5 Defensive Stocks in Billionaire Ray Dalio’s Latest Portfolio

Page 1 of 5

In this article, we discuss the 10 defensive stocks in billionaire Ray Dalio’s latest portfolio. If you want to read our analysis of Dalio’s views on the macro-environment, go directly to 10 Defensive Stocks in Billionaire Ray Dalio’s Latest Portfolio.

5. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 61

Ray Dalio’s Bridgewater Associates’ Holdings: $683,976,000

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 2.75%

Stock Price as of June 24: $484.37

Costco Wholesale Corporation (NASDAQ:COST) is an Issaquah, Washington-based operator of the membership-only big-box retail stores. The company has 831 warehouses, out of which 679 are located in the US and Canada.

Despite the uncertain macroeconomic environment, Costco Wholesale Corporation (NASDAQ:COST) has been able to experience strong momentum in comparative store sales. This has aided in countering the impact on the under-pressure gross profit margin. Daniela Nedialkova at Atlantic Equities thinks that the unique business model of Costco Wholesale Corporation (NASDAQ:COST) that includes caps on margin taken on item sourcing, the power of the membership income, and the customer base comprising of higher-income segments will help Costco Wholesale Corporation (NASDAQ:COST) during inflationary periods.

Nedialkova also added that the retail sector is expected to experience volatility in the short term, and any dip in Costco Wholesale Corporation’s (NASDAQ:COST) stock price provides an attractive opportunity for investment. In the research note issued on June 9, the analyst reiterated an Overweight rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $615.

Here’s what ClearBridge Investments said about Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter:

“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”

Costco Wholesale Corporation (NASDAQ:COST) was held by 61 hedge funds at the end of Q1 2022.

Page 1 of 5