Let’s talk about Melinda Gates and Bill Gates. No, not about their divorce! There is something more interesting – rebalancing the portfolio of their charitable foundation. The Gates couple staged a massive sell-off and got rid of a huge number of shares in reputable companies. These include Apple, Amazon, Twitter, Walmart, FedEx Corporation, United Parcel Service, and Canadian National Railway.
What shares did the Bill & Melinda Gates Foundation sell?
The mass sale of shares of various companies, which took place in the first quarter of this year, became known from documents filed with the US Securities and Exchange Commission.
Portfolio rebalancing has affected a number of corporations. For convenience, we have provided not only their names and the volume of shares sold, but also the dynamics of their prices at the close of the trading session on May 18.
- Walmart (NYSE: WMT) – 4 million shares, + 2.17%, to $ 141.91.
- Canadian National Railway (NYSE: CNI) – 3 million, -0.06%, $ 108.44.
- United Parcel Service (NYSE: UPS) – 1.7 million, -1.06%, up to $ 213.99.
- FedEx Corporation (NYSE: FDX) – 1.5 million, -1.04%, up $ 306.05.
- Apple (NASDAQ: AAPL) – 1 million, -1.12%, to $ 124.85.
- Liberty Latin America (NASDAQ: LILAK) – 677 thousand, -1.91%, up to $ 13.9.
- Liberty Latin America (NASDAQ: LILA) – 276.4 thousand, -2.56%, to $ 13.74.
- Twitter (NYSE: TWTR) – 272.4 thousand, + 1.12%, up to $ 53.19.
- Amazon (NASDAQ: AMZN) – 30.2 thousand, -1.17%, up to $ 3232.28.
What securities were acquired by the Gates Foundation?
For the first time, the portfolio of the Bill & Melinda Gates Foundation includes the securities of the “South Korean Amazon” – Coupang. As a reminder, Coupang’s IPO took place in March this year. The trading platform entered the New York Stock Exchange and managed to raise $ 4.6 billion. The Gates Family Foundation acquired more than 5.7 million shares of a company from South Korea.
In addition, the charity bought over 81.86 million of Mexican Coca-Cola FEMSA securities. Note that the fund’s portfolio already had about 6.2 million shares of the largest Coca-Cola producer in the world in terms of the number of bottles. Thus, this asset increased by 1317%.
What happened to Apple, Amazon and Twitter stocks?
A technical analysis of the quotes of these IT giants from my colleague Maxim Artyomov will help us to understand in more detail in this matter:
“Apple, having broken the 200-day moving average, continues to decline. A catalyst for the continued decline in quotations may have been the sale by the Bill & Melinda Gates Foundation of part of its million shares. The target reference point at this stage is the lower boundary of the channel. In the future, the price has a chance to bounce and continue the upward trend. The target for growth is still the mark of $ 145 ”.
“At the last trading session, Twitter quotes against the background of fund sales did not sag much. At the moment, the price is still below the 200-day moving average and is moving towards the lower border of the channel. In the future, a rebound may occur, and we will be able to observe the continuation of the upward trend. Target reference for growth after the correction is the mark of $ 65 ”.
“As for Amazon shares, the sale of the Bill & Melinda Gates Foundation led to a significant loss in their price in the last trading session. The price continues to decline towards the lower border of the ascending channel. In the future, we will be able to observe a test of support and, possibly, a rebound. The reference point for the rollback is the $ 3100 mark.
Summing up the result
It became known that the Bill & Melinda Gates Foundation has arranged a major rebalancing of its stock portfolio. The sale also affected companies such as Apple, Amazon, Twitter, Walmart, FedEx Corporation, United Parcel Service and Canadian National Railway.
This event led to the fact that at the end of the trading session on May 18, quotations of six corporations out of eight lost in value. Only Walmart and Twitter posted growth.
What else to read about the promotions of the IT giants on the R Blog?