Bill Gates Sells Berkshire Hathaway Stock for the Third Consecutive Quarter, Dumps 2.4M Shares in Q1

According to a 13f filing with the US Securities and Exchange Commission, the Gates Foundation offloaded 2.48 million Class B shares of Berkshire Hathaway in Q1, worth £939.89 million ($1.25 billion) based on the closing price of £381.47 ($507.33) per share on 15th May.

The latest sale marks the third consecutive quarter the Gates Foundation has trimmed its stake in the company of his long-time friend Warren Buffett. Gates has sold over 7 million shares of the company in the past three quarters, but still holds 17.17 million Class B shares of Berkshire Hathaway worth £6.88 billion ($9.15 billion).

Late last year, Buffett decided not to buy back shares of his own company, a first in six years. It was probably because Buffett thought his company might be overvalued, reflecting his adherence to his time-tested value investing philosophy.

An earlier regulatory filing highlighted that Buffett would buy shares when he feels the stock price is 'below Berkshire's intrinsic value, conservatively determined.'

A Potential Rift in a Decades-old Friendship

Gates and Buffett's friendship of over three decades might have strained in recent years. Gates joined Berkshire Hathaway's board in 2004 until 2020, and Buffett served as a member of the Bill and Melinda Gates Foundation until 2021, shortly after the couple announced their divorce.

Buffett pledged in 2006 to give away 85% of his stake in Berkshire Hathaway to charity, most of which was supposed to go to Gates' foundation.

However, in a 2024 interview with The Wall Street Journal, Buffett revealed the donations to Gates' foundation would stop after he passes away. While Buffett didn't share many details behind his decision, he had previously said while resigning from the Gates Foundation board that his goals are 100% in sync with those of the foundation, and my 'physical participation is in no way needed to achieve these goals.'

A $100 Million Stake in a Pharma Company

During the quarter ended 31st March, Gates opened a new position in West Pharmaceutical Services. He bought 444,500 shares of the pharma company for £74.82 million ($99.51 million). While a majority of the analysts have a 'Buy' rating on the stock with a 12-month stock price target of up to £300.77 ($400) per share, the company is navigating a class action lawsuit alleging that management failed to adequately disclose adverse facts about business prospects and operations. The management action led to investor losses after the company issued disappointing revenue and earnings forecasts for 2025 in early February. Following this, the stock price nosedived by almost 40%.

Gates is known for his active role in funding initiatives focused on developing vaccines and treatments for a range of diseases. He recently said his foundation will cease to exist in 2045, and he will donate 99% of his wealth in the next 20 years. Much of his wealth would go towards improving maternal health, creating vaccines for infectious diseases, generating sustainable energy, and lifting millions out of poverty. However, his plans for West Pharma are still unclear.

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