Microsoft, Garbage, Railroads: Bill Gates’ $42B Investment Playbook at a Glance.

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TL;DR: TODAY’S EDITION

• Bill Gates manages $42B through his Foundation Trust.

• While he made his money in software, his top 10 stocks are almost entirely old-school: Microsoft, Berkshire, Railroads, Waste Management.

• This post breaks down his holdings, his strategy, and why steady compounding still matters.

BILL GATES

This week, we’re flipping the script.

We’re not analyzing a pro investor — we’re looking at a billionaire entrepreneur.

Specifically: Bill Gates.

Through his Foundation Trust, Gates manages almost $42 billion. And unlike his Microsoft days, his investment playbook looks a lot more… traditional.

What happens if you just copy his portfolio? We crunched the numbers.

Who Is Bill Gates (the Investor)?

Not just the co-founder of Microsoft — but also a strategic philanthropist and investor.

But he’s also a strategic philanthropist and investor, managing the world’s largest private charitable foundation.

The Gates Foundation Trust is built for one thing: Consistent, compounding returns to fund global initiatives.

His top 4 holdings account for nearly 80% of the entire portfolio:

• Microsoft (no surprise)

• Berkshire Hathaway (Buffett’s influence, though he trimmed it by 13% last quarter)

• Waste Management (yes, literally trash)

• Canadian National Railway (trains. lots of trains)

That’s right. Gates made his money in software, but his assets are mostly parked in good ol’ boring companies.

🔍 What’s in His Portfolio?

Here’s what he’s currently betting on (from the Q1 2025 13F):

His Top 10 Holdings tell a clear story:

• Microsoft is his anchor — but only a slice of the total trust.

• Berkshire was reduced by 13% last quarter.

• The rest? “Boring” but steady plays that match Gates’ long-term, low-drama philosophy.

📦 Berkshire Hathaway

Berkshire isn’t just a stock — it’s a business empire. Run for decades by Warren Buffett, it owns everything from Geico to BNSF Railway and holds major public equity stakes (including Apple and Coca-Cola). Think of it as a one-stop shop for diversified cash flow and long-term compounders. Why invest? Because Berkshire’s portfolio isn’t just diversified — it’s handpicked by one of the greatest investors ever.

🗑️ Waste Management

Waste Management is the quiet king of trash. Operating a vast network of landfills, recycling facilities, and collection routes across North America, it turns garbage into reliable cash flow. It benefits from steady demand, regulatory moats, and rising sustainability trends. Gates’ bet here signals love for boring but beautiful businesses that thrive in any economy.

🚂 Canadian National Railway (CNI)

CNI runs one of the largest rail networks in North America, connecting major ports and industrial hubs. It’s a crucial link in supply chains — moving everything from grain to oil to manufactured goods. Railroads enjoy high barriers to entry, pricing power, and steady margins. Gates’ stake in CNI taps into the enduring backbone of trade and commerce.

📈 So, How Did the Copycat Portfolio Perform?

We backtested Gates’ top 10 holdings (weighted) vs. the S&P 500 (Data as of June 1st, 2025):

Key takeaway:

Outperformance? Yes — but just by a whisker. This isn’t a moonshot strategy. It’s low-beta, low-drama, high-quality compounding.

While markets have been zigging with AI and growth hype, Gates’ Trust has stayed grounded. And guess what?

It’s barely outperformed the index over time.

🧠 The Takeaway

Copying Gates’ portfolio isn’t a ticket to massive alpha. But it shows how old-school discipline and business fundamentals can quietly win over time.

If you want consistent returns, fewer sleepless nights, and a “boring but beautiful” portfolio, this one’s worth a look. Just don’t expect fireworks.

Looking for higher returns — without the guesswork?

While Gates’ portfolio barely edged out the S&P, there are investors who’ve doubled or even tripled its returns — and we’re showing you exactly who they are and what they’re betting on in Smart Money Premium.

By simply copying their trades, you’d have captured 36% to 62% annual returns over the last 5 years.

Don’t wait — you can start replicating these high-conviction portfolios today and position yourself for the next surge. Because when the market moves, the biggest profits are made by those who are already in. 💥

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