Tracking Bill & Melinda Gates Foundation Portfolio - Q3 2016 Update

• The huge ~$18.5B portfolio has just 16 positions.
• The largest position, Berkshire Hathaway is at a whopping ~58% of the portfolio.
• Last four quarters have seen only very minor adjustments.

Gates Foundation portfolio value increased ~10% this quarter from $16.8B to $18.5B. 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 around ten times that while the number of positions has gone down to just 16.

To know more about Gates and the Foundation, check-out the book Bill Gates: The Inspirational Life Story of Bill Gates; Businessman, Inventor, and the World's Most Remarkable Philanthropist.

Below is a look at the top holdings:

Berkshire Hathaway (BRK.B): BRK.B is by far the largest stake at 58.21% 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 ~74M shares. This quarter saw a ~15% stake increase at prices between $143 and $151. The previous significant buying was in Q3 2015 when around 11M shares were purchased at prices between $129 and $144. The stock currently trades at ~$165.

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 (6.44% 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 has doubled and currently goes for $70.02.

Canadian National Railway (CNI): CNI is the third-largest stake at 6.07% 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 $69.52.

Caterpillar Inc. (CAT): The 5.42% portfolio stake in CAT was first purchased in 2005 and built during the following years. Around 5M shares were purchased during the period from 2005 to 2008 at a cost-basis in the low-60s. The stock is currently at $95.53. The last significant activity was in Q2 & Q4 2014 - around 1M shares were purchased at a cost-basis near $100. For investors attempting to follow Gates Foundation, CAT is a good option to consider for further research.

Wal-Mart Inc. (WMT): The top-five ~4.53% WMT position was established in 2006 with the bulk purchased in 2007 and 2010 at a cost-basis in the high-40s. The last significant activity was in Q4 2013 when around 500K shares were purchased at a cost-basis in the mid-70s. The stock is now at $70.08.

The spreadsheet below shows Gates Foundation’s holdings as of Q3 2016. Please visit our previous updates to get an idea on how the portfolio has progressed:

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