The Bill & Melinda Gates Foundation Trust, founded in 2000 by Bill Gates (Trades, Portfolio) and his ex-wife Melinda, disclosed in a regulatory portfolio filing that its top trades during the fourth quarter of 2021 included a new position in Sanderson Farms Inc. (SAFM, Financial) and reductions to its holdings of Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Microsoft Inc. (MSFT, Financial) and Grupo Televisa SAB (TV, Financial). The trust also gained a holding in Canadian Pacific Railway Ltd. (CP, Financial) following the company’s merger with Kansas City Southern.
Managed by a team of outside investors, the foundation trust invests in companies consistent with the principles of good governance and management. The investment managers also consider issues beyond corporate profits; additionally, the trust does not invest in companies whose profit model is tied to corporate activities not in line with the trust’s principles.
As of December 2021, the trust’s $22.97 billion equity portfolio contains 22 stocks, with two new positions and a quarterly turnover ratio of 1%. The top two sectors in terms of weight are financial services and industrials, representing 43.85% and 35.38% of the equity portfolio.
Canadian Pacific
The trust dissolved its 2.19 million-share stake in Kansas City Southern and gained 2,478,545 shares of Canadian Pacific (CP, Financial). The net portfolio impact is -1.78%.
Shares of Canadian Pacific averaged $73.15 during the fourth quarter; the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.18.
The Calgary, Alberta-based railroad company completed in December 2021 its merger with the Kansas City, Missouri-based railroad company. GuruFocus ranks Canadian Pacific’s profitability 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and profit margins and returns that are outperforming more than 85% of global competitors.
Other gurus with holdings in Canadian Pacific include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates.
Sanderson Farms
The trust purchased 524,236 shares of Sanderson Farms (SAFM, Financial), giving the position 0.44% weight in the equity portfolio. Shares averaged $188.37 during the fourth quarter; the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.85.
GuruFocus ranks the Laurel, Mississippi-based chicken processing company’s financial strength and profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a strong Altman Z-score of 9.19 and profit margins and returns that outperform more than 80% of global competitors.
Berkshire Hathaway
The trust sold 5 million Class B shares of Berkshire Hathaway (BRK.B, Financial), trimming 12.92% of the position and 5.88% of its equity portfolio.
Class B shares of Berkshire averaged $286.71 during the fourth quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.32.
GuruFocus ranks the Omaha, Nebraska-based insurance conglomerate’s profitability 7 out of 10 on several positive investing signs, which include a four-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that outperform more than 85% of global competitors.
Microsoft
The trust sold 1 million shares of Microsoft (MSFT, Financial), trimming 34.04% of the position and 1.22% of its equity portfolio.
Shares of Microsoft averaged $325.12 during the fourth quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.04.
GuruFocus ranks the Redmond, Washington-based software giant’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 96% of global competitors.
Grupo Televisa
The trust sold 9,264,360 shares of Grupo Televisa (TV, Financial), slicing 56.83% of the position and 0.44% of its equity portfolio.
Shares of Grupo Televisa averaged $10.22 during the fourth quarter; the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.15.
GuruFocus ranks the Mexican diversified media company’s profitability 7 out of 10 on the back of profit margins outperforming more than 80% of global competitors despite returns outperforming just over 55% of global media companies.
