In this article, we will discuss the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Ray Dalio began his investing journey at just 12 years old and went on to gain experience at institutions such as the New York Stock Exchange, Dominick & Dominick LLC, and Shearson Hayden Stone. He eventually founded Bridgewater Associates in 1975, which now stands as a top-tier investment firm, co-led by Dalio, Robert Prince, and Greg Jensen.
Getting your hands on cheap stocks at the right time is of utmost importance. Following a rebound from April’s steep 17% discount, Morningstar’s June 2025 outlook suggests that U.S. equities traded just 3% below their fair value as of May 30, 2025. While expectations of easing monetary policy and tariff developments drove this rebound, risks still remain. In this regard, Bridgewater points out that over 50% of U.S. equity outperformance in the past 15 years was driven by technology. This suggests that future gains may rely heavily on productivity enhancement, particularly from AI technology deployment.
Amid all the uncertainty, Morningstar expresses its inclination toward not only the overweighting of value stocks, which presently trade at a 14% discount, but also underweighting of growth stocks trading at a premium.
Amid market risks, including tariff structure, sluggish GDP, and shifting earnings outlook, we aim to look at Dalio’s portfolio, which offers insights into quality stocks that may still be trading below their intrinsic value.
With this backdrop, let’s move on to our list of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Methodology
To curate our list of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio, we scanned Billionaire Ray Dalio’s portfolio for Q1 2025, extracting stocks with their price-to-earnings ratio under 15x, as of the time of writing this article. We incorporated hedge fund sentiment into these stocks, ranking them on the basis of the number of hedge funds having stakes in the respective stocks as of Q1 2025. The stocks are ranked in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Genpact Limited (NYSE:G)
Forward Price-to-Earnings: 12.01
Number of Hedge Fund Holders: 34
Genpact Limited (NYSE:G) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $35 million worth of shares of G, which represents 0.16% of its portfolio.
On June 27, 2025, TD Cowen announced its decision to raise its price target on Genpact Limited (NYSE:G) from $53 to $55, while maintaining a ‘Buy’ rating. The analyst attributed this to optimistic commentary on Q2 and full-year 2025 during the company’s Investor Day that focused on AI strategy. The analyst further highlighted the company’s medium-term outlook, which is expected to exceed the Street’s FY2026 revenue and earnings estimates. Meanwhile, the company announced a quarterly dividend of $0.17 per share on June 6, 2025, while also finalizing its acquisition of XponentL Data to strengthen its AI capabilities on June 5, 2025.
Operating across sectors like finance, healthcare, consumer goods, and manufacturing, Genpact Limited (NYSE:G) provides business process outsourcing and IT services. It operates across North America, Europe, Asia, and Latin America. It is among the list of cheap stocks to buy.
9. Incyte Corporation (NASDAQ:INCY)
Forward Price-to-Earnings: 11.46
Number of Hedge Fund Holders: 37
Incyte Corporation (NASDAQ:INCY) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $38 million worth of shares of INCY, which represents 0.18% of its portfolio.
Citing uncertainties about the company’s revenue outlook, particularly the long-term sustainability of Jakafi, William Blair analyst Matt Phipps maintained a ‘Hold’ rating on Incyte Corporation (NASDAQ:INCY). M&A speculations rose with the company’s appointment of Bill Meury as CEO, who has a background in successful biotech exits. However, analysts remain cautious as the nearing Jakafi patent expiry weighs on sentiment. This expiry is expected to significantly cut the company’s earnings. While the long-term outlook of the company remains healthy, as evident from the consensus analysts’ estimated price target of $76, uncertainty regarding the company’s ongoing R&D activities is contributing to a mixed short-term outlook.
With its operations across the U.S., Europe, Canada, and Japan, Incyte Corporation (NASDAQ:INCY) develops and commercializes therapies for oncology and inflammation. Its product portfolio includes Jakafi, Monjuvi, Pemazyre, and Opzelura. It is among the list of cheap stocks to buy.
