5 Best Growth Stocks To Buy Now According To Billionaire Ray Dalio

2. Alibaba Group (NYSE: BABA)

Bridgewater fortified its stake in Alibaba Group (NYSE:BABA) during Q3 by 40%, valued at $392.2 million, a much larger position relative to the one in Alibaba’s rival, JD.Com. The stock was in the portfolios of 166 hedge funds tracked by Insider Monkey at the end of September. Our calculations also showed that BABA ranks #4 among the 30 most popular stocks among hedge funds.

BABA gained around 30% from the end of Q2 (through November 24). In its Q3 2020 Investor Letter, Rowan Street Capital highlighted Alibaba’s control over the entire value chain:

“Alibaba’s integrated ecosystem connects and controls the whole value chain of branding, broadcasting, sales conversion and sharing. That’s very different from how it works in the U.S., where internet giants such as Amazon, Facebook and Alphabet are individually dominant in certain parts of the value chain, but not in the complete manner that Alibaba has achieved. None has an ecosystem that connects the entire marketing and commerce value chain from branding, broadcasting and sales conversion. Alibaba connects the entire value chain.

[…] We believe the odds are still in our favor to earn long-term double-digit compounded returns from our Alibaba investment even from current market levels.”

You can read more about their analysis of Alibaba here.