In a significant expansion of its investment portfolio during the second quarter of this year, the Bill & Melinda Gates Foundation Trust increased its holdings in Berkshire Hathaway (BRK) with the generous support of Warren Buffett. Additionally, the Trust initiated a position in Anheuser-Busch InBev (BUD), purchasing over $96 million worth of shares from the beleaguered beer company, which has been contending with the consequences of recent Bud Light boycotts.
Gates Foundation Trust Acquires Stake in Anheuser-Busch InBev
The Gates Foundation Trust strategically acquired approximately 1.7 million shares of AB InBev stock, valued at $96.59 million, as reported in the Trust’s latest 13F filing with the Securities and Exchange Commission. This investment marked the sole addition to their portfolio during the second quarter. The exact timing of these stock purchases remains undisclosed; however, the 13F filing was submitted on August 14, shortly after AB InBev surpassed Q2 earnings estimates.
It’s worth noting that Anheuser-Busch’s primary listing is on the Euronext exchange under the ticker ABI, while in the United States, it is traded as American Depositary Receipts (ADRs) under the ticker BUD on the New York Stock Exchange.
Bill Gates does not directly oversee the Trust’s investments; instead, this responsibility falls to Cascade Asset Management. According to a spokesperson for Cascade, the decision to invest in AB InBev was driven by a valuation opportunity.
“As Chief Investment Officer of Cascade Asset Management Company, Michael Larson oversees the investment decisions for the Bill & Melinda Gates Foundation Trust,” the spokesperson stated. “Bill Gates did not purchase shares of Anheuser-Busch InBev, nor did he participate in the investment decision of the Trust. Cascade, which manages the assets of the Trust, sees value in BUD at recent prices.”
The Bud Light brand experienced a decline in sales following a controversial April 1 advertisement featuring transgender influencer Dylan Mulvaney. Deutsche Bank noted in a June research report that Bud Light’s sales may not fully recover.
Warren Buffett’s Ongoing Generosity Boosts Berkshire Hathaway Holdings
During the second quarter, the Gates Foundation Trust witnessed a substantial increase in its Berkshire Hathaway Class B holdings, adding $2.49 billion to its portfolio. This remarkable growth was made possible by a gift of nearly 10.5 million shares from Warren Buffett on June 21. As of Q2, the Trust held a total of 25,142,853 BRKB shares, with a total value of $8.57 billion. This represents a significant increase from the approximately 19.68 million shares valued at $6.08 billion held at the end of Q1, according to the previous 13F filing.
Warren Buffett has consistently supported the Gates Foundation over the past 17 years, with his cumulative contributions amounting to $39.3 billion after his latest pledge. His initial pledge of 10 million shares of BRKB stock to the Gates Foundation Trust in June 2006 was valued at approximately $36.1 billion at that time.
In July, the Gates Foundation Trust disclosed an investment of 784,830 shares in Mexico Fund (MXF), a non-diversified investment management company focused on securities listed on the Mexican Stock Exchange.
Performance of AB InBev and Berkshire Hathaway Stocks
BUD stock experienced a modest increase in value on Thursday. The impact of the Bud Light boycotts had previously caused its shares to decline by 21% from their 2023 high of 67.09 at the end of March to a low of 52.93 on May 31. Although BUD stock has partially recovered from its lows, it remains down by nearly 6.5% for the year.
Meanwhile, Berkshire Hathaway shares rose slightly on Thursday after a brief dip in early trading. The shares are currently trading at an extended level from their cup-with-handle buy zone following a breakout on May 19. So far this year, BRKB stock has recorded a 17% increase in value.
Mexico Fund shares experienced a slight decline on Thursday. MXF stock is presently trading in a flat base pattern with an 18.03 buy point. Shares recently slipped below their 50-day moving average and 21-day lines. For the year 2023, MXF stock has seen an increase of approximately 14%.
