10 Finance Stocks to Buy According to Billionaire Ray Dalio

Published January 4, 2022 at 1:35 pm EST Updated August 19, 2026 at 6:58 am EDT

In this article, we discuss 10 finance stocks to buy according to billionaire Ray Dalio.

Ray Dalio, an American billionaire hedge fund manager and an investor known for his business acumen, founded Bridgewater Associates in 1975, which is one of the most renowned hedge funds in the world, headquartered out of New York. According to the third quarter 13F filings, the portfolio at Bridgewater Associates is valued at $18.2 billion, up approximately $10 billion year-over-year.

Ray Dalio holds a Bachelor’s in finance from Long Island University, and completed his MBA from Harvard Business School in 1973. In his initial trading days, Dalio worked out of his home, from a makeshift office in a barn. Later, he started trading commodity futures at the New York Stock Exchange. After working at Dominick & Dominick LLC and Shearson Hayden Stone, Dalio finally ventured out on his own in 1975 to start his hedge fund.

Bridgewater Associates was initially a wealth advisory firm that dealt in currencies and interest rates, where Dalio managed the clients retained from his tenure as a trade broker at Shearson Hayden Stone. Bridgewater Associates’ first notable achievement came along when McDonald’s Corporation (NYSE:MCD) became the fund’s client, which was then followed by a stream of notable customers, including The World Bank’s pension funds.

Dalio’s intuition about market mechanisms led him to timely go long on Treasury bonds, short the dollar, and gold and other reliable assets, which resulted in Bridgewater Associates making a 19% return on its Pure Alpha fund in 2008, when the entire market was facing a significant financial crisis.

Serving institutional clients such as pension funds, foundations, endowments, and central banks, Dalio employs a quantitative investment strategy based on market patterns and algorithms, combined with years of experience and a strong intuition about market movements. Dalio is known to refer to himself as a “hyperrealist”, stating that he focuses on solid facts rather than adding abstract judgements to his investment decisions.

The Q3 13F portfolio at Bridgewater Associates is concentrated in the finance, healthcare, real estate, consumer discretionary, and consumer staples sectors. The most notable stocks from billionaire Ray Dalio’s Q3 portfolio include Alibaba Group Holding Limited (NYSE:BABA), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO).

10 Finance Stocks to Buy According to Billionaire Ray Dalio

Ray Dalio of Bridgewater Associates

Our Methodology

We used the third quarter portfolio of Ray Dalio to select his top 10 finance stocks, ranking them according to the billionaire’s stake value in each holding.

Finance Stocks to Buy According to Billionaire Ray Dalio

10. U.S. Bancorp (NYSE:USB)

Bridgewater Associates’ Stake Value: $34,747,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.19%

Number of Hedge Fund Holders: 42

U.S. Bancorp (NYSE:USB) is an American bank holding company which operates via its primary subsidiary, U.S. Bank National Association, and is one of the largest banking institutions in the United States. U.S. Bancorp offers its clients multiple financial services including consumer banking, corporate banking, insurance, investment banking, mortgage loans, private banking, private equity, wealth management, and financial analysis.

Ray Dalio added 15% to his existing stake in U.S. Bancorp in the third quarter, holding a total of 584,565 shares, worth $34.7 million. The U.S. Bancorp stock accounts for 0.19% of the billionaire’s Q3 securities.

U.S. Bancorp, on December 21, declared a quarterly cash dividend of $0.46 per share, payable on January 18, 2022, to shareholders of record on December 31, 2021.

Publishing its third quarter results on October 14, U.S. Bancorp posted earnings per share of $1.30, beating estimates by $0.14. The $5.86 billion revenue dropped 1.26% year-over-year, but outperformed estimates by $105.32 million.

UBS analyst Erika Najarian on December 9 initiated coverage of U.S. Bancorp with a Buy rating and a $70 price target, calling the stock “not so boring anymore”, owing to 300 basis points of ROTCE outperformance.

According to the hedge funds tracked by Insider Monkey, 42 funds were long U.S. Bancorp in the third quarter, with Berkshire Hathaway as the largest company stakeholder, owning a $7.5 billion position.

In addition to Alibaba Group Holding Limited, Johnson & Johnson, and The Coca-Cola Company, U.S. Bancorp is a notable stock pick of billionaire Ray Dalio.

