Billionaire Ray Dalio recently took to social networking platform X to outline his thoughts on the current geopolitical situation and the impact it will have on global markets. Dalio runs Bridgewater Associates, a hedge fund that had a 13F portfolio worth more than $27 billion at the end of the fourth quarter of 2025 with the top holdings concentrated in the financial services and technology sectors. In a detailed and sobering analysis shared in mid-March 2026, Ray Dalio argued that the escalating conflict involving the United States, Israel, and Iran had reached a critical “Final Battle” centered on the Strait of Hormuz, which he identified as the ultimate testing ground for the survival of the American-led global order.
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Dalio contended that this small geographical chokepoint was the world’s most significant strategic vulnerability, as it carried roughly 21% of the global oil supply and a massive portion of its liquefied natural gas; consequently, if Iran can successfully blocked the waterway or even impose a “toll booth” to decide which nations’ tankers may pass, the United States would have effectively lost its status as the primary global security guarantor. Drawing a historical parallel to the 1956 Suez Crisis—which signaled the symbolic end of the British Empire—Dalio warned that the US faced a similar “Suez Moment” where the inability to restore freedom of navigation would signal a fatal overextension of its military and economic power.
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He also highlighted a mismatch in warfare strategies, noting that while the US and Israel possessed conventional military superiority, Iran was winning a “war of attrition” against the global economy by using low-cost drones and mines to deter shipping and insurance companies, effectively collapsing traffic by 97%. The post further emphasized the role of China, suggesting that if Iran offered safe passage to tankers trading in Chinese Yuan instead of US Dollar, it represented a direct assault on the petrodollar system that could finalize a transition to a multipolar world. Dalio concluded that this confrontation was the decisive moment of the “Big Cycle,” warning that failure to secure the Strait would lead to a loss of reserve currency status, a flight from US debt, and a shift in global alliances toward rising powers like China.
Ray Dalio of Bridgewater Associates
Our Methodology
To compile our list of the best stocks to buy according to billionaire Ray Dalio, we reviewed the latest 13F filings of Bridgewater Associates. Next, we focused on the top 15 stocks in his portfolio. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Stocks to Buy According to Billionaire Ray Dalio
15. Mastercard Incorporated (NYSE:MA)
Bridgewater Associates’ Stake: $234 Million
Mastercard Incorporated (NYSE:MA) has featured in the 13F portfolio of Bridgewater Associates since the first quarter of 2013. This stake was a minor one, consisting of just 10,000 shares, and was sold off by the next quarter. Since then, Mastercard made occasional appearances in the 13F filings for the fund. A new position, opened in early 2022, however, has endured. This holding climbed to over 577,000 shares at one point in 2022, but has been trimmed since then. Filings for the fourth quarter of 2025 show that the fund owned 409,000 shares in the payments company, representing an increase of 11% compared to filings for the third quarter of 2025.
Based on elite hedge fund sentiment, Mastercard Incorporated (NYSE:MA) is a quintessential compounder stock. It is frequently cited as a top-ten holding for diversified funds because of a near-monopoly status, high margins, and role as a toll booth for the global economy. Hedge funds view Mastercard as an unassailable business. The cost and complexity of building a global payment rail are so high that new competitors usually end up building on top of Mastercard’s network rather than replacing it. Every new merchant that accepts Mastercard makes the card more valuable to consumers, and vice versa. This virtuous cycle is a magnet for long-term institutional capital.
14. Micron Technology, Inc. (NASDAQ:MU)
Bridgewater Associates’ Stake: $254 Million
Micron Technology, Inc. (NASDAQ:MU) is one of the favorite chip stocks of Ray Dalio. It has featured in the 13F portfolio of Bridgewater Associates, with minor exceptions, since late 2011. The latest holding is a new one, purchased after a gap of nearly one year. Filings for the fourth quarter of 2025 show that the fund owns more than 889,000 shares in the semiconductor company, up over 5,200% compared to filings for the third quarter of 2025. Even though it is a massive increase, this share ownership is still less than the 2.26 million shares that the fund owned in Micron back in the first quarter of 2016.
Micron Technology (NASDAQ:MU) has several long-term growth catalysts that are attracting hedge fund interest. As of March 2026, Micron has already fully sold out its entire HBM capacity for the remainder of 2026. The company is also no longer just selling commodity RAM. It is selling the specialized memory cubes, like HBM3E and the new HBM4, required by NVIDIA Rubin and AMD MI400 chips. This has shifted Micron from a price-taker to a price-setter. Historically, memory companies struggled with low margins. However, the AI race has changed the script. Recent earnings reports from March 2026 show gross margins reaching a staggering 75%, with guidance pointing toward 81% for next quarter.
