There are well-heeled stock investors who believe in holding a tightly concentrated portfolio, and those more comfortable with a long list of diversified titles. Judging by the charity-focused investment vehicle that bears his surname, Microsoft(NASDAQ: MSFT) co-founder and former CEO Bill Gates belongs firmly in the first camp.
That's because the recently renamed Gates Foundation Trust continues to weigh its portfolio heavily in favor of three very familiar titles. The three ranked by total dollar value as of the end of 2024 are Microsoft, Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B), and Waste Management(NYSE: WM). Here's more on the trio.
1. Microsoft
One very sturdy piece of investment wisdom is to buy and hold assets you're familiar with. Well, this holding is Exhibit A for that strategy.
The globe-conquering company Gates helped launch just about 50 years ago is front and center in the trust; according to the organization's most recent 13F regulatory filing (in which investment managers divulge their equity portfolios), far and away the No. 1 position was Microsoft. The trust possessed slightly less than 28.5 million shares of the tech giant, a stake valued at nearly $12 billion.
While sentimentality might be playing some part here, objectively speaking Microsoft stock has been a fine investment over the years. The company continues to be highly and reliably profitable, and at times boasts growth rates that would be the envy of even the most ambitious tech start-up. It continues to be a major player in many different niches in its field.
The future looks bright too, particularly with the currently insatiable demand for artificial intelligence (AI) functionalities. Microsoft has made a huge financial commitment to this, in the form of heavy direct investments into leading AI company OpenAI. If any company is going to benefit handsomely from the hungry take-up of AI, it's Microsoft.
2. Berkshire Hathaway
The runner-up crown goes to another famous corporate entity, Warren Buffett's hallowed investment vehicle, Berkshire Hathaway. Buffett is a friend and mentor to Gates, with the two men creating the Giving Pledge in 2010. This is an organization that aims to inspire high net worth individuals like themselves to promise to donate more than half their wealth to charitable causes.
The Gates Foundation receives Berkshire Class B shares directly from Buffett, who donates some of his own holdings to various non-profits. As of the end of last year, the foundation held a bit under 19.7 million shares of Buffett's company. At the time this pile was worth more than $8.9 billion.
Besides being associated with one of history's greatest investors, Berkshire is known for its sprawling equity portfolio. Reflecting Buffett's investment philosophy, it prefers buy-and-hold stakes to quick dips in and out of the market. Credit card mainstay American Express is a position that dates back to 1964, for example, while its Coca-Cola stake is approaching its 40th anniversary.
Buffett and his lieutenants have recently been extremely selective in buying stocks, preferring instead to invest in U.S. Treasury bills and maintain a huge cash position. But the cagey investor loves holding shares, so sooner or later Berkshire is sure to switch back to a more assertive equity-buying strategy.
3. Waste Management
The foundation's No. 3 title is Waste Management, with a 32.2 million-plus shareholding that exceeded $6.5 billion in value as 2024 came to a close.
Waste Management boasts one of the most accurately self-descriptive names in all of American business. It also happens to be the largest company of its type by revenue. To give some sense of scope, its full-year 2024 top line exceeded $22 billion. And yes, as usual it was highly profitable, with headline net income approaching $2.75 billion for the 12 months.
People and businesses in this country are eager consumers, and high consumption means high amounts of waste. It isn't a glamorous job moving and disposing of it, but in the right hands it sure is lucrative. As Microsoft's leader for many years, Gates surely values a steady, reliable business that consistently books a profit.
It also returns cash to its investors, which can be a real boon to any entity with a large position in the company. Waste Management has been a regular dividend payer since 1999, and has raised its payout once annually for over 15 years. It and Microsoft are the only two stocks in the top three that pay a dividend, and of the pair Waste Management's has the higher yield (at 1.5% versus Microsoft's 0.8%).
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American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Microsoft. The Motley Fool recommends Waste Management and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
