Understanding Bill Gates’ Stock Portfolio in 2022

Bill Gates is one of the richest men in the world. The Gates foundation holds a lot of influence and has a lot of money to spend. Today, we’ll discuss his stock portfolio in 2022.

Please note that this is just my personal opinion. You have to do your research before you decide to buy or sell a stock. Let’s get started.

Bill Gates has an estimated net worth of more than $100 billion and ranks as the fourth richest person in the world. His investment trust, called Gates Foundation, holds 22 stocks, worth $23 billion.

Today, we’ll only be discussing 10 stocks and we’ll talk about it from the bottom to the top stock.

Berkshire Hathaway

Berkshire Hathaway takes up the bulk of Bill Gates’ portfolio, about 45% of his portfolio, which is worth more than $10 billion. He’s a close friend of Berkshire Hathaway’s CEO, Warren Buffett. Its sales dropped by 4% in 2020 but it’s been slowly recovering at a rate of 3% per year.

Waste Management

Waste Management takes up 10% of Bill Gates’ portfolio and is worth $2.7 billion. The company handles most of the garbage in the United States, It’s currently trading at $143.85 with a market cap of 60.22 billion. Its P/E ratio stands at 33.53 and its 52 Week Range is 109.11 – 168.04.

Ecolab

Ecolab makes up almost 4% of Bill Gates’ portfolio and it is worth more than $900 million. The company is popular in the retail sector, particularly in selling various cleaning products and services. It operates in 170 different countries and is becoming more relevant as the world continues to grapple with the coronavirus pandemic.

Its sales dropped by 6% in 2020, which was probably brought on by the lockdowns and closure of businesses. However, its sales have recovered nearly 10% after the economy reopened.

Microsoft Corporation

Microsoft makes up more than 3.5% of Gate’s portfolio and is worth more than $800 million. This stock is one of the investors’ favorites because it’s has proven to be a reliable business. If you’re looking for a stock to add to your portfolio, Microsoft should be on top of your list.

Walmart

Walmart makes up more than 4% of its portfolio. It’s a retail behemoth with more than 10,500 stores in 24 different countries. It has more than 2 million employees and physical stores offer a wide range of products.

Its website has 100 million unique visitors every month. Thanks to the global health issue that we’re facing today, an increasing number of consumers are turning to online shopping, therefore, boosting its online sales.

Crown Castle

Crown Castle makes up 3% of Gates’ portfolio and his position is worth $800 million. Crown Castle is a real estate investment trust that doesn’t just own and manages real estate but also provides locations for cell towers and other internet connectivity.

The rise of the internet of things and artificial intelligence will require thousands of cell towers to be established. Therefore, Crown Castle can benefit from this growing demand. The company’s revenue growth rate is at least 7% per year and pays a dividend of more than 3%. Given its nice dividend and stable business, Crown Castle becomes an interesting stock to own.

Caterpillar

Caterpillar makes up 8% of its portfolio and is worth more than $1.8 billion. The construction equipment manufacturer is a well-recognized and strong brand. Its dividend yield stands at 2%. In 2019, its sales plunged by 2% because of the decline in construction and infrastructure spending. Its sales dropped by another 22% during the 2020 recession but it’s expected to recover by around 20% this year.

United Parcel Service (UPS)

UPS, which is one of the largest package delivery companies in the world, makes up less than 2% of Gates’ portfolio and his position is worth $400 million. The global logistics market is worth over $8 trillion. UPS only takes a small part of that market thanks to the growing competition with Amazon and other similar companies.

During the global pandemic, UPS’ revenue soared by 14%. However, it’s expected to plunge to 4% this year. UPS will remain as one of the players in the logistics market but it won’t have that much room to run this year, making it not a good buy.

Kansas City Southern

Kansas City Southern just got acquired by the Canadian Pacific. The recent acquisition will pave the way for the connection of Canada, the United States, and Mexico, which would trigger a rare growth.

In the case of Canadian Pacific, they reported a revenue decline in 2020 but it’s expected to cover by 7% every year. However, the company pays a dividend of just 0.8% and it comes with a mediocre valuation, which makes the stock not that attractive to buy.

Canadian National Railway

Canadian National Railway comprises 7% of Bill Gates’ stock portfolio and it is worth $1.7 billion. It is one of the largest railway companies and it connects Canada, Mexico, and the U.S. It’s a much bigger company compared to Canadian Pacific, which we have already discussed earlier. Its sales stand at over $15 billion Canadian dollars. Its growth declined in 2020 because of the pandemic but it managed to improve gradually in the following years by around 5%.

That sums up the stocks that make up Bill Gates’ portfolio. What do you think of his stocks? Please leave a comment below, we’d love to hear from you. Be reminded that I’m not an investing expert and these are just my opinion. You should always do your research before you make an investment.

I would love to hear your thoughts about the companies mentioned above. So let me know what you think. You can also check out my previous blogs such as “Peter Lynch’s Investing Tips For Beginners”. Feel free to click the share buttons. Don’t forget to signup to our newsletter, too. That’s all for now and I’ll catch you on my next blog. Have a good day and take care.

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