sustainable solutions, reflecting both his historical ties to the tech industry and a commitment to global health and environmental sustainability.
Most of the stocks are quality and future-proof. The portfolio is characterized by a selection of high-quality stocks, often representing industry leaders and innovative companies, showcasing his preference for stable, well-established businesses and those at the forefront of technological advancements.
The strange long tail is a question. In Bill Gates' portfolio, the presence of numerous stocks with disproportionately low weights may seem unconventional, prompting questions about his investment approach as these holdings, while diverse, appear to lack significant influence on the overall portfolio composition. For instance, if Disney is multiplied by 100 (which seems impossible), it will barely be visible in the overall portfolio. Maybe it is a strategy to slowly enter those stocks to see if it is worth to push further.