Analysis of Gates Foundation Investment Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: NASDAQ.COM
- Portfolio Concentration: The Gates Foundation's investment portfolio is heavily concentrated, with approximately 59% of marketable equities held in just three outstanding value stocks, reflecting Bill Gates' investment style influenced by Warren Buffett, which may yield stable returns in the future.
- Buffett's Annual Donations: Warren Buffett donates a significant number of shares to the Gates Foundation each year, with last year's contribution amounting to 9.4 million Class B shares, requiring the foundation to utilize the entire value of these donations plus 5% of its other assets annually, ensuring a continuous influx of funds for philanthropic efforts.
- WM's Market Advantage: The Gates Foundation holds 28.9 million shares of WM, valued at approximately $6.6 billion, benefiting from its dominant position with over 260 landfills, which provides a competitive edge in the slow-growing waste management industry, allowing for steady profit growth in the future.
- Growth Potential of Canadian National Railway: The foundation owns 51.8 million shares of Canadian National Railway, worth about $5.1 billion, and despite facing flat revenue challenges, the company is expected to enhance earnings per share through a share repurchase program and reduced capital expenditures, showcasing long-term investment potential.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
Current: 393.670
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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