In this article, we will list Bill Gates’ 2026 Portfolio: Top 5 Stocks to Buy. Please visit Bill Gates’ 2026 Portfolio: Top 10 Stocks to Buy, if you would like to see the extended list and the methodology behind it.
5. Caterpillar (NYSE:CAT)
Gates Foundation Stake Value: $3.64 Billion
Caterpillar (NYSE:CAT) isn’t just about heavy construction and equipment. It’s rapidly becoming an AI and data center play. Caterpillar (NYSE:CAT)’s large natural-gas generators business could thrive amid high demand as companies look for backup power for hyperscale computing campuses. Recent earnings showed power generation sales rising as much as 44% year over year amid orders tied to hyperscale and enterprise data center operators.
What about Caterpillar (NYSE:CAT)’s core business? It stands to benefit from rising infrastructure spending in the U.S. and globally. The Infrastructure Investment and Jobs Act authorizes about $1.2 trillion in funding, including roughly $550 billion in new investment across roads, bridges, rail, broadband, and power grid upgrades. Most of these projects require heavy machinery and engines.
Diamond Hill Large Cap Fund stated the following regarding Caterpillar Inc. (NYSE:CAT) in its third quarter 2025 investor letter:
“Other top Q3 contributors included L3Harris Technologies, Caterpillar Inc. (NYSE:CAT) and Sysco Corporation. Shares of heavy construction machinery manufacturer Caterpillar rose amid positive sentiment around the company’s power-generation business, which is tied to data center growth.”
4. Microsoft (NASDAQ:MSFT)
Gates Foundation Stake Value: $3.72 Billion
Cracks have already started to appear in the MSFT‑OpenAI partnership, so let’s focus on Microsoft (NASDAQ:MSFT)’s broader strengths. With about 39% YoY growth, Azure stands out among competitors in the cloud industry while the overall Intelligent Cloud segment has consistently posted mid‑to‑high‑20s percentage growth.
Microsoft can use its huge user base to monetize and benefit from its AI products. The company claims over 80% of the Fortune 500 are using Microsoft AI technologies, and products like Microsoft 365 Copilot have seen rapid adoption across large enterprises, with Copilot deployments helping clients automate tasks and boost productivity. Analysts expect 12–15% annual revenue growth for Microsoft (NASDAQ:MSFT) over the next few years, led by cloud expansion, subscription services, and increasing AI monetization, while EPS is projected to grow at a low‑to‑mid‑teens pace as operating leverage improves across high‑margin software businesses. Microsoft (NASDAQ:MSFT)’s moat remains one of the strongest in tech, anchored by massive enterprise adoption of Windows, Office, Teams, and Azure, which creates extremely high switching costs and deep integration into corporate IT environments.
RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT): MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. Operating margin expanded by roughly 240 basis points year-over-year, and EPS modestly exceeded expectations. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. In addition, capital expenditures were materially higher than anticipated at $34.9 billion for the quarter, and full-year fiscal 2026 CapEx expectations increased meaningfully.
We continue to view Microsoft as one of the most durable and strategically advantaged franchises in global technology. Azure’s growth at scale remains the strongest among hyperscalers, supported by robust remaining performance obligations of approximately $392 billion, up more than 50% year-over-year, providing strong multi-year revenue visibility. While elevated capital investment and OpenAI-related expenses may pressure near-term margins, these investments are reinforcing Microsoft’s leadership across cloud infrastructure and the application layer, including accelerating adoption of Copilot offerings. With unmatched enterprise relationships, expanding AI monetization, and disciplined execution, we believe Microsoft remains well positioned to compound earnings and free cash flow over the long term.”
3. Canadian National Railway (NYSE: CNI)
Gates Foundation Stake Value: $5.12 Billion
Canadian National Railway (NYSE:CNI)’s moat is strong because it hauls essential goods like grain and fertilizers to intermodal freight through its coast‑to‑coast rail systems in the Pacific, Atlantic and Gulf of Mexico. This network allows Canadian National Railway (NYSE:CNI) to bypass the congested Chicago hub more efficiently than competitors. Its moat is strong because it’s nearly impossible to replicate this transcontinental rail infrastructure today due to regulatory and environmental hurdles.
The stock is trading at roughly 17–18x forward earnings, below its 10-year average of 19.4x.
2. Waste Management (NYSE:WM)
Gates Foundation Stake Value: $6.36 Billion
Waste Management (NYSE:WM) is a defensive, non-discretionary business with high customer retention and stable revenue. Waste Management (NYSE:WM) operates over 250 solid waste landfills across North America and has a durable moat since obtaining new landfill permits in the U.S. is extremely difficult. Its scale and long-term contracts allow Waste Management (NYSE:WM) to maintain pricing power and resilient cash flow even during economic volatility.
Waste Management (NYSE:WM)’s transition into renewable energy is a major growth catalyst. The company is investing billions into 20 new renewable natural gas (RNG) plants, expected to generate an incremental $450–500 million in annual EBITDA. This expansion positions Waste Management (NYSE:WM) not just as a waste hauler but also as a player in the green energy transition, benefiting from ESG mandates and carbon credit markets.
1. Berkshire Hathaway (NYSE:BRK.B)
Gates Foundation Stake Value: $9.75 Billion
Berkshire Hathaway (NYSE:BRK.B) is the biggest holding of the Gates Foundation as of the end of the fourth quarter.
Berkshire Hathaway (NYSE:BRK.B) is a rare safe harbor amid rising volatility in financial markets. It sits on a massive $373 billion war chest of cash, earning billions in risk-free interest from Treasury bills while waiting for the perfect time to strike when any opportunity arises.
Berkshire Hathaway (NYSE:BRK.B)’s massive bet on “old-world” energy is paying off as oil prices climb and demand for reliable power grows. It owns large stakes in Chevron and Occidental Petroleum. Berkshire Hathaway Energy’s pipeline network transported about 14% of the natural gas consumed in the U.S. in 2024. Another strong growth catalyst for Berkshire Hathaway (NYSE:BRK.B) is its insurance business, where disciplined underwriting has produced a combined ratio around 87%, showing consistent underwriting profit while many competitors struggle to stay below 100%. Its insurance float — investable funds from premiums — has grown to about $176 billion. This low-cost capital can be deployed into stocks, bonds, and acquisitions to drive long-term compounding growth.
While we acknowledge the potential of BRK.B to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BRK.B and that has 100x upside potential, check out our report about the cheapest AI stock.
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