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 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 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 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 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 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.
8. Paccar Inc (NASDAQ:PCAR)
Bill & Melinda Gates Foundation Trust Equity Stake: $115.5 Million
Number of Hedge Fund Holders: 35
Stock Upside Potential: 17.48%
Paccar Inc (NASDAQ:PCAR) is one of the best stocks to buy according to billionaire Bill Gates. Paccar stock is up a modest 2.5% year-to-date, but analysts see the stock picking up pace over the next 12 months as market conditions improve.
In a move that could benefit Paccar Inc by fueling truck sales, a bill has been proposed in the Senate to end the truck tax. On June 2, Reuters reported that two US senators have proposed ending the 12% tax on heavy-duty trucks. The proposal was made by Senator Todd Young (Republican) and Senator Angela Alsobrooks (Democrat).
According to these senators, this federal excise tax adds $15,000 to $30,000 to the cost of a new heavy-duty truck. As a result, the tax encourages continued use of older truck models. It’s estimated that roughly one-fifth of large trucks on the road run on engines produced before 2010. The lawmakers argue that ending this tax could boost sales of newer truck models that are safer and more fuel-efficient.
Paccar Inc manufactures commercial trucks. Its portfolio includes light-duty, medium-duty, and heavy-duty trucks, which are sold under brands such as Kenworth, Peterbilt, and DAF. The company also makes advanced diesel engines, distributes truck parts, and offers financial services to customers.
7. Coupang Inc (NYSE:CPNG)
Bill & Melinda Gates Foundation Trust Equity Stake: $174.6 Million
Number of Hedge Fund Holders: 86
Stock Upside Potential: 53.33%
Coupang Inc (NYSE:CPNG) is one of the best stocks to buy according to billionaire Bill Gates. The Street sees a more than 50% upside potential in Coupang stock from the current level.
Coupang Inc is shaking up Japan’s food delivery industry with its Rocket Now delivery service. According to a June 3 report in the Nikkei Asia newspaper, Rocket Now is performing well against Uber Eats and other incumbents in Japan. The Rocket Now app downloads have surpassed 6 million since launch in January 2025.
Coupang has partnered with more than 10,000 restaurants across Japan to deliver meals through Rocket Now. But it’s how the arrangement works that stands out. Rocket Now provides meals at the same price as diners see on restaurant menus, it offers free delivery, and it does not charge a service fee. This model cuts costs for customers, drives order volumes for restaurants, and fuels the delivery business for Rocket Now.
According to Coupang’s country manager for Japan, Daniel Jaramillo, Rocket Now negotiated with restaurants and developed a fee structure that satisfied both parties. Groceries and prescription drug deliveries are other business opportunities for Rocket Now. For now, however, the service is focused on meal deliveries.
Coupang Inc is an e-commerce company focused on the Asian market. It primarily operates in South Korea and Taiwan. It sells a vast array of goods, including everyday consumer items, fresh groceries, and electronics. Coupang also offers food delivery, cloud computing, and video streaming services.
6. FedEx Corp (NYSE:FDX)
Bill & Melinda Gates Foundation Trust Equity Stake: $849.3 Million
Number of Hedge Fund Holders: 86
Stock Upside Potential: 26.73%
FedEx Corp (NYSE:FDX) is one of the best stocks to buy according to billionaire Bill Gates. FedEx shares are up more than 50% over the past six months and have soared more than 85% over the past year. Analysts see more upside in the stock.
On June 1, FedEx Corp completed the spinoff of its freight business into a separate publicly traded company called FedEx Freight (NYSE:FDXF). FedEx Freight shares began trading on the same day, with BofA Securities initiating the stock with a Buy rating and a price target of $185.
FedEx Freight is primarily focused on the less-than-truckload shipping business, and it’s the market leader with roughly 16% market share.
FedEx retained a 19.9% stake in FedEx Freight. Before the spinoff, this business represented around 9% of FedEx’s revenues at about $9 billion per year. It contributed roughly 15% of operating income at around $1 billion.
