The Bill & Melinda Gates Foundation Trust has fully exited its long-held position in Microsoft, according to recent regulatory filings. The foundation sold its remaining shares in the tech giant during the first quarter of 2026, marking the end of a multi-year reduction in its Microsoft holdings.
This move comes as the foundation continues to rebalance its investment portfolio to support its ambitious philanthropic goals. With a current portfolio valued at approximately $31.7–33 billion as of March 31, 2026, the trust now shows significant concentration in just a few major holdings.
Heavy Concentration in Two Stocks
Following the Microsoft exit, two companies now dominate the foundation’s investments:
- Berkshire Hathaway (BRK.B): Representing roughly 25.8% of the portfolio, valued at about $8.2 billion.
- Waste Management (WM): Accounting for around 20.1% of the portfolio, worth approximately $6.4 billion.
Together, these two stocks make up nearly 43–46% of the foundation’s entire investment holdings. Other notable positions include Canadian National Railway, Caterpillar, and Deere & Co., but the top holdings reflect a clear shift toward stable, long-term compounders.
Reasons Behind the Microsoft Sale
The foundation’s decision to sell its Microsoft stake—approximately 7.7 million shares worth around $3.2 billion—is not viewed as a negative signal on the company’s future. Instead, it aligns with the organization’s long-term strategy to spend down its endowment and eventually close its operations by 2045.
The Bill & Melinda Gates Foundation distributes roughly $9 billion annually in grants. Reducing concentration in individual stocks like Microsoft provides greater liquidity and diversification to sustain this high level of giving. Bill Gates has personally continued donating Microsoft shares over the years, separate from the foundation’s portfolio management.
A Strategic Shift
This portfolio adjustment reflects a Buffett-inspired approach, emphasizing quality businesses with strong moats. Warren Buffett has donated billions of dollars in Berkshire Hathaway stock to the foundation over the past decades, which has helped maintain its large BRK.B position even as other holdings are trimmed.
The sale of Microsoft shares caused only a minor dip in the stock price at the time of the filing, with other investors, including billionaire Bill Ackman, stepping in with significant purchases.
Broader Implications
The foundation’s moves highlight a common challenge for large philanthropic organizations: balancing investment returns with the need for steady liquidity to fund global health, education, and poverty initiatives. As the Gates Foundation ramps up its spending in its final decades, expect continued portfolio simplification and focus on reliable, dividend-generating assets.
This development underscores Bill Gates’ dual role as both a technology pioneer and one of the world’s most active philanthropists, with his personal wealth still heavily tied to Microsoft despite the foundation’s divestment.
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