In this article, we discuss the 5 stocks to buy and hold according to Bill Gates. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks to Buy and Hold According to Bill Gates.
5. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 71
Walmart Inc. (NYSE:WMT) owns and runs retail, wholesale, and other units. Brett Biggs, the CFO of the company, recently said that the retail giant was open to the idea of accepting cryptocurrencies as payment but there was no “overwhelming urge” to move quickly in that direction.
The hedge fund of Bill Gates entered the fourth quarter of 2021 with 6.9 million shares of Walmart Inc. (NYSE:WMT) in the portfolio worth around $964 million. The company has featured on the Gates’ portfolio since the third quarter of 2012.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. (NYSE:WMT) with 13 million shares worth more than $1.8 billion.
4. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 42
Canadian National Railway Company (NYSE:CNI) provides rail and related transport services. Bill & Melinda Gates Foundation Trust, as of the end of September, had more than 13 million shares of the company worth $1.5 billion in the portfolio. The fund first bought a stake in the firm in the third quarter of 2012.
On December 3, investment advisory Scotiabank maintained an Outperform rating on Canadian National Railway Company (NYSE:CNI) stock and raised the price target to $168 from $166. Analyst Konark Gupta issued the ratings update.
At the end of the third quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Canadian National Railway Company (NYSE:CNI), up from 40 in the preceding quarter worth $5.3 billion.
3. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 46
In the filings for the third quarter, Bill Gates’ fund detailed that it owned over 9.6 million shares of Caterpillar Inc. (NYSE:CAT) worth $1.8 billion, representing 8.01% of the portfolio. The firm makes and sells construction and mining equipment. It has been present in the Gates’ portfolio for nearly nine years.
Caterpillar Inc. (NYSE:CAT) recently signed an MoU with BNSF Railway Company and Chevron to advance the demonstration of a locomotive powered by hydrogen fuel cells. The project is presently in the feasibility stage.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Bill & Melinda Gates Foundation Trust is a leading shareholder in Caterpillar Inc. (NYSE:CAT) with 9.6 million shares worth more than $1.8 billion.
In its Q2 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Caterpillar Inc. (NYSE:CAT) was one of them. Here is what the fund said:
“Having followed the company closely for north of a decade, Caterpillar is a name we know well. For much of its history, the operating efficiency of the company left much to be desired, but its underlying competitive position was rarely in doubt. A series of actions over the past decade (e.g., LEAN implementation, improved service mix, optimized manufacturing footprint) helped to narrow the gap between Caterpillar’s potential and its realized results, driving material margin expansion and strong share price performance. In our view, the company remains among the highest quality industrials in the market, but its underlying business is cyclical, which can translate to large swings in both performance and investor sentiment over short time periods. Our ability to focus on the long-term, sustainable earnings power of a business (rather than getting distracted by near-term fluctuations) is our most significant edge when investing in cyclical businesses. Due to the inherent volatility in Caterpillar’s end markets and operating performance, we suspect we’ll have a future opportunity to own this high-quality business at a more attractive price once the cycle turns and today’s enthusiasm wears off.”
2. Waste Management, Inc. (NYSE:WM)
Number of Hedge Fund Holders: 36
Waste Management, Inc. (NYSE:WM) provides waste management environmental services. It posted earnings for the third quarter in late October, reporting a revenue of $4.6 billion, up 21% compared to the revenue over the same period last year and beating estimates by $120 million.
Latest filings show that Bill & Melinda Gates Foundation Trust is long on over 18.6 million shares in Waste Management, Inc. (NYSE:WM) worth more than $2.7 billion, representing 12.00% of the portfolio. The holding is one of the oldest of the fund, first popping up in the portfolio in filings for the third quarter of 2012.
At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $3.62 billion in Waste Management, Inc. (NYSE:WM), compared to 39 in the preceding quarter worth $3.60 billion.
1. Berkshire Hathaway Inc. (NYSE:BRK-A)
Number of Hedge Fund Holders: 106
Berkshire Hathaway Inc. (NYSE:BRK-A) is a conglomerate with interests in insurance, consumer goods, transport, and other businesses. According to the latest 13F data, the fund holds a stake in the firm worth more than $10.5 billion, consisting of 38 million shares. It first bought a stake in the company in the third quarter of 2012.
NuBank, a fintech company based in Brazil and backed by Berkshire Hathaway Inc. (NYSE:BRK-A), is reportedly considering a lower IPO price keeping in mind the global slump in tech stocks. A previous report had valued the firm at over $50 billion.
At the end of the third quarter of 2021, 06 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE:BRK-A), compared to 116 in the preceding quarter worth $22 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-A) was one of them. 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.”
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