The FedEx Freight management has said the spinoff will allow the business to pursue growth more aggressively. The management is targeting 4% and 5% compound annual revenue growth, and 10% to 12% operating income growth over the medium term.
FedEx plans to dispose of its shares in FedEx Freight within two years for reasons that include debt repayment and dividend distribution.
FedEx Corp provides transportation, ecommerce, and logistics services. The company is best-known for its shipping services, where it handles the delivery of packages, freight, and documents through air and land.
5. Walmart Inc (NASDAQ:WMT)
Bill & Melinda Gates Foundation Trust Equity Stake: $1.0 Billion
Number of Hedge Fund Holders: 99
Stock Upside Potential: 25.47%
Walmart Inc (NASDAQ:WMT) is one of the best stocks to buy according to billionaire Bill Gates. While Walmart stock pulled back 12% in May, analysts see the stock rising at least 25% over the next year.
On May 21, Walmart Inc released its fiscal Q1 2027 results that showed improvements in revenue and profit. The company also issued Q2 and full-year guidance, indicating growth.
Pixabay/Public Domain
In Q1, the retailer’s revenue rose 7.3% YoY to $177.8 billion. This growth was supported by a 26% increase in global e-commerce sales and a 37% jump in advertising sales. Membership fees also contributed to the growth, with fee revenue rising 17.4% globally.
That topline growth drove bottom-line improvements. EPS increased 19.5% YoY to $0.67 on a reported basis. The retailer exited the quarter with $10.7 billion in cash. It repurchased 16.6 million shares during the quarter, spending $2.1 billion on the program. Walmart has $28.2 billion remaining under its existing stock buyback authorization.
Looking ahead, Walmart expects its Q2 net sales to increase 4% to 5% YoY over the $175.8 billion it reported a year ago. It anticipated adjusted EPS in the band of $0.72 to $0.74, compared to $0.68 a year ago. For the fiscal year, the retailer expects its net sales to increase 3.5% to 4.5%.
Walmart Inc is a retail company that operates hypermarkets, department stores, grocery stores, and pharmacies. It operates stores under the namesake Walmart and Sam’s Club brands. In addition to a network of physical stores, Walmart serves shoppers through online platforms.
4. Ecolab Inc (NYSE:ECL)
Bill & Melinda Gates Foundation Trust Equity Stake: $1.4 Billion
Number of Hedge Fund Holders: 60
Stock Upside Potential: 24.71%
Ecolab Inc (NYSE:ECL) is one of the best stocks to buy according to billionaire Bill Gates. Wall Street sees at least 24% upside in Ecolab shares from the current level.
On May 12, Ecolab Inc released its 2025 growth and impact report. The report highlights how the company continues to deliver strong business results while deepening its impact on areas that matter most.
On business performance, Ecolab said it delivered record sales, EPS, and cash flow in 2025. On the impact side, the company said it helped conserve 245 billion gallons of water, adding that this amount is equivalent to the annual drinking water needs of more than 849 million people.
Additionally, the company said it helped avoid 4.7 million metric tons of greenhouse gas emissions. This helped reduce pollution-related health risks. Ecolab also said its efforts contributed to improved food safety to protect 1.7 billion people from food illnesses and infections.
Moreover, Ecolab said its products and services generated $12.9 billion in cumulative value. The company also invested $24.2 million globally to strengthen communities where it operates. According to Ecolab, business performance and impact fuel each other.
Ecolab Inc provides water treatment, sanitation, and hygiene products. Its solutions range from water purification services to cleaning products. It mainly serves commercial customers across industries such as food service, hospitality, healthcare, and manufacturing.
3. Deere & Co (NYSE:DE)
Bill & Melinda Gates Foundation Trust Equity Stake: $2 Billion
Number of Hedge Fund Holders: 62
Stock Upside Potential: 14.60%
Deere & Co is one of the best stocks to buy according to billionaire Bill Gates. Deere shares have gained more than 20% over the past six months, and analysts continue to see upside potential in the stock.
