Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

My Top 2 Bill Gates Picks

Page 1 of 2

The Internet would not have grown as quickly as it did without Bill Gates. The Microsoft founder standardized software for the personal computers that are now linked together on the Internet.

From our current perspective, it is obvious that software needs to be compatible with other software. But, in the 1980s, before Microsoft made Gates a billionaire, it was actually common to find computers even within a single office with different operating systems and software products like word processing. Gates saw through the disorder and provided standards that made PCs more useful, setting the stage for the Internet.

An Interesting Microsoft Corporation (MSFT), Google Inc (GOOG) Showdown

His investment style shows a similar ability to create order. According to recent SEC filings, Gates controls more than $17 billion worth of stock market investments through the Bill and Melinda Gates Foundation. Of all the thousands of potential investments, this fortune is invested in only 21 stocks. Gates obviously likes to focus his attention on just a few opportunities at any one time.

His largest investment is in Berkshire Hathaway Inc. (NYSE:BRK.B). The Gates Foundation owns more than $8 billion worth of this stock. Bill Gates also sits on the Board of Directors of Berkshire Hathaway and has access to the investment insights of Warren Buffett.

It is interesting to note that Gates did not make any new buys in the three months that ended June 30, 2013. He did sell five stocks that made up only a small part of his portfolio.

We can see that Gates is a patient and selective investor. As individual investors, it can be difficult to be as patient as a billionaire. Meeting our financial goals generally requires us to earn a profit on our investments in a reasonable amount of time. To do this, I developed a trading system that identifies timely buying opportunities.

I start with a list of stocks owned by great investors like Gates. He has access to brilliant analysts, and they have selected each stock based on its long-term potential. I then look for the stocks on that list that are moving higher faster than the rest of the market and are increasing cash flow.

Relative strength (RS) is a way to identify stocks that are moving higher now. It ranks all investments on a scale of 0 (weakest) to 100 (strongest). A number of research studies show stocks that have moved up the most in the past six months (those with high RS) are likely to outperform the market in the next six months.

Cash flow growth is often seen among stock market winners. This is a fundamental measure that is usually more reliable than earnings.

My system buys when RS is high and cash flow is growing. From the list of stocks in the Gates Foundation, only two are considered buys using these rules right now.

Known for environmentally friendly products, Ecolab Inc. (NYSE:ECL) is a consumer goods company that serves a variety of markets. The company offers cleaners and sanitizers for washing dishes and kitchen equipment for the food service industry, and housekeeping supplies for the hospitality industry. It also provides products for the health care, industrial and energy markets.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!