Bill Gates Stock Portfolio: Latest 2024 Update

5. Caterpillar Inc. (NYSE:CAT)

Bill & Melinda Gates Foundation’s Investment Stake: $2.9 billion

Number of Hedge Fund Investors In Q3 2024: 50

Caterpillar Inc. (NYSE:CAT) is an American industrial machinery company. The firm sells a wide variety of products such as construction equipment, mining machinery, engines, and turbines. Its product lineup means that Caterpillar Inc. (NYSE:CAT) depends on a handful of industries for robust financial performance. During the nine months ending in September, 44% of the firm’s revenues came from machinery sold to the energy and transportation industries. An additional 40% came from the construction sector. Therefore, Caterpillar Inc. (NYSE:CAT) needs to see an uptick in the construction industry, favorable coal and copper mining activity, and lower interest rates to stimulate its two markets and generate tailwinds for the firm. The lack of these catalysts was evident during the third-quarter earnings as Caterpillar Inc. (NYSE:CAT) cut 2024 guidance and missed analyst EPS estimates of $5.34 by posting $5.17.

Diamond Hill Capital mentioned Caterpillar Inc. (NYSE:CAT) in its Q3 2024 investor letter. Here is what the fund said:

“Other top Q3 contributors included HCA Healthcare and Caterpillar Inc. (NYSE:CAT). Heavy construction machinery manufacturer Caterpillar has held up better than industry peers against a challenging macroeconomic backdrop and a generally slowing construction environment.”