Gates' Bet on Caterpillar Pays Off as Burry's Short Position Succeeds

Legendary investors Bill Gates and Michael Burry have taken opposite positions on Caterpillar (CAT) stock. Gates' holding in CAT has seen a significant increase, with a paper gain of $2.27 billion as of June 30, 2026. This comes after Caterpillar's second quarter 2026 results showed sales and revenues of $20.5 billion, a 24% year-over-year increase.

Gates' position in CAT is part of his broader portfolio, which includes other industrial companies such as Berkshire Hathaway Class B (21.35%), Canadian National Railway (17.95%), Waste Management (17.30%), and Deere & Company (6.56%). This concentrated ownership strategy has generated significant returns for the Gates Foundation Trust.

In contrast, Burry shorted CAT at $1,060.98 on June 30, citing concerns about the AI infrastructure spending surge and valuations in semiconductors and industrials. While Burry's short position has seen some success with CAT's subsequent pullback to $827.90, Gates' long-term bet on Caterpillar is paying off.

Caterpillar's performance is attributed to its role as a leading manufacturer of construction and mining equipment, off-highway engines, industrial gas turbines, and diesel-electric locomotives. The company has benefited from the AI infrastructure boom, with data center construction driving demand for earthmoving equipment.