3. Financial Services
Sector Weighting in Q2 2023: 20.38%
Financial services are a sector that includes firms and institutions that offer financial products and services to businesses and consumers. The segment comprises banks, investment companies, insurance companies, and real estate firms.
A good number of firms and companies in the segment generate revenues from mortgages and loans. Likewise, performance in the overall segment is highly dependent on the economy’s health. The stronger and healthier the economy, the more money that financial services generate owing to the high demand for loans, mortgages, and insurance products
Bill and Melinda Foundation has sought to expand access to digital financials evoked in the world’s poorest people. The foundation works with partners to support public and private digital payment infrastructure investments.
In addition, Gates also boasts of a massive investment in Berkshire Hathaway Inc. (NYSE:BRK-A), investments he has used to preserve his wealth over the years.
The diversified nature of the company, with stakes in financial services, energy, and consumer discretionary, has often panned out to be a solid investment.
Berkshire Hathaway is the third largest individual holding of the Gates investment portfolio owing to Gates’ strong ties and relationship with Buffett. Stakes in the holding company were worth $6 billion in the first quarter of 2023. He increased his stake in the company by 28% in the second quarter of 2023.
