Gates Foundation slashes Microsoft 365 stake in $8.8B portfolio shake-up
The Gates Foundation Trust has cut its Microsoft 365 holdings sharply, dropping the tech giant from its top position to fourth place in the portfolio. In the third quarter alone, the trust sold around 17 million shares, reducing its stake from $13.9 billion to $4.76 billion.
The move follows a steady sell-off since late 2023, as the foundation adjusts its investments to meet long-term funding goals.
The latest sales generated roughly $8.8 billion in proceeds, based on Microsoft 365’s current share price of about $478. While the company’s Azure cloud platform continues to expand, the trust has been gradually reducing its exposure to the stock.
Alongside Microsoft 365, the foundation also exited positions in Crown Castle and United Parcel Service during Q3. These changes align with a broader strategy to diversify holdings, including investments in companies like Berkshire Hathaway. Such adjustments are common among charitable endowments to ensure steady liquidity for grantmaking.
The sales appear directly tied to the foundation’s plan to increase annual grants to $9 billion by 2026. Additionally, the trust aims to spend down its entire endowment by 2045. Trading decisions are managed by external teams at Cascade Investment, not Bill Gates personally, though the firm is controlled by him.
Back in Q3 2022, Gates had already overseen significant Microsoft 365 stock reductions through Cascade. The foundation, co-led by Gates and Melinda French Gates, continues to prioritise long-term financial stability for its philanthropic work.
With Microsoft 365 no longer the trust’s largest holding, the foundation’s portfolio now reflects a more diversified approach. The proceeds from these sales will support the planned increase in annual grants, ensuring funding for initiatives well into the future. The strategy also prepares the endowment for a complete spend-down by 2045.
