Bill Gates’ Portfolio: 5 Dividend Stocks Held By The World’s Richest Man

Billionaire Bill Gates is the world’s richest man, with a net worth of $86 billion, as estimated by Forbes. After having co-founded Microsoft Corporation (NASDAQ:MSFT), which later became the world’s largest software company, Bill Gates has considerably expanded his fortune not only through ownership of Microsoft stock, but also through investing. Bill Gates doesn’t reveal his portfolio of investments, but we can get an idea about his holdings by looking at the 13D and 13G filings of his investment arm, Cascade Investment, as well as by looking at the 13F filings reported by his charity, the Bill & Melinda Gates Foundation Trust.

When it comes to billionaires, we mere mortals always want to take a peek and get a glimpse into their lives, lifestyles, and routines that helped them develop the skills and discipline that led to their success and wealth. To that end, be sure to check out our list of 20 surprising facts about Bill Gates’ House.

When it comes to investing, a fact that is often overlooked is that Bill Gates is not solely responsible for his portfolio. In fact, he only takes care of his investments in technology and biotech, which are not even held by Cascade Investment, so little-to-nothing is known about them. The bulk of Bill Gates’ portfolio is handled by Michael Larson, who also manages the Bill & Melinda Gates Foundation Trust. Larson is responsible for Gates’ investments in property and non-technology stocks and has been running Cascade since 1994. Due to the secretive nature of the asset management firm (Cascade does not label itself as a family office), we can only get a slight idea about its returns from various articles in the media. Between 1995 and 2015, Cascade has reportedly had a compound annual return of 11%, while during the financial crisis, its losses were smaller than those of the broader market.

At Insider Monkey, we follow hundreds of investors like the Bill & Melinda Gates Foundation Trust. By analyzing their filings with the Securities and Exchange Commission, we can identify the stocks that these investors are collectively bullish on. We then share those stocks with our premium subscribersas part of our flagship strategy, which has returned over 44% since February 2016.

Even though there is not much information about Larson’s investment principles, judging by the publicly disclosed filings, he has a rather conservative approach and prefers to hold positions in a relatively small number of stocks for long periods of time. According to the 13F filings of the Bill & Melinda Gates Foundation Trust, out of 18 positions held at the end of March, more than half have been included in the Trust’s portfolio for over a decade. It’s also worth mentioning that several of the Trust’s long-term holdings have solid dividend yields.

With this in mind, let’s take a look at five dividend stocks that are held by Bill Gates via the Bill & Melinda Gates Foundation Trust, beginning on the next page.

5. Waste Management, Inc. (NYSE:WM)

Let’s start with Waste Management, Inc. (NYSE:WM), which is the second-largest holding in the Bill & Melinda Gates Foundation Trust’s equity portfolio as of the end of March. The fund disclosed holding 18.63 million shares of the company worth $1.36 billion. It should also be mentioned that Waste Management, Inc. (NYSE:WM) is one of the oldest investments held by the Trust, having been included in its equity portfolio since 2002. The stock has gained over 200% since then. The company pays a dividend of $0.43 per share, which gives its stock a yield of 2.30%.

Because Waste Management, Inc. (NYSE:WM) is the largest waste and recycling company in North America, it has been able to consistently generate cash flow, which in turn has allowed it to increase its dividends consistently for the last 14 years. Waste Management, Inc. (NYSE:WM) is also well positioned to be a cash flow-generating machine over the long-term, as it owns 240 landfills and a large network of recycling facilities. Even though its landfill business might decline as consumers become more aware of environmental issues and reduce their waste, its big recycling business helps offset some of the risks. Including Bill Gates’ Trust, there are 29 funds in our database holding shares of Waste Management, Inc. (NYSE:WM) as of the end of March, down by seven funds over the quarter.

4. Wal-Mart Stores Inc (NYSE:WMT)

Then there is Wal-Mart Stores Inc (NYSE:WMT), in which the Bill & Melinda Gates Foundation Trust owns 11.60 million shares worth $836.34 million. Wal-Mart Stores Inc (NYSE:WMT) is the only dividend aristocrat in which the Trust is invested and the stock currently has a yield of 2.70%. Wal-Mart Stores Inc (NYSE:WMT) has a tough battle ahead of it as it tries to take on Amazon.com, Inc. (NASDAQ:AMZN) in the online retail space. While still a leader in terms of overall sales, having generated $482 billion last year, versus Amazon’s $136 billion, Wal-Mart will have to adopt changes as the online retail industry expands to include groceries, a development that seems imminent now that Amazon has bought Whole Foods.

