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10 Best Stocks to Buy Now According to Bill Gates

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·12 min read
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In this article we discuss the 10 best stocks to buy now according to Bill Gates. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Stocks to Buy Now According to Bill Gates.

The creator of tech giant Microsoft Corporation (NASDAQ:MSFT) Bill Gates has put billions of dollars into stocks to fund his humanitarian options through the Seattle-based Bill & Melinda Gates Foundation Trust which is well-known as the world's biggest private charity foundation launched in 2000. According to the organization, its mission is to address important human issues such as poverty, sickness, food instability, and a lack of opportunity.

Portfolio manager Michael Larson oversees the team of analysts in managing the portfolio. The foundation's portfolio manager invests in firms with a proven business plan and a track record of providing consistent returns to investors. At the end of the first quarter, the foundation's stock portfolio is valued at around $20 billion.

Bill & Melinda Gates Foundation Trust Sells Amazon, Apple, and Twitter.

Bill & Melinda Gates Foundation recently disclosed its 13F holdings data for the first quarter of 2021. The fund sold its stakes in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Twitter, Inc. (NYSE:TWTR).

Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based tech company that has over 150.6 million users. Amazon.com, Inc.’s (NASDAQ:AMZN) net income came in at $8.1 billion in the first quarter of 2021, up from $4.0 billion in the first quarter of 2020. AMZN shares currently trade for $3,198.01 and have a P/E ratio of 60.84. The 52-week price range of Amazon.com, Inc.’s (NASDAQ:AMZN) is $2,503.35-3,554.00. On May 12, Citigroup held its Buy rating on AMZN and raised the price target to $4,175.

Another stock that Bill and Melinda Foundation Trust sold is California-based technology company Apple Inc. (NASDAQ:AAPL). Apple Inc.’s (NASDAQ:AAPL) revenue in the first quarter of 2021 came in at $111.4 billion, up 21% year-over-year. AAPL shares currently trade for $3125.90 and have a P/E ratio of 28.30. The 52-week price range of Apple Inc.’s (NASDAQ:AAPL) is $83.00-145.09. Shares of AAPL jumped 51% over the last twelve months. On May 19, Barclays maintained Equal-Weight on Apple and lowered the price target to $134.

Bill and Melinda Foundation Trust also sold its stakes in microblogging and social networking service Twitter Inc. (NYSE:TWTR). Twitter, Inc. was founded in 2006 and has over 187 million daily active users worldwide. Twitter Inc. (NYSE:TWTR) revenue in the first quarter of 2021 came in at $1.04 billion, up 28% from the first quarter of 2020. TWTR shares currently trade for $59.63. The 52-week price range of Twitter Inc. (NYSE:TWTR) is $28.23-80.75. Shares of TWTR jumped 62% over the last twelve months.

Bill & Melinda Gates Foundation Trust Slashed Stakes in Walmart and FedEx

Some notable companies in which the foundation slashed its stake include Walmart Inc. (NYSE:WMT) (-35%) and FedEx Corporation (NYSE:FDX) (-51%).

Walmart Inc. (NYSE:WMT) is one of the stocks that Bill & Melinda cut stakes in. The foundation currently holds 7,600,706 shares in the company worth over $1.03 billion. This represents 4.92% of their portfolio. Walmart Inc.'s revenue in the first quarter of 2021 came in at $138.3 billion, a 2.7% increase year-over-year. Shares of WMT jumped 16% in the last twelve months.

Another stock that the foundation cut its stake in is FedEx Corporation (NYSE:FDX). The foundation currently holds 1,493,712 shares in the company worth over $424 million. This represents 2.02% of their portfolio. FedEx Corporation (NYSE:FDX) posted its revenue of $19.3 billion in the first quarter of 2021, up from $17.0 billion in the first quarter of 2020. Shares of FDX jumped 103% over the last twelve months.

best stocks to buy according to Bill Gates
best stocks to buy according to Bill Gates

Bill & Melinda Gates Foundation Trust Notable Holdings

Bill & Melinda Gates Foundation Trust also likes to invest in other notable stocks. As of the end of the first quarter of 2021, the hedge fund has stakes in stocks like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF). But in this article, our focus will be on the 10 best stocks to buy now according to Bill Gates. These are the top 10 stocks based on the Q1 portfolio of Bill Gates' fund.

