Bill Gates’ Foundation Holds $48 Billion In Three Major Stocks
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Bill Gates, the visionary behind both the tech revolution and global philanthropy, has channeled a substantial portion of his wealth into the Bill and Melinda Gates Foundation. Founded in 2000, the foundation’s mission is to improve global healthcare and reduce poverty. Gates has consistently pledged significant parts of his fortune to the foundation, with plans to eventually donate the majority of his assets.
The foundation’s equity portfolio, currently valued at approximately $48 billion, is primarily concentrated in three major stocks, which collectively account for 69% of its total investments.
The largest portion of the portfolio is held in Microsoft (NASDAQ: MSFT), the company Gates co-founded. In 2022, Gates donated $20 billion to the foundation, a considerable part of which was Microsoft stock. This boosted the foundation’s stake in Microsoft to around 35 million shares, with a current value of $14.8 billion. Microsoft’s stock has surged over 60% since July 2022, driven by its advancements in generative artificial intelligence (AI). Key to this growth has been its investment in OpenAI, positioning its Azure platform as a leading cloud service for AI developers. Azure reported a 60% year-over-year increase in AI customers, contributing significantly to the stock’s rise.
The foundation’s second-largest holding is Berkshire Hathaway Class B shares (NYSE: BRK.B), which make up 23% of the portfolio. Warren Buffett, a long-time donor to the Gates Foundation, donated 9.9 million Class B shares last quarter. This contribution increased the foundation’s Berkshire Hathaway stake to nearly 25 million shares, valued at approximately $11.2 billion. In 2024, Berkshire Hathaway has seen a 26% rise in stock value, thanks to strong operational performance and savvy investment management, consistently outperforming the broader market.
The third significant investment in the foundation’s portfolio is Waste Management (NYSE: WM), accounting for 15% of its total investments. The foundation holds more than 35 million shares of Waste Management, valued at around $7.3 billion. While the company experienced a dip following its second-quarter earnings report, its long-term outlook remains optimistic. Waste Management raised its full-year guidance for EBITDA and free cash flow, reflecting confidence in its operational efficiency. With the largest number of landfills and high-density routes in the U.S., Waste Management benefits from strong pricing power and economies of scale.
These three strategic investments underscore the foundation’s approach to philanthropy, using large equity positions in stable, high-performing companies to generate the resources needed for its global charitable initiatives. By focusing on companies with strong growth prospects, the foundation ensures a steady flow of funds to support its efforts to address critical issues like healthcare and poverty on a global scale.
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