Finance
The stocks Bill Gates uses to generate a lot of income
Even a tech billionaire can use the stock market in his favor. Check out these stocks Bill Gates is using to generate income for him.
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Bill Gates isn’t necessarily known for his investment skills.
The Microsoft founder and ex-CEO is a reference when we talk about innovation and software, but that doesn’t mean he is not surrounded by information, and friends, that can make his money yield.
With this in mind, here are some of the stocks Bill Gates uses that help him fight against inflation and generate a lot of income.
Most of Gates’ fortune comes from Microsoft and other investments in business, not necessarily in stock, but even he knows that if you do not use your money, it can rot pretty fast. That is why Bill Gates invests it in some stocks that can help with his income.
Bear in mind that this is not an investment recommendation, as said before. Bill Gates probably doesn’t spend too much time dwelling on some of these papers, and maybe there are better options.
Our goal here is to take a look at what he does, not at what is right, because the latter depends on a plethora of factors, like investment philosophy and temper.
Honorable mention: Berkshire Hathaway.
We cannot forget about the holding and investment fund that Gate’s close friend, Warren Buffett, manages and where Gates invest some part of its fortune.
Despite the fact that investment funds charge a tax for their work, it is a very good idea to let part of your money with the best investor alive and one of the richest persons in modern history.
With papers from Apple and Coca-Cola, Berkshire Hathaway’s portfolio is filled with big dividend yielders, precisely what Gates wants, and deserves at least an honorable mention.
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Waste Management Inc.
With a very self-explanatory name, this company operates since 1968, and its field of work in waste management, comprehensive waste, and environmental services operates in North America.
This is a very congruent option, since not only it is a big and consolidated company, which is very good for a good dividend yielder, but also because it matches some of Bill Gates’s philosophy.
Gates is especially focused on some questions worldwide, and the environment is one of them, by investing in one company with such a goal, sure helps him in this quest.
Caterpillar (CAT)
Also, a very big company, a very good one for dividends, Caterpillar may very well be surprised in some time.
As a company that relies on its revenue from construction building, this company has felt a major setback with the Covid-19 pandemic. However, with the quarantine beginning to be lifted up and Joe Biden’s passing of more than US$ 1 trillion to infrastructure, it is very likely that the construction business will be back on track very soon.
Very good news for Caterpillar stockholders.
Walmart
Despite lockdown, Walmart is keeping its stores up since grocery is considered an essential business.
Even with all the adversities, the company was able to increase its revenue and market share during the Covid-19 lockdown.
With a policy of low-cost prices, Walmart became especially more popular. Because of the rising uncertainty, many people relied on this grocery store to keep their supplies high, while paying less money, therefore, keeping their financial reserves high and running for a longer period of time.
A solid company, that grows in times of uncertainty, is being used by many Americans more and more (part of Warren Buffett’s investment philosophy), what could be the icing on the cake? It is a very good dividend yielder.
No wonder why Bill Gates uses Walmart stocks as a way of keeping up against inflation and rising up his income.
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