While Bill Gates’ reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context in mind, here is our list of the 10 best stocks to buy now according to Bill Gates.

Best Stocks to Buy Now According to Bill Gates

10. Waste Management, Inc. (NYSE: WM)

Gates' Stake Value: $2,404,116,000 Percent of Bill & Melinda Gates’ 13F Portfolio: 11.47% Number of Hedge Fund Holders: 32

We start our list of the 10 best stocks to buy now according to Bill Gates with Waste Management, Inc. (NYSE:WM). Waste Management, Inc. operates as one of the largest waste management, comprehensive waste, and environmental services in North America with over 346 stations. In 2020, the company made one of its biggest acquisitions in a $4.6 billion deal. The company acquired Advanced Disposal to expand access to approximately 3 million new commercial, industrial, and residential customers in 16 states across the eastern half of the country.

Waste Management, Inc. (NYSE:WM) posted its revenue of $4.11 billion in the first quarter of 2021, up 1.8% from consensus estimates. WM shares currently trade for $140.75 and have a P/E ratio of 38.46. The current dividend yield is 1.63%. The 52-week price range of Waste Management, Inc. (NYSE:WM) is $100.45-144.54. Shares of WM jumped 25% over the last twelve months. On April 28, Morgan Stanley maintained Equal-Weight on Waste Management and raised the price target to $133.

The Bill & Melinda Gates Foundation holds 18,633,672 shares in the company worth over $2.4 billion. This represents 11.47% of their portfolio.

There were 32 hedge funds that reported owning stakes in Waste Management, Inc. (NYSE:WM) at the end of the first quarter.

9. Liberty Global plc (NASDAQ: LBTYA)

Gates' Stake Value: $12,962,000 Percent of Bill & Melinda Gates’ 13F Portfolio: 0.06% Number of Hedge Fund Holders: 35

Ranking 9th on the 10 best stocks to buy now according to Bill Gates is Liberty Global plc (NASDAQ:LBTYA). The London-based multinational telecommunications company is one of the worldwide leaders in converged video and broadband communications with operations in over seven European countries. Liberty Global plc owns notable brands such as Virgin Media, Telenet, UPC, and VodafoneZiggo. One of the biggest acquisitions of the company was Switzerland-based Sunrise Communications. The acquisition allowed millions of Swiss customers and enterprises to benefit from the company's seamless connections.

Liberty Global plc (NASDAQ:LBTYA) posted its revenue of $3.61 billion in the first quarter of 2021, up 25.7% year-over-year. Liberty Global plc shares currently trade for $26.82. The 52-week price range of Liberty Global plc (NASDAQ:LBTYA) is $18.73-29.07. Shares of LBTYA jumped 15% over the last twelve months.

Just like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Liberty Global plc (NASDAQ:LBTYA) is also one of the best stocks to buy now according to Bill Gates.

There were 35 hedge funds that reported owning stakes in Liberty Global plc (NASDAQ:LBTYA) at the end of the first quarter, down from 36 funds a quarter earlier. The total value of these stakes at the end of Q1 is $848 million.

8. Canadian National Railway Company (NYSE: CNI)

Gates' Stake Value: $1,612,967,000 Percent of Bill & Melinda Gates’ 13F Portfolio: 7.69% Number of Hedge Fund Holders: 36

Ranking 8th in our list of 10 best stocks to buy now according to Bill Gates is freight railway firm Canadian National Railway Company (NYSE:CNI). The transport company owns approximately 20,400 route miles in Canada. Earlier this month, the company mentioned its $30 billion agreement deal with Kansas City Southern (NYSE:KSU). The transport companies will combine to establish the first freight-rail network connecting the United States, Mexico, and Canada.

