Key Points
Bill Gates, the co-founder of Microsoft, maintains a net worth of over $100 billion and plans to donate almost all of it to the Gates Foundation by 2045. The foundation, which focuses on health, gender equality, development, and education globally, has a substantial endowment, with a $38 billion equity portfolio. Approximately 60% of this portfolio is concentrated in three primary stocks, heavily influenced by Warren Buffett.
The Gates Foundation’s largest asset is Berkshire Hathaway, comprising 26% of the portfolio. In 2023, 9.4 million Class B shares were added to the foundation, requiring annual spending equal to the donation plus 5% of other assets to continue receiving support. Other significant holdings include WM (19% of assets), reflecting the foundation’s preference for stable investments, and Canadian National Railway (15% of assets), with a robust network reaching across North America.
In 2022, Gates donated 44.6 million shares of Canadian National Railway to the foundation, bolstering its position. The railway has seen a 2% year-over-year revenue increase, despite challenges, and expects operational improvements to enhance free cash flow significantly. Berkshire Hathaway’s share price remains stable, continuing to support the foundation’s future initiatives.
