Bill Gates, the co-founder of Microsoft, is one of the richest people in the world with a net worth of over $100 billion. A significant portion of his wealth comes from his holdings in various companies and investments. In this article, we will look at Bill Gates’ largest holdings and investments to understand where his money is allocated.
Microsoft
Microsoft Corporation (MSFT) is Bill Gates’ most valuable holding. He owns about 1.3% of Microsoft’s outstanding shares, worth over $26 billion as of November 2022. Gates stepped down from Microsoft’s board in 2020 but still holds a significant stake in the company he co-founded in 1975.
Microsoft develops, licenses and supports software, services, devices and solutions that deliver increased productivity, security and digital transformation across a variety of computing devices. Some of its major products include Windows, Office, Azure, Dynamics, LinkedIn, Teams, Surface, and Xbox.
Even after retiring from day-to-day operations at Microsoft, Gates continues to be an integral part of the company’s future through his role as a technical advisor to CEO Satya Nadella. His large ownership stake gives him influence over Microsoft’s strategy and vision going forward.
Berkshire Hathaway
Berkshire Hathaway (BRK.A, BRK.B) is the second largest public holding in Bill Gates’ portfolio. He owns about 5.4% of Berkshire Hathaway’s class B shares, valued at over $12 billion as of November 2022.
Berkshire Hathaway is a multinational conglomerate holding company led by renowned investor Warren Buffet. It owns more than 60 subsidiaries across insurance, railroad, utilities, manufacturing services, retail and other sectors. Major subsidiaries include GEICO, Duracell, Dairy Queen, BNSF Railway, Fruit of the Loom among others.
Gates has been investing in Berkshire Hathaway stock since the mid-1990s and his stake has appreciated significantly over the decades. He is one of the largest individual shareholders of the company outside the Buffet family. Gates’ Berkshire holdings diversify his portfolio into Warren Buffet’s insurance-centered conglomerate.
Canadian National Railway
Canadian National Railway (CNI) is another public company that Bill Gates has a sizable stake in, worth about $5.8 billion as of November 2022. He owns over 14 million shares representing approximately 2% ownership of the company.
Canadian National Railway is Canada’s largest railway operating on a network spanning over 20,000 miles across North America. The company transports over $250 billion worth of goods annually across diverse sectors like petroleum, chemicals, grain and fertilizers, coal, metals and minerals, forest products etc.
Gates has held Canadian National Railway stock in his portfolio since 2006 reflecting his long-term conviction in the company. His stake gives him a substantial interest in Canada’s freight rail network.
Caterpillar
Caterpillar Inc (CAT) is one of the higher profile stocks that Gates has been consistently building exposure to since the mid 2000s. He owns over 11 million Caterpillar shares worth about $2.4 billion as of November 2022.
Caterpillar is the world’s leading construction and mining equipment manufacturer. It designs, develops, engineers, manufactures, markets and sells machinery, engines, financial products and insurance to customers via a worldwide dealer network.
Gates’ significant stake in Caterpillar gives him interests across construction, resource and energy industries which frequently use heavy machinery and equipment.
Waste Management
Waste Management Inc (WM) is a lesser known company in Bill Gates’ portfolio – he owns over 18 million shares worth close to $3 billion. This represents approximately 4.3% ownership in the waste management corporation.
Waste Management offers environmental services to nearly 21 million municipal, commercial and industrial customers across North America. This includes collection, transfer, recycling, disposal, and waste-to-energy services.
Gates has steadily expanded his position in Waste Management over the past decade. His substantial stake provides exposure to the growing waste management industry.
Walmart
Retail giant Walmart (WMT) is also one of Gates’ top public equities with a position size over $3 billion comprising 14.7 million shares. This makes Gates one of the top individual shareholders of Walmart.
Walmart operates over 10,500 stores under 48 banners in 24 countries and ecommerce websites. It is the world’s largest company by revenue, with sales of $573 billion in fiscal 2022.
Gates has been an investor in Walmart since the early 2000s. He was previously a board member of Walmart from 2005 to 2020 before stepping down. His stake in Walmart makes him an influential shareholder even after leaving its board.
Republic Services
Republic Services (RSG) is a waste management company that Bill Gates owns over 19 million shares in, worth about $2.6 billion currently. This represents approximately 6% ownership in the company.
Republic Services is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services in the United States. It serves over 15 million customers across 40 states and Puerto Rico.
Gates’ Republic Services investment further reinforces his bullishness on the waste management sector. He also owned a stake in the company’s competitor Waste Management as highlighted earlier.
Deere & Company
Deere & Company (DE) manufactures and distributes agriculture, construction, forestry machinery along with diesel engines and drivetrains. Gates owns approximately 10 million shares worth $4.3 billion based on Deere’s current market cap of $117 billion.
