Tracking Bill & Melinda Gates Foundation Portfolio – Q3 2018 Update

• The huge ~$26B portfolio has just 17 positions. 
• The largest position, Berkshire Hathaway is at a whopping ~52% of the portfolio. 
• This quarter saw a 25% reduction in the Microsoft Corporation stake.

Gates Foundation portfolio value increased this quarter from $22.11B to $25.82B. Over the years, the portfolio has become extremely concentrated. In their first 13F filing in 2002, they had about 27 positions and the total portfolio value was ~$1.8B. Currently, the portfolio is well over ten times that while the number of positions has gone down to just 17.

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Below is a summary:

Berkshire Hathaway (BRK.B): BRK.B is by far the largest stake at ~52% of the portfolio. The original position is from Q3 2006 at a cost-basis in the mid-60s. The size of the stake peaked at ~87M shares in Q4 2012 and the current position is at ~62M shares. The stake has wavered. Q3 2017 saw a ~15% stake increase as the stock traded between $169 and $184 while the next two quarters saw ~7% reductions each. The stock currently trades at ~$210. There was a ~6% increase this quarter.

Waste Management (WM):  WM was a very small ~1.2M share position during their first 13F filing in Q3 2002. The current position is at ~18.6M shares (~7% of the portfolio). The bulk of the position is from Q3 2009 when around 8M shares were purchased at a cost-basis in the high-20s. 2010 also saw a ~3M share increase in the mid-30s. Since then, the position has been left untouched. The stock currently goes for ~$93.

Canadian National Railway (CNI): CNI is the fifth-largest stake at ~6% of the portfolio. Since 2008, the position has remained remarkably steady at ~17M shares. The bulk of the stake was built during the period from 2006 to 2008 at a cost-basis in the low-20s. CNI currently trades at $82.

The spreadsheet below shows Gates Foundation’s holdings as of Q3 2018. Please visit our previous updates to get an idea on how the portfolio has progressed:

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