Below is the list of Bill Gates’ investment company’s 5 newest stock picks. For a detailed discussion about Bill Gates please see Bill Gates’ Investment Company’s 10 Newest Stock Picks.
5. The Kraft Heinz Company (NASDAQ:KHC)
Value of Bill & Melinda Gates Foundation’s 13F Position: $93 million
Quarter First Initiated Position: Q3, 2022
The Kraft Heinz Company (NASDAQ:KHC) is one of Bill Gates’ investment company’s 10 newest stock picks. When it comes to long-term stock investment, the consumer staples company is one of the most reliable investments. This is because it has the potential to generate long-term sustainable growth in revenue and earnings. Moreover, its dividend yield of around 5% enables investors to collect high dividends. The Kraft Heinz Company manufactures and markets food and beverage products.
Hedge fund confidence in the company has recently increased. The number of hedge fund positions increased to 41 at the end of the second quarter, up from 35 the previous quarter.
4. Waste Connections, Inc. (NASDAQ:WCN)
Value of Bill & Melinda Gates Foundation’s 13F Position: $307 million
Quarter First Initiated Position: Q3, 2022
Since the third quarter of 2022, Bill Gates’ investment firm has held a stake in Waste Connections, Inc. (NASDAQ:WCN). Shares of environmental and facilities services have risen 4% year to date. It also has a dividend yield of 0.74% and has raised dividends for the past 5 years in a row. Wall Street anticipates high single-digit earnings growth for Waste Connections in 2023, followed by double-digit growth in subsequent years. It is engaged in collecting, transporting, disposing of, and recovering nonhazardous waste in the United States and Canada.
Hedge fund confidence increased in the company recently. As of the end of the second quarter, Waste Connections was in 41 hedge fund portfolios compared to 36 in the previous quarter.
3. Danaher Corporation (NYSE:DHR)
Value of Bill & Melinda Gates Foundation’s 13F Position: $89 million
Quarter First Initiated Position: Q4, 2022
The Bill & Melinda Gates Foundation acquired a stake in Danaher Corporation (NYSE:DHR) in the fourth quarter of 2022. Danaher Corporation is a global provider of medical, industrial, and commercial products and services. The company recently spun off its water quality and product identification businesses as a separate publicly traded company. Market analysts believe Danaher will be better positioned to improve growth and profitability following the spin-off.
In the third quarter investor letter, Oakmark Funds, advised by Harris Associates, highlighted reasons why Danaher is an attractive option. Here is what the firm said:
“Danaher Corporation (NYSE:DHR) is a global leader in life sciences tools and diagnostics. We are impressed by Danaher’s excellent track record of creating shareholder value through smart capital allocation and world-class operational execution. The company’s business mix has shifted dramatically in recent years following a series of transformative acquisitions and divestitures. We believe these portfolio improvements leave the company attractively positioned in some of the industry’s fastest growing, most profitable niches within life sciences. Near-term headwinds related to the pandemic are overshadowing this attractive long-term outlook, in our view. More specifically, Danaher sells diagnostic tests and critical inputs needed for manufacturing Covid-19 vaccines. As Covid-19 demand has normalized, Danaher experienced sales headwinds and channel destocking, pressuring its stock price. The shares now trade at a discount to both peers and private market transactions, giving us an attractive opportunity to invest in what we view as a high-quality, resilient business at a discounted valuation.”
2. Hormel Foods Corporation (NYSE:HRL)
Value of Bill & Melinda Gates Foundation’s 13F Position: $88 million
Quarter First Initiated Position: Q4, 2022
Bill Gates’ investment company first initiated a position in Hormel Foods Corporation (NYSE:HRL) during the final quarter of 2022 by purchasing 2.2 million shares. In the following quarters, its position remained unchanged. Hormel Foods fits perfectly with Bill Gates’ buy-and-hold strategy because the company offers a high dividend yield of around 4% while its shares have the potential for long-term share price appreciation. It has increased dividends for the past 56 years in a row, and its stock price has surged by 70% in the last ten years. Hormel Foods is a consumer staples company that develops, processes, and distributes various meat, nuts, and food products in the United States and internationally.
Hormel Foods was in 24 hedge fund positions as of the end of the second quarter, down from 30 in the previous quarter.
1. Anheuser-Busch InBev SA/NV (NASDAQ:BUD)
Value of Bill & Melinda Gates Foundation’s 13F Position: $96 million
Quarter First Initiated Position: Q2, 2023
Anheuser-Busch InBev SA/NV (NASDAQ:BUD) is among the Bill Gates’ investment company’s newest stock picks. During the second quarter of 2023, his firm initiated a position in the company by purchasing a $96 million stake. Anheuser-Busch sells beer and beverages and has a portfolio of approximately 500 beer brands. In the most recent quarter, its organic revenue increased by 7.2% year over year, with revenue per hectoliter increasing by 9.0%.
In the second quarter investor letter, Broyhill Asset Management, a boutique investment firm, commented about Anheuser-Busch InBev SA/NV. Here is what the firm said:
“The largest detractors to performance over the quarter were First Horizon Corp (FHN), Anheuser-Busch InBev SA/NV (NYSE:BUD), and Bayer (BAYRY). Problems at Anheuser Busch InBev began on April 1 with Dylan Mulvaney’s social media post, which ignited a fiery backlash amongst Bud Light customers across ‘Merica. With volumes down sharply, and competitors gaining share at BUD’s expense, operational deleveraging is set to weigh heavily on US margins amid peak demand pressure in the second quarter. Despite severe US headwinds (second-quarter operating profit maybe half of last year’s levels), we still expect BUD to grow consolidated operating profit at a mid-single-digit rate for the full year. With current issues well understood and investor sentiment in the gutters, we see significant upside in a stock, which is approaching a double-digit FCF yield. With FX headwinds and rising input costs reversing course, increasing margins are likely to drive positive surprises into FY24 as continued deleveraging accrues more value to shareholders.”
You can also take a look at the What Ray Dalio Is Doing These Days? – Top 10 Stock Picks in 2023 and 15 Stocks Dumb Money’s Steve Cohen Is Betting On Now.
