Which Stocks Are in Bill Gates' Portfolio? Part 1

by: Investment Underground

Bill Gates, chairman of Microsoft (NASDAQ:MSFT) and co-chair of the Bill and Melinda Gates Foundation, is America’s richest man. Naturally the stock portfolio of anyone with his net worth would pique an investor’s curiosity. So Investment Underground took a look at Gates’ portfolio of 28 stocks. Gates has a wide range of stocks, with the most concentrated in financial industries—almost 48% of his portfolio. His other stocks fall into industrials (17.7%), consumer services (16.5%), consumer goods (8.4%), oil and gas (5.8%), basic materials (1.4%) and tech (1.6%), with telecommunications (0.8%) and health care (0.2%) stocks rounding out the portfolio. Read on for a closer look at Gates’ investments.

  1. Fomento Economico Mexicano S.A. (NYSE:FMX): This Latin American beverage company produces, distributes and markets Coca-Cola beverages in Central and South America. Fomento Economico also operates a chain of over 7,000 convenience stores in Mexico. The company reached a 52-week high of $58.90 on March 24, 2011. FMX has a trailing P/E of $34.85 and a forward P/E of $14.30. Their dividend yield is currently 1.1%.
  2. SemGroup Corporation (NYSE:SEMG): SemGroup Corporation focuses on the transportation of oil and natural gas, as well as the manufacture and sale of asphalt. After a difficult stretch—the company filed for bankruptcy in 2008—a restructured SemGroup joined the NYSE in November of 2010. Their current stock price is $33.60.
  3. Ecolab, Inc. (NYSE:ECL): Ecolab, Inc., develops, manufactures and sells cleaning and sanitizing products for the food service industry. At last trade, the stock price was 49.65, and their current dividend yield is 1.40%. Ecolab’s trailing P/E is 22.26, and their forward P/E is $17.36. The company was recognized in March for their efforts in food sustainability at the 2011 Food and Beverage Green Tech Asia Forum.
  4. FedEx Corporation (NYSE:FDX): The global shipping giant specializes in transportation, e-commerce and business services both in the United States and abroad. Currently, FedEx has a dividend yield of 0.50%. Their trailing P/E is 21.80, and forward P/E is $14.19. The stock price at last trade was $90.79.
  5. Coca-Cola Company (NYSE:KO): In addition to FMX, Gates also invests in Coca-Cola. The well-known beverage company produces, markets and sells sodas, sports drinks, juices and other non-alcoholic beverages. At last trade, the stock price was $64.69. Coca-Cola’s dividend yield is 3.00%. The company’s trailing P/E is $12.78, and their forward P/E is $15.11.
  6. Expeditors International of Washington, Inc. (NASDAQ:EXPD): This Seattle-based company provides logistics services for freight and air delivery in the U.S. and internationally. The current stock price is $47.95. Expeditors International has a dividend yield of 0.80%. Their trailing P/E and forward P/E are $30.16 and $22.73, respectively.
  7. Exxon Mobil Corporation (NYSE:XOM): Exxon Mobil specializes in the production, transportation and sale of crude oil and natural gas. Exxon’s dividend yield is 2.10%. At last trade, their stock price was $82.90, and their trailing and forward P/E were 13.34 and 9.95, respectively. Exxon Mobil recently received a permit to begin drilling at their Gulf of Mexico site, Hadrian North, in the next few weeks.
  8. Waste Management, Inc. (NYSE:WM): The aptly named Waste Management, Inc., specializes in waste management and recycling in North America. The company has a dividend yield of 3.70%. Their trailing P/E is 18.92, and their forward P/E is $14.52. At last trade, Waste Management’s stock was at $37.48.
  9. Wal-Mart Stores, Inc. (NYSE:WMT): Wal-Mart Stores, Inc., operates a chain of discount superstores and groceries in the U.S. and overseas. At last trade, Walmart’s stock was at 52.55, and their dividend yield is currently 2.80%. They have a trailing P/E of $11.77 and a forward P/E of $10.76. The company also sports a beta of 0.37.
  10. McDonald’s (NYSE:MCD): Also featured alongside Wal-Mart in our recent rundown of low beta stocks, McDonald’s sports a beta of 0.40. The fast-food giant has a dividend yield of 3.30%. Their trailing P/E is 16.36, and their forward P/E is 13.60. At last trade, McDonald’s closed at 74.92.

For part 2 of this series, please click here.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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