Key Points
The Gates Foundation Trust's portfolio is heavily invested in Microsoft, Berkshire Hathaway, and Waste Management.
Wall Street likes all three of these stocks.
Analysts have a clear favorite, though.
Bill Gates ranks among the biggest philanthropists in human history. So far, he and his ex-wife Melinda Gates have given away more than $100 billion. Gates recently committed to boost his donations by $200 billion over the next 20 years.
Nearly all of Gates' charitable contributions have gone to the Bill and Melinda Gates Foundation, which has distributed billions of dollars to help address global problems, including children's health and climate change. However, the Gates Foundation Trust also has roughly $67 billion invested in stocks. The growth and dividend income from these investments will help fund charitable work in the future.
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Around 67% of the Gates Foundation Trust's portfolio is invested in three stocks -- and Wall Street absolutely loves one of them.
Gates Foundation Trust's top three stocks
You probably won't be surprised that the Gates Foundation Trust's biggest holding is Microsoft (NASDAQ: MSFT). The giant software company makes up around 27% of the trust's portfolio, with a stake valued at $13 billion, as of June 30, 2025.
Gates and Paul Allen founded Microsoft in 1975. When Bill and Melinda Gates started their foundation in 2000, they funded it mainly through donating shares of Microsoft and have given additional shares to the foundation throughout the years.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) ranks as the Gates Foundation Trust's second-largest holding. At the end of the second quarter of 2025, the charitable trust's stake in the conglomerate led by Warren Buffett was worth around $11.7 billion and comprised 24.5% of its portfolio. It's probably no coincidence that Gates has been an admirer of Buffett and a friend of the legendary investor for decades
Waste Management (NYSE: WM) is the third-largest position in the Gates Foundation Trust's portfolio. The trust's holding in the waste management and environmental services company was valued at roughly $7.4 billion at the end of Q2. This stake made up 15.4% of the portfolio.
Wall Street's favorite
Wall Street likes all of the Gates Foundation Trust's top three holdings. Analysts are least bullish about Berkshire Hathaway, though. Of the four analysts surveyed by S&P Global in October who cover the stock, only two rated it as a buy. The other two analysts recommended holding Berkshire. The average 12-month price target for the stock reflected an upside potential of only 4%.
There's more enthusiasm on Wall Street for Waste Management. Fifteen of the 25 analysts surveyed by S&P Global rated the stock as a buy or strong buy. Nine analysts recommended holding Waste Management, with one outlier advising to sell the stock. The consensus price target for Waste Management is around 17% above the current share price.
However, Wall Street's favorite of the Gates Foundation Trust's top three stocks is clearly Microsoft. Of the 58 analysts surveyed by S&P Global this month, 13 rated the stock as a strong buy. Another 44 analysts rated Microsoft as a buy, while only one analyst was less positive with a hold recommendation. The average 12-month price target for the stock reflects an upside potential of roughly 19%.
Why do analysts absolutely love Microsoft? Primarily because of the company's huge artificial intelligence (AI) tailwind. Microsoft's cloud platform is booming as customers flock to the cloud to deploy AI systems. The tech giant has integrated generative AI functionality throughout its product lineup.
Are analysts right about Microsoft?
Although I don't always agree with Wall Street's views on stocks, I think analysts are right to be bullish about Microsoft. I don't know if the stock will jump 19% over the next 12 months, but it could easily do so.
The rising adoption of agentic AI could provide an especially strong catalyst for Microsoft. The company has AI agents built into its Copilot Studio software for automating business tasks. It also recently introduced an AI agent framework for developers to create AI agents on the Azure cloud.
Significant growth is already baked into Microsoft's share price, as the stock's forward price-to-earnings ratio is a lofty 33.3. However, I think Microsoft's growth prospects warrant a premium valuation. This stock should continue to be a big winner for investors -- and the Gates Foundation Trust -- over the long run.
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Keith Speights has positions in Berkshire Hathaway and Microsoft. The Motley Fool has positions in and recommends Berkshire Hathaway, Microsoft, and S&P Global. The Motley Fool recommends WM and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