Here is what Mairs & Power has to say about U.S. Bancorp in their Q4 2020 investor letter:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”

9. Lufax Holding Ltd (NYSE:LU)

Bridgewater Associates’ Stake Value: $35,668,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.19%

Number of Hedge Fund Holders: 14

Lufax Holding Ltd (NYSE:LU), a financial technology company from China that specializes in wealth management and retail credit facilitation, is one of the best finance stocks to buy according to billionaire Ray Dalio. Bridgewater Associates boosted its stake in Lufax Holding Ltd by 103% as of Q3 2021, holding 5.10 million shares worth $35.6 million.

In the third quarter, 14 hedge funds in the database of Insider Monkey reported owning stakes in Lufax Holding Ltd, worth $225 million, as compared to 19 funds holding stakes in Lufax Holding Ltd valued at $357.8 million in the preceding quarter. Farallon Capital is the leading company stakeholder, with 14.35 million shares worth $100.2 million.

Reporting its Q3 results on November 9, Lufax Holding Ltd posted earnings per share of $0.26, exceeding estimates by $0.01. The quarter revenue equaled $2.49 billion, missing estimates by $57.45 million.

On November 2, Bernstein analyst Kevin Kwek upgraded Lufax Holding Ltd to Market Perform from Underperform with a $6 price target. The analyst stated that the company’s shares are near the level that assumes compressed margins, creating a balanced risk/reward scenario.

8. BlackRock, Inc. (NYSE:BLK)

Bridgewater Associates’ Stake Value: $50,764,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.27%

Number of Hedge Fund Holders: 44

Increasing its position in the company by 18% in Q3, Bridgewater Associates owns 60,530 shares of BlackRock, Inc. (NYSE:BLK), valued at $50.7 million, representing 0.27% of the firm’s total investments. BlackRock, Inc. is a multinational investment management firm from New York City, operating across 100 countries. BlackRock, Inc. is the largest asset manager globally, offering risk and wealth management services to clients worldwide.

BlackRock, Inc. reported earnings for Q3 on October 13, announcing an EPS of $10.95, beating estimates by $1.44. The revenue jumped 15.59% year-over-year to $5.05 billion, exceeding estimates by $230.32 million.

Deutsche Bank analyst Brian Bedell raised the price target on BlackRock, Inc. to $1,141 from $1,024 and kept a Buy rating on the shares on December 17. The analyst heads into 2022 “even more constructive than at the start of 2021” on the brokers, asset managers, and exchanges sector. He reiterated that many of his Buy rated stocks may experience the strongest returns in 2022.

AQR Capital Management is one of the leading BlackRock, Inc. stakeholders as of September 2021, with a $230.8 million position in the company. Overall, 44 hedge funds in the Q3 database of Insider Monkey were bullish on the stock.

Here is what Baron FinTech Fund has to say about BlackRock, Inc. in its Q1 2021 investor letter:

“During the quarter, we initiated a position in BlackRock Inc., the world’s largest investment manager with $9 trillion in assets under management. BlackRock offers an array of products across equities, fixed income, alternatives, and cash management to institutional and retail investors worldwide. About one-quarter of BlackRock’s assets under management is actively managed, and the rest is in passive index funds and iShares-branded ETFs. The company offers technology services including the investment and risk management platform, Aladdin, as well as other advisory services and solutions. Over the five years ending December 31, 2020, assets under management and earnings per share grew at compound annual growth rates of 13% and 12%, respectively.

We believe BlackRock is well positioned for continued growth given its diverse product offering, global distribution, brand recognition, and capable management team. With most of its assets in index funds and ETFs, BlackRock is a prime beneficiary of the ongoing shift to passive investing. The company also benefits from increasing demand for sustainable investment strategies and “barbell” strategies that use a combination of low-cost index funds, active and illiquid alternatives products. BlackRock fits squarely within our Tech-Enabled Financials theme given its longstanding commitment to innovation and proprietary technology platform, Aladdin, which serves as the investment and risk management system for both BlackRock and a growing number of institutional investors around the world. We expect BlackRock’s earnings per share will continue to grow at a double digit annual rate over a market cycle through a combination of mid-single-digit growth in assets under management from net inflows, market appreciation, low to mid-teens revenue growth in technology services, modest margin expansion, and share repurchases.”

