Bill & Melinda Gates Foundation’s 13F Picks Show Strong Results

#3 Canadian National Railway (USA) (NYSE:CNI)

– Shares Owned by Gates Foundation (as of December 31): 11.26 Million

– Value of Holding (as of December 31): $765.29 Million

The Montreal-based $49 billion transportation company has been another winner for Larson in the first three months of this year as its shares surged by almost 11.5%. While cheap oil prices have meant less operational costs for Canadian National Railway (USA) (NYSE:CNI), it also led to fewer carloads filled with oil or fracking sands. However, despite a decline in revenue, the bottom line for the fourth quarter grew by 11% as compared to the same quarter a year ago. As far as the company’s top line trend is concerned, it was recently reported that the rail traffic volume in U.S declined by 12% in the first 12 weeks of the year, the major drag coming from the carloads of energy-related commodities. Daniel Bubis‘ Tetrem Capital Management hiked its Canadian National Railway (USA) (NYSE:CNI) stake by 6% to 1.29 million shares during the fourth quarter.

#2 Waste Management, Inc. (NYSE:WM)

– Shares Owned by Gates Foundation (as of December 31): 18.63 Million

– Value of Holding (as of December 31): $994.48 Million

The foundation’s second largest holding also remained unchanged during the fourth trimester, but the company’s stock has posted gains of almost 11% in the first quarter. Waste Management, Inc. (NYSE:WM), the largest professional garbage hauler in North America has faced headwinds in the form of low commodity prices, which cut into its revenues and also lower oil prices, which not only stymied the company from getting significant fuel surcharges, but it also led to the production of more fresh plastic as opposed to the recycled one, as the former became cheaper to produce than the latter. However, Waste Management is still guiding for  a 5% improvement in profitability in 2016. Cliff Asness‘ AQR Capital Management believes in Waste Management, Inc. (NYSE:WM)’s business model and upped its stake in the company by 24% to 3.18  million shares during the third quarter.

#1 Berkshire Hathaway Inc. (NYSE:BRK.B)

– Shares Owned by Gates Foundation (as of December 31): 74.38 Million

– Value of Holding (as of December 31): $9.82 Billion

The stock price of the Omaha-based holding company rose by nearly 9% in the first quarter. Although Berkshire’s energy unit,Berkshire Hathaway Energy Co., reported doubling of tax benefits to $1.8 billion in 2015 from the year ago period, some analysts have been bearish on the unit as it doesn’t pay dividends (while peers have a dividend payout ratio of 50% to 65%), and the debt that it accumulated in order to finance its last two acquisitions. Boykin Curry‘s Eagle Capital Management boosted its Berkshire Hathaway Inc. (NYSE:BRK.B) holding by 11% during the fourth quarter to 12.40 million shares.

Disclosure: None