Billionaire Bill Gates Has 60% of His Foundation's $37 Billion Portfolio Invested in Noticeably Non-Tech Stocks Heading Into 2026

Berkshire Hathaway - Berkshire Hathaway's investment portfolio continues to generate gains, but the company is facing challenges in finding significant investment opportunities for its growing cash reserves, as it sells more equities than it purchases each quarter [1] - The insurance business has shown solid results in 2025, with third-quarter underwriting earnings rising to $3.2 billion from $1 billion in Q3 2024, offsetting earlier declines in earnings [2] - Shares of Berkshire Hathaway are currently trading at about 1.55 times book value, which is above the historical average but lower than early 2025 highs, reflecting a more balanced valuation following Buffett's retirement announcement [7] Gates Foundation - The Gates Foundation has shifted its investment strategy, with approximately 60% of its $37 billion portfolio now invested in non-tech companies, following the sale of about two-thirds of its Microsoft shares [4][22] - Bill Gates plans to donate 99% of his remaining wealth over the next 20 years, with a current net worth of about $100 billion [5] Waste Management - Waste Management is a long-held security in the Gates Foundation trust, benefiting from its recession-resistant business model and competitive advantages, including a significant number of active landfills [8][9] - The company reported a 32% adjusted operating margin last quarter, indicating strong pricing power and operational efficiency [10] - Waste Management has expanded into medical waste disposal through its acquisition of Stericycle, which is expected to grow significantly due to the aging U.S. population [11] Canadian National Railway - Canadian National Railway connects key regions in Canada and the U.S., benefiting from economies of scale and significant barriers to entry in the railroad industry [14][15] - The company has been able to steadily raise prices and grow contract volume, achieving an operating margin of 38.6% last quarter [15] - Despite slow revenue growth, free cash flow increased by 14% in the first nine months of the year, with expectations for further improvements in 2026 [17][18]