We recently published a list of Bill Gates’ 10 Stock Positions with Huge Upside Potential. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against other top stocks in Bill Gates’ portfolio with huge upside potential.
Bill Gates became the youngest billionaire back in 1987 when he took Microsoft public, and he has been a billionaire since then. Gates has contributed a huge amount of his wealth to philanthropic activities and intends to donate 99.96% to charity when he dies. To oversee his philanthropic endeavours, Gates founded the Bill & Melinda Gates Foundation Trust. The trust oversees investment assets, with Bill and his wife, Melinda French, serving as trustees.
Read More: 10 Best Stocks to Buy According to Bill Gates
Michael Larson at Cascade Asset Management Company manages Gates’ wealth and investments. Larson also serves as the chief investment officer for the Bill & Melinda Gates Foundation. Cascade has been managing Bill Gates’ investments since 1994. Larson has helped Gates grow his wealth from under $10 billion to almost $130 billion.
Bill Gates’ Take on Tariffs?
Recently, Bill was asked about the tariffs during a CNBC interview celebrating the 50th Anniversary of his company, to which he replied that he doesn’t know what the economic effect will be, but so far it’s just on goods. “Eventually, will it be on services? Who knows?” he added. He said that politicians should be focusing more on AI, which they are not. He said that we will adjust, and AI is the biggest trend today.
Before the elections, Gates pointed out that tariffs will slow down the overall welfare, and the ripple effect of tariffs will impact innovation in the U.S.
Bruce Kasman, the chief economist at JP Morgan Chase, now expects the chance of a global recession to be around 60% compared to his previous estimate of 40%.
As of Q4 2024, the Gates Foundation reported managing $42.28 billion in the 13F securities. The tech and industrial goods sectors represent 29% and 26.3% of the portfolio, respectively. The finance sector accounted for nearly 21% of the fund’s portfolio.
Our Methodology
We searched through Bill & Melinda Gates Foundation Trust’s Q4 2024 13F filings to identify the top stocks in Bill Gates’ portfolio. The stocks are ranked in ascending order of the analyst upside, as of April 22. We have also mentioned the number of hedge funds holding stakes in these stocks. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024.
Why are we interested in the stocks that hedge funds and billionaire investors 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).
A driver unloading packages from a van for a time-critical delivery.
FedEx Corporation (NYSE:FDX)
Analyst Upside: 34.91%
No. of Hedge Fund Holders: 66
FedEx Corporation (NYSE:FDX) is a global leader in logistics, e-commerce solutions, and express shipping. It provides professional transportation, e-commerce, and business services to customers worldwide. Serving in more than 220 countries, the company operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services.
FedEx Corporation (NYSE:FDX) is working on new strategies such as DRIVE, which is a program to enhance its delivery, reliability, innovation, and value every day. DRIVE leverages data and technology to improve network optimization and cost management. This program is expected to save approximately $4 billion by the end of FY2025 compared to the FY2023 baseline.
Facing the headwinds from the tariff policy, analysts are making a notable cut to the price target of FDX. Recently, Ariel Rosa from Citigroup reduced the price target on FDX from $305 to $267, maintaining a Buy rating on the shares.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2025 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. The company faced macro headwinds, including tariff threats and ongoing demand weakness in the US. The company is growing market share and margins in its formerly challenged European business, and this was a driver for the Express business to report low-single-digit topline growth that turned into double-digit cash flow growth. The Freight business saw a decline like its peers, who are also wrestling with weak industrial conditions. FedEx remains on track to separate into two entities: Express and Freight. This split should provide both companies with greater financial flexibility and accountability, allowing them to be run more efficiently. The market has consistently undervalued FedEx’s Freight operations, and a large discount to UPS is no longer warranted for the Express business. Tariff headwinds will be challenging to navigate, but we are glad the company is more on offence now than it has been in previous downturns.”
Overall, FDX ranks 4th on our list of top stocks in Bill Gates’ portfolio with huge upside potential. While we acknowledge the potential of FDX to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. 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 Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
