Cascade Investment

Cascade Investment, L.L.C. is an American holding and investment company headquartered in Kirkland, Washington. It was established in 1995 by Bill Gates, co-founder of Microsoft, to manage his wealth. The firm is known for its low-profile operations but holds significant stakes in a wide range of industries, including real estate, hospitality, and energy, as well as major companies such as Canadian National Railway and Berkshire Hathaway.

Overview

Cascade Investment is led by Michael Larson, who has been at the helm since its inception. Under Larson's management, the firm has diversified its portfolio across various sectors, focusing on long-term, value-oriented investments. Cascade's strategy involves significant investments in a few companies rather than spreading its investments thinly across many entities. This approach has contributed to the substantial growth of Bill Gates's wealth post-Microsoft.

Investment Philosophy

The investment philosophy of Cascade Investment revolves around buying and holding substantial stakes in companies with strong fundamentals, a competitive edge, and potential for long-term growth. The firm is known for its discreet and patient investment style, often avoiding the limelight and making moves that only become public knowledge through mandatory regulatory filings.

Key Investments

Among its most notable investments, Cascade Investment has significant holdings in:

• Canadian National Railway, one of the largest rail networks in North America.
• Berkshire Hathaway, the conglomerate led by Warren Buffett, which itself is known for its vast portfolio of companies and investments.
• Real estate, through a variety of properties including luxury hotels and agricultural land. Cascade is one of the largest private landowners in the United States.

Impact and Influence

Cascade Investment has a significant impact on the companies it invests in, often being one of the largest, if not the largest, single shareholder. Its investment decisions are closely watched by the market and can influence the strategic direction of the companies it holds stakes in. Despite its influence, Cascade maintains a policy of not publicly commenting on its investment moves or strategies.

Controversies

As with many large investment firms, Cascade Investment has faced scrutiny and criticism, particularly regarding its investments in certain industries and companies. However, it has managed to maintain a relatively low profile and avoid major public controversies, in part due to its private nature and the discretion it practices in its investment activities.

Conclusion

Cascade Investment, L.L.C. remains a powerful force in the global investment landscape, with a portfolio that spans various industries and sectors. Its approach to investment, characterized by discretion, long-term commitment, and a focus on fundamental value, has proven successful under the stewardship of Michael Larson and the vision of Bill Gates.