Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, is one of the world’s most followed investors. His strategy is primarily based on large-scale, long-term trading based on his outstanding global macro view.
It is also known for the “All Weather” concept, which is based on risk allocation rather than capital. As such, the billionaire investor has been through many economic cycles over the decades and his portfolio has performed relatively well during market downturns.
According to the latest 13F filing with the U.S. Securities and Exchange Commission (SEC), the hedge fund had a portfolio value of $24.8 billion at the end of the first quarter (Q1) of 2022.
The finance guru recently expressed concern “about the impact of conflict, both within and between countries.” In the first quarter, he invested primarily in healthcare, financials, consumer discretionary, consumer staples and communications.
Examples of shares held by Ray Dalio
InvestingPro provides access to various Ray Dalio stocks that may appeal to long-term investors. For example, the largest holdings in Bridgewater’s investment portfolio are:
- Vanguard FTSE Emerging Markets Index Fund ETF Equity (NYSE:)
- Procter & Gamble (NYSE:)
- iShares Core MSCI Emerging Markets ETF (NYSE:)
- iShares MSCI Emerging Markets ETFs (NYSE:);
- SPDR® S&P 500 (NYSE:)
- China-based tech giant Ali Baba (NYSE:)
- Johnson & Johnson (NYSE:)
- Coca Cola (NYSE:)
- PepsiCo (NASDAQ:)
- Wholesale Costco (NASDAQ:).
These ten names represent approximately one-third of all entries.
Meanwhile, among large-cap (cap) stocks, we see Berkshire Hathaway (NYSE:); Johnson & Johnson; Visa (NYSE:); Exxon Mobil (NYSE:); JPMorgan Chase (NYSE:); and Procter & Gamble.
According to the last two 13F filings, the biggest stock purchases include the iShares MSCI Emerging Markets ETFs; the iShares Core MSCI Emerging Markets ETF; Alibaba Group; the Vanguard FTSE Emerging Markets Index Fund ETF Equity; and Procter & Gamble.
As for the fastest growing companies in the portfolio, we have Chinese electric vehicle (EV) names Xpeng (NYSE:), Li-Auto (NASDAQ:) and Nio (NYSE:); China based online recruitment service provider Kanzhun (NASDAQ:); Conoco Phillips (NYSE:); Pfizer (NYSE:); and Airbnb (NASDAQ:).
Investors looking for stocks that are undervalued relative to fair value might search for Chinese names Ali Baba, Baidu (NASDAQ:) and Pinduo-duo (NASDAQ:); Berkshire Hathaway; UK based LyondellBasell Industries (NYSE:); and General Electric (NYSE:).
Likewise, stocks with low price-to-earnings (P/E) ratios also deserve readers’ attention. Examples include Ford engine (NYSE:); China-based personal financial services platform Lufax Holding (NYSE:); LyondellBasell Industries; chemical giant Dow Inc. (NYSE:); Intel (NASDAQ:); Tyson Foods (NYSE:); and Berkshire Hathaway.
Meanwhile, high growth dividend stocks to focus on would be Southern Copper (NYSE:); the iShares Core MSCI Emerging Markets ETF; AT&T (NYSE:); International Business Machinery (NYSE:); Philip Morris International (NYSE:); and Kraft-Heinz (NASDAQ:).
Finally, readers might be interested to know that several stocks in Ray Dalio’s portfolio have bullish analyst targets. For example, the biotech game BeiGene (NASDAQ:); Chinese companies NIO, Kanzhun, bilibili (NASDAQ:), and SMD (NASDAQ:); and medical device company DexCom (NASDAQ:) could see a significant upside from their current price levels.
Selecting appropriate stocks for long-term portfolios requires research, which can be difficult for most retail investors. We should also note that the stock listings provided on the InvestingPro website may not always meet the complete portfolio objectives of all readers. In this case, they may also consider looking for an exchange-traded fund (ETF) that offers exposure to several stocks held by Ray Dalio.
Fidelity MSCI Consumer Staples Index ETF
- Current price: $44.75
- 52 week range: $41.54 – $49.03
- Dividend yield: 2.27%
- Spending rate: 0.08% per year
Our fund today, the Fidelity MSCI Consumer Staples Index ETF (NYSE:), offers exposure to US consumer staples stocks. This passively managed fund started trading in October 2013.
Food and staple retail names have the highest share at 23.3%. Next come beverages (23.1%), food products (20.6%), household products (20.6%), tobacco (8.2%) and personal products (3.9%). ). The top 10 stocks in the portfolio represent more than 60% of the $1.1 billion in net assets.
The main names of the fund include Procter & Gamble, Coca Cola, PepsiCo, Wholesale Costcoand walmart (NYSE:).
So far in 2022, the ETF is down 4% but has still outperformed the , which is down 12.3% year-to-date. Meanwhile, the FSTA has returned nearly 2.5% over the past 12 months.
Finally, the price/earnings (P/E) and price/book (P/B) ratios of the fund are 24.76x and 4.88x. A potential drop towards $43 or even below could improve the margin of safety.