13. Johnson & Johnson (NYSE:JNJ)
Bridgewater Associates’ Stake: $272 Million
Johnson & Johnson (NYSE:JNJ) has featured in the 13F portfolio of Bridgewater Associates for more than a decade and a half. The fund has held a small position in the company since early 2011, growing this stake to 4.71 million shares at its peak in the second quarter of 2022. Since then, it has trimmed this holding. Filings for the fourth quarter of 2025 show that the fund owned 1.31 million shares in the pharmaceutical, biotechnology, and medical technologies corporation. This stake represents a decrease of 23% compared to filings for the previous quarter. The stock is among the top fifteen biggest positions of Dalio, per the 13F portfolio.
Johnson & Johnson (NYSE:JNJ) is favored by institutional investors because it has an impressive dividend history stretching back more than six decades. The company has a history of dividend growth that has lasted for sixty-three years, and counting. Since the 2023 spinoff of the consumer health business by Johnson & Johnson, hedge funds view the company as a higher-margin, faster-growing company. By focusing solely on Innovative Medicine and MedTech, JNJ has accelerated its revenue growth. In early 2026, the company forecast sales of $100 billion, exceeding Wall Street estimates. Funds are particularly bullish on the blockbuster cancer drug Darzalex, which surpassed expectations in Q4 2025, and the new therapy Carvykti, which hit $1 billion in annual sales for the first time.
12. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Bridgewater Associates’ Stake: $355 Million
Advanced Micro Devices, Inc. (NASDAQ:AMD) made an appearance in the 13F portfolio of Bridgewater Associates for the first time in the second quarter of 2011. This position consisted of just 70,000 shares and was sold off by the end of the year. New positions were opened in 2019, 2021, and 2022, but were also sold off. The latest holding, purchased at the beginning of 2024, consisted of 670,000 shares initially but has grown since then. Filings for the fourth quarter of 2025 that the fund owned 1.66 million shares in the semiconductor company, representing a decrease of more than 7% compared to filings for the previous quarter.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is often called the strategic alternative to NVIDIA. Many hedge funds view it as such, even though the company has many competitive advantages over NVIDIA. A primary catalyst for hedge fund buying in early 2026 was the announcement of a $60 billion, five-year GPU supply agreement with Meta Platforms.This deal, which includes the delivery of the newest MI450 architecture marketed by AMD in late 2026, acts as a massive de-risking event. Hedge funds are also increasingly focused on the inference stage of AI. The MI300X by AMD and the upcoming MI450 series reportedly offer 10–20% better performance in specific inference workloads compared to NVIDIA H100.
11. Oracle Corporation (NYSE:ORCL)
Bridgewater Associates’ Stake: $365 Million
Oracle Corporation (NYSE:ORCL) is one of the favorite stocks of Ray Dalio. His hedge fund, Bridgewater Associates, has owned a stake in the company since the fourth quarter of 2010. Back then, the position consisted of just under a million shares. This holding stayed relatively constant till late 2019, when it was sold off completely. A new position was then opened in the fourth quarter of 2024. In three of the coming four quarters, Dalio added to the stake, growing it by 555%, 21%, and 361%, with the latest addition coming in the fourth quarter of 2025. At the end of the fourth quarter of 2025, the fund owned nearly 2 million shares in Oracle.
Oracle Corporation (NYSE:ORCL) is popular among elite hedge funds because it has transitioned from just a legacy software name into a high conviction AI infrastructure play. Several reasons provide evidence for this assertion. Two big deals have made headlines, one of them being a partnership to host workloads for OpenAI. Hedge funds have viewed this as a stamp of approval that validates Oracle Cloud Infrastructure as being technically superior, or more cost-effective, for large-scale training than even Azure or AWS. Oracle was also among the first to deploy NVIDIA Blackwell and Rubin architectures at scale, allowing it to capture overflow demand from AI startups that cannot get capacity elsewhere.
10. Broadcom Inc. (NASDAQ:AVGO)
Bridgewater Associates’ Stake: $403 Million
Broadcom Inc. (NASDAQ:AVGO) became of interest to Bridgewater Associates just before the AI boom swept markets. The fund first bought a stake in the company at the end of 2021. This position comprised just 16,000 shares. Over the coming years and months, it has added to this, increasing it to 1.17 million shares at the end of the fourth quarter of 2025. Compared to filings for the third quarter of 2025, this represents an increase of close to 40%. Since 2021, Broadcom has featured in the 13F portfolio of Bridgewater Associates consistently, except for two exceptions: the second quarter of 2022 and the second quarter of 2023.
Broadcom Inc. (NASDAQ:AVGO) is one of the most important AI stocks for hedge funds. This is because it is only among a handful of firms, and in reality, the only NVIDIA competitor, as it has a two-engine growth story, combining high-growth AI hardware with stable, high-margin software. A key competitive advantage the company has over peers is that it markets custom AI chips. Additionally, the acquisition of VMware by the chip firm has become a case study in private-equity-style corporate management. Broadcom has transitioned VMware from perpetual licenses to a subscription model, shedding low-margin segments and focusing on high-value enterprise bundles.
