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Gates Foundation Buys Procter & Gamble, Sells AutoNation

November 15, 2012 | About:
GuruFocus

GuruFocus

373 followers
Bill & Melinda Gates Foundation just reported their third quarter portfolio. The portfolio is managed by Michael Larson, who also manages Bill Gates’ personal portfolio. During the third quarter, Gates Foundation buys Procter & Gamble Co, sells Autonation Inc. As of 09/30/2012, Bill & Melinda Gates Foundation Trust owns 28 stocks with a total value of $17.3 billion. These are the details of the buys and sells.

This is the portfolio chart of Bill Gates. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



  • New Purchases: PG,
  • Added Positions: BRK.B,
  • Reduced Positions: AN,
For the details of Bill Gates's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Bill+Gates

This is the sector weightings of his portfolio:

Financials 47.5%
Consumer Services 16.9%
Industrials 15.9%
Consumer Goods 10%
Oil & Gas 5.7%
Technology 2%
Basic Materials 1.6%
Health Care 0.2%


These are the top 5 holdings of Bill Gates

  1. Berkshire Hathaway Inc (BRK.B) - 93,331,373 shares, 47.5% of the total portfolio. Shares added by 14.93%
  2. McDonald's Corporation (MCD) - 9,872,500 shares, 5.2% of the total portfolio.
  3. Coca-Cola Co (KO) - 23,364,000 shares, 5.1% of the total portfolio.
  4. Caterpillar Inc (CAT) - 10,260,857 shares, 5.1% of the total portfolio. Shares added by 1.69%
  5. Coca-Cola Femsa, S.A.B. De C.V. (KOF) - 6,214,719 shares, 4.6% of the total portfolio.


New Purchase: Procter & Gamble Co (PG)

Bill Gates initiated holdings in Procter & Gamble Co. His purchase prices were between $61.01 and $69.59, with an estimated average price of $65.9. The impact to his portfolio due to this purchase was 0.05%. His holdings were 113,435 shares as of 09/30/2012. The Procter & Gamble Company is engaged in the manufacture and sale of a range of branded consumer packaged goods. Procter & Gamble Co has a market cap of $184.78 billion; its shares were traded at around $66.04 with a P/E ratio of 17.1 and P/S ratio of 2.2. The dividend yield of Procter & Gamble Co stocks is 3.3%. Procter & Gamble Co had an annual average earnings growth of 6.5% over the past 10 years.

Procter & Gamble has shown consistent revenue and earnings growth in its long history. At its current size, the consumer staples giant still grows it revenue per share by 10% a year. GuruFocus ranks the company the business predictability of 4.5 star. The company is now traded at its low end of the historical P/E ratio, as shown below:

1352996525885.png

PG data byGuruFocus.com

Reduced: Autonation Inc (AN)

Bill Gates reduced to his holdings in Autonation Inc by 20.84%. His sale prices were between $36.56 and $43.67, with an estimated average price of $40.18. The impact to his portfolio due to this sale was -0.11%. Bill Gates still held 1,898,716 shares as of 09/30/2012. AutoNation, Inc. is the one of the largest automotive retailers in the United States. Autonation Inc has a market cap of $4.93 billion; its shares were traded at around $39.73 with a P/E ratio of 17.1 and P/S ratio of 0.4. Autonation Inc had an annual average earnings growth of 4.9% over the past 10 years.

Contrary to PG, AutoNation is traded at the historical high valuations as measured by P/E ratio:

1352996525885.png

PG data byGuruFocus.com

and historical high P/B ratio:

1352996525885.png

PG data byGuruFocus.com

Here is the complete portfolio of Bill Gates. Also check out:

1. Bill Gates's Undervalued Stocks

2. Bill Gates's Top Growth Companies, and

3. Bill Gates's High Yield stocks


Rating: 3.2/5 (5 votes)

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