Bill Gates is Looking For Cash in Trash

Bill GatesBill Gates’ foundation has been aggressively purchasing shares of Republic Services Inc (RSG) over the past month. The foundation spent more than $200 million on 7.5 million shares of the waste management company. This is an increase of nearly 12% in its holdings. Bill Gates has nearly $2 billion invested in RSG. He paid $26.72 per share on average since April 29. The stock currently trades at $26.28.

Republic Services is moderately popular among hedge funds. There were 24 hedge funds with bullish positions in the stock at the end of March. That number stood at 20 at the end of December. John Osterweis has more than $80 million invested in the stock, followed by Steven Richman’s $52 million position. Adage Capital, D. E. Shaw, and Kingdon Capital are the other hedge funds with $10+ million positions in the stock. Billionaire Ray Dalio sold out his $10 million position in RSG during the first quarter.

Bill Gates has been a consistent buyer of the stock whereas the rest of the insiders of the company have been executing their stock options and selling the stock in the open market. We don’t think Bill Gates’ transactions are motivated by inside information. However he has been stepping in to buy these shares whenever the stock plunges. He thinks $27 per share is an attractive price to buy RSG. He spent $103 million last August and $110 million last December when the stock was trading around $27. On April 27 RSG plunged 13% after the company announced a 9.7% decline in profit. The company also lowered its guidance to $1.86-$1.90 range.

This is not a stock that will make an investor rich. This is a stock that will keep them rich. At $26 per share the stock is trading at less than 14 times its 2012 guidance. The earnings yield is more than 7% and the stock has a dividend yield of 3.35%. Honestly we prefer RSG to 10-year Treasury bonds that yield almost 1.5%. RSG is a long-term conservative stock pick that will return cash to shareholders at a higher rate than Treasury bonds.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!