9. Booking Holdings Inc. (NASDAQ:BKNG)
Bridgewater Associates’ Stake: $431 Million
Booking Holdings Inc. (NASDAQ:BKNG) has been a major long-term bet of Bridgewater Associates since the middle of 2018. Back then, the position the fund held in the firm consisted of around 81,000 shares. However, this holding was sold off in the next few months. A new position was opened in 2021. Dalio gradually built up this stake, increasing it from 31,000 shares in 2021 to over 2 million shares at the end of the fourth quarter of 2025. The fund has made purchases of the stock in each of the last six quarters, with the major increase coming in the first quarter of 2025 during which the position was improved by over 100%.
Booking Holdings Inc. (NASDAQ:BKNG) is of interest to elite investors for several reasons, one of them being the 25-for-1 stock split scheduled for April 6, 2026. One important note for investors here is that although a split does not change fundamentals, hedge funds view it as a liquidity catalyst. It makes the stock more accessible to retail investors and improves options market liquidity, often leading to a valuation re-rating as the buyer pool expands. Hedge funds are also bullish on a shift by the firm toward the Merchant Model (where Booking processes the payment) over the traditional Agency model. This allows the company to hold onto cash longer and offer more integrated services. This transition helped drive a 16% year-over-year revenue increase to $6.35 billion in the most recent quarter, with an impressive net margin of 20%.
8. GE Vernova Inc. (NYSE:GEV)
Bridgewater Associates’ Stake: $435 Million
GE Vernova Inc. (NYSE:GEV) is a relatively recent addition to the 13F portfolio of Bridgewater Associates. The fund opened a new position in the stock in the second quarter of 2024. This consisted of around 73,000 shares. In the coming months, this holding increased in size, jumping to 778,000 shares in the second quarter of 2025. Dalio then proceeded to trim this by 16% in the third quarter of 2025 before buying up a small number of shares again in the fourth quarter of 2025. Filings for the fourth quarter of 2025 show that the fund owns 666,000 shares in the industrial firm.
GE Vernova Inc. (NYSE:GEV) has become a hedge fund favorite because it is often considered a high-conviction industrial-tech play. In the context of the AI power demand supercycle, a dominant theme in hedge fund letters for 2026 is the physical constraint of AI: data centers need massive amounts of electricity. GEV is a primary beneficiary of this demand shock. An important note here for investors: GEV owns nearly 55,000 wind turbines and 7,000 gas turbines that help generate almost 25% of the world’s electricity. As hyperscalers like Amazon, Google, and Microsoft build out data centers, they are increasingly securing GEV’s gas turbines and grid equipment years in advance.
7. Adobe Inc. (NASDAQ:ADBE)
Bridgewater Associates’ Stake: $446 Million
Adobe Inc. (NASDAQ:ADBE) has been a constant feature in the 13F portfolio of Bridgewater Associates since the fourth quarter of 2010. Back then, the fund owned more than 477,000 shares in the software giant. This holding was sold off by late 2011, and a new position was opened in 2014. This was also sold off and the fund did not own a sizable chunk of the firm until early 2024. In the first quarter of 2024, it increased an existing stake by over 2,000%. For the past five quarters, it has added to the existing position with much gusto. In the third quarter of 2025, the fund owned 1.26 million shares of the company, representing an increase of 73% compared to the filings for the previous quarter. In the fourth quarter of 2025, this grew to more than 1.28 million shares.
Adobe Inc. (NASDAQ:ADBE) has emerged as a hedge fund favorite in the AI era because these elite funds believe that the company has the ability to monetize AI through an established enterprise ecosystem. For example, one indicator of this is the AI-first annual recurring revenue, which more than tripled for Adobe in the first quarter of 2026. In addition, the business model of the company, where it charges for generative credits within Photoshop and Illustrator, has turned AI from a cost into a high-margin revenue stream. Monthly active users for AI-powered tools like Firefly and Express reached a record 850 million in early 2026.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Bridgewater Associates’ Stake: $450 Million
Amazon.com, Inc. (NASDAQ:AMZN) has not been a consistent feature in the 13F portfolio of Bridgewater Associates, unlike other tech giants. Although the fund owned minor positions in the stock since 2014, it has not held onto them for more than three or six months. However, since the first quarter of 2024, Bridgewater has been building up a stake in the company. Filings for the fourth quarter of 2025 show that the fund owned nearly 2 million shares in the tech behemoth, representing an increase of more than 73% compared to the fillings for the third quarter of 2025.
Amazon.com, Inc. (NASDAQ:AMZN) is often ranked number one or number two on the most-owned stocks by hedge funds, as tracked by Insider Monkey. You can read more about the latest rankings here. Some of the factors encouraging institutional ownership of Amazon include the AWS reacceleration story, high margin advertising momentum, an efficient logistics model post-pandemic, as well as a valuation gap with respect to peers. Another important indicator of the confidence that hedge funds have in the stock is that they are sticking to it despite the fact that Amazon plans to spend $200 billion in capital expenditure for 2026 amid the scramble for AI infrastructure build.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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