12 Best Stocks to Buy and Hold According to Bill Gates’ Portfolio

Published on October 18, 2023 at 2:59 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at the 12 best stocks to buy and hold according to Bill Gates’ portfolio. To skip our detailed analysis of current US market news, you can go directly to see the 5 Best Stocks to Buy and Hold According to Bill Gates’ Portfolio.

A Businessman And Philanthropist Many Look Up To

Bill Gates has been an asset to the American economy for decades, and his contributions to the tech and environmental awareness areas have been significant for as long as he has been involved in them. At present, Gates has a net worth of $109.3 billion, according to Forbes.

Considering the immense amount of influence Gates has today, many starting investors, and even more seasoned ones, are interested in the secret behind the management of his wealth. The answer to this question lies in the creation and continued operation of the Bill & Melinda Gates Foundation Trust, managed by Michael Larson on behalf of Gates. The trust has about $36 billion in assets under management and has a diverse range of holdings ranging from companies in the technology and financial sectors to those in the industrial goods, services, and consumer goods sectors, among more. Interestingly, the holdings also include waste management companies, indicating Gates’ general interest in environmental action, which is translated into his trust’s investments. The key reason behind the maintenance of Gates’ wealth is Larson’s work to keep his wealth steady while also multiplying it to ensure the billionaire has enough to go around for his countless philanthropic endeavors.

Fighting The Greatest Inequities In The World

On the subject of Gates’ philanthropic work, records from the end of 2022 show that the Bill & Melinda Gates Foundation Trust gave out 1,960 grants in the year, while its total charitable support amounted to about $7 billion. The foundation has been working tirelessly over the past 20 years to fight “the greatest inequities in the world,” making it a prime focus for the Gates family to actively engage in charitable and philanthropic work. An example of Gates’ work for the global community at large is his creation of Breakthrough Energy, a climate investment firm that aims to accelerate innovation in sustainable energy and other technologies to reduce greenhouse gas emissions. This move, alongside Gates’ donations of billions of dollars to a range of charitable causes, make him one of the biggest philanthropists in the US today.

All in all, Gates is an inspirational figure for many, making his business and investment moves open to observation by the world at large. A significant portion of his wealth can be attributed to Larson’s money management skills, but at the end of the day, the biggest contributors are the companies he holds significant stakes in. These include Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), and Deere & Company (NYSE:DE), among others. Considering the above, we have taken a look at Bill Gates’ investment portfolio for 2023 to pick 12 stocks he considers to be the best to buy and hold. These include some of Bill Gates’ most recent investments, alongside stocks that have been part of his portfolio for a longer time period.

Our Methodology

We referred to the second quarter 13F holdings of the Bill and Melinda Gates Foundation Trust to pick the stocks for our list. These are currently the top 12 stocks in the portfolio and have been consistently held by the trust for at least the past year. The stocks are ranked based on the trust’s stake value in them, from the lowest to the highest. We have also mentioned hedge fund information for these stocks by using Insider Monkey’s hedge fund data for the second quarter.

Best Stocks to Buy and Hold According to Bill Gates’ Portfolio

12. Waste Connections, Inc. (NYSE:WCN)

Number of Hedge Fund Holders: 41

Bill and Melinda Gates Foundation Trust Q2 Stake Value: $307.1 million

Waste Connections, Inc. (NYSE:WCN) is an environmental and facilities services company based in Woodbridge, Canada. The company provides non-hazardous waste collection, transfer, disposal, and resource recovery services.

As of October 16, Ari Wald, an analyst at Oppenheimer, holds an Outperform rating on shares of Waste Connections, Inc. (NYSE:WCN). The analyst also placed a price target of $151 on the stock.

Waste Connections, Inc. (NYSE:WCN) was seen in the 13F holdings of 41 hedge funds in the second quarter. Their total stake value in the company was $1.3 billion.

TimesSquare Capital Management mentioned Waste Connections, Inc. (NYSE:WCN) in its third-quarter 2023 investor letter:

“Waste Connections, Inc. (NYSE:WCN) provides non-hazardous waste collection, transfer, and resource recovery services in the U.S. and Canada. Their shares rose 9% after topping second quarter estimates and raising forward guidance. This was driven by better-than-expected solid waste pricing and robust growth in the E&P waste business for oil exploration companies.”

Like Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), and Deere & Company (NYSE:DE), Waste Connections, Inc. (NYSE:WCN) has been among the top holdings in Bill Gates’ investment portfolio for several quarters.

11. Schrödinger, Inc. (NASDAQ:SDGR)

Number of Hedge Fund Holders: 22

Bill and Melinda Gates Foundation Trust Q2 Stake Value: $348.5 million

Gary Nachman, an analyst at BMO Capital, maintains an Outperform rating on shares of Schrödinger, Inc. (NASDAQ:SDGR) as of August 3. The analyst also placed a price target of $67 on the stock.

Schrödinger, Inc. (NASDAQ:SDGR) is a healthcare technology company based in New York. The company develops a physics-based computational platform that enables the discovery of novel molecules for drug development and materials applications.

A total of 22 hedge funds were long Schrödinger, Inc. (NASDAQ:SDGR) in the second quarter, with a total stake value of $670.1 million.

Holding 6.9 million shares in the company, Bill & Melinda Gates Foundation Trust was the largest shareholder in Schrödinger, Inc. (NASDAQ:SDGR) at the end of the second quarter.

Here’s what Baron Funds said about Schrödinger, Inc. (NASDAQ:SDGR) in its fourth-quarter 2022 investor letter:

“The Fund’s only remaining position in health care technology, physics-based drug discovery platform Schrödinger, Inc. (NASDAQ:SDGR), weighed the most on performance. Schrodinger’s shares were down after management lowered guidance due to foreign currency headwinds, lower-than-anticipated adoption and scale-up by smaller biotechnology companies impacted by the capital markets environment, and uncertainty about the timing of year-end purchase decisions among the company’s largest customers.

