In this article, we will discuss the 10 Best Stocks to Buy According to Billionaire Bill Gates.
There are far too many urgent problems to solve rather than holding onto resources that could help people. It is a sentiment echoed by billionaire investor Bill Gates, who reiterated plans to ramp up philanthropic activities last May with plans to give away $200 billion over the next two decades.
True to his word, Gates has tweaked his exposure to equity markets over the past year through the Bill & Melinda Gates Foundation Trust, aiming to raise capital for philanthropic work.
“That is why I have decided to give my money back to society much faster than I had originally planned,” Gates wrote in announcing his philanthropic plans last May.
Once the richest person in the world, Gates has exited all his holdings in Microsoft following the sale of 7.7 million shares for about $3.2 billion.
Following the sale, Gates has diversified his holdings into some of the biggest names known for their bumper dividend payouts in pursuit of passive income. Alongside the high-profile names, Gates has also spread market risk across a few under-the-radar names.
The Gate’s Trust is best known for value investing, which favors large, established companies with a strong competitive edge. In addition, it focuses on growth stocks with tremendous long-term prospects, strongly influenced by Warren Buffett, one of the foundation’s largest donors.
With that in mind, let’s take a look at some of the best stocks to buy according to billionaire Bill Gates.
Bill Gates
Our Methodology
To compile this list of the 10 best stocks to buy according to billionaire Bill Gates, we began by scanning Bill & Melinda Gates Foundation Trust’s 13F portfolio as of the end of Q1 2026. Next, we analyzed the hedge fund’s top 20 stock holdings to identify stocks with at least 10% upside potential. We then reviewed hedge fund sentiment around these stocks using Insider Monkey’s database of Q1 2026 13F filings, which tracks the number of hedge funds holding each security. Finally, the stocks were ranked in ascending order based on the value of the Bill & Melinda Gates Foundation Trust’s stake in each company.
“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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).”
Best Stocks to Buy According to Billionaire Bill Gates
10. McDonald’s Corp (NYSE:MCD)
Bill & Melinda Gates Foundation Trust Equity Stake: $104.1 Million
Number of Hedge Fund Holders: 83
Stock Upside Potential: 21.11%
McDonald’s Corp (NYSE:MCD) is one of the best stocks to buy according to billionaire Bill Gates. Analysts see more than 20% upside potential on MCD stock from the current level.
On June 1, McDonald’s Corp (NYSE:MCD) unveiled a new set of strategies designed to drive the next phase of its growth. The plan is called McDonald’s NEXT. This plan focuses on raising standards for hospitality, increasing automation, making food items taste better, and expanding social media marketing.
All this is part of an effort to make McDonald’s customers’ first choice. It turns out that the chain lost favor with some customers in recent years. According to a survey from UBS Evidence Labs, 55% of US customers in 2020 said McDonald’s offered good value. That dropped to roughly 44% in 2024 and has largely remained at that level.
McDonald’s NEXT plan aims to bring in more customers and encourage customers to visit McDonald’s locations more often. Additionally, this plan aims to make McDonald’s stores easier to run for franchisees. The restaurant chain’s previous corporate strategy was unveiled in 2020, and it focused on digital sales and marketing.
Earlier on May 21, McDonald’s declared a quarterly dividend of $1.86 per share, payable June 16, 2026, to shareholders of record on June 2 with an ex‑dividend date of June 1; the annualized payout of $7.44 represents a 2.7% yield.
McDonald’s Corp (NYSE:MCD) operates a fast-food restaurant chain. It has thousands of restaurant locations across more than 100 countries. McDonald’s restaurants serve a wide variety of food items, including burgers, chicken, fries, and beverages, to millions of customers every day.
9. West Pharmaceutical Services Inc (NYSE:WST)
Bill & Melinda Gates Foundation Trust Equity Stake: $111.4 Million
Number of Hedge Fund Holders: 50
Stock Upside Potential: 13.49%
West Pharmaceutical Services Inc (NYSE:WST) is one of the best stocks to buy according to billionaire Bill Gates. WST stock is up around 14% year-to-date and has gained nearly 50% over the past year. Analysts still see upside potential in the stock.
On May 31, Wolfe Research initiated coverage of West Pharmaceutical Services Inc (NYSE:WST) stock with an Outperform rating and a price target of $375. The brokerage based its decision on the company’s business fundamentals and valuation history.
Based on Wolfe Research’s earnings estimates for West Pharmaceutical Services, the price target represents 40 times projected EPS for 2027. According to the firm, WST stock has typically traded around 40 times earnings over the past 15 years.
Additionally, the firm noted that West Pharmaceutical has historically commanded a premium of more than 100% to the S&P 500. Furthermore, the firm pointed out that even when compared with companies in its own sector, West Pharmaceutical’s stock has historically traded at a substantial premium of 75%.
Therefore, Wolfe Research sees its valuation for West Pharmaceutical stock as supported by both historical trading patterns and the outlook for future earnings growth.
West Pharmaceutical Services Inc (NYSE:WST) manufactures packaging and delivery systems for injectable medicines. Its portfolio includes rubber stoppers, seals, plungers, prefilled syringes, and self-injection devices. Pharmaceutical and biotechnology companies use these components to safely store and administer drugs.