Investors bid up Deere stock by almost 7% on June 2 after the White House announced a reduction of tariffs on farm and construction equipment. Deere & Co makes tractors and bulldozers, among other equipment and machinery. The Trump administration slashed the tariffs on imported agricultural and construction equipment to 15% from 25%, effective June 8.
The reduced tariff will run through the end of 2027, and the cut is intended to provide relief for farmers by making the equipment more affordable. The cut is also intended to boost investment in the industrial economy. In its fiscal Q2 2026, which ended May 3, Deere recorded $272 million in tariff refunds.
Ahead of the tariff cut, RBC Capital on May 25 raised its price target on Deere shares to $752 from $736 while keeping an Outperform rating on the stock. For this call, the brokerage pointed to Deere’s strong fiscal Q2 results that exceeded expectations despite the company facing various headwinds. The firm also noted that Deere kept its fiscal 2026 guidance intact.
Deere & Co is a manufacturer of agricultural, construction, and forestry machinery. It also offers equipment parts, such as engines and drivetrains. Additionally, the company provides financial services designed to help customers purchase its products.
2. Waste Management Inc (NYSE:WM)
Bill & Melinda Gates Foundation Trust Equity Stake: $6.4 Billion
Number of Hedge Fund Holders: 61
Stock Upside Potential: 21.31%
Waste Management Inc (NYSE:WM) is one of the best stocks to buy according to billionaire Bill Gates.
On May 13, Waste Management Inc named Tara Hemmer as its new chief operating officer (COO). With this appointment, the company is betting on a longtime insider to oversee its operating platform. Hemmer has been with Waste Management since 1999, rising through the ranks to various leadership roles.
Before the latest appointment, Hemmer has been serving as Waste Management’s chief sustainability officer. In this position, she leads the company’s recycling and renewable energy businesses.
Waste Management has added 37 recycling facilities and 14 renewable natural gas sites to its network in the five years that Hemmer has been at the helm of the sustainability division. Hemmer will continue to lead the sustainability division even as she takes the COO role.
Notably, the COO appointment comes as Waste Management continues to add capacity in growing markets. During Q1 2026, the company completed three recycling facilities to add 300,000 tons of processing capacity. Recycling, renewable energy, and medical waste processing are some of the markets in which the company has made strategic investments and sees huge opportunities.
Waste Management Inc provides waste management services across the US and Canada. Its operations cover waste collection, landfill disposal, recycling, and hazardous waste processing. The company also operates a renewable energy business.
1. Berkshire Hathaway B (NYSE:BRK.B)
Bill & Melinda Gates Foundation Trust Equity Stake: $8.2 Billion
Number of Hedge Fund Holders: 126
Stock Upside Potential: 13.41%
Berkshire Hathaway B (NYSE:BRK.B) is one of the best stocks to buy according to billionaire Bill Gates. Berkshire Hathaway stock is backed by 130 hedge funds. Analysts see at least a 13% upside in Berkshire shares from the current level.
On May 31, Berkshire Hathaway B said it would acquire homebuilder Taylor Morrison Home Corporation (NYSE:TMHC) for roughly $6.8 billion in cash.
Arizona-based Taylor Morrison owns more than 350 communities across 12 states. It’s one of America’s largest community developers and homebuilders. It also offers financial services, including loans, insurance, titles, and escrow to consumers.
The Taylor Morrison deal sets Berkshire on track to deepen its presence in the US housing market. Berkshire owns Clayton Homes and has a stake in Lennar Corp. The company intends to unify its various homebuilding operations into a combined platform.
This deal comes when Berkshire has built a huge cash pile. At the end of Q1 2026, the conglomerate was sitting on a $397 billion cash trove, a record level. Berkshire expects to close the acquisition of Taylor Morrison in the second half of 2026.
Berkshire Hathaway B is a sprawling conglomerate that owns a diverse mix of businesses. Insurance is its cornerstone business, and its brands in this space include GEICO and General Re. Berkshire also owns railroad, energy, and manufacturing businesses. It also has large equity stakes in some of America’s blue-chip companies.
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