Bill Gates’ Latest Stock Portfolio: Top 5 Picks

In this article, we take a look at Bill Gates’ top 5 stock picks. If you want to check out our detailed analysis of Bill & Melinda Gates Foundation Trust, go to Bill Gates’ Latest Stock Portfolio: Top 10 Stock Picks.

5. Ecolab Inc. (NYSE:ECL)

Bill & Melinda Gates Foundation Trust’s Stake Value: $771 million

Percentage of Bill & Melinda Gates Foundation Trust’s Portfolio: 3.9%

Number of Hedge Fund Holders: 47

Ecolab Inc. (NYSE:ECL) offers services as well as technology solutions for water treatment, infection prevention and hygiene. As of the first quarter of 2022, 47 hedge funds hold shares in the company with Bill & Melinda Gates Foundation Trust being the lead stakeholder. 

Cantillon Capital Management comes in second with a stake of $318 million. The total equity held by 47 hedge funds in the company amounts to $2.4 billion. 

Ecolab Inc. (NYSE:ECL) has an annual dividend yield of 1.38% as of the first quarter of 2022. Ecolab declared a quarterly dividend on May 5.  The shareholders of record on June 21 will be paid a dividend of $0.51 per share on July 15. The company has been increasing its dividend payouts consecutively for 30 years. 

On June 8, Deutsche Bank analyst David Begleiter lowered his price target on Ecolab Inc. (NYSE:ECL) to $195 from $200 and kept a Buy rating on the stock after the company preannounced that Q2, 2022 earnings would fall 8% below consensus. Bagleiter pointed to the higher-than-expected raw material costs as the driving factor of the shortfall in his research note to investors.

Here’s what Baron Funds had to say about Ecolab in their Q1, 2022 investor letter:

“Lastly, we added to our position in the leading water, hygiene and infection prevention company, Ecolab Inc. (NYSE:ECL), as the stock sold off on concerns over rising raw material costs. We believe the sell-off is overdone as Ecolab’s strong competitive positioning and proven pricing power would enable it to offset the rising costs (though with a lag). We think that the company will continue benefiting from the secular growth trends towards sustainability, while still having a long runway for growth with only an 8% share of its estimated $147 billion addressable market.”