Gates Foundation Ditches Berkshire for Home Improvement Giant
The Bill & Melinda Gates Foundation Trust has made a significant move in its portfolio by buying $352.7 million worth of shares in The Home Depot (HD), according to its latest 13F filing. At the same time, the trust cut its stake in Berkshire Hathaway by about $818 million.
This is not a small change, and it's certainly not something that can be ignored. The Gates Foundation Trust now holds 1 million shares of The Home Depot, which is a meaningful opening position for a portfolio with $34.42 billion in managed 13F securities.
The reason behind this move is likely the fact that The Home Depot has delivered its strongest comparable sales growth since 2022, despite being tied to the frozen housing market conditions. CFO Richard McPhail described the customer as 'a healthy cohort' who has 'the means to spend' but remains hesitant due to inflation, fuel costs, and general uncertainty.
The Home Depot's reaffirmed fiscal 2026 guidance calls for total sales growth of 2.5% to 4.5% and comparable sales growth of flat to 2.0%, according to The Home Depot. Gross margin is projected at approximately 33.1%, with operating margin between 12.4% and 12.6%. Bank of America analyst Christopher Nardone reiterated a Buy rating on The Home Depot, adjusting his price target to $407 from $412.