Bill Gates' $47 Billion Stock Portfolio Revealed.

Summary

The video delves into Bill Gates' stock portfolio, which significantly supports the Bill and Melinda Gates Foundation's charitable initiatives. As of June 30, 2024, the portfolio is valued at approximately $47.76 billion, with the top five holdings—Microsoft, Berkshire Hathaway, Waste Management, Canadian National Railway, and Caterpillar—accounting for a substantial portion of the investments. These companies, known for their competitive advantages and consistent dividend payouts, reflect a strategic, long-term investment philosophy. The analysis emphasizes Gates' focus on stability and growth, showcasing how these investments help fund the foundation's global efforts.

Takeaways

• 😀 Bill Gates is known as the co-founder of Microsoft and runs one of the world's largest charitable foundations, the Bill and Melinda Gates Foundation.
• 😀 The Gates Foundation operates with an annual budget of $7.75 billion, funded largely by Gates's stock portfolio valued at approximately $47.76 billion.
• 😀 The foundation utilizes an endowment model, investing its capital to generate income for long-term funding of its charitable initiatives.
• 😀 The top five companies in Gates's stock portfolio account for 88% of its total weight, indicating a concentrated investment strategy.
• 😀 Microsoft is the largest holding in Gates's portfolio, valued at $15.6 billion, and has seen its net income grow by 24.5% annually over the last decade.
• 😀 Gates's portfolio includes Berkshire Hathaway, which does not pay dividends but represents significant capital growth through shares donated by Warren Buffett.
• 😀 Waste Management is a key investment, providing approximately $98.6 million per year in dividends, highlighting the importance of stable cash flow.
• 😀 Canadian National Railway, another major investment, benefits from a strong market position in freight transport and pays dividends totaling around $17.2 million annually.
• 😀 Caterpillar, a leading manufacturer of construction equipment, is also a significant holding, contributing approximately $36.8 million in dividends to the foundation.
• 😀 Gates's investment strategy focuses on companies with competitive advantages and solid financial performance, ensuring long-term sustainability for the foundation's charitable work.

Q & A

What is the primary purpose of the Bill and Melinda Gates Foundation?

The foundation aims to solve difficult global problems and operates across 130 countries, focusing on various charitable endeavors.

How does the Gates Foundation fund its activities?

The foundation's funding primarily comes from the income generated by Bill Gates' stock portfolio, which is invested across various assets to generate returns.

What percentage of Bill Gates' stock portfolio is concentrated in the top five companies?

The top five companies account for approximately 88% of the portfolio's weight.

What role does Michael Larson play in the Gates Foundation's investment strategy?

Michael Larson and his firm, Cascade Investments, have been responsible for managing the foundation's portfolio for nearly 30 years.

Which company is the largest position in Bill Gates' stock portfolio?

Microsoft is the largest position, valued at around $15.6 billion as of June 30, 2024.

What financial strategy does the Gates Foundation employ for its investments?

The foundation operates on an endowment model, investing capital to generate returns while ensuring long-term sustainability for its charitable activities.

What is the significance of Berkshire Hathaway in Gates' portfolio?

Berkshire Hathaway, which does not pay dividends, is significant due to Warren Buffett's annual donations of shares to the foundation, enhancing its capital position.

How does Caterpillar generate income for the Gates Foundation?

Caterpillar provides a steady income stream through dividends, contributing approximately $36.8 million annually to the foundation.

What types of goods does Canadian National Railway transport?

Canadian National Railway transports a diverse range of goods, including petroleum, chemicals, fertilizers, grains, and automotive products.

What are some of the benefits of investing in Waste Management for the Gates Foundation?

Waste Management offers a stable business model, consistent revenue growth, and significant dividends, generating around $98.6 million per year for the foundation.