Berkshire’s Enduring Appeal: A Foundation’s Confidence

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One observes, with a certain quiet fascination, the allocation of resources by the Bill & Melinda Gates Foundation Trust. It is not, perhaps, as surprising as some might assume that Microsoft, the very edifice co-founded by Mr. Gates himself, does not occupy the foremost position in their portfolio. A substantial stake is held, naturally, but it is surpassed, eclipsed even, by a name that evokes a different era, a slower, more deliberate tempo of investment.

The largest holding, it appears, is a favored scion of Warren Buffett’s discerning eye. Approximately thirty percent of the Trust’s considerable $36 billion is entrusted to this single entity, a figure that compels one to pause and consider the currents of confidence flowing beneath the surface of these transactions.

The Quintessential Value

This is not merely a Buffett stock, mind you. It is, one might argue, the very distillation of his investment philosophy, the embodiment of value investing itself. We speak, of course, of Berkshire Hathaway.

For over six decades, Mr. Buffett guided Berkshire, a period akin to a long, thoughtful season. While he has now passed the active leadership to Greg Abel, he remains a presence, a guiding spirit, and still the largest shareholder, a patriarch overseeing his legacy.

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The Gates Foundation Trust, too, is a significant shareholder, possessing nearly 21.8 million shares, valued at over $10.9 billion as of the last reporting. It is worth noting, however, that the Trust recently reduced its position, parting with 2.36 million shares in the third quarter of 2025 – a subtle shift in the landscape, perhaps, but one that invites speculation.

A Legacy of Trust

Mr. Gates and Mr. Buffett have enjoyed a long-standing friendship, a companionship forged over years of shared interests, including the quiet game of bridge. Mr. Gates served on Berkshire’s board for a considerable period, and Mr. Buffett, in turn, lent his wisdom to the Gates Foundation. But this relationship, amiable as it is, is not the sole driver of this substantial investment.

The more likely explanation resides in the enduring reliability of Berkshire Hathaway’s stock. Between 1964 and 2024, the company delivered an overall gain of 5,502%, a compound annual growth rate of 19.9%. Compare this to the S&P 500’s 10.4% during the same period, and one begins to understand the allure. Berkshire did, admittedly, lag behind the broader market last year, but its long-term performance remains undeniably solid, a testament to a strategy built on prudence and patience.

An Enduring Beacon

Is Berkshire Hathaway still a worthy addition to a long-term portfolio? I believe the answer is a resounding yes. While Mr. Buffett is no longer at the helm in the strictest sense, his influence permeates the company’s decisions. His philosophy, a blend of common sense and unwavering discipline, continues to guide management.

Berkshire continues to generate substantial free cash flow, bolstered by its diverse holdings in wholly-owned businesses and publicly traded companies. Whether it remains the largest holding in the Gates Foundation Trust’s portfolio is, in the grand scheme of things, a matter of detail. It is a stock worthy of consideration for any investor seeking stability and long-term growth, a beacon in a sea of fleeting trends and ephemeral promises. It is a reminder that sometimes, the most enduring values are the simplest ones.

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2026-01-20 12:55