Protecting himself from rising interest rates, Bill Gates has invested in these two specific stocks.
Article Rewrite:
Feeling anxious about inflation and interest rate hikes? Bill Gates' portfolio could offer some solace.
With the Fed opting for another 75-basis-point increase on Wednesday, they aim to curb the rampant inflation that had reached a whopping 8.2%. Jerome Powell, Fed Chair, hinted that combating inflation could take some time, potentially prolonging the turbulence in the stock market.
But where should investors park their money while the markets sway? A peek into Bill Gates' portfolio, managed by the Bill & Melinda Gates Foundation Trust, offers some clues. The Trust, responsible for funding the initiatives supported by Bill and Melinda, prefers reliable stocks that can withstand volatile times.
That's why the investing world keeps a close eye on Gates' portfolio choices. His current picks reveal a couple of stocks that have been solid performers even during uncertain times.
Trash has never looked so good: Waste Management
The US's largest private waste management company, Waste Management, occupies over 16% of Gates' portfolio. This giant operates numerous recycling facilities and landfills, ensuring a steady stream of income, regardless of the economy's condition. The company's success translates to a consistent dividend – it's increased for 19 years in a row, doling out approximately $1 billion in dividends last year alone. The company's high free cash flow of $2.5 billion in 2021 ensures future dividend payouts. Since the beginning of the year, the stock has climbed 12%, and over the past five years, it's up around 125%. The management expects revenue to grow by 10% this year.
Food for thought: Walmart
The world's largest company by revenue according to Fortune Global 500, Walmart, takes up over 2% of Gates' portfolio. Known as a dividend heavyweight, Walmart has increased its dividend for 49 years, with a current yield of 1.81%. The company's affordability makes it a go-to choice during inflationary periods. Earnings per share could reach $4.93 this year, up from $4.81 the previous year. The stock has already risen 13% year-to-date.
Bill Gates has already reaped substantial profits from both stocks in 2022. In the face of the uncertainty ahead, Waste Management and Walmart are likely to outperform other stocks in the market.
Curious to know more? Check out the BÖRSE ONLINE Aktien für die Ewigkeit Index. The Index pools together 30 long-term investment stocks, with a focus on buying and holding them for eternity. The editorial team at BÖRSE ONLINE compiled this index, which includes stocks like Walmart. These companies have outstanding business models, making them highly likely to remain successful on the market for more than a century.
Disclosure Statement: The financial data presented is derived from an index developed by Börsenmedien AG, which holds the rights to it. Börsenmedien AG has a cooperation agreement with the issuer of the displayed securities, granting the issuer a license to use the index. In this agreement, Börsenmedien AG receives remuneration from the issuer.
- Despite inflation and interest rate hikes, Bill Gates' investment in Waste Management, a leading waste management company, has shown resilience, offering a consistent dividend and steady growth in the stock market.
- Walmart, the world's largest revenue-generating company, takes up a portion of Gates' portfolio due to its affordability and consistent dividend increases, making it a strong choice during uncertain economic conditions.
- In the face of market volatility driven by inflation, Bill Gates' investment in Waste Management and Walmart has proven profitable and is likely to outperform other stocks in the market.
- For long-term investment strategies, one can consider the BÖRSE ONLINE Aktien für die Ewigkeit Index, which pools together 30 investment-grade stocks, including Walmart, with a focus on holding them for extended periods due to their robust business models.
