TLDR
- The Gates Foundation Trust unloaded approximately 17 million Microsoft shares during the third quarter
- The position dropped 65% from $13.9 billion to $4.76 billion in value
- Microsoft is now the trust’s fourth-largest holding instead of first
- The trust has been selling Microsoft shares quarterly since the end of 2023
- Sales align with the foundation’s plan to reach $9 billion in annual grants by 2026
The Gates Foundation Trust executed a major Microsoft sell-off in the third quarter. The foundation dumped about 17 million shares, slashing its position by two-thirds.
The holding plummeted from $13.9 billion to roughly $4.76 billion. Microsoft dropped from the top spot to fourth place in the trust’s portfolio.
Bill Gates built Microsoft but stepped back from operations in 2008. His foundation trust controls nearly $50 billion in assets.
Berkshire Hathaway now sits atop the trust’s holdings at $10.9 billion. Waste Management and Canadian National Railway also surpass Microsoft in the rankings.
The massive sale brought in approximately $8.8 billion. The trust trimmed other holdings too, completely dumping Crown Castle and United Parcel Service.
Steady Selling Since 2023
The third quarter sale continues a clear trend. The Gates Foundation Trust has sold Microsoft stock every quarter since late 2023.
Cascade Investments manages the trust’s investment decisions. Bill Gates doesn’t control individual trades.
The trust made one major Microsoft purchase in 2022. It added nearly 40 million shares during that period.
Beyond that 2022 buy, the trust followed a pattern of quarterly Microsoft sales for years. The recent selling spree matches that long-term approach.
Funding Charitable Programs
The foundation wants to increase annual grantmaking to $9 billion by 2026. The organization plans to fully deplete its endowment by 2045.
These goals require consistent cash generation. Reducing exposure to a single stock helps create a more balanced portfolio.
The trust needs dependable liquidity for worldwide health and education initiatives. Moving money into stable investments like Berkshire Hathaway follows best practices for charitable foundations.
Microsoft shares trade around $478. The stock fell 12% from its October peak near $555.
Microsoft trades at nearly 13 times sales. The company last saw this valuation level during the dot-com era two decades ago.
Business Performance Stays Strong
Microsoft’s Azure cloud business keeps expanding. The company is spending $80 billion on data centers this year alone.
Nvidia just reported massive earnings with 60% revenue growth. Those numbers prove AI infrastructure spending remains high, which helps Azure.
The trust retains over 9 million Microsoft shares worth $4.76 billion. This isn’t a complete exit from the position.
Nothing points to business concerns driving the sales. Microsoft produces strong free cash flow and trades cheaper than many AI stocks after the recent pullback.
Azure continues its growth trajectory while Copilot gains traction across Microsoft’s products. The foundation’s selling appears connected to portfolio management for charitable work rather than negative views on the company’s future.
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