In this article, we will take a look at the 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust.
Bill Gates has invested billions of dollars in stocks to fund the Seattle-based Bill & Melinda Gates Foundation Trust, widely regarded as the world’s largest private foundation, formed through the merger of the William H. Gates Foundation and the Gates Learning Foundation. According to the Trust, its aim is to address major humanitarian concerns such as poverty, a lack of opportunity, and infectious diseases. Over the past 30 years, Bill and Melinda have contributed an estimated $47.7 billion of their fortune to their foundation and predecessor. The foundation’s trust maintains a highly concentrated equities portfolio, reflecting the influence of Bill Gates and his longtime friend and former foundation trustee, Warren Buffett.
The Bill & Melinda Gates Foundation has set a record $8.74 billion budget for 2025, with intentions to increase yearly distributions to $9 billion the following year. Mark Suzman, the foundation’s CEO, stated that the record approval by its governing council is consistent with the foundation’s goal of a world “where everyone, everywhere, deserves the chance to live a healthy, productive life.”
Gates’ predictions for AI
Previously regarded as an aspect of science fiction, AI appears to have entered ordinary life and is now finding its way to consumers and businesses. Bill Gates predicts that by 2035, artificial intelligence will take over roles traditionally held by doctors, teachers, and other professionals, ushering in what he calls the era of “free intelligence.” According to Gates, this transition will result in rapid advancements in AI technology that will become firmly integrated into daily life, ranging from better healthcare solutions and more accurate diagnoses to broad access to AI tutors and virtual assistants.
However, while the potential is enormous, Gates admits that there are “understandable and valid” concerns about AI’s existing capabilities. In a 2023 blog post, he stated that even the most advanced AI systems make mistakes and can contribute to the spread of misinformation. Still, Gates is optimistic: if he were to establish a new firm today, he told CNBC Make It in September 2024, it would be an “AI-centric” startup.
Our Methodology
For this list, we picked stocks from Bill & Melinda Gates Foundation Trust’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)
Bill & Melinda Gates Foundation Trust’s Stake: $484 million
Number of Hedge Fund Holders: 12
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), also known as Coca-Cola FEMSA, is a Mexican multinational beverage company headquartered in Mexico City, Mexico, and the Coca-Cola System’s largest public bottler by sales volume.
On March 17, Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) announced a $45 million investment in its production unit in Calle Blancos, Costa Rica. This project will enhance production capacity, improve logistics efficiency, and consolidate product supply in the country, all while increasing exports to markets such as Nicaragua and Panama.
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) reported a great fourth quarter of 2024. It raised revenue by 14.3% to MXN 75.5 billion (about $3.7 billion), owing to revenue management strategies and positive currency translation impacts. The company’s volume also increased by 2.2% year on year, hitting 1.08 billion unit cases during the quarter.
9. FedEx Corporation (NYSE:FDX)
Bill & Melinda Gates Foundation Trust’s Stake: $712.9 million
Number of Hedge Fund Holders: 66
FedEx Corporation (NYSE:FDX), previously Federal Express Corporation and then FDX Corporation, is an American multinational conglomerate holding corporation specializing in transportation, e-commerce, and business services.
FedEx’s third-quarter fiscal year 2025 earnings release showed adjusted earnings per share of $4.51, slightly below the average expectation of $4.56. The company has lowered its full-year EPS guidance downward to a range of $18 to $18.60, citing persistent economic headwinds and cost increases. Analysts at JPMorgan, Stifel, and Raymond James have all adjusted their FedEx Corporation (NYSE:FDX) price targets, which now range from $276 to $354, while retaining favorable ratings such as Overweight and Outperform.
Furthermore, FedEx’s DRIVE program saved $600 million in costs this quarter, ensuring it meets its annual target of $2.2 billion. The company is also moving forward with strategic projects like the Network 2.0 and the anticipated spin-off of its less-than-truckload (LTL) division.
