If you walked past Michael Larson on a street in Kirkland, Washington, you probably wouldn't look twice. He isn't the guy on the cover of Time. He isn't the one testifying before Congress about AI or global health.
But for over 30 years, Michael Larson has been the financial engine behind the world’s most famous philanthropist. He’s the guy who turned Bill Gates’ Microsoft riches into a diversified empire that owns everything from Canadian railroads to massive swaths of American farmland.
He basically makes the money that Bill Gates spends to save the world.
Who is Michael Larson, anyway?
Back in 1994, Bill Gates had a problem. Most of his wealth was tied up in Microsoft stock. If the tech bubble burst, his fortune would vanish. He needed someone to diversify his holdings without making a scene.
Enter Michael Larson.
Larson was a former bond fund manager at Putnam Investments. When he got the call from a headhunter, he was actually in the middle of trying to buy a money-management firm in Chicago. Instead, he moved to Seattle to become the sole employee of what would become Cascade Investment (now known as Cascade Asset Management Co.).
He’s often described as low-key. Sorta secretive. He wears pink shirts and avoids the spotlight like it's a plague. Honestly, his primary job description for decades has been "don't get Bill’s name in the paper for the wrong reasons."
The "Cascade" Strategy: How the Money Grows
Larson doesn't bet like a Silicon Valley venture capitalist. He’s much more conservative. He’s a value investor at heart.
Think about it. If you have $100 billion, you don't need to double your money every year. You just need to not lose it while growing it steadily. Larson has delivered a compound annual return of around 11% over the long haul. That’s solid. It's better than the S&P 500 by a meaningful margin, and he does it with much less drama.
What’s actually in the portfolio?
You might be surprised by what Michael Larson buys. It isn't all software and "the cloud." It’s "real stuff"—industries that keep the world moving even if the internet goes down.
- Waste Management: Cascade is a massive shareholder in Republic Services. They pick up the trash. It’s a dirty business, but it’s incredibly stable.
- Transportation: He bet big on Canadian National Railway. Why? Because you can't digitize a physical boxcar full of grain or timber.
- Hospitality: Cascade owns a huge chunk of the Four Seasons Hotels and Resorts.
- Agriculture: This is the one that gets people talking. Bill Gates is now the largest private owner of farmland in the U.S., with roughly 269,000 acres. That wasn't Bill's idea; it was Larson’s. Farmland is counter-cyclical. When the stock market gets shaky, people still need to eat.
The Cultural Friction and Controversies
It hasn't all been smooth sailing. You can’t run a $100 billion-plus shop for three decades without some heat.
In 2021, the New York Times dropped a report that painted a pretty grim picture of the culture at Cascade. There were allegations of a toxic work environment, including claims that Larson used harsh language and made inappropriate comments.
There was even a specific incident involving a woman who managed a bike shop partially owned by a firm Cascade invested in. She alleged sexual harassment. A settlement was reached in 2018.
Melinda French Gates was reportedly unhappy with how these allegations were handled. For a foundation that prides itself on empowering women, having your money manager accused of harassment was a bad look. Despite the internal friction and the Gates’ high-profile divorce, Larson stayed on.
Why? Because he’s effective. In the world of high finance, performance often buys a lot of forgiveness.
Why the Michael Larson Bill Gates Dynamic Still Matters in 2026
We're sitting here in 2026, and the landscape is shifting. The Bill & Melinda Gates Foundation is larger than ever, but the personal wealth of the founders is being split and reallocated.
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Larson still runs the show at Cascade Asset Management. He’s managing over $115 billion in Gates’ personal assets, plus the Foundation’s endowment, which is nearing $70 billion.
The strategy is evolving, too. We’re seeing more of a shift toward climate-tech and sustainable industries, though the "old school" backbone of the portfolio—like Deere & Co. and Ecolab—remains.
What can you learn from this?
You don't need billions to take a page out of the Larson playbook. His success isn't about being a genius who predicts the next crypto moonshot. It’s about boring, relentless consistency.
- Diversify before you have to. Gates didn't wait for Microsoft to crash to hire Larson. He did it when things were going well.
- Invest in "Real Stuff." Tech is great, but businesses that own land, move goods, or manage waste provide a floor for your wealth.
- Discretion is a tool. Larson operated in the shadows for 20 years. Sometimes, making moves without the world watching allows you to get better deals.
If you want to track how the world's most influential money is moving, don't just watch Bill’s Twitter feed. Watch the SEC filings for Cascade. That’s where Michael Larson is actually writing the future.
Actionable Next Steps:
- Review your "concentration risk": If most of your net worth is in your own company's stock or one specific sector, look at how Larson moved Gates into "boring" industries like rail and waste.
- Monitor 13F filings: Check the quarterly filings for Cascade Asset Management Co. to see where they are trimming or adding—it's a masterclass in long-term value preservation.