In this article, we will take a look at the 5 stocks to buy and hold according to Bill Gates. You can skip our detailed analysis of Gates’ history, investment philosophy, and hedge fund performance, and go directly to 10 Stocks to Buy and Hold According to Bill Gates.
5. Crown Castle International Corp. (REIT) (NYSE:CCI)
Gates’ Stake Value: $992.4 million
Percentage of Bill & Melinda Gates 13F Portfolio: 4.15%
Number of Hedge Fund Holders: 42
Crown Castle International Corp. (REIT) (NYSE: CCI) is an owner and operator of over 40,000 cell towers and 80,000 route miles of fiber to support small cells and fiber solutions across US markets. Ranked fifth on the list of the 10 stocks to buy and hold according to Bill Gates, Crown Castle International Corp. (REIT) (NYSE:CCI) has a market capitalization of $79.68 billion.
Bill & Melinda Gates Foundation Trust currently holds over 5 million shares of Crown Castle International Corp. (NYSE:CCI), amounting to over $992.4 million in worth and accounting for 4.15% of the foundation’s portfolio. By the end of the second quarter of 2021, 42 hedge funds out of the 873 tracked by Insider Monkey held stakes in Crown Castle International Corp. (REIT) (NYSE:CCI) worth roughly $2.1 billion. This is compared to 43 hedge funds in the previous quarter with a total stake value of approximately $1.9 billion.
In the second quarter of 2021, Crown Castle International Corp. (REIT) (NYSE:CCI) reported earnings per share at $1.69, beating estimates by $0.06. Additionally, the company reported revenues of $1.58 billion, surpassing estimates of $22.48 million.
On September 10, Morgan Stanley analyst Simon Flannery raised the firm’s price target on Crown Castle to $213 from $204 and kept an Overweight rating on the shares.
4. Walmart Inc. (NYSE:WMT)
Gates’ Stake Value: $1.07 billion
Percentage of Bill & Melinda Gates’ 13F Portfolio: 4.49%
Number of Hedge Fund Holders: 70
Walmart Inc. (NYSE:WMT), a multinational retail corporation, operates in wholesale and other market units across the globe. Ranked fourth on the list of the 10 stocks to buy and hold according to Bill Gates, Walmart Inc. (NYSE:WMT) has a market capitalization of $398.11 million.
At present, Bill & Melinda Gates Foundation Trust holds 7.6 million shares of Walmart Inc. (NYSE:WMT), amounting to over $1.07 billion and representing 4.49% of the foundation’s investment portfolio. By the end of the second quarter of 2021, 70 hedge funds out of the 873 tracked by Insider Monkey held stakes in Walmart Inc. (NYSE:WMT) worth roughly $8.03 billion. This is compared to 58 hedge funds in the previous quarter with a total stake value of approximately $5.9 billion.
For the second quarter of 2021, Walmart Inc. (NYSE:WMT) had an earnings per share of $1.56, beating estimates by $0.30. The company’s revenue was $136.82 billion, up 5.57% year-over-year and beating estimates by $2.67 billion.
On August 18, Cowen analyst Oliver Chen raised the firm’s price target on Walmart to $175 from $170 and keeps an Outperform rating on the shares.
3. Canadian National Railway Company (NYSE:CNI)
Gates’ Stake Value: $1.46 billion
Percentage of Bill & Melinda Gates 13F Portfolio: 6.15%
Number of Hedge Fund Holders: 40
Canadian National Railway Company (NYSE:CNI) is a North American transportation and logistics leader based in Montreal, Canada, focused on supply chain innovation and collaboration. Ranked third on our list of the 10 stocks to buy and hold according to Bill Gates, Canadian National Railway Company (NYSE:CNI) has a market capitalization of $82.27 billion.
Bill & Melinda Gates Foundation Trust currently holds more than 13.9 million shares of Canadian National Railway Company (NYSE:CNI), amounting to $1.46 billion in worth and accounting for 6.15% of the foundation’s portfolio. By the end of the second quarter of 2021, 40 hedge funds out of the 873 tracked by Insider Monkey held stakes in Canadian National Railway Company (NYSE:CNI) worth roughly $5.3 billion. This is compared to 36 hedge funds in the previous quarter with a total stake value of approximately $4.7 billion.
On July 20, the company released its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $1.18, crossing estimates by $0.01. In addition, the company reported revenues at $2.84 billion, missing market estimates by $9.31 million.
On September 23, Evercore ISI analyst Jonathan Chappell downgraded Canadian National to In Line from Outperform with a $121 price target.
2. Caterpillar Inc. (NYSE:CAT)
Gates’ Stake Value: $2.2 billion
Percentage of Bill & Melinda Gates’ 13F Portfolio: 9.26%
Number of Hedge Fund Holders: 62
Caterpillar Inc. (NYSE:CAT), is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives based in Illinois. Ranked second on our list of the 10 stocks to buy and hold according to Bill Gates, Caterpillar Inc. (NYSE:CAT) has a market capitalization of $107.64 billion.
Bill & Melinda Gates Foundation Trust presently holds more than 10 million shares of Caterpillar Inc. (NYSE:CAT), amounting to over $2.2 billion and representing 9.26% of the foundation’s total investment portfolio. By the end of the second quarter of 2021, 62 hedge funds out of the 873 tracked by Insider Monkey held stakes in Caterpillar Inc. (NYSE: CAT) worth roughly $5.3 billion. This is compared to 53 hedge funds in the previous quarter with a total stake value of approximately $5 billion.
In the second quarter of 2021, Caterpillar Inc. (NYSE:CAT) had an earnings per share of $2.60, beating estimates by $0.19. The company’s revenue was $12.89 billion, up 28.93% on a year-over-year basis and beating estimates by $360.55 million.
In the Q2 2021 investor letter of Oakmark Funds, the fund mentioned Caterpillar Inc. (NYSE:CAT). 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.”
1. Waste Management, Inc. (NYSE:WM)
Gates’ Stake Value: $2.6 billion
Percentage of Bill & Melinda Gates’ 13F Portfolio: 10.93%
Number of Hedge Fund Holders: 39
Waste Management, Inc. (NYSE:WM) is a provider of waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The company has a market capitalization of $64.64 billion and is ranked first on the list of the 10 stocks to buy and hold according to Bill Gates.
Bill & Melinda Gates Foundation Trust currently holds 18.6 million shares of Waste Management, Inc. (NYSE:WM), worth more than $2.6 billion and accounting for 10.93% of the foundation’s total investment portfolio. By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in Waste Management, Inc. (NYSE:WM) worth roughly $3.6 billion. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $3.29 billion.
The company released its quarterly earnings report for the second quarter of 2021, with reported earnings per share at $1.27, beating market estimates by $0.08. Additionally, the company reported revenues of $4.48 billion, surpassing forecast estimates by $237.69 million.
On July 29, Deutsche Bank analyst Kyle White raised the firm’s price target on Waste Management to $152 from $138 and kept a Hold rating on the shares.
You can also take a look at 20 Best Places to Invest in Rental Property in 2021 and 10 Best Robinhood Stocks Under $20.