8. Walmart Inc. (NYSE:WMT)
Bill & Melinda Gates Foundation Trust’s Stake: $821.3 million
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is the world’s largest brick-and-mortar retailer, with over 100,000 establishments. The company’s sectors include Walmart US, Walmart International, and Sam’s Club, which offer a diverse range of items such as clothing, electronics, and home furnishings.
On April 10, UBS analyst Michael Lasser lowered the price target for Walmart Inc. (NYSE:WMT) to $110 from $112, while maintaining a Buy rating. Lasser’s appraisal follows a recent company event that highlighted Walmart’s current success and future goals. During the event, Walmart’s team highlighted its goal of growing the top line by 4% and accelerating the development of operating income and free cash flow (FCF) to possibly double-digit levels.
Walmart Inc. (NYSE:WMT) reported robust fourth-quarter results, with sales up 5.2% and adjusted operating income up 9.4% in constant currency. E-commerce performance has also increased significantly, with online sales accounting for 18% of total revenue, a 1,100 basis point increase over fiscal 2020.
7. Ecolab Inc. (NYSE:ECL)
Bill & Melinda Gates Foundation Trust’s Stake: $1.2 billion
Number of Hedge Fund Holders: 59
Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and infection control products and services. Its product offerings include water and energy management, infection control, and other solutions aimed at increasing efficiency.
William Blair reaffirmed an Outperform rating on Ecolab Inc. (NYSE:ECL) on April 16, following the company’s announcement of a 5% trade fee on all of its products and services in the United States, which will go into effect May 1. The premium is intended to offset the increased costs of raw materials, packaging, and equipment caused by recent changes in tariff rates. Ecolab, which sources over 90% of its raw materials regionally, indicated that delivered product costs account for roughly 45% of its Cost of Goods Sold (COGS). The company believes that the fee will be adequate for tackling tariff-related cost increases.
Ecolab Inc. (NYSE:ECL) reported $4 billion in revenue in the fourth quarter of 2024, up roughly 2% year-over-year. Organic sales increased by 4%, led by higher growth in the Industrial and Healthcare & Life Sciences segments. The company also maintained solid results in the Pest Elimination and Institutional & Specialty divisions.
6. Deere & Company (NYSE:DE)
Bill & Melinda Gates Foundation Trust’s Stake: $1.5 billion
Number of Hedge Fund Holders: 57
Deere & Company (NYSE:DE), also known as John Deere, is an American firm that manufactures agricultural, heavy, and forestry machinery, diesel engines, heavy equipment drivetrains, and lawn care equipment. The company also provides financial services and engages in other business operations.
Deere & Company (NYSE:DE) reported revenues of $6.81 billion in the first quarter of 2025, which fell more than $1 billion behind analysts’ expectations, owing to reduced shipping volumes and persistent market headwinds. The company’s Construction & Forestry division had a 38% decrease in sales to $2 billion, while operating profit experienced an 89% decrease due to adverse pricing and greater R&D expenditures. However, the company’s Financial Services segment saw an 11% increase in net income to $230 million.
Nightview Capital stated the following regarding Deere & Company (NYSE:DE) in its Q4 2024 investor letter:
“In January, we purchased shares of Deere & Company (NYSE:DE) based on a simple thesis: the 185-year-old company is evolving from a machinery manufacturer into a technology leader in an industry that urgently needs innovation.
Deere’s vision of autonomous tractors, dump trucks, and mowers address critical labor shortages, enabling farmers, builders, and landscapers to maintain productivity with fewer workers.”
Deere’s potential to transform the multi-trillion-dollar agriculture market is significant. Technologies like its See & Spray system, which reduced herbicide use by nearly 60% across over one million acres in 2024, demonstrate its ability to drive efficiency and environmental benefits. Its connected ecosystems, such as the John Deere Operations Center, are integrating machinery and data to improve decision-making and outcomes for customers.
The company has also implemented structural improvements to weather challenging market conditions. In 2024, Deere generated $6.9 billion in operating cash flow from equipment operations, achieving 18.2% operating margins despite lower shipment volumes. These measures support reinvestment in technology and steady shareholder returns, while maintaining operational discipline.
