Bill Gates’ Investment Company’s 5 Newest Stock Picks

3. Danaher Corporation (NYSE:DHR)

Value of Bill & Melinda Gates Foundation’s 13F Position: $89 million

Quarter First Initiated Position: Q4, 2022

The Bill & Melinda Gates Foundation acquired a stake in Danaher Corporation (NYSE:DHR) in the fourth quarter of 2022. Danaher Corporation is a global provider of medical, industrial, and commercial products and services. The company recently spun off its water quality and product identification businesses as a separate publicly traded company. Market analysts believe Danaher will be better positioned to improve growth and profitability following the spin-off. 

In the third quarter investor letter, Oakmark Funds, advised by Harris Associates, highlighted reasons why Danaher is an attractive option. Here is what the firm said:

“Danaher Corporation (NYSE:DHR) is a global leader in life sciences tools and diagnostics. We are impressed by Danaher’s excellent track record of creating shareholder value through smart capital allocation and world-class operational execution. The company’s business mix has shifted dramatically in recent years following a series of transformative acquisitions and divestitures. We believe these portfolio improvements leave the company attractively positioned in some of the industry’s fastest growing, most profitable niches within life sciences. Near-term headwinds related to the pandemic are overshadowing this attractive long-term outlook, in our view. More specifically, Danaher sells diagnostic tests and critical inputs needed for manufacturing Covid-19 vaccines. As Covid-19 demand has normalized, Danaher experienced sales headwinds and channel destocking, pressuring its stock price. The shares now trade at a discount to both peers and private market transactions, giving us an attractive opportunity to invest in what we view as a high-quality, resilient business at a discounted valuation.”