In this article we discuss the 10 best stocks to buy now according to Bill Gates.
The creator of tech giant Microsoft Corporation (NASDAQ:MSFT) Bill Gates has put billions of dollars into stocks to fund his humanitarian options through the Seattle-based Bill & Melinda Gates Foundation Trust which is well-known as the world’s biggest private charity foundation launched in 2000. According to the organization, its mission is to address important human issues such as poverty, sickness, food instability, and a lack of opportunity.
Portfolio manager Michael Larson oversees the team of analysts in managing the portfolio. The foundation’s portfolio manager invests in firms with a proven business plan and a track record of providing consistent returns to investors. At the end of the first quarter, the foundation’s stock portfolio is valued at around $20 billion.
Bill & Melinda Gates Foundation Trust Sells Amazon, Apple, and Twitter.
Bill & Melinda Gates Foundation recently disclosed its 13F holdings data for the first quarter of 2021. The fund sold its stakes in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Twitter, Inc. (NYSE:TWTR).
Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based tech company that has over 150.6 million users. Amazon.com, Inc.’s (NASDAQ:AMZN) net income came in at $8.1 billion in the first quarter of 2021, up from $4.0 billion in the first quarter of 2020. AMZN shares currently trade for $3,198.01 and have a P/E ratio of 60.84. The 52-week price range of Amazon.com, Inc.’s (NASDAQ:AMZN) is $2,503.35-3,554.00. On May 12, Citigroup held its Buy rating on AMZN and raised the price target to $4,175.
Another stock that Bill and Melinda Foundation Trust sold is California-based technology company Apple Inc. (NASDAQ:AAPL). Apple Inc.’s (NASDAQ:AAPL) revenue in the first quarter of 2021 came in at $111.4 billion, up 21% year-over-year. AAPL shares currently trade for $3125.90 and have a P/E ratio of 28.30. The 52-week price range of Apple Inc.’s (NASDAQ:AAPL) is $83.00-145.09. Shares of AAPL jumped 51% over the last twelve months. On May 19, Barclays maintained Equal-Weight on Apple and lowered the price target to $134.
Bill and Melinda Foundation Trust also sold its stakes in microblogging and social networking service Twitter Inc. (NYSE:TWTR). Twitter, Inc. was founded in 2006 and has over 187 million daily active users worldwide. Twitter Inc. (NYSE:TWTR) revenue in the first quarter of 2021 came in at $1.04 billion, up 28% from the first quarter of 2020. TWTR shares currently trade for $59.63. The 52-week price range of Twitter Inc. (NYSE:TWTR) is $28.23-80.75. Shares of TWTR jumped 62% over the last twelve months.
Bill & Melinda Gates Foundation Trust Slashed Stakes in Walmart and FedEx
Some notable companies in which the foundation slashed its stake include Walmart Inc. (NYSE:WMT) (-35%) and FedEx Corporation (NYSE:FDX) (-51%).
Walmart Inc. (NYSE:WMT) is one of the stocks that Bill & Melinda cut stakes in. The foundation currently holds 7,600,706 shares in the company worth over $1.03 billion. This represents 4.92% of their portfolio. Walmart Inc.’s revenue in the first quarter of 2021 came in at $138.3 billion, a 2.7% increase year-over-year. Shares of WMT jumped 16% in the last twelve months.
Another stock that the foundation cut its stake in is FedEx Corporation (NYSE:FDX). The foundation currently holds 1,493,712 shares in the company worth over $424 million. This represents 2.02% of their portfolio. FedEx Corporation (NYSE:FDX) posted its revenue of $19.3 billion in the first quarter of 2021, up from $17.0 billion in the first quarter of 2020. Shares of FDX jumped 103% over the last twelve months.
Bill & Melinda Gates Foundation Trust Notable Holdings
Bill & Melinda Gates Foundation Trust also likes to invest in other notable stocks. As of the end of the first quarter of 2021, the hedge fund has stakes in stocks like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF). But in this article, our focus will be on the 10 best stocks to buy now according to Bill Gates. These are the top 10 stocks based on the Q1 portfolio of Bill Gates’ fund.
While Bill Gates’ reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best stocks to buy now according to Bill Gates.
Best Stocks to Buy Now According to Bill Gates
10. Waste Management, Inc. (NYSE: WM)
Gates’ Stake Value: $2,404,116,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 11.47%
Number of Hedge Fund Holders: 32
We start our list of the 10 best stocks to buy now according to Bill Gates with Waste Management, Inc. (NYSE:WM). Waste Management, Inc. operates as one of the largest waste management, comprehensive waste, and environmental services in North America with over 346 stations. In 2020, the company made one of its biggest acquisitions in a $4.6 billion deal. The company acquired Advanced Disposal to expand access to approximately 3 million new commercial, industrial, and residential customers in 16 states across the eastern half of the country.