7. The Goldman Sachs Group, Inc. (NYSE:GS)

Bridgewater Associates’ Stake Value: $53,260,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.29%

Number of Hedge Fund Holders: 74

The Goldman Sachs Group, Inc. (NYSE:GS), a multinational financial services corporation and investment bank, is one of the top finance stock picks of billionaire Ray Dalio. His hedge fund elevated its position in The Goldman Sachs Group, Inc. by 24% in Q3, holding 140,889 shares of the company at the end of September, worth $53.2 million.

In the third quarter earnings report, published on October 15, The Goldman Sachs Group, Inc. announced an EPS of $14.93, exceeding estimates by $4.92. Revenue over the period totaled $13.61 billion, gaining 26.22% from the prior-year quarter, outperforming estimates by $1.99 billion.

Morgan Stanley analyst Betsy Graseck upgraded The Goldman Sachs Group, Inc. to Equal Weight from Underweight with a $479 price target. The analyst stated that the new company CEO is “laser focused” on delivering on The Goldman Sachs Group, Inc.’s ROE/ROTCE targets.

Boykin Curry’s Eagle Capital Management is the largest stakeholder of The Goldman Sachs Group, Inc. as of September 2021, with 3.66 million shares worth $1.38 billion. According to Insider Monkey’s Q3 records, 74 elite funds were long The Goldman Sachs Group, Inc., up from 61 funds in the previous quarter.

Here is what Ariel Investments has to say about The Goldman Sachs Group, Inc. in its Q2 2021 investor letter:

“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”

6. The Charles Schwab Corporation (NYSE:SCHW)

Bridgewater Associates’ Stake Value: $55,157,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.30%

Number of Hedge Fund Holders: 59

The Charles Schwab Corporation (NYSE:SCHW) is a multinational financial services corporation specializing in commercial banking, stock brokerage, and wealth management, in addition to operating an electronic trading platform for its retail and institutional clients. Billionaire Ray Dalio added 22% to his previous position in The Charles Schwab Corporation as of the third quarter, owning a total of 757,235 shares of the company, worth $55.1 million.

On October 15, The Charles Schwab Corporation posted its Q3 results, announcing earnings per share of $0.84, exceeding estimates by $0.03. Revenue for the quarter came in at $4.57 billion, beating estimates by $47.10 million.

Deutsche Bank analyst Brian Bedell on December 17 raised the price target on The Charles Schwab Corporation to $120 from $100 and kept a Buy rating on the shares, citing a strong outlook for the brokers, asset managers, and exchanges sector heading into 2022.

Egerton Capital Limited, the biggest stakeholder of The Charles Schwab Corporation, extending its position in the company by 127% in the third quarter, holding a stake worth over $1 billion. Overall, 59 hedge funds tracked by Insider Monkey in Q3 were bullish on the stock.

In addition to Alibaba Group Holding Limited, Johnson & Johnson, and The Coca-Cola Company, The Charles Schwab Corporation is a top stock pick of Ray Dalio’s Bridgewater Associates.

Here is what Ariel Fund & Ariel Appreciation Fund has to say about The Charles Schwab Corporation in its Q3 2021 investor letter:

“Additionally, financial services provider Charles Schwab Corporation (SCHW) was another strong performer in the period. Management has made progress increasing new and existing customer engagement through its multichannel approach and low-cost, high value product offerings—bolstering the company’s competitive positioning. Elevated interest rate expectations have been another driver of performance as SCHW reinvests deposits in securities and earns a spread. In our view, SCHW has the ability to weather various macro-economic and competitive pressures by flexing its scale and customer centric focus in support of the company’s industry leading cost advantage. We also believe the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s market place standing and long-term growth trajectory.”

5. Citigroup Inc. (NYSE:C)

Bridgewater Associates’ Stake Value: $56,001,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.30%

Number of Hedge Fund Holders: 79

Citigroup Inc. (NYSE:C) is one of the best finance stocks to buy according to Ray Dalio, with the billionaire elevating his position in the stock by 14% in Q3 2021, owning a total of 797,968 shares worth $56 million. Citigroup Inc. is a multinational financial services corporation and the third largest banking institution in the US, offering asset and wealth management, banking, commodities trading, equities trading, insurance, mortgage loans, mutual funds, and private equity.

