Bill Gates is one of the most famous businessmen in the world. He was a co-founder Microsoft and led the tech giant for years, making it the leader in enterprise software and essentially creating a monopoly on Windows PC operating systems. However, Gates stepped down as CEO of Microsoft in 2000 and has since pursued philanthropy, primarily through the Bill and Melinda Gates Foundation.
The Microsoft founder is still one of the richest people in the world, and the foundation’s portfolio reflects that, as it has more than $45 billion in assets under management. Gates does not manage it directly, but oversees management as he and his ex-wife Melinda are the sole managers.
Do you miss the morning spoon? Breakfast news delivers it all in one fast, silly and free daily newsletter. Register for free »
Given the size of the portfolio, it’s worth looking at quarterly changes for market insight, and two stocks the trust bought in the third quarter provide a strong signal. The Foundation has its three largest interests, namely Microsoft, Berkshire HathawayAnd Waste managementbut the purchases during that period were more remarkable.
The fund bought 1 million shares each FedEx (NYSE:FDX) And Paccar (NASDAQ: PCAR). Below, let’s take a look at what each stock has to offer and why the Gates Foundation may have bought them.
FedEx is one of the largest package delivery companies in the world, but it doesn’t just provide package delivery. It is also the nation’s largest less-than-truckload (LTL) carrier, handling small point-to-point shipments for businesses.
Like much of the rest of the transportation industry, FedEx is a cyclical business. It is even seen as a gauge of the broader economy, as the number of parcel shipments tends to increase during economic expansions and decrease during recessions.
Year to date, FedEx is up 17%, but it’s been a rollercoaster year. In its most recent quarterly report in September, the stock fell double digits after reporting weaker-than-expected results and lowering its guidance for the 2025 fiscal year.
Revenue in the quarter fell slightly to $21.6 billion due to a shift in sales mix and lower demand for priority services, and net profit fell to $790 million. It also lowered its revenue growth expectations to the low single digits.
The company is restructuring the business through the DRIVE transformation plan, which is expected to deliver $2.2 billion in permanent cost savings this fiscal year.
Paccar is a manufacturer of commercial trucks under brands such as Kenworth, Peterbilt and DAF. Like FedEx, the company has a lot of influence on the global economy because transportation companies that buy their products are more likely to spend money when they have confidence in demand and sustainable economic expansion.