Waste Management, Inc. (NYSE:WM) posted its revenue of $4.11 billion in the first quarter of 2021, up 1.8% from consensus estimates. WM shares currently trade for $140.75 and have a P/E ratio of 38.46. The current dividend yield is 1.63%. The 52-week price range of Waste Management, Inc. (NYSE:WM) is $100.45-144.54. Shares of WM jumped 25% over the last twelve months. On April 28, Morgan Stanley maintained Equal-Weight on Waste Management and raised the price target to $133.
The Bill & Melinda Gates Foundation holds 18,633,672 shares in the company worth over $2.4 billion. This represents 11.47% of their portfolio.
There were 32 hedge funds that reported owning stakes in Waste Management, Inc. (NYSE:WM) at the end of the first quarter.
9. Liberty Global plc (NASDAQ: LBTYA)
Gates’ Stake Value: $12,962,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 35
Ranking 9th on the 10 best stocks to buy now according to Bill Gates is Liberty Global plc (NASDAQ:LBTYA). The London-based multinational telecommunications company is one of the worldwide leaders in converged video and broadband communications with operations in over seven European countries. Liberty Global plc owns notable brands such as Virgin Media, Telenet, UPC, and VodafoneZiggo. One of the biggest acquisitions of the company was Switzerland-based Sunrise Communications. The acquisition allowed millions of Swiss customers and enterprises to benefit from the company’s seamless connections.
Liberty Global plc (NASDAQ:LBTYA) posted its revenue of $3.61 billion in the first quarter of 2021, up 25.7% year-over-year. Liberty Global plc shares currently trade for $26.82. The 52-week price range of Liberty Global plc (NASDAQ:LBTYA) is $18.73-29.07. Shares of LBTYA jumped 15% over the last twelve months.
Just like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Liberty Global plc (NASDAQ:LBTYA) is also one of the best stocks to buy now according to Bill Gates.
There were 35 hedge funds that reported owning stakes in Liberty Global plc (NASDAQ:LBTYA) at the end of the first quarter, down from 36 funds a quarter earlier. The total value of these stakes at the end of Q1 is $848 million.
8. Canadian National Railway Company (NYSE: CNI)
Gates’ Stake Value: $1,612,967,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 7.69%
Number of Hedge Fund Holders: 36
Ranking 8th in our list of 10 best stocks to buy now according to Bill Gates is freight railway firm Canadian National Railway Company (NYSE:CNI). The transport company owns approximately 20,400 route miles in Canada. Earlier this month, the company mentioned its $30 billion agreement deal with Kansas City Southern (NYSE:KSU). The transport companies will combine to establish the first freight-rail network connecting the United States, Mexico, and Canada.
Canadian National Railway Company (NYSE:CNI) posted its revenue of $2.92 billion in the first quarter of 2021, down from $2.93 billion in the first quarter of 2020. CNI shares currently trade for $112.48 and have a P/E ratio of 27.47. The current dividend yield is 1.75%. The 52-week price range of Canadian National Railway Company (NYSE:CNI) is $84.75-119.61. Shares of CNI jumped 23% over the last twelve months.
The Bill & Melinda Gates Foundation holds 13,907,283 shares in the company worth over $1.6 billion. This represents 7.69% of their portfolio.
There were 36 hedge funds that reported owning stakes in Canadian National Railway Company (NYSE:CNI) at the end of the first quarter, up from 31 funds a quarter earlier. The total value of these stakes at the end of Q1 is $470 billion
7. Ecolab Inc. (NYSE: ECL)
Gates’ Stake Value: $934,721,000
Percent of Bill & Melinda Gates’ 13F Portfolio: %
Number of Hedge Fund Holders: 42
Ecolab Inc. (NYSE:ECL) ranks 7th on the list of 10 best stocks to buy now according to Bill Gates. The Minnesota-based manufacturer of cleanliness and hygiene products offers its services to over 170 countries worldwide. Last year, the company acquired global provider of biosecurity, hygiene, and animal-health company CID Lines. The acquisition provided an opportunity for the company’s user base to grow worldwide.
Ecolab Inc. (NYSE:ECL) posted its revenue of $2.85 billion in the first quarter of 2021, down from $3.02 billion in the first quarter of 2020. ECL shares currently trade for $215.46 and have a P/E ratio of 37.24. The current dividend yield is 0.89%. The 52-week price range of Ecolab Inc. (NYSE:ECL) is $181.25-230.60. Shares of ECL jumped 3% over the last three months. On April 28, Credit Suisse maintained a Neutral rating on Ecolab Inc. (NYSE:ECL) and raised the price target to $250.
The Bill & Melinda Gates Foundation holds 4,366,426 shares in the company worth over $934 million. This represents 4.46% of their portfolio. Just like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Ecolab Inc. (NYSE:ECL) is also one of the best stocks to buy now according to Bill Gates.