However, the good news is that Wal-Mart Stores Inc (NYSE:WMT) has the infrastructure required to perform well, as it has over 5,000 locations in the U.S, including over 3,000 Supercentres. Moreover, their close proximity to residential customers means that Wal-Mart can easily provide same-day delivery to its customers. In any case, the U.S retail market is worth over $5.0 trillion, so there’s plenty of room for both Wal-Mart and Amazon. Overall, 48 funds tracked by Insider Monkey disclosed long positions in Wal-Mart Stores Inc (NYSE:WMT) in the latest round of 13F filings, compared to 54 funds a quarter earlier.

3. Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT), which has a dividend yield of 2.90%, is represented in the Bill & Melinda Gates Foundation Trust’s equity portfolio by a $1.04 billion stake containing 11.26 million shares. The stake makes the fund Caterpillar Inc. (NYSE:CAT)’s largest shareholder among the 38 funds in our database that are bullish on the stock as of the end of March.

The Trust has held shares of the mining and construction equipment maker since 2005, during which time the stock has more than doubled in value. Caterpillar Inc. (NYSE:CAT) has also more than tripled its dividend during that time, to $0.78 from $0.25 per share. In its latest financial report, Caterpillar Inc. (NYSE:CAT) delivered EPS of $1.28 in the first quarter, which was significantly above the consensus estimate of $0.62. In addition, its revenue of $9.82 billion was $550 million higher than expected and also rose by 3.8% on the year, which was its first quarterly revenue growth since 2014.

2. United Parcel Service, Inc. (NYSE:UPS)

In United Parcel Service, Inc. (NYSE:UPS), the Bill & Melinda Gates Foundation Trust disclosed a $485.57 million stake that contained 4.53 million shares as of March 31. Overall, the company registered a decline in popularity among the funds we track, as the number of investors long the stock fell to 36 from 41 between January and March. In 2017, United Parcel Service, Inc. (NYSE:UPS) increased its dividend to $0.83 from $0.78, which provides its stock with a yield of almost 3%.

United Parcel Service, Inc. (NYSE:UPS) is among the best stocks to invest in for the long-term. It operates in an industry dominated by a few well-established companies like FedEx Corporation (NYSE:FDX) and is unlikely to face a lot of competition because of high barriers to entry. Providing delivery services requires a large fleet of trucks, planes, and cargo ships and a large network of warehouses and outlet locations, all of which are capital intensive.

There are concerns that Amazon.com, Inc. (NASDAQ:AMZN) might undercut delivery companies like United Parcel Service, Inc. (NYSE:UPS) because the eCommerce giant has been building its own fleet of planes and trucks. However, while delivery companies will be affected if Amazon takes delivery into its own hands, the online retail business is very large and continuously growing and traditional retailers seeking to expand their online presence will require companies like United Parcel Service, Inc. (NYSE:UPS) to handle deliveries.

1. Crown Castle International Corp. (REIT) (NYSE:CCI)

Finally, the stock with the highest dividend yield in the Bill & Melinda Gates Foundation Trust’s 13F portfolio is Crown Castle International Corp. (REIT) (NYSE:CCI), which has a yield of 3.75%. At the end of March, the Michael Larson-managed fund owned 5.33 million shares of the REIT, worth $503.69 million.

As people are using their phones ever more frequently and companies like Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOGL) are investing more in the development of their mobile platforms, the demand for mobile data and mobile network infrastructure will grow and Crown Castle International Corp. (REIT) (NYSE:CCI) stands to benefit a lot from this trend. Crown Castle International Corp. (REIT) (NYSE:CCI), which has a market cap of $37 billion, currently owns around 40,000 cell towers, and thanks to that size, it can afford to invest further in its infrastructure. Including the Trust, 38 funds from our database held shares of Crown Castle International Corp. (REIT) (NYSE:CCI) at the end of the first quarter, compared to 36 funds at the end of 2016.

By Alexandr Oleinic

Source: https://goo.gl/YSsbKP

Why Bill Gates loves doing the dishes every night

Ben Nelms | Bloomberg | Getty Images

Bill Gates

Microsoft founder Bill Gates may be the world's richest man, but that doesn't mean he's above doing the dishes.

In fact, Gates makes time to wash his family's dirty plates and cups almost every night.

In a Reddit Ask Me Anything in 2014, the billionaire said that he finds the chore enjoyable.

When asked, "What is something you enjoy doing that you think no one would expect from you?" Gates replied, "I do the dishes every night — other people volunteer, but I like the way I do it."

