Bill & Melinda Gates Foundation Trust Portfolio Q2'2025: Top Holdings & Recent Changes
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Bill & Melinda Gates Foundation Trust continues to exemplify disciplined, high-conviction investing at scale. The foundation’s Q2’2025 portfolio showcases a $47.8 billion allocation, with decisive moves in core holdings such as Microsoft and a substantial increase in Berkshire Hathaway. These shifts highlight a strategic recalibration while maintaining a focus on quality and long-term value creation.
Portfolio Overview: Strategic Concentration in Action
Portfolio Highlights (Q2’2025): - Market Value: $47.8B - Top 10 Holdings: 96.2% - Portfolio Size: 25 +0 - Average Holding Period: 27 quarters - Turnover: 0.0%
The Gates Foundation portfolio remains a model of ultra-concentration, with over 96% of assets in the top 10 holdings. This approach underscores a deep conviction in a select group of businesses, minimizing diversification in favor of outsized bets on proven winners. The portfolio’s size—25 positions—has not changed this quarter, and the average holding period of 27 quarters (nearly 7 years) reflects a steadfast, long-term orientation.
Turnover is effectively zero, signaling that the foundation’s investment committee is content to let core positions compound. The only notable activity this quarter was a significant reduction in Microsoft and a major addition to Berkshire Hathaway, both moves that recalibrate risk and opportunity without altering the overall strategic posture.
Top Holdings Analysis: Blue-Chip Core with Tactical Adjustments
The portfolio is anchored by Microsoft, which, despite a 7.96% reduction, remains the largest holding at 27.3%. This trim likely reflects prudent risk management after a period of strong performance. In contrast, Berkshire Hathaway saw a bold 40.48% increase, now comprising 24.5% of the portfolio—a clear signal of renewed conviction in Warren Buffett’s conglomerate.
Longstanding positions such as Waste Management 15.4%, Canadian National Railway 11.9%, and Caterpillar 6.0% remain unchanged, reflecting the foundation’s preference for stable, cash-generative businesses. Deere & Company 3.8% and Ecolab 2.9% further diversify the industrial and environmental exposure.
Rounding out the top 10, Walmart 1.9% and Coca-Cola FEMSA 1.3% provide defensive ballast. The absence of new positions and the lack of significant changes outside the top two holdings reinforce the foundation’s patient, conviction-driven approach.
What the Portfolio Reveals About Current Strategy
- Quality over quantity: The foundation’s assets are overwhelmingly concentrated in a handful of blue-chip companies with durable competitive advantages.
- Sectoral balance: While technology (via Microsoft) and financials (via Berkshire Hathaway) dominate, there is meaningful exposure to industrials, consumer staples, and environmental services.
- Long-term compounding: With an average holding period of 27 quarters and minimal turnover, the strategy is designed to let winners run and minimize tax drag.
- Risk management: The reduction in Microsoft and addition to Berkshire Hathaway suggest a tactical rebalancing to maintain optimal risk/reward as market conditions evolve.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Microsoft Corporation | $13.0B | 27.3% | Reduce 7.96% |
| Berkshire Hathaway Inc. (BRK-B) | $11.7B | 24.5% | Add 40.48% |
| Waste Management, Inc. | $7,375.9M | 15.4% | No change |
| Canadian National Railway Company | $5,704.2M | 11.9% | No change |
| Caterpillar Inc. | $2,854.7M | 6.0% | No change |
| Deere & Company | $1,808.9M | 3.8% | No change |
| Ecolab Inc. | $1,405.9M | 2.9% | No change |
| Walmart Inc. | $888.9M | 1.9% | No change |
| Coca-Cola FEMSA, S.A.B. de C.V. | $601.1M | 1.3% | No change |
The table above highlights the extraordinary concentration of the Gates Foundation portfolio. The top two positions alone account for over half of total assets, while the top five comprise nearly 85%. This level of focus is rare among institutional investors and reflects deep conviction in the underlying businesses’ ability to deliver long-term returns.
Investment Lessons from the Gates Foundation Approach
- Concentrate when you have conviction: The foundation’s willingness to allocate heavily to its best ideas demonstrates the power of focus.
- Let winners compound: Minimal turnover and long holding periods allow the benefits of compounding to accrue.
- Quality trumps quantity: Each top holding is a leader in its sector with a proven track record of resilience and growth.
- Rebalance, don’t churn: Tactical adjustments—like trimming Microsoft and adding to Berkshire Hathaway—are made thoughtfully, not reactively.
- Diversify by business model, not just sector: Exposure spans technology, industrials, consumer, and environmental services, but each business brings a unique set of cash flows and risk factors.
Looking Ahead: What Comes Next?
With $47.8 billion in assets and virtually no cash drag, the foundation is well-positioned to capitalize on future opportunities. The recent rebalancing between Microsoft and Berkshire Hathaway suggests a continued emphasis on quality and downside protection. Investors should watch for any new positions or sector shifts in upcoming quarters, though the foundation’s history suggests that change will be incremental, not abrupt.
Market conditions—rising rates, global uncertainty, and sector rotations—may prompt further tactical adjustments, but the core philosophy of concentrated, long-term investing is unlikely to change. The current portfolio sets the stage for continued compounding, with the flexibility to act decisively when new opportunities arise.
FAQ about Gates Foundation Portfolio
Q: Why did the Gates Foundation reduce its Microsoft position in Q2 2025?
The foundation trimmed Microsoft by 7.96%, likely as a risk management measure after significant appreciation, while still maintaining it as the largest holding.
Q: How concentrated is the Gates Foundation portfolio?
Extremely concentrated: over 96% of assets are in the top 10 holdings, with the top two alone accounting for more than half of the portfolio.
Q: How does the foundation manage risk with such a focused portfolio?
Risk is managed through deep fundamental research, long-term holding periods, and periodic rebalancing—such as the recent increase in Berkshire Hathaway and reduction in Microsoft.
Q: What sectors does the Gates Foundation favor?
The portfolio is anchored in technology, industrials, consumer staples, and environmental services, with a strong emphasis on blue-chip, cash-generative businesses.
Q: How can I track Gates Foundation portfolio changes?
You can follow all updates and 13F filing analyses on ValueSense. Note that 13F filings have a 45-day reporting lag, so portfolio changes may not be immediately reflected.
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