According to Forbes, Bill Gates is America’s richest man. He went up last year by $6 billion to put him at $66 billion.
How does Bill Gates invest his money?
Amazingly, Microsoft stock only makes up about 20% of his portfolio. All of his investments are held within his investing entity, Cascade Investment, LLC.
His investments seem to be quite diversified. For example, this year he put some more money into Republic Services which is a large trash management services company that includes landfills and recycling facilities. The new purchases leaves Gate’s company with a $2.2 billion position in Republic.
Another large purchase was AutoNation which owns and operates about 256 automobile franchises in the U.S. (mostly in the Southeast). The company has a 52 week range of about $30-43 per share and is currently at a high.
Another favorite of Gates is Ecolab. The company is currently trading about $4 off its 52 week high. Ecolab makes cleaning supplies and represents about $1.6 billion of Gate’s portfolio.
It is hard to follow the logic. Microsoft seems like more of a deal than these three picks that are trading around 14 times earnings. Microsoft is trading at nine times future earnings. Like the way Buffett invests, the theme seems to be diversify, diversify, diversify.