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Bill Gates runs Microsoft (NASDAQ:MSFT) and Bill& Melinda Gates Foundation. He is the second wealthiest person in the world, owning a fortune of $56 billion. In fact, he was #1 from '96 to '07.

Gates' aim is to "enable people and businesses throughout the world to realize their full potential," as stated in the Microsoft Mission Statement. His portfolio is primarily based on financials (44.49%), services (24.61%) and consumer/non-cyclical (10.24%). He did not sell off any of his holdings or opened a new stake this quarter, only increasing two of his stakes and decreasing one. Here, is a brief analysis of his latest 1 big sell, 2 big buys and 3 big holds (data from finviz and current as of June 10 close):

Big Sell:

Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B): As a publicly owned investment manager, the Nebraska-based Berkshire mainly engages in the insurance and reinsurance of casualty risks and property business. As of June 10, Berkshire had a $173.5 billion market cap and a trailing ratio of 16.1. Earnings decreased by 58.4% this quarter.

SMA50 is -7.74%, while SMA200 is -9.31%. Berkshire's share price has been falling since March, 2011. The Japanese disaster had a negative effect on the company, which is normal given the exposure of insurance companies in Berkshire's portfolio. Gates sold only 4.2% of his Berkshire shares, which means that he still has optimistic views about it. Nevertheless, that 4.2% makes a $297 million difference.

Big Buys:

Coca Cola FEMSA (NYSE:KOF): The biggest coke bottler of Latin America is planning to build a bottling plant in Colombia which is worth $160 million. As of June 10 close, Coca-Cola FEMSA owned a market capitalization of $16.22 billion. P/E is 19.47, while forward P/E is 15.55. The company had an EPS growth of 16.1% in the last five years, while analysts expect 11.13% EPS growth for the next five years. Dividend yield in 2010 was 2.32% and profit margin was 9.83%.

Although debts and assets are unstable for the last four quarters, the company managed to keep the debt-to assets ratio on track. Share prices is an increasing trend since March 2011. The stock made a huge rally from $70 to $88 in the last 4months. P/FCF is 13.3. SMA50 is 6.4%, while SMA200 is 10.85%. Gates increased his KOF holdings by 10.65%. The company pays dividends once in a year and could be a great one-shot dividend pick.

Ecolab (NYSE:ECL): The Minnesota-based Ecolab, as of June 10 close, had a $12.62 billion market cap, 24.1 P/E ratio and 18.8 forward P/E ratio. Earnings increased by 28.31% this year, while analysts estimate a 13.04% EPS growth for the next five years. Gross margin is 50.33%, whereas the profit margin is 8.57%. Dividend yield in 2010 was 1.29%.

Gates bought 100.000 shares, worth over $5.2 million. Debts are decreasing for the last three years. Insider transactions for the last 6 months increased by 35.57%. SMA50 is 2.96%, while SMA200 is 7.8%. Analysts give a 1.9 recommendation for the company (1=Buy, 5=Sell). I guess the momentum will keep on, pushing the price higher. Here, is the recent dividend history:

Mar 4, 2011

$0.175

Dec 17, 2010

$0.175

Sep 17, 2010

$0.155

Jun 11, 2010

$0.155

Big Holds:

Caterpillar Inc. (NYSE:CAT): Dennis Muilenburg and David L. Calhoun was recently elected to Caterpillar's Board of Directors. As of June 10, Caterpillar supported $62.4 billion market capital, 17.66 P/E ratio and 11.04 forward P/E ratio. The company had a whopping EPS growth of 190.36% this year, while earnings increased by 408.83% this quarter. ROE is 34.23%.

Caterpillar's share prices have been increasing since Mar, 2009. Yields are great. Analysts expect the company to have a 30.48% EPS growth next year. Target price is $134.73, indicating 36% upside potential. 6.57% of Gates' portfolio is invested in Caterpillar. RBC Capital, Credit Suisse and Robert W. Baird suggested an outperform rating for Caterpillar, while Jefferies recommend buying. Caterpillar is a good buy for the long haul. Here, is the recent dividend history:

Apr 20, 2011

$0.44

Jan 18, 2011

$0.44

Oct 21, 2010

$0.44

Jul 16, 2010

$0.44

McDonald's (NYSE:MCD): MCD's sales rose 3.1% in May. As of June 10 close, the food service titan had a market capital of $83.4 billion. Trailing P/E ratio is 17.2 and forward P/E ratio is 14.5. ROA is 16.37%, while ROE is 35.46%. Earnings increased by 11.41% this year, while analysts estimate a 9.97% EPS growth for the next 5 years. Dividend yield is 3%, whereas profit margin is 20.61%.

RBC, Credit Suisse and Wedbush Morgan suggested outperform for McDonald's, while UBS, Deutsche Bank, Argus and Janney Scott recommend buying. Debts keep increasing for the last five quarters, as well as assets. McDonald's hasbeen beating the market since Jul, 2006. McDonald's is 5.3% of Bill Gates' portfolio. The company went berserk from mid-March to end of May. McDonald's is a really profitable stock to pick as a long-term investment. As I've stated before, it is a dividend stock pick for the next 5 years. Recent dividend history is as follows:

May 27, 2011

$0.61

Feb 25, 2011

$0.61

Nov 29, 2010

$0.61

Aug 30, 2010

$0.55

Coca Cola Co. (NYSE:KO) recently granted a $27 million support to a number of organizations over the world. As of June 10 close, the Georgia-based company owned a market cap of $149.6 billion. P/E ratio is 12.6 and forward P/E ratio is 15.39. The company had an EPS growth of 72.75% this year and analysts expect the company to have a 8.93% in the next five. ROA is 19.68%, whereas ROE is 42.33%. Gross margin is 63%, while the profit margin is 31.87%. Coca-Cola paid 2.85% yield in 2010.

Assets and debts are having increases at inordinate rates. Yields are perfectly on track. Gates owns 0.51% of the company. Analysts give a 1.8 recommendation for Coca-Cola (1=Buy, 5=Sell). Target price is $75.64, implying 15% upside potential. Coca-Cola is a dividend pick for the next five years. I expect the dividend payments to keep increasing year after year. Here, is the recent dividend history:

Mar 11, 2011

$0.47

Nov 29, 2010

$0.44

Sep 13, 2010

$0.44

Jun 11, 2010

$0.44

Disclosure: I am long MSFT.

Source: 1 Big Sell, 2 Big Buys and 3 Big Holds by Bill Gates