Bill Gates is investing in these 2 stocks for 2025. Are they worth watching?

Bill Gates, co-founder of Microsoft and one of the world's most influential investors, has decided to focus his attention on the transport sector. Through the Bill & Melinda Gates Foundation Trust, he invested $373 million in these two stocks during the final quarters of 2024 👇

Specifically, FedEx and Paccar. These investments indicate his confidence in the potential for a recovery in this sector in 2025. What prompted him to make these moves and what does it mean for other investors?

FedEx $FDX

FedEx, the global delivery services giant, is one of Bill Gates' key acquisitions. The company, which boasts one of the world's most extensive freight airline networks and an efficient ground delivery system, caught his attention because of its solid results and promise of growth. Gates purchased 1 million shares of the company, a testament to his belief in its long-term potential. FedEx currently trades at an annual dividend of 2.01%, equivalent to $5.52 per share. With a stock value of around $277 and a relatively low price-to-earnings (P/E) ratio of 14.22, this is an attractive pick.

Despite a recent drop in revenue to $22 billion in the second quarter of fiscal 2025, the company has managed to improve operational efficiency and strengthen its core Federal Express division. FedEx also announced plans to spin off its Freight division into a separate publicly traded company, which could deliver additional shareholder value. Analysts estimate that FedEx stock has the potential to rise as high as $324, an increase of 18% from current levels.

Paccar $PCAR

Gates' other big investment is Paccar, a leading manufacturer of premium trucks under the Kenworth, Peterbilt and DAF brands. Gates bought 1 million shares in this company as well, showing his confidence in the company's future. Paccar maintains solid financial health, as evidenced not only by its regular dividend of $0.33 per share, but also by the $3 special dividend the company paid in early 2025. Paccar shares are trading around $110, with a price-to-earnings ratio of 12.08, signaling an attractive valuation compared to its competitors.

Paccar's financial results for the third quarter of 2024 were also solid. Revenue was $8.24 billion and net income was $972 million. At the same time, the company continues to optimize its operations, such as by selling its PACCAR Winch division to focus more on truck manufacturing and technology development. It expects to sell 250,000 to 280,000 Class 8 heavy trucks in 2025, indicating steady market growth.

Gates' investments in FedEx and Paccar indicate his belief in the recovery of the transportation and logistics industry in the coming years. While FedEx boasts bold strategies for efficiency and growth, Paccar benefits from continued demand for trucks and a solid foundation in financial management. Thus, these companies represent not only stable value but also growth potential, which is consistent with Gates' approach to long-term investing.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source: Barchart