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3 Worry-Free Bill Gates Stocks to Buy and Hold

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With a keen eye for innovation and long-term growth potential, Bill Gates’ stocks often reflect a blend of stability and forward-thinking vision. While Gates himself does not actively manage the Bill & Melinda Gates Foundation trust, its holdings offer valuable insights into his investment philosophy. 

Gates’ stocks are meticulously selected covering industries integral to economic growth. Whether focusing on established giants or burgeoning disruptors like Microsoft (NASDAQ:MSFT), Gates’ influence in the investment world is undeniable. If you’re looking to invest for the long term, these worry-free investments can help you sleep peacefully at night. 

Now, let’s uncover the top three Bill Gates stocks to buy now!

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.

Source: The Art of Pics / Shutterstock.com

Microsoft is the largest company in the world and the cornerstone of Bill Gates’ investment portfolio. The company’s dominance is undeniable, with its Windows operating system powering billions of computers worldwide. However, the company’s leadership in generative AI and cloud computing is what will spearhead growth in the long term.

One of the most attractive aspects of Microsoft for long-term investors is the company’s wide moat and consistent revenue and EPS growth. The company boasts a healthy balance sheet, allowing it to remain nimble and invest in R&D to solidify its competitive edge in the marketplace. More recently, Microsoft has been making a huge push into generative AI. Integrations across Microsoft’s technology stack continue to drive Azure cloud deployments. Ultimately, that will be the key to powering Microsoft’s Copilot software as well as building, training and deploying AI applications. That makes Microsoft one of the top Bill Gates stocks to buy for 2024.

Canadian National Railway (CNI)

A photo of a Canadian National (CNI) train coming down the tracks toward the photographer.

Source: Eric Buermeyer / Shutterstock.com

Canadian National Railway (NYSE:CNI) might not be a name as familiar as Microsoft, but it plays a vital role in the North American economy. As the largest railway network in Canada, CNI is pivotal to global supply chains and transporting essential goods.

Canadian National Railway’s extensive network spans more than 20,000 miles of track. That makes it a crucial component for the efficient movement of commodities and consumer goods. CNI boasts a long track record of profitability and operational efficiency, underpinned by its strong management team. Moreover, CEO Tracy Robinson is optimistic about the company’s ability to drive profitable growth. While revenue decelerated in FY23, management has guided 10% to 15% EPS growth over the 2024 to 2026 period. Its diversified revenue streams can help insulate it from market volatility, making it a noteworthy investment case for Bill Gates’ recession-resistant asset allocation strategy.

Caterpillar (CAT)

An image of the Caterpillar tractor brand logo.

Caterpillar (NYSE:CAT) is a global leader in the construction equipment manufacturing industry. While cyclical in nature, the construction and mining sectors are essential for global infrastructure development.

Caterpillar has been one of Bill Gates’ best investments since inception, up more than 500% since the foundation’s first purchase. As the largest construction equipment manufacturer in the world, the company has seen continued growth in its revenue and EPS. Although the company is highly cyclical, its strong liquidity coupled with key investments in R&D has paid significant dividends. That has allowed it to grow its dividend at a 10% CAGR over the last decade. In FY23, Caterpillar’s EPS increased 59% YOY to $20.12 per share. Additionally, the company saw a record FCF of $10.57 billion. With infrastructure investments on the rise, Caterpillar is one of the top Bill Gates stocks to buy and hold for the long term.

On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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