Deere’s continued pivot toward technology-driven solutions and recurring revenue models, such as pay-per-use and software licensing, enhances its ability to serve modern farmers and contractors effectively. We are optimistic about the company’s ability to lead innovation in its markets and will share further updates as we continue to evaluate its long-term prospects.”
5. Caterpillar Inc. (NYSE:CAT)
Bill & Melinda Gates Foundation Trust’s Stake: $2.66 billion
Number of Hedge Fund Holders: 62
Caterpillar Inc. (NYSE:CAT), often referred to as CAT, is a leading American manufacturer of construction, mining, and engineering equipment. The company is a key player in the industry, having been recognized as the world’s largest maker of construction equipment.
On April 16, Morgan Stanley analyst Angel Castillo raised Caterpillar Inc. (NYSE:CAT) from Underweight to Equalweight, while also lowering the price target to $283 from $300. The upgrade follows a significant loss in Caterpillar’s share price since mid-October, with a drop of over 30% and a performance lag of around 20% behind the S&P 500. Castillo stated that, despite the lower price target, the change in the stock’s rating reflects the market’s assessment of Caterpillar’s near-term risks and long-term prospects. The analyst pointed out that the current share price more effectively reflects the downside risks to earnings, especially considering Morgan Stanley’s projections, which are around 10% lower than the consensus for the company’s 2025 earnings per share.
Caterpillar Inc. (NYSE:CAT) reported $16.2 billion in revenue in the fourth quarter of 2024, a 5% decrease from the same period last year. This dip was primarily caused by a $859 million fall in sales volume, which was driven by reduced dealer inventories and lower demand from end users. That said, Caterpillar Inc. (NYSE:CAT) maintained solid financial health in 2024, earning $12.0 billion in operating cash flow and ending the year with $6.9 billion in cash.
4. Canadian National Railway Company (NYSE:CNI)
Bill & Melinda Gates Foundation Trust’s Stake: $5.56 billion
Number of Hedge Fund Holders: 56
Canadian National Railway Company (NYSE:CNI) is a North American transportation and logistics company headquartered in Montreal, Canada, that focuses on supply chain innovation and collaboration. It provides rail transportation, intermodal solutions, trucking, and marine transport.
In the fourth quarter of 2024, Canadian National Railway Company (NYSE:CNI)’s revenue ton miles fell 3% year-over-year to 59,305 million. Revenues dropped by C$113 million year-over-year to C$4,358 million in Q4, while operating income fell by C$190 million to C$1,628 million. Canadian National Railway Company (NYSE:CNI) also declared a 5% dividend increase for 2025, extending its 29-year growth run, and approved another repurchase program for up to 20 million shares from February 2025 to February 2026.
Appalaches Capital, an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:
“During the quarter, we established core positions in two railroads: Canadian National Railway Company (NYSE:CNI) and CSX Corporation (CSX). The investment thesis is simple. Domestic railroads have not seen volume growth over the last 20 years despite being the cheapest, cleanest, and safest form of freight transportation.4 The lack of volume growth and related share losses to trucking is due to the poor reliability of the networks. However, there is strong evidence to believe that this may not be the case going forward. It seems that investors are overweighting historical characteristics of the industry and not giving credit to recent and sustainable improvements in service metrics. If the rails are able to show any sign of sustained volume growth, our investment should perform very well.
The Canadian railroads have more or less operated at full capacity over the last two decades, while the U.S. networks have not. Why is that? There are a few reasons for the anemic volume growth domestically, but only one of which is not shared by the Canadian railroads: service. In 2017, had you shipped goods by rail in Canada, the odds that your shipment would arrive on time, or the “trip plan compliance” rate, was around 90% or higher. In the U.S., these levels were closer to 50%.5 Maybe you have a different opinion, but I am not particularly excited about using a shipping service that only has a coin flip’s chance of arriving on time, even if it may be more economical…” (Click here to read the full text)
3. Waste Management, Inc. (NYSE:WM)
Bill & Melinda Gates Foundation Trust’s Stake: $6.5 billion
Number of Hedge Fund Holders: 67
Waste Management, Inc. (NYSE:WM) is a waste collection and disposal industry leader with a dominant market share and unequaled landfill ownership. In the first week of April, WM celebrated the grand openings of four important projects, including recycling facilities in Baltimore and in Central Texas, as well as RNG facilities in Chicago and Philadelphia. These openings are part of the company’s broader initiative, with over $323 million already committed in these sites.
