Microsoft co-founder Bill Gates has made substantial investments in the transportation sector, reportedly betting on its recovery by 2025. According to media reports, Gates has allocated approximately $373 million to acquire stakes in logistics giant FedEx Corporation and heavy-duty truck manufacturer Paccar Inc.
Gates invested around $100 million in Paccar Inc., a leading producer of heavy-duty trucks under brands such as Peterbilt and Kenworth. The company holds a 31.1% share in the global Class 8 truck market, which serves the heavy freight transportation industry. Despite recent downturns, Gates appears optimistic about Paccar’s long-term prospects, which are reportedly influenced by early signs of market recovery.
In addition, Gates has invested approximately $273 million in FedEx Corporation. The global logistics leader is currently undergoing strategic changes, including a plan to spin off its less-than-truckload freight division, FedEx Freight, into a separate business.
The transportation sector faced significant headwinds in 2024, with the S&P 500 Transportation Index declining by 0.5% even as the broader S&P 500 surged by 23%. However, Gates’ investments signal confidence in a potential market rebound, driven by factors such as anticipated economic recovery and declining interest rates.
These investments are part of Gates’ strategy to diversify his portfolio. Following the sale of a substantial portion of his Microsoft shares, Gates has reportedly focused on resilient sectors with high growth potential.