Billionaire Ray Dalio and Insiders Love These 5 Stocks

4. Warner Bros. Discovery Inc (NASDAQ:WBD)

Bridgewater Associates’ Stake: $3,813,734

Ray Dalio’s Bridgewater Associates bought a new stake in Warner Bros Discovery during the last quarter of 2023, buying 335,126 shares of the media giant. The total worth of these shares was $3.8 million. Steven O. Newhouse, a board director at Warner Bros, on December 14 bought 10 million shares of Warner Bros at $12.49 per share. The stock closed trading in the open market at the same price. Since then through March 8 the stock has lost about 30% in value.

Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:

“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”