Gates Foundation Shifts $818M from Berkshire to Home Depot in Bold Portfolio Rebalancing

Bill & Melinda Gates Foundation Trust sold $818 million of Berkshire Hathaway shares while simultaneously adding a $352.7 million position in The Home Depot (HD).

Portfolio Pivot: From Berkshire to Home Depot

The Gates Trust, managing $34.42 billion in 13F assets, made its largest recent adjustment by trimming Berkshire and acquiring 1 million Home Depot shares. This underscores the fund’s shift toward long‑term infrastructure and consumer‑driven assets.

Home Depot’s Sales Engine and Market Standing

Q2 2026 results showed $47.9 billion net sales and a 5.7% YoY increase. Comparable sales rose 1.7%, the strongest since 2022. CFO Richard McPhail described the environment as “frozen housing market conditions” yet highlighted ongoing market‑share gains driven by repair and maintenance spending.

New Additions: FedEx Freight and Strategic Diversification

In the same quarter, the Trust opened a $180 million position in FedEx Freight Holding Company (FDXF), further emphasizing exposure to logistics and infrastructure‑adjacent businesses.

Valuation and Outlook: Analyst Views and Upside Potential

■Bank of America analyst Christopher Nardone maintained a Buy rating, adjusting the price target from $412 to $407, implying roughly 22% upside from the current $334.49 price.

■Home Depot projects FY 2026 total sales growth of 2.5%‑4.5% and comparable‑sales growth of 0%‑2.0%, with a 33.1% gross margin and 12.4%‑12.6% operating margin.

■The company received $730 million in tariff refunds during Q2, allocating $685 million to reduce cost of goods sold, enhancing price competitiveness.

■Shares have fallen 14.53% year‑to‑date; the Gates Trust’s timing suggests a contrarian entry at a point of heightened pessimism.

Dr. Yaman Ege – Semiconductor and Technology Supply‑Chain Director: The Gates Trust’s move into Home Depot reflects a broader reallocation toward assets anchored in domestic consumption and infrastructure amid the China‑U.S. rare‑earth tensions and chip‑supply volatility. Home Depot’s pricing flexibility and tariff‑refund windfall provide a critical margin buffer, lowering the portfolio’s risk profile while reinforcing diversification into low‑to‑moderate volatility sectors.