It's not just a masochistic quirk of the tech mogul's. Science suggests he might be onto something.

The surprising benefits

Studies have found that doing the dishes can reduce stress and boost creativity.

A Florida State University study found that students who were primed to be mindful while washing dishes (i.e. focus on breathing and the touch, smell and feel of the task) saw a decrease in their stress levels and a boost in inspiration. Concentrating on the feeling of the warm water or the smell of the soap stimulated the brain.

Maskot | Getty Images

Another study by the University of California, Santa Barbara, found that doing mindless tasks allows the brain to wander and engage in creative problem-solving.

For instance, people who first completed a "boring" task, like copying numbers from a phone directory, were able to think more creatively afterward, according to a study by the University of Central Lancashire.

Think about it: When do you get your best ideas? Is it when you're at your desk willing them to come? Or is it when you're mindlessly taking a shower or working out that a brilliant thought suddenly pops in your head?

The less-than-thrilling process of doing the dishes could be the same. 

So the next time you see a pile of dirty dishes in the sink, follow Gates' lead and dive in. The task could help you feel calmer and more creative.

By Marguerite Ward

Source : http://www.cnbc.com/2016/09/30/why-bill-gates-loves-doing-the-dishes-every-night.html

Amancio Ortega Overtakes Bill Gates As Richest Person In The World

Amancio Ortega, the Spanish retail genius who started Zara, passed Microsoft cofounder Bill Gates to become the richest man in the world on Wednesday. Shares of Ortega’s business Inditex, parent company to Zara, Massimo Dutti and Pull & Bear, ticked up 2.5% Wednesday, boosting his personal fortune by $1.7 billion. That lifted Ortega’s net worth from $77.8 billion to $79.5 billion. Gates is worth an estimated $78.5 billion.

The richest man in the world stands at the A Coruna International Show Jumping competition in Arteixo, Spain on July 31. / Photo credit: MIGUEL RIOPA/AFP/Getty Images

The son of a railway worker from La Coruña, Spain, Ortega is as reclusive as he is rich. He started his career as a store clerk in his hometown before opening his own business. Beginning with less than $100, he and his wife Rosalia Mera began making lingerie, pajamas and nightgowns in their living room.

In 1975, the couple (who eventually divorced) decided to open a store named Zara. Eight years later, Ortega had expanded to nine locations around Spain. In 1984, he opened a 10,000 square foot logistics hub.

Unlike most retailers, Inditex hardly relies on advertising. Ortega has instead devoted most of his resources into turning his company into the most efficient retailing operation in the world. When companies like Gap and H&M were taking five months to design, make, distribute and sell new products in the early 2000s, Zara was doing it in three weeks. That meant Ortega’s companies could keep up with the whims of shoppers much more easily than its competitors — and also had to spend less on warehousing.

Ortega took the business public in 2001 and debuted on the Forbes billionaires list the same year, with a net worth of $6.6 billion. By then, Gates was already the richest man in the world, with a fortune of $58.7 billion.
From 2001 to 2002, as most billionaires struggled to hold onto their riches amid the dot-com crash, Ortega gained an additional $2.5 billion and became the world’s 25th-richest man. He repeated the trick seven years later, when the world plunged into crisis. From 2009 to 2013, while the Spanish economy was reeling, Ortega personally gained $39 billion.

Ortega briefly took the title of world’s richest man for the first time in October 2015, when Inditex shares hit an all-time high and boosted Ortega’s net worth to $80 billion. But the stock quickly dipped, and Gates once again claimed the throne. The two billionaires will likely continue to exchange the title as the stock prices of their holdings continue to bounce up and down.

Gates has donated nearly $31 billion in stock and cash to his foundation over his lifetime. If the Microsoft cofounder were not such a prolific philanthropist, neither Ortega nor anyone else on Earth would be anywhere close to as rich as Gates.

Dan Alexander ,  

FORBES STAFF

Source: http://www.forbes.com/sites/danalexander/2016/09/08/amancio-ortega-richest-bill-gates-world-spain-inditex-microsoft-zara/#54160f29264d

This Hot Stock Shows Why 10 Billionaires Can't All Be Wrong

If you think solar energy is only embraced by the sort of people who vote for Sen. Bernie Sanders (D., Vt.), a self-avowed socialist, consider this: Ten billionaires are investing massive sums in renewable energy technologies such as solar. Warren Buffett, George Soros, Bill Gates and their super-wealthy peers can hardly be considered as naïve and utopian.

