5 Best Stocks to Buy According to Billionaire Ray Dalio

3. Alibaba Group Holding Limited (NYSE: BABA)

Dalio’s Stake Value: $318,039,000
Percentage of Ray Dalio’s 13F Portfolio: 2.8%
Number of Hedge Fund Holders: 135

The Chinese e-commerce giant Alibaba Group Holding Limited (NYSE: BABA) is a member of Bridgewater Associates portfolio since 2018. The firm slashed its stake in the Chinese online platform by 12% to 2.80% of the portfolio in the first quarter of 2020. Shares of Alibaba have been under pressure over the past two quarters due to regulatory headwinds.

In the first quarter investor letter, Polen Capital highlighted a few stocks including Alibaba. Here is what Polen Capital stated:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second-largest position in the Portfolio.”