We earlier published a report on the investment portfolio of Jeff Bezos and what we understood by our readers’ response was- everyone wants to learn from the most successful players about making money from their investments. And why not? Whether you are a beginner investor or a pro, learning from the best in the game is the wisest thing to do. When we talk about people who have aced their money game, there are few names that one can never miss out on. One of them is the Founder of Microsoft and the world’s third-richest man- Bill Gates. This time, we present you an insight into the top 10 stock picks of companies that appear in the investment portfolio of Bill Gates.
One of the major reasons why the money of the billionaires around the world multiply is their investments. Bill Gates’ investment portfolio reflects the strategy of investing in a diverse set of companies and stock picks. With almost $123 billion in his net worth, you must be curious as to where he invests his money.
We have compiled a list of major stock picks of companies and other core of Bill Gates’ investment portfolios that will give you an insight into the strategy of the legend.
If not imitate, at least you can understand the industries to go for and what to avoid.
Below is a list of the top ten companies in which Bill Gates has made investments. The list includes a percentage of the portfolio and the number of shares in that company.
Top 10 Stock Picks That Appear In Bill Gates’ Investment Portfolio To Help You Form Better Strategy
1. Berkshire Hathaway (BRK.B)
Warren Buffett is a good friend of Bill Gates and 45% of Microsoft Founder’s stocks are invested in Berkshire Hathaway. Berkshire Hathaway is the world’s one of the most famous hedge funds and has earned almost $45.2 billion for 2020 (a drop due to pandemic), making it a safe bet for investments. This company, however, is not paying any dividends on its shares as of now.
- Portfolio: 45.43%
- Number of shares: 47,104,399
2. Waste Management (WM)
There are very few companies that remove waste and are providing recycling services in a sustainable and streamlined fashion. So whatever industries are there, they control the market. This industry is a good option for investment as it has a dividend yield of 1.9%. This is currently placed second on Bill Gates’s investment portfolio. Its dividend yield is constantly growing and is expected to grow over 2.3%.
- Portfolio: 9.55%
- Number of shares: 18,633,672
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3. Canadian National Railway (CNI)
This railway network covers 19,000 miles spread over the USA and Canada. It provides many services including rail, freight, warehouse, etc. Right now this is not a very good option for investment as this company’s wealth largely depends upon coal and mining. However, with only a 0.4% dividend yield this is on the third number in Bill Gates stock-picks list.
- Portfolio: 8.26%
- Number of shares: 17,126,874
4. Caterpillar (CAT)
Caterpillar is a global company that specializes in manufacturing heavy machinery for construction and mining. Though there was a decline in revenue during the pandemic in 2020, this company is expected to grow a lot in the coming years as infrastructural development is booming everywhere. With around 2.3% current dividend yields, it becomes a good option for investment.
- Portfolio: 7.61%
- Number of shares: 11,260,857
5. Walmart (WMT)
Walmart is a market giant and is still expected to grow a lot in the coming years. This company has been considered to be recession-resistant as it has given a positive yield for over 47 years. Though right now it is only giving a dividend yield of 1.9%, but is still a wonderful option for investment. In the coming years, Walmart is already winning with its eCommerce operations.
- Portfolio: 7.35%
- Number of shares: 11,603,000
6. Crown Castle International (CCI)
This is a real estate investment trust that owns several cell phone towers and provides connections where large towers cannot reach. It has had steady growth and is expected to have more than $375 million growth. Crown Castle International is also considered to be comparatively recession-resistant. The company has given a dividend yield of 3.5%.
- Portfolio: 4.02%
- Number of shares: 5,332,900
7. Ecolab (ECL)
This industry provides cleaning products and has three major business segments. With around 8000 patents, this company is the biggest in its sector which is beneficial to its investors. Since cleaning products are always in demand regardless of the economic conditions of the country; this is also one of the recession-resistant industries. It has provided positive dividend yield even during the worst recession in US history, after Great Depression. Makes sense why it appears in Bill Gates’ investment portfolio.
- Portfolio: 3.95%
- Number of shares: 4,366,426
8. FedEx (FDX)
Another trusted name in Bill Gates’ investment stock-picks. FedEx is one of the largest shipping and transport companies. It would be difficult for any other company to establish itself and reach this level; therefore, there is immense growth potential here. This is one of the few companies that have provided exponential returns during the pandemic. However, this company cannot be considered as a recession-resistant choice for investment as its services will surely decline during a recession. Consider your risk-taking capacity before going by Bill Gates’ investment strategy.
- Portfolio: 3.45%
- Number of shares: 3,024,999
9. United Parcel Service (UPS)
On number nine in this list of companies appearing in Bill Gates’ investment portfolio is the United Parcel Service (NYSE: UPS). Bill Gates has held stocks in this company since 2004. He has been earning huge profits from this investment for the past several years. This is one of the companies that have earned profit during the pandemic. The investment in UPS is a good option as it either remains flat or has a 2.4% better dividend yield than any other company.
- Portfolio: 3.42%
- Number of shares: 4,525,329
10. Coca-Cola FEMSA SAB (KOF)
There has been a question circulating on the web if Bill Gates owns Coca-Cola. The answer is- No! The philanthropist only owns shares in the company. The tenth position on this list of Bill Gates’ investment companies is held by Coca-Cola FEMSA, S.A.B. de C.V (NYSE: KOF). Bill Gates has had stocks in this company for over fifteen years now. The value of his shares in this company is well over $253 million. The increase in the competition in this market has put these shares under some pressure but brand legecy has a lot to offer.
- Portfolio: 1.15%
- Number of shares: 6,214,719
These are the ten companies where the world’s second-richest man has invested most of his money. From Warren Buffett’s Berkshire Hathaway to Coca-Cola and United Post Services, this list contains the percentage of Gates’s portfolio and a number of shares.
Related Sources- The Investor’s Podcast