In this article, we discuss the 5 best stocks to buy now according to Bill Gates. If you want to read our detailed analysis of these companies, go directly to the 10 Best Stocks to Buy Now According to Bill Gates.
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.
