In this article, we discuss the 5 stocks to buy and hold for over 5 years according to Bill Gates. If you want to read about some more stocks in the portfolio of Bill Gates, go directly to Bill Gates Portfolio: 10 Stocks to Buy and Hold for Over 5 Years.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 63
Walmart Inc. (NYSE:WMT) operates retail, wholesale, and other units across the world. Mandatory filings show that Bill & Melinda Gates Foundation Trust owned more than 6.9 million shares in the company at the end of the fourth quarter of 2021 worth over $1 billion, representing 4.35% of the portfolio. The fund did not register any new activity around the stock between October and December.
Walmart Inc. (NYSE:WMT) has been in the Gates portfolio since the third quarter of 2012. Between June and September 2012, the fund purchased 10.6 million shares in the firm at an average price of $73.17 per share. It then added to that stake slightly in the coming quarters. The fund started dumping the stock in early 2021. It has decreased its stake in the firm by almost half in the past four quarters.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. (NYSE:WMT) with 5 million shares worth more than $729 million.
4. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 64
FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services. According to the latest 13F data, Bill & Melinda Gates Foundation Trust owned more than 1.4 million shares in the firm at the end of December 2021 worth $386 million, representing 1.68% of the portfolio. The fund kept its stake in the firm unchanged in the fourth quarter compared to third quarter filings.
FedEx Corporation (NYSE:FDX) has featured in the Gates portfolio since the third quarter of 2012. The fund first purchased a stake in the firm consisting of more than 3 million shares at an average price of $88.88 per share. This holding remained constant till early 2021 when the fund started dumping the shares. It reduced its stake in the firm by more than half in the first quarter of 2021.
At the end of the fourth quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in FedEx Corporation (NYSE:FDX), compared to 49 in the previous quarter worth $1.6 billion.
In its Q3 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and FedEx Corporation (NYSE:FDX) was one of them. Here is what the fund said:
“Our weakest Q3 performers included FedEx Corporation (NYSE:FDX). Shares of FedEx, a global shipping and logistics firm, were held back by disappointing business results as labor cost headwinds and air network disruptions overshadowed solid top-line trends. We think the company should be able to overcome these near-term issues. Importantly, FedEx Corporation (NYSE:FDX) has strong pricing power as it operates in a consolidated global shipping industry. In September, the company announced it would increase its shipping rates by an average of 5.9% across most of its services, which is the first time in several years that its annual increase would exceed 5.0%. The industry’s renewed pricing discipline is a welcome change, reflecting a broader commitment to earn better returns on invested capital. FedEx is also closer to fully integrating TNT, a European-focused parcel company it acquired in 2016. The market is beginning to incorporate a higher probability FedEx Corporation (NYSE:FDX) will fully integrate TNT, which will provide a significant boost to profits. The stock now trades at a near-trough multiple of less than 12X 2022 earnings, so we added to our position on weakness.”
3. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)
Number of Hedge Fund Holders: 7
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) makes and sells the Coca-Cola trademark beverages. Securities filings show that Bill & Melinda Gates Foundation Trust owned more than 6.2 million shares in the company at the end of the fourth quarter of 2021 worth over $340 million, representing 1.48% of the portfolio. Gates’ fund neither bought nor sold any shares of the company between October and December.
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) has been a constant feature in the Gates portfolio since the third quarter of 2012. Back then, the fund had purchased 6.21 million shares at an average price of $122.24. This holding has remained constant throughout the years, although the share price of the company has fallen by more than half since then.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) with 1.6 million shares worth more than $188 million.
2. Grupo Televisa, S.A.B. (NYSE:TV)
Number of Hedge Fund Holders: 17
Grupo Televisa, S.A.B. (NYSE:TV) operates as a media company. At the end of December 2021, Bill & Melinda Gates Foundation Trust owned over 7 million shares in the firm worth close to $66 million, representing 0.28% of the portfolio. The fund decreased its stake in the firm by 57% during the fourth quarter of 2021 compared to filings for the third.
Grupo Televisa, S.A.B. (NYSE:TV) has been a constant holding of the Gates fund since the third quarter of 2012. The company first purchased a stake in the firm consisting of more than 16.8 million shares at an average price of close to $23. This holding remained constant till late 2021 when the firm started reducing its stake in the firm. The share price of the firm has dropped to around $10.26.
At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $669 million in Grupo Televisa, S.A.B. (NYSE:TV), compared to 16 in the previous quarter worth $843 million.
In its Q2 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Grupo Televisa, S.A.B. (NYSE:TV) was one of them. Here is what the fund said:
“Grupo Televisa, S.A.B. (NYSE:TV), a media company headquartered in Mexico and the world’s largest producer of Spanish-language content, was a top contributor for the second quarter. Grupo Televisa’s share price jumped when the company revealed that it would merge its content and media assets with Univision. In a call with shareholders, CEO of Grupo Televisa, S.A.B. (NYSE:TV), Alfonso de Angoitia, and CEO of Univision, Wade Davis, provided details on the $4.8 billion agreement, which combines these leading media businesses in the two largest Spanish-speaking markets in the world. Overall, we think the deal makes strategic sense as streaming is the future in television, and the new company will very likely become the dominant Spanish-language streaming service. There will also be synergies from combining the two businesses, which should improve profitability versus when they were stand-alone businesses. In addition, over the long term, we believe consolidation in the media sector will continue, providing an opportunity for the new entity to partner with a larger company. Aside from the strategic merits, we believe Grupo Televisa, S.A.B. (NYSE:TV) received an attractive valuation for its content business as the $4.8B value was higher than our internal estimates. We commend management for this transaction.”
1. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 55
United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery services. Securities filings show that Bill & Melinda Gates Foundation Trust owned over 2.2 million shares in the firm at the end of the fourth quarter of 2021 worth $489 million, representing 2.13% of the portfolio.
United Parcel Service, Inc. (NYSE:UPS) has been in the portfolio of the Gates fund since the fourth quarter of 2014. The fund first purchased a stake in the firm consisting of over 4.5 million shares at an average price of $105.52 per share. This holding remained constant till early 2021 when the fund started dumping the stock. The fund has decreased its stake in the firm in two of the last four quarters.
Among the hedge funds being tracked by Insider Monkey, New York-based Renaissance Technologies is a leading shareholder in United Parcel Service, Inc. (NYSE:UPS) with 1.1 million shares worth more than $249 million.
In its Q4 2021 investor letter, Saturna Capital, an asset management firm, highlighted a few stocks and United Parcel Service, Inc. (NYSE:UPS) was one of them. Here is what the fund said:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. Despite the share price decline, it remains expensive with modest growth. We sold our position in United Parcel. The United Parcel Service, Inc. (NYSE:UPS) sale was premature, and we may re-engage given an opportunity.”
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