Bill Gates’ Surprising Bets on the Future of Transportation
The billionaire philanthropist is making waves with his latest investment moves, and it’s not about tech this time. While Microsoft remains his largest holding, Gates has been quietly building a stake in two transportation companies, signaling a bold bet on the industry’s comeback.
A Shift in Focus
Over the past year, Gates sold nearly a quarter of his Microsoft stock, but his third-quarter purchases have everyone talking. He’s put his money into Paccar and FedEx, two companies that could be poised for a major turnaround if the economy improves in 2025.
Paccar: A Heavy-Duty Bet
Paccar, the parent company of Peterbilt and Kenworth, commands a significant share of the U.S. Class 8 truck market. With a strong start to 2024, Paccar’s quarterly revenue reached $8.74 billion in the first quarter. Although demand dipped later in the year, signs of recovery are emerging. Gates snapped up one million Paccar shares at around $100 each, a $100 million investment in a company he believes has long-term promise.
FedEx: A Logistics Powerhouse
FedEx, on the other hand, has been navigating turbulence. Despite a disappointing third-quarter report, Gates saw an opportunity, buying another one million shares at an average of $273 each. The company’s plans to spin off its less-than-truckload freight division, FedEx Freight, into a stand-alone business could become a growth driver as FedEx sharpens its focus on core operations.
A Bet on Recovery
Gates’ strategic buys reflect a belief that the transportation sector is poised for a turnaround, especially if the economy improves in 2025. With Paccar and FedEx, he’s betting on companies that are critical to the economy and have the potential for long-term growth. As the economy begins to recover, these companies could be well-positioned to capitalize on the upswing.
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