Gates Foundation Puts 59% of $36bn Portfolio in 3 Stocks
Quick Reads
- The Bill & Melinda Gates Foundation trust holds a $36 billion stock portfolio, with 59% concentrated in just three companies.
- Berkshire Hathaway makes up the largest position at 25.4% of the portfolio, largely due to annual donations from Warren Buffett.
- The other two top holdings are waste management giant WM at 18.6% and Canadian National Railway at 15%, both held for their defensive, hard-to-replicate business models.
The Bill & Melinda Gates Foundation trust holds a stock portfolio worth approximately $36 billion, and more than half of that is invested in just three companies. Berkshire Hathaway, WM (formerly Waste Management), and Canadian National Railway collectively account for 59% of the trust’s equity holdings, according to the most recent data. The concentration reflects a strategy focused on durable, cash-generating businesses with what the foundation’s managers consider to be long-term, defensible competitive advantages.
The largest holding, Berkshire Hathaway, represents 25.4% of the portfolio, or over $9 billion. This position has been built largely through annual donations from Warren Buffett himself, who requires the foundation to spend an amount equal to his gift plus 5% of the trust’s remaining assets. Berkshire recently transitioned to new leadership, with Greg Abel taking over as CEO at the start of 2026 following Buffett’s resignation. Abel has signalled continuity, maintaining core holdings like Apple and Japanese trading companies while restarting share repurchases as the stock’s price-to-book ratio fell to its lowest level since early 2024.
The second-largest holding, WM, accounts for 18.6% of the portfolio and is one of the longest-held stocks in the trust. The waste hauling company’s value lies in its vertically integrated network of transfer stations and landfills infrastructure that is exceptionally difficult to replicate due to regulatory hurdles. WM recently acquired Stericycle, rebranding it as WM Healthcare Solutions, and management expects 29% free cash flow growth in 2026 at the midpoint of its guidance, following 27% growth in 2025.
Canadian National Railway, at 15% of the portfolio, operates a rail network spanning coast-to-coast in Canada and down the US mid-section to New Orleans. The railway has faced pressure from tariffs on Canadian forest products, metals, and automobiles imposed over the past year, but has offset those declines with increased grain and intermodal shipments. Management is pulling back capital expenditures by 15% in 2026 to $2.8 billion, freeing up cash for share buybacks.
Market Snapshot
- Gates Foundation Trust Portfolio Value: ~$36 billion
- Combined Weight of Top 3 Holdings: 59%
- Berkshire Hathaway Weight: 25.4% (~$9 billion+)
- Berkshire Cash & Treasuries: $373 billion
- Berkshire Marketable Equities: $318 billion
- WM Weight: 18.6%
- WM Expected 2026 FCF Growth (midpoint): 29%
- Canadian National Railway Weight: 15%
- Canadian National 2026 CapEx Reduction: -15% to $2.8 billion
- Canadian National P/E Ratio: 18.8
