Bill & Melinda Gates Foundation Trust’s Q3 2024 top 10 portfolio holdings analysis

MSFT – Microsoft Corp.
Portfolio Allocation: 27.64%
Recent Activity: Reduced 17.00%
Shares Held: 28,957,247
Reported Price: $430.30 per share
Value at Reported Price: $12,460,303,000

Microsoft remains the largest holding, even after a notable reduction in shares. Microsoft’s strong performance in software, cloud computing, and AI aligns with the foundation’s focus on tech-driven growth. The reduction may reflect profit-taking or portfolio rebalancing.

BRK.B – Berkshire Hathaway CL B
Portfolio Allocation: 22.6%
Recent Activity: Reduced 10.08%
Shares Held: 22,137,613
Reported Price: $460.26 per share
Value at Reported Price: $10,189,058,000

Berkshire Hathaway represents a significant portion of the foundation’s portfolio, despite the reduction in shares. Known for its diversified holdings and conservative management, Berkshire offers stability, aligning with the foundation’s long-term investment approach.

WM – Waste Management Inc.
Portfolio Allocation: 14.84%
Recent Activity: Reduced 8.51%
Shares Held: 32,234,344
Reported Price: $207.60 per share
Value at Reported Price: $6,691,850,000

Waste Management is a substantial holding, though shares were reduced. As a leader in waste disposal and recycling, Waste Management provides the foundation with exposure to the environmental services sector, benefiting from steady demand for sustainable waste solutions.

CNI – Canadian National Railway Co.
Portfolio Allocation: 14.25%
Recent Activity: No change reported
Shares Held: 54,826,786
Reported Price: $117.15 per share
Value at Reported Price: $6,422,958,000

Canadian National Railway remains a stable position. As a major North American rail network, CNI offers consistent returns and aligns with the foundation’s preference for essential infrastructure investments with long-term growth potential.

CAT – Caterpillar Inc.
Portfolio Allocation: 6.38%
Recent Activity: No change reported
Shares Held: 7,353,614
Reported Price: $391.12 per share
Value at Reported Price: $2,876,146,000

Caterpillar, a global leader in construction and mining equipment, continues to be a significant holding. This investment provides exposure to the industrial sector, benefiting from global infrastructure development and increased demand for heavy machinery.

DE – Deere & Co.
Portfolio Allocation: 3.29%
Recent Activity: No change reported
Shares Held: 3,557,378
Reported Price: $417.33 per share
Value at Reported Price: $1,484,601,000

Deere & Co., a leader in agricultural machinery, aligns with the foundation’s interest in agriculture and sustainability. Deere’s innovative approach to farming technology supports the foundation’s mission of promoting sustainable food production.

ECL – Ecolab Inc.
Portfolio Allocation: 2.95%
Recent Activity: No change reported
Shares Held: 5,218,044
Reported Price: $255.33 per share
Value at Reported Price: $1,332,323,000

Ecolab, a provider of water, hygiene, and energy technologies, offers exposure to sustainable solutions. This holding aligns with the foundation’s focus on environmental responsibility, as Ecolab’s services help companies manage water and energy use.

WMT – Walmart Inc.
Portfolio Allocation: 1.63%
Recent Activity: No change reported
Shares Held: 9,090,477
Reported Price: $80.75 per share
Value at Reported Price: $734,056,000

Walmart is a smaller but stable position in the portfolio. As a retail giant, Walmart provides steady cash flows and access to the consumer sector, benefiting from its large market share and essential goods focus.

FDX – FedEx Corp.
Portfolio Allocation: 1.54%
Recent Activity: Added 65.17%
Shares Held: 2,534,362
Reported Price: $273.68 per share
Value at Reported Price: $693,604,000

FedEx saw a significant increase in shares, indicating a growing confidence in the logistics sector. FedEx’s position as a leader in global logistics aligns with the foundation’s focus on essential services that facilitate global trade and connectivity.

KOF – Coca-Cola FEMSA S.A.B. de C.V.
Portfolio Allocation: 1.22%
Recent Activity: No change reported
Shares Held: 6,214,719
Reported Price: $88.72 per share
Value at Reported Price: $551,370,000

Coca-Cola FEMSA, the largest Coca-Cola bottler in Latin America, offers exposure to the beverage industry. This investment provides the foundation with access to consumer staples, supporting diversification and providing resilience against market volatility.

Analysis of the Bill & Melinda Gates Foundation Trust’s Q3 2024 Portfolio Strategy

1. High Concentration in Microsoft and Berkshire Hathaway
Microsoft and Berkshire Hathaway make up nearly half of the portfolio, reflecting a strong focus on technology and diversified investments. The reductions in both holdings suggest a strategy of profit-taking or rebalancing while maintaining core exposure.

2. Emphasis on Essential Services and Infrastructure
Significant positions in Waste Management, Canadian National Railway, and Caterpillar highlight a preference for companies providing essential services and infrastructure, aligning with the foundation’s focus on stability and long-term growth.

3. Selective Increase in Logistics with FedEx
The large addition to FedEx shows confidence in the logistics sector, capturing growth opportunities in global trade and e-commerce.

Conclusion
The Bill & Melinda Gates Foundation Trust’s Q3 2024 portfolio reflects a strategic focus on stability, essential services, and infrastructure, with high-conviction investments in Microsoft and Berkshire Hathaway. The portfolio is designed to balance growth in technology and resilience in consumer and industrial sectors, supporting the foundation’s mission with sustainable, long-term investments.