5 Sectors to Invest In to Preserve Your Wealth According to Bill Gates’ Portfolio

4. Consumer Defensive

Sector Weighting in Q2 2023: 3.02%

The consumer defensive market segment mainly comprises companies that manufacture food, beverages, household, and personal products. It also includes companies that provide services such as education and training services.

The constant demand for their products ensures they fare well even when the economy or market is struggling. In some cases, such companies are immune to depressed economic situations as people must still consume their products or services.

Bill Gates has always invested in defensive stocks because they can generate consistent dividends and stable earrings regardless of the overall stock market. Walmart Inc. (NYSE: W.M.T.) is one of the defensive stocks in Gates and holds substantial stakes as the company operates hypermarkets, discount stores, grocery stores, and an e-commerce platform. The company is also a dividend aristocrat with a 34-year history.

The billionaire philanthropist also has some exposure to Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: K.O.F.), a company that manufactures nonalcoholic drinks. Hormel Foods Corporation (NYSE: H.R.L.), a company that develops processes and distributes meat nits and food products, also accounts for a big share of the portfolio. The Kraft Heinz Company (NASDAQ: K.H.C.) is another consumer defensive company that manufactures and markets food and beverage products in which Gates has bought stakes to preserve his wealth.