The Bill Gates Portfolio: 3 Of His Ancor Holdings Every Investor Should Consider

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) founder Bill gates is best-known for his founding of the most valuable company in the world (on multiple occasions, just not now). And rightfully so. 

That said, over the years, Bill Gates has adjusted his portfolio holdings, choosing to divest in a range of companies via his own personal portfolio but also via his charitable organizations and other investment funds. One could argue that he would have been much better off just staying highly concentrated in Microsoft stock, and those who’d make that argument would have been 100% correct. But that’s not to say diversification isn’t generally a good thing – it is. 

Here are three of Bill Gates’ portfolio positions, and why I think these companies are worth considering (they’re not his largest positions, but have some of the best upside among those reported on his recent 13-F filing).

Deere (DE)

Agricultural equipment giant Deere (NYSE:DE) has carved out a near-monopoly on the production of many of the most popular models of tractors, mowers, and other equipment used for both commercial and residential use. The company’s ability to provide farmers and those who have a real penchant for mowing their lawns like pros with precision technology has created a relatively high-margin business out of a rather boring sector many wouldn’t think to look at. 

Providing investors with a small but reasonable dividend yield of 1.4% and solid fundamentals overall, Deere remains a juggernaut in this space and is every investor’s long-term dream stock. Over the past five years alone, Deere has produced capital appreciation of 74%, making its chart look more like a well-oiled tech stock than an industrial play.

Much of this is due to the company’s strong recent results, in which Deere brought in revenue of $12 billion and EPS of $4.76. The company’s revenues were down year-over-year, but resilient earnings numbers highlight the company’s robust margins and ability to growth through difficult periods.

For those expecting some recessionary headwinds to form in the coming year, owning a piece of the agricultural sector (which is very stable on a relative basis) may be a good move, and Deere is the preeminent name in this space. 

Danaher (DHR)

A company I don’t cover much, but probably should, is Danaher (NYSE:DHR). The life sciences and diagnostics company has seen impressive margins, driven by a productivity-first growth model. Supported by strong acquisitions in recent years (with many analysts and investors hoping for more down the road), the company has seen robust revenue and growth in recent years. 

Now, Danaher’s revenue did slide similar to Deere, but only by 1% year-over-year. The company more than made up for this decline via strong free cash flow generation of $1.4 billion and robust operating margins of more than 25%. On that note, the company also reiterated its forward guidance, suggesting to investors that this past quarter was a blip. 

I’d tend to agree, considering the company’s ability to continue to expand its margin as it acquires companies that don’t have the same sort of fundamentals. With a goal of creating monopoly-like franchises, this is a stock I think can continue to outperform in a market environment where investors are reaching for safety. 

McDonald’s (MCD)

Last, but certainly not least on this list of top Bill Gates holdings I think investors should consider is McDonald’s (NYSE:MCD).

Shares of the fast food giant have been volatile in the past, but are starting to move in the right direction. On a year-to-date basis, MCD stock is up more than 9% as investors clearly begin to take a harder look at companies in more defensive sectors. As the leading fast food giant globally, when times are tough, consumers looking to dine away from home tend to trade down toward the lowest-cost value out there. It’s hard to argue McDonald’s isn’t this pick for millions around the world.

With incredibly resilient and robust cash flow generation, and operating margins near 45%, this is a top stock I think long-term investors can buy and sit on for decades. Whether or not you visit one of the company’s more than 40,000 locations around the world, plenty of regular traffic and a resurgence of interest around the company’s value meals, could drive incredible upside in the years to come.

That thesis is doubly true for those who think tough times may be ahead.