These Are the Only 2 Stocks Bill Gates Bought in Q4

By Rich Duprey Published Feb 18, 9:50AM EST

24/7 Wall St. Insights:

Bill Gates only bought two stocks in Q4, though he continued trimming his position in Microsoft (MSFT).
One of his purchases was small, just $10 million, but was curious because it seems to be into a declining market, while the second was larger and related to his ownership of U.S. farmland.

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These Are the Only 2 Stocks Bill Gates Bought in Q4 — © Jack Taylor / Getty Images

Bill Gates could have been the world’s first trillionaire if he had never sold any shares of his Microsoft (NASDAQ:MSFT | MSFT Price Prediction) stock. He owned 45% of the company when it went public in 1986, but over the past four decades he has consistently sold off shares.

Partially it’s because he wants to diversify his holdings, but he also sells shares to help fund the operations of his Bill & Melinda Gates Foundation.

That was the case in the fourth quarter where he sold almost 2% of the portfolio’s position in MSFT stock, even though it remains his largest holding, worth almost $12 billion.

The Foundation has some $42 billion in assets under management and holds stakes in just 26 companies. Two of those were just added to the portfolio. Let’s see why Gates might like these two stocks and whether you should consider them for your own portfolio as well.

Mexico Fund (MXF)

Mexico | Historical Landmark National Palace Building at Plaza de la Constitucion in Mexico City, Mexico

With Mexico’s economy contracting, Gates’ purchase of Mexico Fund stock was a curious investment

Mexico Fund (NYSE:MXF) is a closed-end fund that, as its name suggests, invests solely in Mexican stocks. It is a way for investors to get exposure to the Mexican economy they otherwise wouldn’t be able to as many businesses south of the border don’t list on U.S. stock exchanges.

A closed-end is different from an open-end fund in that they issue a fixed number of shares at their IPO and then never issue any more. Exchange-traded funds are a type of open-end fund as they can issue more shares.

Because there is a finite number of shares, the closed-end fund stocks can trade at a premium or discount to its net asset value depending upon market demand. Currently MXF stock is trading at a discount to its NAV.

Mexico Fund invests in consumer defensive stocks, basic materials, financials, and industrials. Its three largest positions are in Grupo Financiero Banorte (OTC:GBOOF), a banking and financial services holding company; Fomento Economico Mexicano (NYSE:FMX), better known as FEMSA, the Mexican retailer and beverage giant; and Grupo Mexico (OTC:GMBXF), a materials and transportation conglomerate. They account for 34.6% of the fund’s holdings.

Gates bought a small position (by Gates’ standards) in Mexico Fund, purchasing 735,000 shares worth $10.2 million. It’s not the first time he owned shares in the closed-end fund, having bought a stake in it two years ago before selling it off.

Considering the trade tensions between Mexico and the U.S., with the potential for onerous tariffs to be imposed, and an economy that shrunk 0.6% in the Q4, it’s a curious investment by the billionaire.

McDonald’s (MCD)

Less surprising is Gates’s purchase of McDonald’s stock since the farmland he owns produces potatoes for the chain’s fries

The second and bigger swing Gates took in the fourth quarter was buying 335,000 shares worth $97 million of McDonald’s (NYSE:MCD). It’s still an overall small position in the Foundation’s portfolio, representing just 0.23% of the total.

Not as surprising as his purchase of Mexico Fund, Gates purchase of MCD stock is likely related to his farmland producing potatoes for McDonald’s fries.

Gates has been buying up food-producing farmland since 2013, spending billions of dollars over the years to purchase some 275,000 acres, making him the largest private property owner in the country. In a Reddit Ask Me Anything post in 2023, he said there was no grand conspiracy to own the nation’s food supply, but rather was to make the farms “more productive and create more jobs.” He noted he owned just 1/4,000th of total U.S. farmland.

The farmland was purchased through Cascade Investments, an investment management firm controlled by Gates’ foundation. According to NBC News, Cascade used at least 22 different limited liability shell companies to make the purchases.

McDonald’s stock has rebounded sharply since the lows it hit last July. Shares are up 22% since then, and even rose after its recent Q4 earnings report that showed it took a big sales hit following an E.coli outbreak. However, management expects sales to rebound by the second quarter with profitability improving as well.

About the Author Rich Duprey →

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been interviewed for both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.