Bill Gates has invested billions of dollars in stocks to fund the Seattle-based Bill & Melinda Gates Foundation Trust, widely regarded as the world's largest private foundation, formed through the merger of the William H. Gates Foundation and the Gates Learning Foundation. According to the Trust, its aim is to address major humanitarian concerns such as poverty, a lack of opportunity, and infectious diseases. Over the past 30 years, Bill and Melinda have contributed an estimated $47.7 billion of their fortune to their foundation and predecessor. The foundation's trust maintains a highly concentrated equities portfolio, reflecting the influence of Bill Gates and his longtime friend and former foundation trustee, Warren Buffett.
The Bill & Melinda Gates Foundation has set a record $8.74 billion budget for 2025, with intentions to increase yearly distributions to $9 billion the following year. Mark Suzman, the foundation's CEO, stated that the record approval by its governing council is consistent with the foundation's goal of a world "where everyone, everywhere, deserves the chance to live a healthy, productive life."
Gates' predictions for AI
Previously regarded as an aspect of science fiction, AI appears to have entered ordinary life and is now finding its way to consumers and businesses. Bill Gates predicts that by 2035, artificial intelligence will take over roles traditionally held by doctors, teachers, and other professionals, ushering in what he calls the era of "free intelligence." According to Gates, this transition will result in rapid advancements in AI technology that will become firmly integrated into daily life, ranging from better healthcare solutions and more accurate diagnoses to broad access to AI tutors and virtual assistants.
However, while the potential is enormous, Gates admits that there are "understandable and valid" concerns about AI's existing capabilities. In a 2023 blog post, he stated that even the most advanced AI systems make mistakes and can contribute to the spread of misinformation. Still, Gates is optimistic: if he were to establish a new firm today, he told CNBC Make It in September 2024, it would be an "AI-centric" startup.
Our Methodology
For this list, we picked stocks from Bill & Melinda Gates Foundation Trust’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.
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 Microsoft Corporation (MSFT) the Best Safe Stock to Buy According to Hedge Funds?
A development team working together to create the next version of Windows.
Bill & Melinda Gates Foundation Trust’s Stake: $11.99 billion
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a leading technology firm recognized for its core software products, which include the Windows operating system, the Microsoft 365 suite, and the Edge browser. Its offerings include corporate software, software development tools, video games, gaming equipment, and cloud services.
On April 17, KeyBanc analysts downgraded Microsoft Corporation (NASDAQ:MSFT) from Overweight to Sector Weight, citing worries about the timing of AI demand and monetization. Microsoft has made substantial investments in artificial intelligence and its cloud computing service Azure, which have become key components of the company's development plan. The analysts' downgrade shows a cautious view on whether these investments will generate the projected returns.
Microsoft Corporation (NASDAQ:MSFT) reported $69.6 billion in revenue in the second-quarter of fiscal year 2025, a 12% increase from the previous year. Meanwhile, operational income increased by 17%, while the cloud segment reached a record $40.9 billion, up 21%, with Azure services alone increasing 31%. Furthermore, AI services fueled 13 points of Azure's growth, while Microsoft's commercial software category climbed by 14% to $29.4 billion.
Overall MSFT ranks 1st on our list of Bill & Melinda Gates Foundation Trust's stock picks. While we acknowledge the potential for MSFT 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
