Where and how to invest your money Microsoft founder Bill Gates

American Forbes magazine compiled a ranking of the largest philanthropists in the world. First place it took Bill and Melinda Gates Foundation. In 2012, they donated $1.9 billion, and for all years is $28 billion.

That allows them to do it? In the popular consciousness, there is a good connection between Bill Gates and Microsoft. Most people had no doubt that the current wealth of the legendary company founder is directly linked to the fact that he owns a large number of shares of Microsoft, which is constantly growing in price. However, it is not so long ago.

According to Bloomberg, Microsoft shares now represent no more than 20% of the capital of the richest man on the planet. What makes him so long to be one of the most wealthy people in the world? A truly rich man Gates became March 21, 1986 year, when Microsoft went public on the New York Stock Exchange. The peak they reached in December 1998 year (just before the dotcom crisis). Little more than 12 years the paper Microsoft rose 58 000%. Then there was a big decline. Current quotes are very far from the level of year 1998.

All this time, Gates gradually sold their shares. This process was intensified after Steve Ballmer succeeded him as Chief Executive Officer. Currently, the founder of Microsoft has only 4.5% of the company's shares, which at current market prices (here and below are data on November 15, 2013 year) amounts to $14.3 billion.

The overall condition of the Gates currently is estimated at $77.2 billion. The main source of his wealth is not Microsoft, and investments that it makes for many years through its investment company Cascade Investments.

34-year-old head of the Cascade Investments Michael Larson started its activities in 1994, with $400 million with which it is entrusted, and in 1999, he has already managed $11.5 billion capital belonging to Microsoft founder personally and his charitable foundation William h. Gates Foundation (later changed its name to Bill & Melinda Gates Foundation).

Michael Larson, the man is not public and communicates with the press. He once said that he has the best job in the world because There is only pure investments, not marketing, a bit of management and only one client. Relative to the size of capital, which is under the control of Michael Larson at the moment, there is no publicly available information. Experts believe that this sum exceeds $80 billion.

Where to invest your money Bill Gates and what he so successfully earns? We can judge this, mainly on information about attachments to his charitable foundation. Here we are waiting for a few surprises and the main one is this: almost 50% of the money managed by Cascade Investments, invested in Warren Buffett's holding company Berkshire Hathaway, Inc.

Such a strong "skewed" with portfolio structure is extremely rare thing and it cannot be explained only by the high level of trust between Bill Gates and Warren Buffett, which link many years of friendship. The fact of the matter is that Buffett, along with gates and his wife, is one of three Trustees, who oversee the Fund and where many billions invested his personal funds in the form of shares of Berkshire Hathaway. Over the past 10 years, shares of Berkshire Hathaway rose 113.1%, significantly outperforming the American stock market (S&P 500 showed growth during this time only 71.2%).

Other Cascade investments Investments is also seen significant impact Warren Buffett. For example, the second most important position which holds in its portfolio Michael Larson is Coca-Cola (6.7%). Interestingly, Berkshire Hathaway's investment portfolio this action almost a quarter of a century, took the lion's share: 18.2% now. This paper Buffett bought immediately after the crisis of the year 1987 and holds it in its portfolio so far.

The five largest investment Bill Gates also includes shares such earthly companies like McDonald's, Caterpillar (manufacturer of machinery for construction and mining industry) and the Canadian National Railway Company (railway company).

By the way, Buffett also is not very typical for modern managers investing in the railroad. In 2009, he acquired Burlington Northern Santa Fe Railway Company-which is based in Texas. According to him, this was done with an eye to the economic future of the United States. However, in this case, Buffett followed Bill Gates (or rather for the Michael Larson), which began to form its own stake in the railway company back in 2002 year.

It would be logical to expect that Bill Gates ' investment portfolio there are shares outstanding representatives of the technology sector, for example, companies such as Apple (why not capitalize on past competitors), Google, Yahoo, IBM, perhaps even a Facebook or Twitter, but nothing like the Microsoft founder attachments among No.

The structure of the portfolio is as follows: 50.8%-financial services (Buffett's Foundation belongs to this category), 15.4%-shares of the consumer sector (e.g., Coca-Cola, Wal-Mart Stores, etc); 15.0%-industrial companies (Caterpillar, FedEx Corporation, Canadian National Railway Company); 9%-cyclical consumer sector (McDonald's, Grupo Televisa, S.A.B.); 5.0%-energy (BP, Exxon Mobil and others).

What can explain such an investment? Firstly, this is due to the long-term objectives of the Foundation and the reluctance of its founders to be exposed to increased risk. The fact that more than 50% of the capital Bill & Melinda Gates Foundation located in Berkshire Hathaway already makes this Fund fairly vulnerable and risky.

After all, during the crisis year 2008 fund shares Buffett lost almost half its value. Secondly, its role played and the fact that Microsoft shares, which represent about 20% of the total capital of Bill Gates, are in themselves already very risky assets. That's why the remainder of attachments is divided mainly between the relatively conservative investments and there was no room for shares of fast-growing, but at the same time very risky companies (biotechnology, computers, electronics, etc.).

The story of Bill Gates, among other things, shows how you can go from a successful businessman to successful investor. This experience is extremely useful and it in one way or another can use people with different size "purse". However, most interest it represents for wealthy Russian businessmen.

Especially for those who have pondered over how best to "deviate" from the cases to their capital and further continued to work. Good domestic experience to "replicate" here is very little, and steady demand for it there, and eventually he will only grow. Those in the 90 's started his business at the age of 30-35 years, is now close to that task.

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Автор статьи: Максим Миллер - о авторе.
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