FedEx Corporation (FDX): Among the Best Stocks to Buy According to Bill Gates

We recently compiled a list of the 10 Best Stocks to Buy According to Bill Gates. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against the other stocks.

Bill Gates is one of the most influential figures in the modern world. The software company he co-founded, best known for its Windows operating system, ranks among the most valuable companies globally, boasting a market capitalization of $3 trillion. This success has contributed to Gates becoming one of the wealthiest individuals, with his net worth recently estimated at $108 billion.

In 2000, Bill and Melinda Gates established the Bill & Melinda Gates Foundation, now one of the world’s largest charitable organizations. The foundation focuses on public health, poverty reduction, education, and climate change. Since 1994, the Gateses have contributed over $50 billion to its initiatives, including more than $1.94 billion in grants for vaccine research during the COVID-19 pandemic.

According to a report by Business Insider, Bill Gates, Melinda French Gates, and Warren Buffett have collectively contributed around $100 billion to the Gates Foundation to date. During an interview with the BBC, the Microsoft co-founder and Gates Foundation chair disclosed the extent of his philanthropic efforts. According to a foundation fact sheet, Gates and French Gates, who are now divorced, donated a total of $59.5 billion between the organization’s inception in 2000 and the end of 2023. Meanwhile, Buffett, the CEO of Berkshire Hathaway, has contributed an additional $39.3 billion.

The foundation has been a major financial backer of the National Institutes of Health (NIH) for malaria and tuberculosis vaccine research. It also played a pivotal role in launching Gavi, the Vaccine Alliance, which spearheads immunization efforts in low-income nations. Headquartered in Seattle, the foundation continues to expand its global impact. Following a $20 billion donation, Gates outlined plans to boost its annual spending by 50%, targeting $9 billion by 2026.

Bill Gates has dedicated years and billions of dollars to addressing climate change. His foundation has directed substantial funding toward climate technology solutions while consistently highlighting major sources of greenhouse gas emissions, particularly those from large energy and manufacturing companies that burn fossil fuels extensively. However, Gates believes that many people overlook one of the significant contributors to climate change: agriculture, particularly methane emissions from livestock and the impact of fertilizers.

Since 2015, Breakthrough Energy, the climate-focused investment firm he founded, has allocated $2.2 billion to more than 160 startups and initiatives, aiming to generate investor returns while reducing emissions. In addition to these investments through the firm, Gates has also pursued climate-focused ventures independently. Some of these startups focus on practical solutions, such as sealants to improve heating efficiency, while others explore more unconventional approaches, including burying plant waste to capture carbon dioxide from the atmosphere.

As of Q4 2024, The Gates Foundation, managed by Michael Larson, has a portfolio valued at over $42 billion. The tech and industrial goods sectors represented 29% and 26.3% of the portfolio, respectively. The finance sector made up over 21% of the fund’s portfolio. In view of this, we will take a look at the best stocks to buy according to Bill Gates.

Our Methodology

To make our list of the latest stocks in Bill Gates’ portfolio, we scanned through the Bill & Melinda Gates Foundation’s SEC filings for the fourth quarter and picked out the top ten stocks with the highest investment stakes.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is FedEx Corporation (FDX) the Best Industrial Stock to Invest in Now?

A driver unloading packages from a van for a time-critical delivery.

FedEx Corporation (NYSE:FDX)

Stake Value as of Q4 2024: $712,992,061

FedEx Corporation (NYSE:FDX) serves more than 220 countries and territories and provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services, offering integrated business solutions utilizing its flexible, efficient, and intelligent global network.

FedEx Corporation (NYSE:FDX) posted a revenue of $21.97 billion in Q2 of 2025, slightly missing market expectations by $125.2 million and down 0.9% YoY,  revealing underlying struggles with US domestic demand. However, the company’s adjusted EPS came in at $4.05 against analysts’ estimates of $4.01, bolstered by successful cost reduction strategies under the DRIVE program. Fedex’s cost reduction efforts are bearing fruit, with the company achieving DRIVE savings of $540 million in Q2 and remaining confident to deliver its targeted $2.2 billion in incremental savings in FY 2025. FedEx remains committed to returning value to its shareholders and completed $1 billion in share repurchases in Q2, bringing the YTD total to $2 billion, with an additional $500 million of repurchases planned for the fiscal second half. The company also announced a quarterly dividend of $1.38 per share this month, in line with the previous.

In its Q2 2025 earnings call, FedEx Corporation (NYSE:FDX) announced plans to separate into two public companies – FedEx and FedEx Freight. Analysts believe that the strategic move could unlock up to $20 billion in shareholder value, while also enabling both companies to benefit from enhanced focus and competitiveness.

Overall FDX ranks 9th on our list of the best stocks to buy according to Bill Gates. While we acknowledge the potential for FDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FDX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.