Why Is Bill Gates Selling Microsoft Shares to Invest in McDonald’s? Read more:

In the fourth quarter of 2024, the Bill & Melinda Gates Foundation Trust made notable adjustments to its investment portfolio, including a reduction in its holdings of Microsoft Corporation and the acquisition of shares in McDonald’s Corporation. These strategic moves reflect a diversification approach amid evolving market conditions.

Portfolio Adjustments

Reduction in Microsoft Holdings

The trust decreased its stake in Microsoft by approximately 1.73%, though the tech giant remains its largest holding, constituting 28.55% of the portfolio, valued at around $11.99 billion. This marks a continuation of the trust’s trend of gradually reducing its Microsoft position since the fourth quarter of 2023.

Acquisition of McDonald’s Shares

In a strategic diversification effort, the foundation purchased 335,000 shares of McDonald’s Corporation, valued at approximately $97 million. This new position represents about 0.23% of the trust’s total portfolio.

Rationale Behind the Moves

The decision to reduce holdings in Microsoft may be part of a broader strategy to rebalance the portfolio and manage exposure to the technology sector. Conversely, investing in McDonald’s offers the trust exposure to the consumer discretionary sector, known for its stability and consistent dividend payouts, which can be attractive during periods of market volatility.

Conclusion

The Bill & Melinda Gates Foundation Trust’s recent portfolio adjustments highlight a strategic approach to diversification and risk management. By reducing its stake in Microsoft and acquiring shares in McDonald’s, the trust aims to balance its investments across different sectors, aligning with its long-term financial objectives.