In this article, we discuss the top 5 stocks in the Bill Gates stock portfolio. If you want to read about some more stocks in the Gates portfolio, go directly to Bill Gates Portfolio Stock List: Top 20 Stocks.
5. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 57
Deere & Company (NYSE:DE) manufactures and distributes various equipment worldwide. On October 13, Deere and Co revealed that it is investing $29.8 million to start making harvesters in the United States instead of China. The company was adding 70 jobs in its expanding factory in Thibodaux, Louisiana. Mandatory filings show that Bill & Melinda Gates Foundation Trust owned over 3.9 million shares in the company at the end of the third quarter of 2022 worth $1.3 billion, representing 3.84% of the portfolio.
On November 17, Deutsche Bank analyst Nicole Deblase maintained a Hold rating on Deere & Company (NYSE:DE) stock and raised the price target to $374 from $365, noting that the advisory expected guidance above consensus for fiscal year 2023.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Deere & Company (NYSE:DE) with 1.4 million shares worth more than $496 million.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Deere & Company (NYSE:DE) was one of them. Here is what the fund said:
“For example, we believe that farm equipment manufacturer Deere & Company (NYSE:DE) continues to benefit from both a strong farm economy and product innovations that directly benefit farmers’ productivity while also reducing their environmental footprint. The company has also demonstrated excellent execution, highlighted by capturing market share and maintaining margins despite dealing with a labor strike and elevated supply chain costs.”
4. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 57
FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services in the United States and internationally. On November 9, FedEx Corporation noted that it has reduced the frequency of flights and parked some of its planes in response to weaker-than-anticipated demand for package deliveries, particularly in Asia. Securities filings show that Bill & Melinda Gates Foundation Trust owned more than 1.5 million shares in the company at the end of the third quarter of 2022 worth over $227 million, representing 0.67% of the portfolio.
On October 24, Jefferies analyst Stephanie Moore initiated coverage of FedEx Corporation (NYSE:FDX) stock with a Hold rating and $170 price target, noting that the stock’s valuation is well below its historical average.
At the end of the third quarter of 2022, 57 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in FedEx Corporation (NYSE:FDX), compared to 63 in the preceding quarter worth $1.8 billion.
In its Q3 2022 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:
“Earnings results at FedEx Corporation (NYSE:FDX), a global shipping and logistics firm, disappointed due to slowing volumes—principally in its Express segment, which resulted in negative operating leverage—in addition to continued cost pressures. The Express business has been affected by trade disruptions in Asia from China’s COVID lockdowns, as well as the mix of global consumer spending trending back toward services and away from goods—a normalization of pandemic-driven consumer behavior. A key question for investors is how much of this demand slowdown is idiosyncratic and therefore less likely to repeat and how much is the start of a possible cyclical slowdown. To counter these headwinds, FedEx is looking to achieve cost reductions while it continues to implement multi-year structural cost reduction initiatives focused on technology investments and efficiency gains. Given a mixed track record and the recent earnings miss, there is a high degree of skepticism embedded in the current stock price as it sells for less than 8X our estimate of normalized earnings. While operating results can be choppy, the longer-term business economics are highly favorable given the global shipping industry’s consolidated structure and massive barriers to entry that afford operators with pricing power to counter cost inflation and earn respectable returns on capital over the business cycle.”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 68
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. On November 21, as a part of its Spark Good Round-Up initiative, Walmart announced the launch of a new campaign to support local organizations across the country with up to $5 million going to non-profits. The company is awarding up to 3,000 non-profits a $1,000 grant when they receive 20 or more Spark Good Round Up donations. According to the latest 13F data, Bill & Melinda Gates Foundation Trust owned 3 million shares in the firm at the end of September 2022 worth $391 million, representing 1.15% of the portfolio.
On November 17, Credit Suisse analyst Robert Moskow maintained an Outperform rating on Walmart Inc. (NYSE:WMT) stock and raised the price target to $160 from $145, noting that the company reported a strong third quarter.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. (NYSE:WMT) with 8.1 million shares worth more than $1 billion.
In its Q3 2022 investor letter, Leaven Partners, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Walmart (NYSE:WMT), have recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6% from 7.2% in early August and slashing full-year profit growth to 4.5%.”
2. Berkshire Hathaway Inc. (NYSE:BRK-A)
Number of Hedge Fund Holders: 104
Berkshire Hathaway Inc. (NYSE:BRK-A) engages in insurance, freight rail transportation, and utility businesses worldwide. On September 21, Edward Jones analyst James Shanahan upgraded Berkshire Hathaway Inc. (NYSE:BRK-A) stock to Buy from Hold. Latest data shows that Bill & Melinda Gates Foundation Trust holds more than 29 million shares in the company worth more than $7.9 billion, representing 23% of the portfolio.
At the end of the third quarter of 2022, 104 hedge funds in the database of Insider Monkey held stakes worth $15 billion in Berkshire Hathaway Inc. (NYSE:BRK-A), compared to 109 in the preceding quarter worth $17.3 billion.
In its Q3 2022 investor letter, Black Bear Value Partners, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-A) was one of them. Here is what the fund said:
“Going forward I expect Berkshire Hathaway Inc. (NYSE:BRK-A) to compound at above-average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretive, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 269
Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. On November 18, China’s antitrust regulator rejected Microsoft Corp’s request to have its planned $69 billion acquisition of Activision approved, which was reviewed under a simplified filing. Latest data shows that Bill & Melinda Gates Foundation Trust holds more than 39 million shares in the company worth more than $9 billion, representing 26% of the portfolio.
On October 26, BMO Capital analyst Keith Bachman maintained an Outperform rating on Microsoft Corporation (NASDAQ:MSFT) stock and lowered the price target to $270 from $295, noting that the company’s first-quarter results featured numerous sources of disappointment.
At the end of the second quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $61.2 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 258 in the previous quarter worth $56 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)
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