Bill Gates bets on trash: An unusual multi-million dollar investment

Bill Gates' private investment firm, Cascade Investment, has consistently increased its holdings in the American waste disposal giant Republic Services. According to official stock exchange filings, the firm, managed by Michael Larson, purchased shares over four consecutive trading days at prices ranging from $214 to $217 per share. Cascade currently holds 10% of the company's shares, and Larson serves on the board of directors, providing him with an in-depth internal perspective on operations.

Business model: Price over volume

Gates' massive investment relies on a stable business model based on raising prices for customers. Republic Services CEO Jon Vander Ark clarified in an investor call that the company prefers raising prices over increasing activity volume to ensure adequate returns. This strategy proved successful in the second quarter of 2026, when the core price of total revenue increased by 5.3%, and the operating cash flow margin was maintained at 32.1%.

The company's financial data shows consistent growth. Management raised its annual revenue forecast to a range of $17.2 to $17.3 billion, and diluted earnings per share to $7.23–$7.28. The company's free cash flow jumped by 16.9% to reach $2.43 billion in 2025, allowing it to increase quarterly dividends from $0.625 to $0.67 per share.

Is it worth joining the party?

Despite strong data, Wall Street analysts are divided, with "hold" and "buy" recommendations currently balanced. Furthermore, private investors buying the stock today pay a higher price than Cascade's purchase price, thereby sacrificing the margin of safety that Larson insisted upon. With a low beta of approximately 0.4, the stock offers low volatility, suitable for those seeking stable, long-term assets.