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Holly LaFon
Holly LaFon
Articles (9132)  | Author's Website |

5 Stocks Bill Gates and Warren Buffett Both Own

Berkshire and Gates' foundation agree on a few companies

Friends and fellow richest people in the world Warren Buffett (Trades, Portfolio) and Bill Gates (Trades, Portfolio) have three of the same stocks in their portfolios.

The stocks tracked are those in Microsoft (NASDAQ:MSFT) founder Gates’ portfolio for the Bill & Melinda Gates Foundation Trust. The trust, founded in October 2006, contains the foundation’s endowment, including gifts Warren Buffett (Trades, Portfolio) donates annually. With Bill and Melinda Gates acting as trustees for the $50.7 billion trust, a team of investment managers oversees the portfolio. Michael Larson is the foundation’s chief investment officer and manages Gates’ personal asset management firm, Cascade Investment.

Buffett, together with Ted Weschler and Todd Combs, manages the $196.6 billion portfolio of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B).

Buffett also serves as a trustee at the Bill & Meilnda Gates Foundation but does not contribute to investment decisions. The two business magnates do discuss investing, though. In a July interview with Inc., Gates gave some of the advice Buffett had related to him:

"[Warren] talks about looking for a company's moat -- its competitive advantage -- and whether the moat is shrinking or growing." Gates also said: "He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it's worth."

The two portfolios are both rather concentrated, with Gates' holding 19 stocks and Buffett's listing 46. They overlap on five: Walmart (NYSE:WMT), United Parcel Service Inc. (NYSE:UPS), Liberty Global Plc (NASDAQ:LBTYK), Liberty Global Plc (NASDAQ:LBTYA) and Liberty Latin America (NASDAQ:LILAK).

Walmart (NYSE:WMT)

Gates’ trust owns 11.603 million shares of Walmart, accounting for 4.49% of its public portfolio. The trust has not purchased shares since the fourth quarter of 2013. Buffett owns 1,393,513 shares of the retailer, at 0.06% of the portfolio. Buffett reduced the position throughout 2016 but has not touched it since the fourth quarter that year.

Walmart Inc. has a market cap of $282.78 billion; its shares were traded around $95.83 Friday with a P/E ratio of 55.08 and P/S ratio of 0.56. The trailing 12-month dividend yield of Walmart Inc. stocks is 2.16%. The forward dividend yield of Walmart Inc. stocks is 2.16%. Walmart Inc. had an annual average earnings growth of 3.80% over the past 10 years.

United Parcel Service Inc. (NYSE:UPS)

Gates’ trusts owns 4,525,329 shares of United Parcel Service, accounting for 2.17% of its portfolio. It started the position in the fourth quarter of 2014 and has not made a trade since. Buffett owns 59,400 shares and has not traded the stock since the third quarter of 2012.

United Parcel Service Inc. has a market cap of $105.81 billion; its shares were traded around $122.99 Friday with a P/E ratio of 20.57 and P/S ratio of 1.54. The trailing 12-month dividend yield of United Parcel Service Inc. stocks is 2.90%. The forward dividend yield of United Parcel Service Inc. stocks is 2.94%. United Parcel Service Inc. had an annual average earnings growth of 10.50% over the past 10 years. GuruFocus rated United Parcel Service Inc. the business predictability rank of 3-star.

Liberty Global Plc (NASDAQ:LBTYK)

Gates’ trust holds 3,639,349 shares of Liberty Global Plc, worth 0.44% of the portfolio. It has not traded the stock since the second quarter of 2016. Buffett owns 7,346,968 shares of the company, a 0.1% portfolio weight. Buffett has also not traded the company since the second quarter of 2016.

Liberty Global Plc has a market cap of $19.98 billion; its shares were traded around $25.70 Friday with and P/S ratio of 1.41.

Liberty Global Plc (NASDAQ:LBTYA)

Gates' trust also holds 2,119,515 shares of Liberty Global's LBTYA share class, at 0.26% of the portfolio. Buffett owns 19,791,000, worth 0.28% of the portfolio. 

Liberty Latin America Ltd. (NASDAQ:LILAK)

Gates' trust owns 636,044 shares of the company, worth 0.06% of the portfolio. Buffett has 1,284,020 shares, representing 0.01% of the portfolio. 

Liberty Latin America Ltd. has a market cap of $3.43 billion; its shares were traded around $20.02 Friday with and P/S ratio of 1.00.

See Bill Gates (Trades, Portfolio)’ portfolio here. See Warren Buffett (Trades, Portfolio)’s here.

About the author:

Holly LaFon
I'm a financial journalist with a master of science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


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