Deere is the world’s largest producer of agricultural equipment including tractors, combine harvesters, planters etc. It also has a significant finance arm that provides leasing and lending services. The company employs over 71,000 people worldwide.
Gates established his position in Deere around 2012 and has been accumulating shares steadily since then. His significant stake provides exposure to both industrial and financial services sectors.
Ecolab
Ecolab Inc (ECL) is a lesser known holding of Bill Gates’ that is worth highlighting – he owns over 9 million shares valued at approximately $1.5 billion currently.
Ecolab is engaged in water, hygiene and infection prevention solutions and services. Its offerings are used in hospitality, foodservice, healthcare, industrial and energy markets in over 170 countries.
Gates’ early investment in Ecolab in the 1990s has appreciated handsomely over the decades. He continues to retain a sizable stake in the company.
UPS
United Parcel Service (UPS) operates as a package delivery and logistics company globally. Bill Gates owns 10.9 million UPS shares worth around $1.8 billion based on current market pricing.
UPS delivers over 21 million packages and documents each day to over 220 countries and territories. It also provides global supply chain management solutions serving clients in healthcare, tech, retail, automotive and industrial sectors.
Gates has held UPS stock for many years and it forms a notable part of his equities portfolio. The stake provides exposure to the delivery and logistics industry which remains essential in ecommerce era.
Crown Castle
Crown Castle (CCI) owns, operates and leases shared communications infrastructure including cell towers and fiber networks. Bill Gates owns over 6 million CCI shares valued at close to $1 billion currently.
Crown Castle owns over 40,000 cell towers and 80,000 route miles of fiber supporting small cells and fiber solutions across every major US market. It has significant presence in top 10 markets and also internationally.
As an early investor in Crown Castle since the 2000s, Gates’ position reflects his bullish view on supporting infrastructure for communications networks.
Other Major Holdings
Some other public equities where Bill Gates owns at least $500 million worth of shares include:
- FedEx (FDX) – $753 million
- Schlumberger (SLB) – $565 million
- Otis Worldwide (OTIS) – $549 million
- Nextera Energy (NEE) – $521 million
Gates owns smaller positions in several other US public companies across diverse sectors like financials, consumer, industrials and healthcare.
Cascade Investment
Aside from public stocks, Bill Gates’ wealth is managed by his investment firm Cascade Investment which oversees his private equity, real estate and other assets.
Some of Cascade’s major holdings include:
- Four Seasons Hotels – Gates owns approximately 47% stake in the luxury hotel chain.
- Strategic Hotels & Resorts – Cascade has owned this hotel REIT in the past.
- Republic Services – Along with public shares, Cascade owns $1.7 billion of the waste management company’s preferred stock.
- AutoNation – Gates’ investment firm owns over 18% of America’s largest auto retailer.
- Signature Aviation – Cascade owns majority stake in this private jet services company.
- Ecolab – Aside from public stock, Cascade directly owns $900 million of preferred shares.
These private investments provide Gates greater flexibility in managing a sizable chunk of his enormous wealth.
Bill & Melinda Gates Foundation Trust
The Bill & Melinda Gates Foundation Trust is an independent charity fund that manages the billions donated by Bill and Melinda Gates to their philanthropic foundation. Assets of the trust stand at over $50 billion making it the world’s largest private foundation.
The trust’s investment objectives are to maximize returns to support the foundation’s philanthropic goals and cover operating costs. It actively manages a diversified portfolio comprising of equities, fixed income, emerging markets, currencies etc.
Some of the trust’s largest holdings include:
- Berkshire Hathaway – Over $28 billion allocation as of September 2022.
- Waste Management – $2.7 billion position.
- Crown Castle – $1.3 billion position.
- UPS – $1.1 billion position.
- Caterpillar – $1 billion position.
The overlap between Bill Gates’ personal holdings and the foundation trust’s holdings highlights alignment in their investment philosophy and objectives.
Conclusion
Bill Gates’ largest public holdings are in Microsoft, Berkshire Hathaway, Canadian National Railway and Waste Management where he owns over $1 billion worth of shares in each company. Other top stocks Gates owns include Caterpillar, Walmart, Deere & Company and Republic Services, among others.
Aside from public equities, Gates’ private investment firm Cascade Investment manages his stakes in real estate, hotels, utilities and other companies. The Bill & Melinda Gates Foundation Trust also actively invests the endowment to fund philanthropic initiatives.
Gates’ overall portfolio spans technology, transportation, energy, waste management, retail, industrial, healthcare and financial sectors. He holds a diverse mix of investments befitting his stature as one of the most wealthy and influential investors in the world.
