The Companies Bill Gates Owns: A Deep Dive Into His $48 Billion Investment Strategy

Bill Gates has built one of the world’s most impressive investment portfolios, with approximately $48 billion deployed across just four major corporate holdings. This concentrated approach reveals a deliberate strategy that mirrors the investment philosophy of his longtime collaborator Warren Buffett. Through the Gates Foundation Trust, which manages assets supporting the world’s largest private charitable foundation, Gates maintains substantial stakes in corporations that generate consistent cash flow and align with long-term value creation.

The Foundation’s investment approach is notably selective. Rather than scattering capital across dozens of companies, Gates and his investment team have opted for depth over breadth, allowing them to meaningfully influence corporate governance while ensuring stable returns that perpetuate the Foundation’s mission: “to create a world where every person has the opportunity to live a healthy, productive life.”

Microsoft: The Cloud Computing Foundation at 27%

Microsoft represents the cornerstone of Bill Gates’ corporate holdings at 27% of his four-stock portfolio, valued at approximately $13 billion through more than 26 million shares. Given Gates’ three-decade relationship with the technology giant he cofounded, this concentration reflects both historical roots and ongoing strategic confidence. Under CEO Satya Nadella’s leadership, the company transformed from a stagnant software manufacturer into a cloud infrastructure powerhouse and artificial intelligence leader.

Azure, Microsoft’s cloud platform, ranked as the world’s second-largest cloud infrastructure provider in recent quarters, commanding 20% global market share and achieving 34% year-over-year growth—the fastest pace among the Big Three cloud providers. Cloud services now generate $29.9 billion in quarterly revenue, accounting for 39% of Microsoft’s total business and representing its most dynamic growth engine. AI adoption continues accelerating this cloud expansion.

The dividend history strengthens the investment case further. Microsoft has maintained 16 consecutive years of annual dividend increases, with a conservative 23% payout ratio offering substantial room for future increases. Despite a modest 0.7% yield, shareholders have enjoyed 140% returns over the past five years, demonstrating that capital appreciation often matters more than current income.

Berkshire Hathaway: The Diversified Conglomerate at 25%

Berkshire Hathaway commands 25% of Gates’ concentrated portfolio, with the Foundation holding approximately 24 million shares valued near $11.7 billion. This positioning connects directly to Gates’ partnership with Warren Buffett through the Giving Pledge, launched in 2010, which has inspired billionaires worldwide to commit substantial portions of their wealth to charitable causes. Buffett himself has already distributed over $60 billion to charitable endeavors.

The appeal of Berkshire for Gates extends beyond friendship. Berkshire’s sprawling collection of businesses—spanning insurance, utilities, manufacturing, and railroads—provides unmatched diversification within a single holding. This corporate constellation generates reliable cash flows that feed the Foundation’s charitable disbursements while the stock appreciates. Remarkably, despite its reputation as a mature, “boring” holding, Berkshire stock has delivered 135% total returns over five years, exceeding the S&P 500’s 96% performance.

Berkshire’s leadership transition, with Buffett stepping back from daily operations, has not diminished Gates’ conviction. The company’s proven management depth and diversified asset base ensure stability even as its legendary CEO enters retirement.

Waste Management: Hidden Value in Essential Services at 15%

Waste Management comprises 15% of the portfolio, with the Foundation’s 32 million-share stake worth approximately $7.4 billion. While trash collection and recycling might seem like unglamorous sectors, they represent the type of essential, recession-resistant business that appeals to both Gates and Buffett. These services generate remarkably consistent cash flows regardless of economic cycles.

The company has expanded beyond conventional waste collection into environmental innovation. Waste Management now diverts organic waste from landfills, converting it into green energy for electricity generation or vehicle fuel production. This pivot toward sustainability aligns beautifully with the Gates Foundation’s environmental and health initiatives.

Operationally, Waste Management demonstrates financial discipline. The company has boosted its dividend for 21 consecutive years, currently yielding 1.5%. With a modest 46% payout ratio, the company retains substantial earnings to fund dividend growth, capital investments, and business expansion—a pattern likely to persist.

Canadian National Railway: Railroad Economics and Geographic Advantages at 12%

Canadian National Railway rounds out the top four holdings at 12% of the portfolio, with nearly 55 million shares representing $5.7 billion in value. Like Berkshire Hathaway’s ownership of Burlington Northern Santa Fe, Gates’ Canadian National stake reflects confidence in rail transportation economics. Buffett has repeatedly emphasized that railroads represent a cost-effective means of moving goods while minimizing environmental pollution—a philosophy that plainly resonates with Gates.

Canadian National holds a singular geographic position as North America’s only railway connecting the Atlantic, Pacific, and Gulf Coasts. This dominant network position creates substantial competitive moats and ensures customers have limited alternatives. Railways outperform even long-haul trucking in efficiency metrics, benefiting from steep barriers to entry and sustainable structural advantages.

The dividend narrative continues here as well. Canadian National has increased its payout for 20 consecutive years, currently yielding approximately 2.7%. The relatively conservative 48% payout ratio signals considerable potential for further increases, supporting a multi-decade wealth distribution strategy.

The Investment Philosophy Behind Bill Gates’ Companies

Examining the companies Bill Gates owns reveals a coherent strategy far more sophisticated than simple diversification. Each holding generates robust dividend income, demonstrating proven management quality and long-term profitability. The portfolio emphasizes cash-generative businesses with pricing power and competitive moats—precisely the characteristics that sustain charitable foundations through market cycles.

Gates’ concentration in four companies, representing 79% of his $48 billion portfolio, reflects supreme confidence in each business and management team. Rather than chasing growth, he gravitates toward established enterprises with decades of operational excellence, consistent capital returns, and alignment with societal needs. The deliberate selection of dividend aristocrats—companies with 16, 20, and 21 consecutive years of payout increases—ensures that the Foundation’s charitable capacity grows steadily.

Furthermore, the portfolio embodies the Gates Foundation’s core mission. Microsoft’s AI development addresses healthcare and education challenges. Waste Management’s environmental innovation tackles sustainability. Canadian National’s efficiency reduces carbon emissions. Berkshire’s diversified asset base funds it all. This alignment between investment holdings and charitable objectives distinguishes Gates’ approach from purely financial portfolio construction.

As the Foundation continues deploying over $100 billion across global health, poverty reduction, and development initiatives, the steady cash generation from these four corporate holdings ensures that transformative philanthropic work can persist for generations to come.