There were 42 hedge funds that reported owning stakes in Ecolab Inc. (NYSE:ECL) at the end of the first quarter, down from 45 funds a quarter earlier. The total value of these stakes at the end of Q1 is $240 billion.
6. United Parcel Service, Inc. (NYSE: UPS)
Gates’ Stake Value: $476,276,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 2.27%
Number of Hedge Fund Holders: 44
Ranking 6th in our list of 10 best stocks to buy now according to Bill Gates is United Parcel Service, Inc. (NYSE:UPS). The Georgia-based supply chain management company was founded in 1907 and delivers up to an average of 21 million packages daily.
United Parcel Service, Inc. (NYSE:UPS) posted its revenue of $22.9 billion in the first quarter of 2021, a 27% increase from $20.49 billion in the same period of 2020. UPS shares currently trade for $210.63 and have a P/E ratio of 35.57. The current dividend yield is 1.94%. The 52-week price range of United Parcel Service, Inc. (NYSE:UPS) is $99.59-219.59. Shares of UPS jumped 97% over the last twelve months.
There were 44 hedge funds that reported owning stakes in United Parcel Service, Inc. (NYSE:UPS) at the end of the first quarter, down from 48 funds a quarter earlier. The total value of these stakes at the end of Q1 is $1.34 billion.
The Bill & Melinda Gates Foundation holds 2,801,790 shares in the company worth over $476 million. This represents 2.27% of their portfolio.
Saturna Capital Corporation mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q4 2020 investor letter:
“UPS is a new holding in the Fund, and we are excited about the opportunity for new management to improve operating metrics after several years of inconsistent performance.”
5. Caterpillar, Inc. (NYSE: CAT)
Gates’ Stake Value: $2,355,047,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 11.23%
Number of Hedge Fund Holders: 53
Ranking 5th in our list of the 10 best stocks to buy now according to Bill Gates is Caterpillar, Inc. (NYSE:CAT). The Illinois-based construction and mining equipment manufacturer was founded in 1925 and offers various construction products such as articulated trucks, backhoe loaders, dozers, and alike. In 2020, Caterpillar, Inc. purchased robot autonomous technology solutions provider Marble Robot, Inc. The acquisition met expanding demand and improved the company’s solutions for the construction, quarry, industrial, and garbage industries.
Caterpillar, Inc. (NYSE:CAT) posted its revenue of $11.9 billion in the first quarter of 2021, up from $10.6 billion in the same period of 2020. CAT shares currently trade for $239.76 and have a P/E of 38.34. The current dividend yield is 1.69%. The 52-week price range of Caterpillar, Inc. (NYSE:CAT) is $118.01-246.69. Shares of CAT jumped 74% in the last twelve months.
The Bill & Melinda Gates Foundation holds 10,156,756 shares in the company worth over $2.3 billion. This represents 11.23% of their portfolio.
There were 53 hedge funds that reported owning stakes in Caterpillar, Inc. (NYSE:CAT) at the end of the first quarter. The total value of these stakes at the end of Q1 is $4.95 billion.
4. Walmart Inc. (NYSE: WMT)
Gates’ Stake Value: $1,032,404,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 4.92%
Number of Hedge Fund Holders: 58
Arkansas-based retail company Walmart Inc. (NYSE:WMT) ranks 4th in our list of 10 best stocks to buy now according to Bill Gates. The company was founded in 1962 and is home to over 10,526 stores and clubs in under 24 countries. On May 19, Citigroup maintained a Buy rating on Walmart and raised the price target to $179.
Walmart Inc. (NYSE:WMT) has a market cap of $399 billion. The company’s revenue in the first quarter of 2021 came in at $138.3 billion, a 2.7% increase year-over-year. WMT shares currently trade for $140.90 and have a P/E of 32.62. The current dividend yield is 1.55%. The 52-week price range of Walmart Inc. (NYSE:WMT) is $117.01-153.66. Shares of WMT jumped 16% in the last twelve months.
The Bill & Melinda Gates Foundation holds 7,600,706 shares in the company worth over $1.03 billion. This represents 4.92% of their portfolio.
There were 58 hedge funds that reported owning stakes in Walmart Inc. (NYSE:WMT) at the end of the first quarter, down from 70 funds a quarter earlier. The total value of these stakes at the end of Q1 is $5.88 billion.
3. FedEx Corporation (NYSE: FDX)
Gates’ Stake Value: $424,274,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 63
Ranking 3rd in our list of 10 best stocks to buy now according to Bill Gates is FedEx Corporation (NYSE:FDX). The multinational distribution firm was founded in 1971 and offers various delivery services such as FedEx Ground, FedEx Home Delivery, FedEx Priority Overnight, and FedEx Standard Overnight. In 2020, the company acquired the e-commerce shopping platform ShopRunner. The acquisition added value to brands, merchants, and customers by complementing and expanding FedEx Corporation’s e-commerce portfolio.