Schrodinger, Inc. is dedicated to the usage of physics-based computer modeling for drug discovery. Shares were down after management lowered guidance due to a modest impact from foreign currency headwinds, lower-than-anticipated adoption and scale-up by smaller biotechnology companies impacted by the capital markets environment, and uncertainty about the timing of year-end purchase decisions among its largest customers. We reduced the position due to concerns about near-term trends in the software business, but we continue to believe Schrodinger’s computational platform has significant value.”

10. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 62

Bill and Melinda Gates Foundation Trust Q2 Stake Value: $380.3 million

Our hedge fund data for the second quarter shows 62 hedge funds long FedEx Corporation (NYSE:FDX) in the second quarter. Their total stake value in the company was $2.5 billion.

FedEx Corporation (NYSE:FDX) is an air freight and logistics company that provides transportation, e-commerce, and business services in the US and internationally. It is based in Memphis, Tennessee.

Shares of FedEx Corporation (NYSE:FDX) were upgraded from Neutral to Positive on October 2 by Bascome Majors, an analyst at Susquehanna. The analyst also raised the firm’s price target on the stock from $225 to $315.

9. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 81

Bill and Melinda Gates Foundation Trust Q2 Stake Value: 474.8 million

Beech Hill Partners was the largest shareholder in Walmart Inc. (NYSE:WMT) at the end of the second quarter, holding 15,288 shares in the company.

Walmart Inc. (NYSE:WMT) is a consumer staples and merchandise retail company based in Bentonville, Arizona. The company operates retail, wholesale, and other units across the globe.

An Overweight rating was reiterated on shares of Walmart Inc. (NYSE:WMT) on September 27 by Edward Yuma, an analyst at Piper Sandler. The analyst also maintains a price target of $210 on the stock.

Walmart Inc. (NYSE:WMT) was seen in the portfolios of 81 hedge funds in the second quarter, with a total stake value of $5.5 billion.

8. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)

Number of Hedge Fund Holders: 10

Bill and Melinda Gates Foundation Trust Q2 Stake Value: 517.7 million

Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) is a soft drinks and non-alcoholic beverages company based in Mexico. It is a franchise bottler that distributes Coca-Cola trademark beverages.

In total, 10 hedge funds were long Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) in the second quarter. Their total stake value in the company was $564.1 million.

A Neutral rating was maintained on Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) on August 17 by Lucas Ferreira at JPMorgan. The analyst also placed a $90 price target on the stock.

Harding Loevner made the following comments about Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) in its second-quarter 2023 investor letter:

“The Consumer Staples sector delivered the strongest relative performance, with cosmetics producer L’Oréal and Coke bottler and convenience store operator Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) especially strong. FEMSA rallied after announcing a strategic review, which will refocus the company on its strongest businesses and divest non-core assets, punctuated by cutting its large stake in Heineken.

In terms of geographical performance, the eurozone emerged as the top-performing region, and our stocks did better still, fueled by the strong performance of Infineon, L’Oréal, and Schneider Electric. EMs, which lagged the index, were boosted by the improving outlook for semiconductor companies TSMC and Samsung. Mexico’s FEMSA also contributed strongly to relative returns.”

7. Ecolab Inc. (NYSE:ECL)

Number of Hedge Fund Holders: 56

Bill and Melinda Gates Foundation Trust Q2 Stake Value: $974.1 million

An Outperform rating was reiterated on Ecolab Inc. (NYSE:ECL) shares on October 9 by Ashish Sabadra at RBC Capital. The analyst also maintained a $213 price target on the stock.

In the second quarter, 56 hedge funds were long Ecolab Inc. (NYSE:ECL), with a total stake value of $2.3 billion.

Ecolab Inc. (NYSE:ECL) is a specialty chemicals company based in Saint Paul, Minnesota. The company provides water, hygiene, and infection prevention solutions and services.

Here’s what ClearBridge Investments had to say about Ecolab Inc. (NYSE:ECL) in its second-quarter 2023 investor letter:

“A rebound for materials in June was helpful for water and hygiene solution company Ecolab Inc. (NYSE:ECL), where strong pricing and productivity gains are more than offsetting ongoing inflationary pressure, as well as aluminum packaging company Ball, which rose on reports of a possible sale of its aerospace unit.”

Like Microsoft Corporation (NASDAQ:MSFT), Walmart Inc. (NYSE:WMT), and Deere & Company (NYSE:DE), Ecolab Inc. (NYSE:ECL) is a highly popular stock among hedge funds today.

6. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 56

Bill and Melinda Gates Foundation Trust Q2 Stake Value: $1.5 billion

Bill & Melinda Gates Foundation Trust was the most prominent shareholder in Deere & Company (NYSE:DE) at the end of the second quarter, holding 3.9 million shares in the company.

On September 15, Wesley Brooks, an analyst at HSBC, initiated coverage on shares of Deere & Company (NYSE:DE) with a Buy rating. The analyst also announced a price target of $486 on the stock.

Based in Moline, Illinois, Deere & Company (NYSE:DE) is an agricultural and farm machinery company. It manufactures and distributes equipment such as mid-size tractors, combines, cotton pickers, and more.

Deere & Company (NYSE:DE) had 56 hedge funds long its stock in the second quarter. Their total stake value in the company was $3.2 billion.

Click to continue reading and see the 5 Best Stocks to Buy and Hold According to Bill Gates’ Portfolio.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on December 13, 2024 at by Inan Dogan, PhD

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A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

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Click to continue reading…

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