[ad_1]
From its inception to the end of 2022, the Bill & Melinda Gates Foundation Trust has disbursed grants totaling approximately $71.4 billion. The Trust was able to make such a generous gift in part because of the success of the investments that make up the Bill & Melinda Gates Foundation Trust’s portfolio, which is valued at approximately $42 billion.
Main Street investors can take cues from the trust and find investment ideas that will benefit their portfolios. Below, two Motley Fool contributors explain why the trust’s holdings may include: microsoft (MSFT -2.07%) and united parcel service (UPS -0.34%) It’s especially persuasive at the moment.
Microsoft shows no signs of slowing down
Scott Levine (Microsoft): The Gates Foundation’s foundation is Microsoft, its largest holding to date. As of his latest 13F filing, Microsoft accounted for his 34% of the trust’s holdings. The next largest position is Berkshire hathawayits weight in the trust is approximately 17%.
Microsoft’s forward dividend yield of 0.74% may not ignite the engines of those looking to generate strong passive income, but the Gates Foundation Trust owns 38,210,869 shares of Microsoft, and this quarter… The company will receive more than $28.6 million in dividends.
Rather than thinking of stocks as a means to earn income, most investors will see them as valuable growth opportunities. Characterizing a $3 trillion market capitalization stock as a growth stock may seem difficult at first, but Microsoft’s strong position in artificial intelligence (AI) supports that argument.
One is that it is a major investor in OpenAI, the developer of ChatGPT. Currently, OpenAI is not a publicly traded company, so those eager to invest in ChatGPT have few options, but they can gain exposure indirectly by acquiring Microsoft stock.
But Microsoft has its own AI products that will help the company grow in the coming years. CEO Satya Nadella addressed the important role AI will play in the company’s future during the Q2 2024 conference call, saying the company has moved from “talking about AI to applying AI at scale.” “By introducing AI at every layer,” he added. By leveraging our technology stack, we are winning new customers and driving new benefits and productivity improvements across all sectors. ”
Copilot is Microsoft’s AI assistant that is available to both individuals and businesses. Businesses can design their own CoPilot to provide AI assistance tailored to their business needs.
German conglomerate siemensFor example, we worked with Microsoft to develop Siemens Industrial Copilot, an AI assistant that manufacturers and various other industrial companies can use to improve productivity.
The AI market is expected to grow at a compound annual growth rate (CAGR) of 15.8%, from $306 billion in 2024 to $739 billion in 2030, and Microsoft is well-positioned to benefit from market growth. .
UPS is expected to recover in 2024
Lee Samaha (UPS): According to the latest 13F filing, the Gates Foundation Trust only holds 24 shares, with the top 10 holdings accounting for more than 96% of the total holdings. However, various themes emerge from the stocks we hold. For one, Microsoft and Berkshire Hathaway effectively contribute to the trust’s overall exposure to information technology and finance, together contributing just over 50% of his total portfolio.
After that, industrial stocks, including UPS, and transportation stocks have a high weight. These two divisions account for nearly 42% of the trust.
There is clearly comfort in owning a stock that is dependent on the economy, and that is certainly the case with UPS.
The company faced a tough year in 2023, with slowing economic growth impacting delivery volumes and prolonged labor disputes causing customers to switch deliveries to competing networks. Additionally, costs associated with resolving labor disputes weighed on profit margins.
The bad news is over, and UPS is poised for a better year. In 2024, the company plans to cut 12,000 jobs in response to lower cost and lower costs, which will ultimately result in cost savings of $1 billion.
UPS also has an opportunity to grow by winning back lost customers. Additionally, the potential for interest rates to fall later this year should be positive for its volume.
Meanwhile, UPS continues to grow in target end markets such as small business and healthcare, and management continues to invest in productivity-enhancing technologies such as automation and smart facilities.
All of this points to a recovery for UPS, and a 4.4% dividend yield isn’t a bad deal while you wait for the stock to rise.
Should you buy these Bill & Melinda Gates Foundation stocks now?
Smart investors look to a variety of sources for inspiration, including stocks from the Bill & Melinda Gates Foundation Trust. For investors looking for exposure to AI, the trust’s top holding, Microsoft, is now a great opportunity. UPS stock is a great opportunity for those looking for the credibility of an industry leader that provides significant passive income.
[ad_2]
Source link