Citigroup Inc., on October 14, announced earnings for the third quarter. EPS over the period came in at $2.15, beating estimates by $0.36. The revenue totaled $17.15 billion, exceeding estimates by $223.95 million.

Odeon Capital analyst Dick Bove on December 15 upgraded Citigroup Inc. to Buy from Hold with a $69.25 price target.

In the third quarter of 2021, 79 hedge funds reported owning stakes in Citigroup Inc., down from 87 funds in the prior quarter. Harris Associates is the biggest Citigroup Inc. stakeholder as of Q3 2021, with an approximately $2 billion position in the company.

Here is what Artisan Value Fund has to say about Citigroup Inc. in their Q4 2020 investor letter:

“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”

4. Morgan Stanley (NYSE:MS)

Bridgewater Associates’ Stake Value: $73,072,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.40%

Number of Hedge Fund Holders: 65

Ray Dalio purchased additional stakes in Morgan Stanley (NYSE:MS) in the third quarter, which elevated the billionaire’s position in the company by 27%. Dalio, via Bridgewater Associates, owns 750,922 Morgan Stanley shares, worth $73 million, representing 0.40% of the firm’s total Q3 securities. Morgan Stanley is a multinational investment bank and financial services organization from New York.

In the Q3 earnings report of Morgan Stanley, published on October 14, the company posted an EPS of $2.04, exceeding estimates by $0.36. The revenue jumped 26.56% year-over-year, reaching $14.75 billion, surpassing estimates by $799.47 million.

On December 3, Citi analyst Keith Horowitz upgraded Morgan Stanley to Buy from Neutral with a price target of $115, up from $105. The analyst stated that he expects further multiple expansion for Morgan Stanley as the company delivers on its wealth management opportunity “and is awarded a growth multiple”, and the stock offers “high quality at a reasonable price.”

One of the leading Morgan Stanley stakeholders as of September 2021 is Fisher Asset Management, with a $970.5 million position in the company. Overall, 65 hedge funds in the third quarter database of Insider Monkey were long Morgan Stanley.

Here is what Artisan Value Fund has to say about Morgan Stanley in its Q3 2021 investor letter:

“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”

3. Wells Fargo & Company (NYSE:WFC)

Bridgewater Associates’ Stake Value: $77,842,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.42%

Number of Hedge Fund Holders: 88

Wells Fargo & Company, a California-based multinational financial services organization operating primarily via Wells Fargo Bank, is one of the top finance stocks to purchase according to billionaire Ray Dalio, who added 19% to his existing stake in the company during the third quarter of 2021. Bridgewater Associates has a $77.8 million position in Wells Fargo & Company, which accounts for 0.42% of the firm’s total Q3 portfolio.

One of the main stakeholders of Wells Fargo & Company as of September is Theleme Partners, with 20.1 million shares worth $934.1 million. According to Insider Monkey’s Q3 data, a total of 88 funds were bullish on Wells Fargo & Company, down from 94 funds in the preceding quarter.

On October 14, Wells Fargo & Company posted its Q3 results, announcing earnings per share of $1.22, exceeding estimates by $0.28. The $18.83 billion revenue dipped 0.15% year-over-year, but outperformed estimates by $542.17 million.

UBS analyst Erika Najarian on December 9 assumed coverage of Wells Fargo & Company with a Buy rating and a $65 price target, calling Wells Fargo & Company one of her “highest conviction Buy ideas.”

Here is what Davis Global Fund has to say about Wells Fargo & Company in its Q3 2021 investor letter:

“…This second chart highlights that financials remain the cheapest part of the market today and continue to be extremely attractive. Strong capital ratios, conservative lending practices, already record low interest rates and now a strengthening economy, all paired with low valuations, bode well for future returns.

Take our top financials holding in Wells Fargo, for instance. Wells Fargo is trading at 1.3x tangible book value, while we expect return on equity (ROE) to be in the mid-to-high teens over time. Even in this low-rate environment, the current multiple is only 12x 2021 owner earnings, and our IRR estimate is 12–13%. Wells Fargo has performed well this year, up 51% year-to-date, yet still looks very attractive, which speaks to how undervalued it was and why it is so important to be patient when investing in high-quality companies trading at low valuations. Rather than invest on the basis of unpredictable near-term catalysts, we prefer to be patient as earnings and cash build up, even if the stock price does not immediately reflect the economic reality. We continue to like our positions in financials.”