FedEx Corporation (NYSE:FDX) posted its revenue of $19.3 billion in the first quarter of 2021, up from $17.0 billion in the first quarter of 2020. FDX shares currently trade for $303.34 and have a P/E of 26.71. The current dividend yield is 0.86%. The 52-week price range of FedEx Corporation (NYSE:FDX) is $127.29-319.90. Shares of FDX jumped 103% over the last twelve months. On June 4, Raymond James maintained an Outperform rating on FedEx Corporation and raised the price target to $330.
The Bill & Melinda Gates Foundation holds 1,493,712 shares in the company worth over $424 million. This represents 2.02% of their portfolio.
There were 63 hedge funds that reported owning stakes in FedEx Corporation (NYSE:FDX) at the end of the first quarter. The total value of these stakes at the end of Q1 is $2.26 billion.
Artisan Partners mentioned FedEx Corporation (NYSE:FDX) in its Q1 2021 investor letter. Here is what the fund said:
“Whatever products did make it off the line met a constrained logistics infrastructure, with commercial air capacity cut and ship cargo space at a premium. Then, in the event your dishwasher part actually made it to US waters, our ports were congested due to manpower shortages and COVID-19 protocols. When the goods were finally unloaded, it turns out trucking shortages caused a spike in ground rates! All this might be bad for your dinner parties, home décor or exercise goals, but it can be great for the middlemen. Middlemen like logistics expert FedEx.
FedEx provides global logistics services. It gets your dishwasher part on a truck, or that semiconductor chip on a plane. Surging demand for at-home deliveries during the pandemic boosted volumes and allowed management to push through price increases, keeping competitive with industry peers. The industry’s renewed pricing discipline was a welcome change, reflecting a broader commitment to earn better returns on invested capital. Despite a significant re-rating of the business over the last 12 months, FedEx remains attractive based on our margin of safety criteria.”
2. Berkshire Hathaway Inc (NYSE: BRK-A)
Gates’ Stake Value: $9,479,061,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 45.23%
Number of Hedge Fund Holders: 111
Ranking 2nd in our list of 10 best stocks to buy now according to Bill Gates is Berkshire Hathaway Inc (NYSE:BRK.A). The Nebraska-based multinational conglomerate holding company was founded in 1839. The company owns various notable brands such as GEICO, Duracell, Dairy Queen, Forest River, and NetJets. In 2020, Berkshire Hathaway Energy entered a definitive agreement with energy company Dominion Energy, Inc. (NYSE:D) in a $9.7 billion deal. The acquisition includes over 7,700 miles of natural gas transmission lines, 900 billion cubic feet of operated natural gas storage, and 364 billion cubic feet of company-owned working storage capacity, and partial ownership of a liquefied natural gas export, import, and storage facility.
Berkshire Hathaway Inc (NYSE:BRK.A) posted its operating profit of $7.01 billion in the first quarter of 2021, higher than the first quarter of 2020 revenue of $5.87 billion. The 52-week price range of Berkshire Hathaway Inc (NYSE:BRK.A) is $262,700-445,000. Shares of BRK.A jumped 43% over the last twelve months.
There were 111 hedge funds that reported owning stakes in Berkshire Hathaway Inc (NYSE:BRK.A) at the end of the first quarter, up from 110 funds a quarter earlier. The total value of these stakes at the end of Q1 is $19.8 billion.
Vltava Fund mentioned Berkshire Hathaway Inc (NYSE:BRK.A) in its Q1 2021 investor letter. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
1. Alphabet Inc. (NASDAQ: GOOG)
Gates’ Stake Value: $44,457,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 185
Topping the 10 best stocks to buy now according to Bill Gates is Alphabet Inc. (NASDAQ:GOOG). The California-based multinational conglomerate owns various tech platforms such as YouTube, Waze, Nest, Looker, and FitBit. One of the latest acquisitions the company made was hardware and e-commerce software developer startup Pointy.
Alphabet Inc. (NASDAQ:GOOG)’s revenue came in at $55.31 billion in the first quarter of 2021, higher than the expected revenue of $55.31 billion. GOOGL shares currently trade for $2,402.30 and have a P/E of 32.01. The 52-week price range of Alphabet Inc. (NASDAQ:GOOG) is $1,351.65-2,431.38. Shares of GOOGL jumped 65% over the last twelve months.
There were 185 hedge funds that reported owning stakes in Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter, up from 179 funds a quarter earlier. The total value of these stakes at the end of Q1 is $24.5 billion.
Artisan Partners mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q1 2021 investor letter. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.
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Disclosure: None. 10 Best Stocks to Buy Now According to Bill Gates is originally published on Insider Monkey.
