How the World's Ninth Richest Person Concentrates 83% of His Massive Portfolio Into Just 4 Blue-Chip Companies

When most people think of Bill Gates, they picture the co-founder of Microsoft who transformed the technology industry decades ago. What fewer realize is how strategically concentrated this billionaire’s investment approach actually is through the Bill & Melinda Gates Foundation Trust.

Here’s where it gets interesting: as of Q2 data, this trust—which manages what exceeds $48 billion in assets—keeps the vast majority of its wealth compressed into just four positions. That level of conviction says something about long-term thinking in an era of diversification obsession.

The Technology Anchor: Microsoft Dominates at 33%

It shouldn’t surprise anyone that Microsoft remains the heavyweight champion of this portfolio at roughly $14.7 billion in holdings—approximately 35 million shares. But this isn’t nostalgia talking. The company Gates co-founded has fundamentally reinvented itself beyond legacy Windows and browser software.

The real story now? Azure Cloud is crushing it. The infrastructure service grew 29% year-over-year in the most recent quarter, outpacing both Amazon’s AWS and Google Cloud. More significantly, Microsoft’s aggressive positioning in generative AI—particularly through Copilot and enterprise AI tools—could unlock an incremental $143 billion in revenue streams by 2027, according to Evercore ISI analysts.

The dividend sweetener shouldn’t be overlooked either. Since 2004, Microsoft has maintained consistent payouts, increasing them annually since 2011. With a modest 0.7% yield but a sub-25% payout ratio, the math suggests years of future increases remain on the table.

The Conglomerate Play: Berkshire Hathaway at 21%

Fellow billionaire Warren Buffett runs Berkshire Hathaway, and the two share more than philanthropic ideals—they’ve both made strategic bets on enduring value. The Gates Trust currently holds nearly 25 million Berkshire Hathaway Class B shares worth around $11 billion.

Why keep such substantial exposure? Berkshire’s portfolio of proven businesses and valuable equity stakes provides built-in diversification without sacrificing returns. Add in the fact that the company recently trimmed equity positions while hoarding a record $277 billion in cash, and you see a fortress balance sheet. Those billions in expected dividend income over coming years don’t hurt either.

The Steady Earner: Waste Management at 16%

Gates has a well-documented preference for “boring” companies with bulletproof recurring revenue models, and Waste Management perfectly embodies this philosophy. The Trust maintains over 35 million shares valued at $7.3 billion.

This isn’t just garbage collection anymore. The company operates reclamation stations recovering glass, paper, metal, and plastics while running landfills that capture methane to generate electricity. Q2 numbers showed revenue climbing 5.5% year-over-year with adjusted EBITDA jumping 10%. The dividend track record? Fifteen consecutive years of increases with a 1.43% current yield and a 46% payout ratio leaving substantial room for growth.

The Infrastructure Play: Canadian National Railway at 13%

Railroads represent shared conviction between Gates and Buffett on sustainable, cost-effective transportation. The Trust holds nearly 55 million shares of Canadian National Railway worth approximately $6.2 billion.

What makes Canadian National distinctive is its position as North America’s only true transcontinental railroad, linking the Atlantic, Pacific, and Gulf of Mexico. From an environmental standpoint, railroads reduce greenhouse gas emissions by 75% compared to long-haul trucks while offering four times greater efficiency. The economic moat runs deep: high barriers to entry, essential infrastructure, and pricing power.

The dividend hasn’t skipped a beat since 1996, with annual increases throughout, currently yielding 2.1%. With a 38% payout ratio, the board has substantial flexibility for future distribution hikes.

What This Concentration Strategy Reveals

The decision to allocate 83% of a $48 billion portfolio to four positions reflects something increasingly rare among institutional investors: conviction in quality over quantity. Each holding—whether technology pioneer, diversified conglomerate, essential services, or critical infrastructure—serves a specific role while generating meaningful dividend income.

This portfolio construction suggests that accumulated wealth needn’t mean scattered exposure. Sometimes, owning the best and letting them compound beats chasing endless diversification.