Gates Foundation Trust rotates $818m from Berkshire into Home Depot

The Bill & Melinda Gates Foundation Trust has revealed a notable reallocation of capital in its latest 13F filing, disclosing a new $352.7 million position in The Home Depot. The move coincides with a reduction of approximately $818 million in its stake in Berkshire Hathaway, marking a strategic shift within the trust’s $34.42 billion managed portfolio.

The trust now holds one million shares of The Home Depot, a position that aligns with its broader investment thesis focused on essential infrastructure and domestic economic activity. In the same filing, the trust also opened a new position in FedEx Freight Holding Company worth approximately $180 million, further diversifying its exposure to physical asset maintenance and logistics.

This entry into The Home Depot comes as the retailer reported its strongest comparable sales growth since 2022. In its Q2 fiscal 2026 results released on 18 August, The Home Depot recorded net sales of $47.9 billion, a 5.7 per cent increase year-over-year. Comparable sales growth reached 1.7 per cent, a figure the company attributes to non-discretionary repair and maintenance spending rather than a recovery in the broader housing market.

CFO Richard McPhail described the current environment as "frozen housing market conditions," noting that the company is gaining share by serving customers who are undertaking smaller, essential projects despite hesitation regarding larger renovations. The company also benefited from $730 million in tariff refunds during the quarter, using $685 million of that amount to reduce the cost of goods sold.

The trust’s portfolio remains heavily concentrated in long-duration bets on American economic activity. Its top five holdings continue to include Berkshire Hathaway Class B, Caterpillar, Canadian National Railway, Waste Management, and Deere & Company. The addition of The Home Depot, the world’s largest home improvement retailer, fits this framework of investing in businesses tied directly to the maintenance of the American housing stock.

Analyst sentiment remains cautiously positive. Bank of America analyst Christopher Nardone reiterated a Buy rating on The Home Depot, though he adjusted his price target to $407 from $412. The company has reaffirmed its fiscal 2026 guidance, projecting total sales growth of 2.5 per cent to 4.5 per cent and comparable sales growth of flat to 2.0 per cent. As of 20 August, HD shares were trading at $334.49, down 1.41 per cent year-to-date.