Analysis of Bill Gates' Wealth Investment Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: Fool
- Portfolio Overview: Bill Gates' wealth investment portfolio is heavily concentrated in four companies, with over three-quarters of assets focused on stable sectors like finance and industrials, indicating a preference for traditional industries.
- Berkshire Hathaway: The Gates Foundation holds 24.6% of Berkshire Hathaway, maintaining its largest position despite donation spending requirements, reflecting confidence in Warren Buffett's management and a long-term investment strategy.
- Caterpillar's Growth: Caterpillar represents 18.3% of the Gates Foundation's portfolio, with its power generation segment experiencing a 48% year-over-year revenue increase driven by data center construction demand, showcasing strong market demand and future growth potential.
- Canadian National Railway's Efficiency: Canadian National Railway accounts for 17.4% of the portfolio, benefiting from efficient operations and a 15% reduction in capital expenditures, which is expected to lead to significant free cash flow growth, enhancing its long-term investment appeal.
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Analyst Views on WM
Wall Street analysts forecast WM stock price to rise
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 228.980
Low
223.00
Averages
247.61
High
266.00
Current: 228.980
Low
223.00
Averages
247.61
High
266.00
About WM
Waste Management, Inc. is a provider of environmental solutions. The Company provides collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers throughout the United States and Canada. Its segments include East Tier, West Tier, Recycling Processing and Sales, WM Renewable Energy, and WM Healthcare Solutions. East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and all of Canada. The West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region and British Columbia, Canada. Recycling Processing and Sales includes the processing and sales of materials collected from residential, commercial, and industrial customers. WM Renewable Energy develops, operates, and promotes projects for the beneficial use of landfill gas. WM Healthcare Solutions includes Regulated Waste and Compliance Services and Secure Information Destruction services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Choices: Clean Harbors vs Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by organic growth and strategic integration of healthcare waste services, showcasing strong market demand and operational capabilities.
- Regulatory Risks and Challenges: Clean Harbors faces significant regulatory oversight, evidenced by a 2026 settlement with the U.S. EPA regarding its Safety-Kleen division, and manages approximately $230.7 million in environmental remediation liabilities, increasing operational risks.
- Market Competition and Investment Choices: Waste Management's acquisition of Stericycle in the medical waste sector presents growth potential but also integration challenges, while Clean Harbors relies on stricter EPA regulations for growth, requiring investors to choose based on their risk tolerance.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its acquisition of Stericycle, which enhanced its competitive position in the market.
- Risk and Regulatory Challenges: Clean Harbors faces stringent oversight from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates operational risks in integrating its Stericycle acquisition, requiring synchronization of billing and operational systems.
- Investor Choice Considerations: For investors seeking stable dividends, Waste Management may be the better option, while growth-focused investors might prefer Clean Harbors, particularly given the growth potential driven by new EPA regulations.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% increase, with a net income of approximately $391 million, demonstrating its profitability in the complex hazardous waste management sector.
- Waste Management Expansion: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its strategic acquisition of Stericycle, enhancing its capabilities in medical waste disposal.
- Regulatory and Risk Challenges: Clean Harbors faces significant regulatory scrutiny from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates the complexities of integrating Stericycle's operations.
- Valuation Comparison: Clean Harbors has a forward P/E ratio of 33.8x compared to Waste Management's 28.2x, indicating differing market valuations that investors should consider based on their risk tolerance and investment goals.
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UBS Identifies Attractive Defensive Stock Opportunities
- Market Concentration Analysis: According to UBS, the market experienced strong gains in the first half of the year, primarily driven by a handful of megacap tech companies, leading to historically low correlations across stocks, indicating that investors are avoiding lower-risk companies, which has made many defensive stocks attractive in valuation.
- Valuation Gap in Defensive Stocks: Analyst Sean Burns highlighted that the gap between expensive and cheap defensive stocks is near the widest levels seen since 1990, nearly double the long-run average, with low-risk stocks trading at a market-implied yield of 4.4% compared to just 1.4% for high-risk stocks.
- Quality Defensive Stock Screening: UBS screened for defensive stocks with a market cap of at least $5 billion and a negative correlation to the S&P 500 over the past year, finding that these stocks not only exhibit low volatility but are also trading at discounts, all rated as buys by UBS.
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See More
Rising Recession Risks for 2027 Amid Economic Turmoil
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- Kroger's Strong Performance: Kroger reported Q1 2026 revenue of $46.1 billion, up 2.2% year-over-year, with a notable 19% increase in e-commerce sales, demonstrating resilience during economic downturns, while offering a 2.5% dividend yield that attracts investors.
- UnitedHealth Group's Recovery: UnitedHealth Group's Q1 revenue reached $111.7 billion, a 2% increase from last year, and raised its full-year EPS outlook to $17.35, reflecting strong performance in the healthcare insurance market, with a dividend yield of 2.13%.
- WM's Steady Growth: WM's Q1 revenue was $6.22 billion, up 3.5% year-over-year, with EPS rising to $1.79, showcasing the stability of its waste management business amid economic fluctuations, and offering a dividend yield of 1.58%.
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Kroger, UnitedHealth, and WM's Recession-Proof Strategies
- Kroger's Market Share: Kroger holds an 8.6% market share in the U.S., second only to Walmart's 21.2%, with Q1 revenue reaching $46.1 billion, a 2.2% increase, highlighting the significance of its low-cost brands amid economic uncertainty.
