Renowned investor and philanthropist Bill Gates recently disclosed his investment activities for the second quarter of 2023, which ended on June 30, 2023. Gates, known for his strategic and long-term investment approach, has a portfolio that is a blend of technology, finance, and consumer goods stocks. His investment philosophy is rooted in the belief of investing in companies with strong fundamentals and growth potential.
The guru's portfolio for Q2 2023 comprised 23 stocks with a total value of $42.06 billion. The top holdings were Microsoft Corporation (MSFT) with 31.79%, Berkshire Hathaway Inc. (BRK.B, Financial) with 20.38%, and Canadian National Railway (CNI) with 15.78%.
Top Three Trades of the Quarter
The following were the guru’s top three trades of the quarter:
Berkshire Hathaway Inc (NYSE:BRK.B)
During the quarter, Gates purchased 5,453,008 shares of Berkshire Hathaway, increasing his total holding to 25,142,853 shares. This trade had a 4.42% impact on the equity portfolio. The stock traded for an average price of $326.09 during the quarter. As of August 14, 2023, BRK.B had a price of $358.48 and a market cap of $781.37 billion. The stock has returned 18.82% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10. In terms of valuation, BRK.B has a price-earnings ratio of 9.01, a price-book ratio of 1.46, a EV-to-Ebitda ratio of 6.87, and a price-sales ratio of 1.97.
Anheuser-Busch InBev SA/NV (NYSE:BUD)
Gates established a new position in Anheuser-Busch InBev, purchasing 1,703,000 shares, which constituted a 0.23% weight in the equity portfolio. The shares traded for an average price of $60.58 during the quarter. As of August 14, 2023, BUD had a price of $56.35 and a market cap of $111.31 billion. The stock has returned 4.00% over the past year. GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10. In terms of valuation, BUD has a price-earnings ratio of 18.12, a price-book ratio of 1.45, a EV-to-Ebitda ratio of 12.93, and a price-sales ratio of 1.91.
Weber Inc (NYSE:WEBR)
Gates sold out of his 2,500,000-share investment in Weber Inc. The previous weight of this investment in the portfolio was 0.06%. The shares traded for an average price of $8.15 during the quarter. As of August 14, 2023, WEBR had a price of $8.12 and a market cap of $436.43 million. The stock has returned -29.78% over the past year. GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rating of 4 out of 10. In terms of valuation, WEBR has a EV-to-Ebitda ratio of -14.39 and a price-sales ratio of 0.42.
In conclusion, Gates' Q2 2023 investment activities reflect his strategic approach to investing, focusing on companies with strong fundamentals and potential for growth. His portfolio adjustments provide valuable insights for investors looking to understand market trends and make informed investment decisions.