Jefferies recently boosted its price target for Waste Management, Inc. (NYSE:WM) shares to $257, highlighting the company’s strong financial quarter, with revenue and EBITDA above consensus estimates. Meanwhile, Stifel maintained a Buy rating with a target price of $252, citing Waste Management’s outstanding fourth-quarter results and bullish outlook for 2025.
Waste Management, Inc. (NYSE:WM) reported a decent Q4 2024 revenue of roughly $5.9 billion, up 13% year-over-year, driven by strong market demand, continued asset network expansions, and Collection and Disposal service efficiencies. However, the company’s adjusted EPS fell 2.3% to $1.70 due to higher operating costs.
Diamond Hill Large Cap Concentrated Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q4 2024 investor letter:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon and Waste Management, Inc. (NYSE:WM).
Waste Management is one of the US’s largest providers of waste-collection services. Its leading footprint of landfill assets provides the company with long-term pricing power. Further, Waste Management has invested heavily in recent years in recycling and renewable natural gas projects — which we believe the market is underappreciating given the value these investments will create as the projects wind down and come online.”
2. Berkshire Hathaway Inc. (NYSE:BRK-A)
Bill & Melinda Gates Foundation Trust’s Stake: $8.9 billion
Number of Hedge Fund Holders: 131
Berkshire Hathaway Inc. (NYSE:BRK-A) is a diversified global conglomerate holding company primarily focused on the insurance sector. It invests cash generated by insurance operations in a wide range of subsidiaries, stock holdings, and securities from numerous sectors.
Berkshire Hathaway Inc. (NYSE:BRK-A) announced a significant spike in Q4 2024 earnings, mostly due to its insurance firms, while cash holdings reached a record high. The company’s operational profit increased by 71% to $14.53 billion in the quarter. This expansion was driven by a 302% increase in insurance underwriting profits, which totaled $3.41 billion, and an approximately 50% increase in insurance investment income, which totaled $4.09 billion.
Wall Street analysts Meyer Shields of KBW and Brian Meredith of UBS boosted their price forecasts for Berkshire Hathaway Inc. (NYSE:BRK-A) after the firm reported Q4 2024 earnings in late February. Meredith reaffirmed his Buy rating on the company, raising his target to $836,135 from $803,444, while Shields increased his target price for BRK-A shares to $775,000 from $750,000, retaining a market perform rating.
1. Microsoft Corporation (NASDAQ:MSFT)
Bill & Melinda Gates Foundation Trust’s Stake: $11.99 billion
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a leading technology firm recognized for its core software products, which include the Windows operating system, the Microsoft 365 suite, and the Edge browser. Its offerings include corporate software, software development tools, video games, gaming equipment, and cloud services.
On April 17, KeyBanc analysts downgraded Microsoft Corporation (NASDAQ:MSFT) from Overweight to Sector Weight, citing worries about the timing of AI demand and monetization. Microsoft has made substantial investments in artificial intelligence and its cloud computing service Azure, which have become key components of the company’s development plan. The analysts’ downgrade shows a cautious view on whether these investments will generate the projected returns.
Microsoft Corporation (NASDAQ:MSFT) reported $69.6 billion in revenue in the second-quarter of fiscal year 2025, a 12% increase from the previous year. Meanwhile, operational income increased by 17%, while the cloud segment reached a record $40.9 billion, up 21%, with Azure services alone increasing 31%. Furthermore, AI services fueled 13 points of Azure’s growth, while Microsoft’s commercial software category climbed by 14% to $29.4 billion.
While we acknowledge the potential for MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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