- UnitedHealth's Performance Recovery: UnitedHealth reported Q1 revenues of $111.7 billion, up 2% year-over-year, and raised its full-year EPS outlook to $17.35, reflecting success in cost control and increased demand for healthcare services.
- WM's Stable Growth: WM achieved Q1 revenue of $6.22 billion, a 3.5% increase, while averaging 19,000 daily routes, demonstrating its ability to maintain stable cash flow and profitability during economic fluctuations.
- Recession-Proof Investment Choices: Despite Kroger's 7% stock decline this year, its 2.5% dividend yield and strong market position make it a preferred choice for recessionary investors, with UnitedHealth and WM also showing solid risk resilience.
See More
Investment Choices: Clean Harbors vs Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by organic growth and strategic integration of healthcare waste services, showcasing strong market demand and operational capabilities.
- Regulatory Risks and Challenges: Clean Harbors faces significant regulatory oversight, evidenced by a 2026 settlement with the U.S. EPA regarding its Safety-Kleen division, and manages approximately $230.7 million in environmental remediation liabilities, increasing operational risks.
- Market Competition and Investment Choices: Waste Management's acquisition of Stericycle in the medical waste sector presents growth potential but also integration challenges, while Clean Harbors relies on stricter EPA regulations for growth, requiring investors to choose based on their risk tolerance.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its acquisition of Stericycle, which enhanced its competitive position in the market.
- Risk and Regulatory Challenges: Clean Harbors faces stringent oversight from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates operational risks in integrating its Stericycle acquisition, requiring synchronization of billing and operational systems.
- Investor Choice Considerations: For investors seeking stable dividends, Waste Management may be the better option, while growth-focused investors might prefer Clean Harbors, particularly given the growth potential driven by new EPA regulations.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% increase, with a net income of approximately $391 million, demonstrating its profitability in the complex hazardous waste management sector.
- Waste Management Expansion: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its strategic acquisition of Stericycle, enhancing its capabilities in medical waste disposal.
- Regulatory and Risk Challenges: Clean Harbors faces significant regulatory scrutiny from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates the complexities of integrating Stericycle's operations.
- Valuation Comparison: Clean Harbors has a forward P/E ratio of 33.8x compared to Waste Management's 28.2x, indicating differing market valuations that investors should consider based on their risk tolerance and investment goals.
See More
UBS Identifies Attractive Defensive Stock Opportunities
- Market Concentration Analysis: According to UBS, the market experienced strong gains in the first half of the year, primarily driven by a handful of megacap tech companies, leading to historically low correlations across stocks, indicating that investors are avoiding lower-risk companies, which has made many defensive stocks attractive in valuation.
- Valuation Gap in Defensive Stocks: Analyst Sean Burns highlighted that the gap between expensive and cheap defensive stocks is near the widest levels seen since 1990, nearly double the long-run average, with low-risk stocks trading at a market-implied yield of 4.4% compared to just 1.4% for high-risk stocks.
- Quality Defensive Stock Screening: UBS screened for defensive stocks with a market cap of at least $5 billion and a negative correlation to the S&P 500 over the past year, finding that these stocks not only exhibit low volatility but are also trading at discounts, all rated as buys by UBS.
- Individual Stock Performance Expectations: For instance, PepsiCo (PEP) is down about 6% year-to-date but is expected to report strong second-quarter earnings, with its North American food business recovering volume growth after price cuts; McDonald's (MCD) also beat first-quarter earnings expectations and is expected to continue gaining market share globally.
See More
Rising Recession Risks for 2027 Amid Economic Turmoil
- Recession Probability: A J.P. Morgan study indicates a 35% chance of a global recession in 2026, with ongoing concerns about the Middle East and U.S. inflation, prompting investors to prepare for potential economic downturns.
- Kroger's Strong Performance: Kroger reported Q1 2026 revenue of $46.1 billion, up 2.2% year-over-year, with a notable 19% increase in e-commerce sales, demonstrating resilience during economic downturns, while offering a 2.5% dividend yield that attracts investors.
- UnitedHealth Group's Recovery: UnitedHealth Group's Q1 revenue reached $111.7 billion, a 2% increase from last year, and raised its full-year EPS outlook to $17.35, reflecting strong performance in the healthcare insurance market, with a dividend yield of 2.13%.
- WM's Steady Growth: WM's Q1 revenue was $6.22 billion, up 3.5% year-over-year, with EPS rising to $1.79, showcasing the stability of its waste management business amid economic fluctuations, and offering a dividend yield of 1.58%.
See More
Kroger, UnitedHealth, and WM's Recession-Proof Strategies
- Kroger's Market Share: Kroger holds an 8.6% market share in the U.S., second only to Walmart's 21.2%, with Q1 revenue reaching $46.1 billion, a 2.2% increase, highlighting the significance of its low-cost brands amid economic uncertainty.
- UnitedHealth's Performance Recovery: UnitedHealth reported Q1 revenues of $111.7 billion, up 2% year-over-year, and raised its full-year EPS outlook to $17.35, reflecting success in cost control and increased demand for healthcare services.
- WM's Stable Growth: WM achieved Q1 revenue of $6.22 billion, a 3.5% increase, while averaging 19,000 daily routes, demonstrating its ability to maintain stable cash flow and profitability during economic fluctuations.
- Recession-Proof Investment Choices: Despite Kroger's 7% stock decline this year, its 2.5% dividend yield and strong market position make it a preferred choice for recessionary investors, with UnitedHealth and WM also showing solid risk resilience.
See More
