The Mega-Buy Wall Street Almost Missed
While everyone's watching tech stocks, Bill Gates spent the first week of September buying 735,303 shares of Republic Services for $164 million. Through his investment vehicle Cascade Investment, he accumulated shares over just four days (September 3–4) at an average price of around $223 per share. The stock trades today at $222.
Republic Services is America's second-largest waste hauler. Sounds boring. But that's exactly the point: Gates is betting on a stock nobody gets excited about, but one that has delivered reliable profits for decades.
Why Trash — Why Now
Cascade Investment now holds over 112 million shares of Republic Services — a $25 billion position representing more than 35% of the company. Gates is by far the largest shareholder. And he keeps buying.
Why? Republic Services does what most tech firms can't: generate predictable cash flows. The business is simple — people produce trash, someone has to pick it up. Sounds easy, but it's a near-monopoly business. Once you lock in contracts with a city, you often keep them for decades.
The company reported strong Q2 2026 numbers: $17.2 billion in revenue (full-year guidance), 32% EBITDA margin. The firm manages to raise prices every year — and nobody complains because there's no alternative.
What This Means for You
Gates buys when others sell. While retail investors chase tech stocks, the world's richest investor secures stable cash-flow machines. That's not a coincidence. Cascade has followed this strategy for years: buy boring stocks with reliable dividends, hold for decades, reinvest the dividends.
If you'd invested $10,000 in Republic Services 10 years ago, you'd have over $30,000 today — no drama, no crashes, no hype.
For you, that means: if you want to build wealth long-term, don't just look at the hot names. The truly rich buy stocks nobody finds exciting — but that always pay.
How Pros Are Reacting
Analysts are split. Half say Hold, the other half say Buy. The average price target sits at $245 — that's 10% upside. But Gates doesn't care about price targets. He buys cash flows.
Competitor Waste Management has a similar setup, but Republic Services has outperformed in recent months. Institutional investors are shifting toward defensive plays — stocks that stay stable even during tough times.
First Steps for Beginners
If you're just starting out: trash stocks don't sound sexy, but they belong to the defensive category — stocks that run even during crises. Republic Services has paid dividends for over 20 years (currently $0.67 per quarter, yielding over 2.7% annually). The business model is simple: recurring revenue from long-term contracts with cities and industry.
If you're considering investing in such stocks: check if the company consistently earns money, pays dividends, and whether the business will still run in 10 years. Republic Services checks all three boxes.
Important: Gates doesn't buy for quick gains. He buys to hold for decades. If you buy today, you should plan for at least 5–10 years.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.