Gates Foundation Stuck with Struggling Kraft Heinz Stock
The Bill and Melinda Gates Foundation holds $33 billion in assets, with nearly 78% allocated to just four stocks. One of its holdings is Kraft Heinz (KHC), a consumer staples company that has been a rare gaffe for Warren Buffett's Berkshire Hathaway. The Gates Foundation started its position in Kraft Heinz about four years ago, but it hasn't been immune to the stock's struggles.
The foundation sold 150,000 shares of Kraft Heinz in July 2025, but still holds a significant stake in the company. With a yield of 6.2%, Kraft Heinz is one of several dividend payers in the Gates Foundation portfolio. The company has been generating $3.7 billion in free cash flow and has reduced its debt, which could support its shares.
However, Kraft Heinz needs to return to old highs, and investors should be cautious about buying into the stock. The Motley Fool's Stock Advisor analyst team recently identified 10 top stocks for investors to buy now, but Kraft Heinz wasn't one of them. Instead, the team recommended companies like Netflix and Nvidia.