Below, we examine a solar stock with the greatest growth potential this year. It's poised for triple-digit gains in 2016, no mean feat in a market that some analysts are saying will soon descend into a prolonged slump. If you want to "beat the bear," you should look for companies with game-changing technologies that are tapped into unstoppable trends.

But there's another misconception about solar right now. Many investors think that persistently low oil and gas prices will compel end users to abandon solar in favor of cheaper fossil fuels.

If you believe that fallacy, you'll miss one of the most exciting investment opportunities to come along in decades. Fact is, the infrastructure for the solar industry is now pervasive and entrenched, leading to a "price decoupling" of solar and fossil fuels. Solar and other renewable energies are now integral to the energy status quo and no longer need high oil and gas prices to attract users.

That's why the stock we examine below is projected to appreciate by as much as 193% this year. For further explanation as to the dynamics behind this company's stunning rise, let's turn to the Gartner Hype Cycle.

The Hype Cycle is a graphical presentation developed and used by technology research and advisory firm Gartner for representing the maturity, adoption and social application of specific technologies.

Each Hype Cycle describes five crucial phases of a technology's life cycle:

1) Technology Trigger: A technology breakthrough kicks things off; excitement builds.

2) Peak of Inflated Expectations: Early publicity spawns a flurry of success (and failure) stories. Some companies adapt; others fall by the wayside.

3) Trough of Disillusionment: Interest diminishes as reality fails to live up to the hype. A shakeout ensues, but the smartest early adopters survive and continue to invest and experiment.

4) Slope of Enlightenment: The technology becomes better understood and implemented. Second- and third-generation products emerge.

5) Plateau of Productivity: Mainstream adoption takes off.

Simply put, solar has already passed through its "hype" period and is now in the "plateau of productivity" for sustainable, long-term growth. 

The solar industry has not seen its fortunes diminish in the face of cheaper fossil fuels, because solar now moves along its own supply-and-demand dynamics within its plateau of productivity. It doesn't matter if oil is dirt-cheap right now. Solar's customers are increasingly dependent on inexpensive, reliable power from the sun and see no rationale for switching.

The one stock that appears to have greatest upside potential this year is Canadian Solar (CSIQ - Get Report) .

CSIQ data by YCharts

With a market cap of $917.27 billion, Canadian Solar produces solar ingots, wafers, cells, modules and integrated power systems. Canadian Solar is a "small-cap rocket stock" that is poised to explode this year. As a small-cap with current market capitalization of about $1.07 billion, Canadian Solar confers greater risk than peers First Solar (FSLR - Get Report) (market cap: $6.3 billion) and SunPower (SPWR - Get Report) (market cap: $3.3 billion), but it also enjoys the greatest upside potential.

Canadian Solar announced Tuesday that its fourth-quarter and full year 2015 operating results will exceed its previous guidance. The company said it expects its fourth-quarter revenue to be in a range of $1.02 billion to $1.07 billion. For the full fiscal year, the company expects its revenue to be in a range of $3.35 billion to $3.40 billion. The Wall Street consensus had called for Canadian Solar to report revenue of $951.21 million in the fourth quarter and $3.30 billion in the full fiscal year. The company plans to report earnings on March 3.

Headquartered in Ontario, Canada, the company has situated the majority of its factories in China, where costs are considerably lower. The company's dual presence allows low-cost manufacturing but sidesteps some of the obstacles (and transparency issues) of investing in a company that's officially located in China.

Canadian Solar is emphasizing growth opportunities in developing markets as well as developed countries in the eurozone. Germany, Europe's economic growth engine, has declared the goal of decommissioning all its nuclear power plants by 2022 and converting almost entirely to solar and wind power by 2050. Germany is the world's largest solar market and one of Canadian Solar's major clients.

Also boosting the company's long-term fortunes is a new plan from Canada's oil-producing province of Alberta to restrict greenhouse emissions. The antipollution rules will adversely affect the domestic oil sands industry in Canada, but it will drive the construction of more solar power throughout the Great White North.

With a trailing-12-month price-to-earnings ratio of 5.9, Canadian Solar is an inexpensive way to tap solar's enormous growth opportunities.

Canadian Solar's stock now trades at $18.71. The median 12-month price target of analysts covering the stock is $34.50, which suggests shares could gain 84% over the next year. The highest price target is $47, which implies the stock could gain an eye-popping 150% over that period. 

By John Persinos 

Source: http://www.thestreet.com/story/13459954/1/this-hot-stock-shows-why-10-billionaires-can-t-all-be-wrong.html?kval=dontmiss