Bill Gates’ Investment Thesis: A Closer Look

The latest 13F filing from the Bill & Melinda Gates Foundation Trust reveals a new $352.7 million position in The Home Depot (HD). This significant investment comes at a time when the trust is trimming its stake in Berkshire Hathaway by approximately $818 million.

The trust’s portfolio is concentrated and deliberate, with a focus on long-duration bets on essential infrastructure, industrials, and American economic activity. The Home Depot fits this framework, being the world’s largest home improvement retailer, directly tied to the American housing stock.

The trust now holds 1 million shares of The Home Depot, a meaningful opening position for a portfolio with $34.42 billion in managed 13F securities. This investment arrives at a moment when The Home Depot has delivered its strongest comparable sales growth since 2022, despite CFO Richard McPhail describing the current environment as ‘frozen housing market conditions.’

The Home Depot’s Q2 Results: A Positive Outlook

The Home Depot reported Q2 fiscal 2026 results that beat expectations across the board. Key highlights include:

• Net sales of $47.9 billion, up 5.7% year-over-year (YoY)
• Comparable sales growth of 1.7% — the highest since 2022
• Adjusted diluted EPS of $4.92, up from $4.68 in the prior year period
• Net earnings of $4.8 billion, or $4.79 per diluted share

CFO Richard McPhail emphasized that The Home Depot’s comparable sales growth is being driven by smaller, non-discretionary repair and maintenance projects, rather than a housing recovery. The company also received $730 million in tariff refunds during Q2, using $685 million to reduce cost of goods sold.

Bank of America’s Read on The Home Depot: A Buy Rating

Bank of America analyst Christopher Nardone reiterated a Buy rating on The Home Depot and adjusted his price target to $407 from $412. The modest target reduction reflects the cautious guidance The Home Depot reaffirmed rather than raised.

The Gates Foundation’s Investment Thesis: Rotating Toward Domestic Economic Activity

The trust’s investment in The Home Depot is part of a broader rotation toward companies that benefit from domestic economic activity and physical asset maintenance. This investment thesis suggests that the trust is looking to capitalize on the growing demand for home improvement and repair services, even in a ‘frozen housing market.’