Canadian National Railway Company (NYSE:CNI) posted its revenue of $2.92 billion in the first quarter of 2021, down from $2.93 billion in the first quarter of 2020. CNI shares currently trade for $112.48 and have a P/E ratio of 27.47. The current dividend yield is 1.75%. The 52-week price range of Canadian National Railway Company (NYSE:CNI) is $84.75-119.61. Shares of CNI jumped 23% over the last twelve months.

The Bill & Melinda Gates Foundation holds 13,907,283 shares in the company worth over $1.6 billion. This represents 7.69% of their portfolio.

There were 36 hedge funds that reported owning stakes in Canadian National Railway Company (NYSE:CNI) at the end of the first quarter, up from 31 funds a quarter earlier. The total value of these stakes at the end of Q1 is $470 billion

7. Ecolab Inc. (NYSE: ECL)

Gates' Stake Value: $934,721,000 Percent of Bill & Melinda Gates’ 13F Portfolio: % Number of Hedge Fund Holders: 42

Ecolab Inc. (NYSE:ECL) ranks 7th on the list of 10 best stocks to buy now according to Bill Gates. The Minnesota-based manufacturer of cleanliness and hygiene products offers its services to over 170 countries worldwide. Last year, the company acquired global provider of biosecurity, hygiene, and animal-health company CID Lines. The acquisition provided an opportunity for the company's user base to grow worldwide.

Ecolab Inc. (NYSE:ECL) posted its revenue of $2.85 billion in the first quarter of 2021, down from $3.02 billion in the first quarter of 2020. ECL shares currently trade for $215.46 and have a P/E ratio of 37.24. The current dividend yield is 0.89%. The 52-week price range of Ecolab Inc. (NYSE:ECL) is $181.25-230.60. Shares of ECL jumped 3% over the last three months. On April 28, Credit Suisse maintained a Neutral rating on Ecolab Inc. (NYSE:ECL) and raised the price target to $250.

The Bill & Melinda Gates Foundation holds 4,366,426 shares in the company worth over $934 million. This represents 4.46% of their portfolio. Just like Crown Castle International Corp (NYSE:CCI), Schrodinger, Inc. (NASDAQ:SDGR), Alphabet Inc. (NASDAQ:GOOG) and Coca Cola FEMSA, S.A.B. de C.V. (NYSE:KOF), Ecolab Inc. (NYSE:ECL) is also one of the best stocks to buy now according to Bill Gates.

There were 42 hedge funds that reported owning stakes in Ecolab Inc. (NYSE:ECL) at the end of the first quarter, down from 45 funds a quarter earlier. The total value of these stakes at the end of Q1 is $240 billion.

6. United Parcel Service, Inc. (NYSE: UPS)

Gates' Stake Value: $476,276,000 Percent of Bill & Melinda Gates’ 13F Portfolio: 2.27% Number of Hedge Fund Holders: 44

Ranking 6th in our list of 10 best stocks to buy now according to Bill Gates is United Parcel Service, Inc. (NYSE:UPS). The Georgia-based supply chain management company was founded in 1907 and delivers up to an average of 21 million packages daily.

United Parcel Service, Inc. (NYSE:UPS) posted its revenue of $22.9 billion in the first quarter of 2021, a 27% increase from $20.49 billion in the same period of 2020. UPS shares currently trade for $210.63 and have a P/E ratio of 35.57. The current dividend yield is 1.94%. The 52-week price range of United Parcel Service, Inc. (NYSE:UPS) is $99.59-219.59. Shares of UPS jumped 97% over the last twelve months.

There were 44 hedge funds that reported owning stakes in United Parcel Service, Inc. (NYSE:UPS) at the end of the first quarter, down from 48 funds a quarter earlier. The total value of these stakes at the end of Q1 is $1.34 billion.

The Bill & Melinda Gates Foundation holds 2,801,790 shares in the company worth over $476 million. This represents 2.27% of their portfolio.

Saturna Capital Corporation mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q4 2020 investor letter:

“UPS is a new holding in the Fund, and we are excited about the opportunity for new management to improve operating metrics after several years of inconsistent performance.”

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Disclosure: None. 10 Best Stocks to Buy Now According to Bill Gates is originally published on Insider Monkey.