In this piece, we’ll take a look at the 5 Best Stocks to Buy Now According to Billionaire Bill Gates. For the detailed analysis of the Bill & Melinda Gates Foundation, the risk/reward, and the methodology of this list, head on to 10 Best Stocks to Buy Now According to Billionaire Bill Gates.
5. Ecolab Inc. (NYSE:ECL)
Bill & Melinda Gates Foundation Trust’s Stake Value: $671 million
Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 3.79%
Number of Hedge Fund Holders: 43
Ecolab Inc. (NYSE:ECL) is a Minnesota-based company that specializes in technology, services, and systems that purify, treat, clean and make water hygienic to use.
Ecolab Inc. (NYSE:ECL) was discussed in the Q1 2022 investor letter of Baron Funds. Here’s what the investment management firm said:
“Lastly, we added to our position in the leading water, hygiene and infection prevention company, Ecolab Inc. (NYSE:ECL), as the stock sold off on concerns over rising raw material costs. We believe the sell-off is overdone as Ecolab’s strong competitive positioning and proven pricing power would enable it to offset the rising costs (though with a lag). We think that the company will continue benefiting from the secular growth trends towards sustainability while still having a long runway for growth with only an 8% share of its estimated $147 billion addressable market.”
Ecolab Inc. (NYSE:ECL) constitutes 3.79% of the total holding of Bill & Melinda Gates Foundation Trust’s Portfolio and was held by 43 hedge fund holders in our database at the end of Q2 2022.
4. Canadian National Railway Company (NYSE:CNI)
Bill & Melinda Gates Foundation Trust’s Stake Value: $1,156 million
Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 6.53%
Number of Hedge Fund Holders: 41
Founded in 1919 and headquartered in Montreal, Quebec, The Canadian National Railway Company (NYSE:CNI) is a Canadian Class I freight railway. Canadian National Railway Company (NYSE:CNI) provides services to those in Canada, the Midwestern and Southern United States.
Ken Hoexter, the BofA analyst, recently upgraded Canadian National Railway Company (NYSE:CNI) from neutral to buy, with a price target of $135 from previous $128. Hoexter was previously neutral on most transport carriers, including Canadian National Railway Company (NYSE:CNI), due to the diminishing freight usage, but he said that rail service was starting to improve and that volumes had inflected positively. It was noted that for the week ending September 3, 2022, North American rail traffic was up 5.3% as compared to the same period last year.
Canadian National Railway Company (NYSE:CNI) constitutes 6.53% of the total holding of Bill & Melinda Gates Foundation Trust’s Portfolio and was held by 41 hedge fund holders in our database at the end of Q2 2022. TCI Fund Management is the stock’s leading holder as of Q2 2022, owning Canadian National Railway Company (NYSE:CNI) shares worth over $4.1 billion.
3. Caterpillar Inc. (NYSE:CAT)
Bill & Melinda Gates Foundation Trust’s Stake Value: $1,314 million
Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 7.43%
Number of Hedge Fund Holders: 45
Caterpillar Inc. (NYSE:CAT) is the world’s largest manufacturer of construction equipment. Caterpillar Inc. (NYSE:CAT) designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers through a worldwide dealer network.
Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q1 2022 investor letter. Here is what the firm has to say:
“We also initiated a position in Caterpillar Inc. (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”
Caterpillar Inc. (NYSE:CAT) constitutes 7.43% of the total holding of Bill & Melinda Gates Foundation Trust’s Portfolio and was held by 45 hedge fund holders in our database at the end of Q2 2022.
2. Waste Management, Inc. (NYSE:WM)
Bill & Melinda Gates Foundation Trust’s Stake Value: $2,850 million
Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 16.12%
Number of Hedge Fund Holders: 37
Waste Management, Inc. (NYSE:WM) operates in North America and provides comprehensive waste management. It also gives access to services like disposal, garbage collection, recycling, and dumpster rental.
Diamond Hill Capital mentioned Waste Management, Inc. (NYSE:WM) in its Q1 2022 investor letter. Here is what the firm has to say:
“We also initiated a position in Waste Management (NYSE:WM), one of the largest providers of waste collection services in the US. We believe it is a high-quality business with ownership of key landfill assets that provide pricing power over the long term. Its stock was trading at a discount to our estimate of intrinsic value due to short-term market concerns over an increase in growth investments—we expect these investments to be value-creating over the long term.”
Waste Management, Inc. (NYSE:WM) constitutes 16.12% of the total holding of Bill & Melinda Gates Foundation Trust’s Portfolio and was held by 37 hedge fund holders in our database at the end of Q2 2022.
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Bill & Melinda Gates Foundation Trust’s Stake Value: $9,471 million
Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 53.55%
Number of Hedge Fund Holders: 109
Headquartered in Omaha, Nebraska, Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding company for many businesses, such as Fruit of the Loom and GEICO. Bill & Melinda Gates Foundation Trust is the biggest stakeholder in the company, with 34.6 million shares worth $9.4 billion.
Here is what Weitz Investment Management has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2022 investor letter:
“The quarter’s standout performers were a pair of insurers, Berkshire Hathaway (BRK-A, BRK-B)… Berkshire possess terrific management and top marks as opportunistic capital allocator.”
Berkshire Hathaway Inc. (NYSE:BRK-B) constitutes 53.55% of the total holding of Bill & Melinda Gates Foundation Trust’s Portfolio and was held by 109 hedge fund holders in our database at the end of Q2 2022 and is therefore included in our list of 5 and 10 Best Stocks to Buy Now According to Billionaire Bill Gates.
You can also take a look at 10 Best Websites To Research Stocks and 10 Dividend Stocks to Buy According to Billionaire Stanley Druckenmiller’s Duquesne Capital.
