Bill Gates Reshapes $47 Bn Portfolio With Major Berkshire and Microsoft Moves

Billionaire investor Bill Gates executed more than $4 bn (£2.9 bn) in stock trades during the second quarter, significantly reshaping the holdings of the Bill & Melinda Gates Foundation Trust, according to filings with the U.S. Securities and Exchange Commission.

The filings show Gates boosted his stake in Warren Buffett’s Berkshire Hathaway while trimming his exposure to Microsoft, the company he co-founded.

Big Bet on Berkshire Hathaway

Gates purchased 6.95 mln Class B shares of Berkshire Hathaway (NYSE: BRK.B) in the quarter ending June 30, increasing his stake by 40.5%. The additional shares, valued at $3.43 bn (£2.54 bn) at Tuesday’s closing price of $494.10 (£366.10), bring Gates’ total Berkshire holdings to 24.1 mln shares worth more than $11 bn (£8.1 bn).

The move marks a reversal after Gates sold Berkshire shares in each of the previous four quarters.

Microsoft Stake Trimmed

At the same time, the Gates Foundation Trust sold 2.26 mln Microsoft (NASDAQ: MSFT) shares, reducing Gates’ stake in the tech giant by 8%. The sale, worth $1.15 bn (£852 mln) at Tuesday’s closing price of $509.23 (£377.30), leaves Gates with 26.1 mln Microsoft shares valued at more than $13 bn (£9.6 bn).

Despite his sales, Microsoft’s stock has gained more than 17% over the past year. Analysts polled by TipRanks give the company a 12-month price target of $625.78 (£463.6), with Citi projecting as high as $680 (£503.8).

Buffett’s Ongoing Philanthropy

The filings also highlight Warren Buffett’s latest round of philanthropy. In late June, Buffett converted 8,239 Class A shares into 12.35 mln Class B shares, donating over 9.4 mln of them to the Gates Foundation Trust. Additional donations went to the Susan Thompson Buffett Foundation and other charities managed by his children.

Buffett pledged in 2006 to donate 85% of his Berkshire stake to charity, with the Gates Foundation as a primary beneficiary. While he has said contributions to the foundation will end after his death, he emphasised last year that his philanthropic goals remain «100% in sync» with those of the foundation.

Portfolio Outlook

Berkshire Hathaway and Microsoft now account for 51.8% of Gates’ $47 bn (£34.8 bn) portfolio. Other major positions include Waste Management (15.4%), Canadian National Railway, Caterpillar and Deere & Co, with combined stakes worth more than $17 bn (£12.5 bn).