2. Bank of America Corporation (NYSE:BAC)

Bridgewater Associates’ Stake Value: $101,419,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.55%

Number of Hedge Fund Holders: 72

Bank of America Corporation (NYSE:BAC) is a multinational investment bank engaged in financial services including asset management, commodities, equities trading, insurance, investment management, mortgage loans, mutual funds, private equity, risk management, and wealth management.

Ray Dalio, as of Q3 2021, boosted his stake in Bank of America Corporation by 24%, making it one of the best finance stocks to buy according to the billionaire. Dalio, via Bridgewater Associates, owns a $101.4 million position in Bank of America Corporation, which represents 0.55% of the fund’s total investments.

Bank of America Corporation announced earnings for the third quarter on October 14, posting an EPS of $0.85, beating estimates by $0.15. The Q3 revenue was up 11.33% from the prior-year quarter, equaling $22.77 billion, surpassing estimates by $1.16 billion.

UBS analyst Erika Najarian assumed coverage of Bank of America Corporation on December 9 with a Buy rating and a $64 price target, naming Bank of America Corporation her top pick among the U.S. large cap banks.

Of the 72 hedge funds that were bullish on Bank of America Corporation in Q3, Berkshire Hathaway is the largest stakeholder of the company, with more than 1 billion shares worth $42.8 billion.

Here is what Oakmark Funds has to say about Bank of America Corporation in its Q3 2021 investor letter:

“Earlier this year, one of our holdings, Bank of America, announced that it was raising its minimum hourly wage from $15 to $20 and would increase it to $25 by 2025. The company received great press for placing the well-being of its employees above profits. But was it really either/or? Bank of America’s chief human resources officer spoke to the bigger picture: “A core tenet of responsible growth is our commitment to being a great place to work…that includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.” Bank of America understood that engaged, high-caliber employees are more productive, less prone to turnover and, therefore, less expensive in the long run. Increasing the pay for employees wasn’t elevating employees above shareholders; it was the right thing to do for employees and for shareholders.

If an increase to $20 was good, why stop there? Why not $50 per hour? Because the benefits the business receives at $50 don’t justify the expense. The bank would no longer be able to price its products competitively and would lose business. The employees would “win” in the short term, but eventually the lost business would lead to job cuts, meaning both employees and shareholders would lose. The negative effects of stakeholder overreach are no different than when CEOs overreach to inflate short-term profits. Both hurt shareholders and stakeholders.”

1. JPMorgan Chase & Co. (NYSE:JPM)

Bridgewater Associates’ Stake Value: $102,152,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.55%

Number of Hedge Fund Holders: 101

JPMorgan Chase & Co. is the top finance stock pick of billionaire Ray Dalio, with his hedge fund increasing its position in the stock by 28% in Q3, holding 624,057 shares worth $102.1 million. JPMorgan Chase & Co. is a multinational financial services holding company and one of America’s Big Four banks.

JPMorgan Chase & Co. reported its third quarter earnings on October 13, announcing an EPS of $3.55, exceeding estimates by $0.55. The $29.65 billion revenue also beat estimates by $12.88 million.

On December 9, UBS analyst Erika Najarian initiated coverage of JPMorgan Chase & Co. with a Buy rating and a $210 price target. According to the analyst, the stock’s “rare” year-to-date price underperformance relative to peers presents investors with a “compelling opportunity”, and concerns over capital constraints eroding JPMorgan Chase & Co.’s best-in-class revenue power are “overblown”.

In the third quarter of 2021, 101 hedge funds in the database of Insider Monkey were bullish on JPMorgan Chase & Co., with total stakes amounting to $5.63 billion. Adage Capital Management is one of the leading JPMorgan Chase & Co. stakeholders as of Q3, with a $489.8 million position.

Vltava Fund mentioned JPMorgan Chase & Co. in its Q3 2021 investor letter. Here is what the fund said:

“While all the previous names could be categorized as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include Jamie Dimon and Herman Gref.

We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.

The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”

You can also take a look at 10 High Dividend Stocks to Buy According to Billionaire Lee Cooperman and 10 Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund.

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