In this piece, we will take a look at Ray Dalio Stock Portfolio: Top 15 Stock Picks. For more stocks, head on over to Ray Dalio Stock Portfolio: Top 5 Stock Picks.
Ray Dalio’s Bridgewater Associates is one of the biggest investment management firms in the world. In fact, as of December 2022, the firm had a whopping $18 billion in its portfolio invested in the stock market, and if you thought this was huge, then you’d be surprised to learn that the total assets management by Bridgewater Associates stood at $126 billion during the same time period according to data from Pensions and Investments. This made Bridgewater one of the biggest hedge funds in the world and marked a strong 20% annual growth at a time when investor confidence in the stock market was low. Conversely, this growth during a turbulent time also shows confidence in Mr. Dalio and his firm, as investors were more confident about investing their money with Bridgewater when the broader market was underperforming.
Naturally, the scope of its hedge fund and his accomplishments have also made Mr. Dalio a towering individual in the finance industry. He is also always willing to share his life experiences and management philosophy, not only having authored a book but also being present on Twitter where he shares tips daily for anyone willing to learn. One bit of advice that he recently shared tells viewers to take a look at themselves as part of a bigger picture and understand that an objective analysis will always yield the best results. In his own words:
You are expected to go to the higher level and look down on yourself and others as part of a system. In other words, you must get out of your own head, consider your views as just some among many, and look down on the full array of points of view to assess them in an idea-meritocratic way rather than just in your own possessive way. Seeing things from the higher level isn’t just seeing other people’s point of view; it’s also being able to see every situation, yourself, and others in the situation as though you were looking down on them as an objective observer.If you can do this well, you will see the situation as “another one of those,” see it through everyone’s eyes, and have good mental maps or principles for deciding how to handle it.
Additionally, the billionaire former hedge fund boss also believes that the Federal Reserve’s interest rate hiking cycle which started last year will now usher in a new paradigm for the economy, where growth will be slower than desired and inflation will be higher than most would prefer. In fact, he believes that the era of borrowing funds to make long term bets might be over, as he shared advice on making the right bets this year in a recent LinkedIn post and outlined that:
As for what seem to be the good and bad bets, it appears to me that the big power countries that are plagued with the big problems that I described, and the world as a whole, are in what I call Stage 5 of the Big Cycle—i.e., near the brinks of financial/economic crises and big internal conflicts/wars, and in the early part of an evolving, costly climate crisis—at the same time as the world is near the brink of having amazing technological breakthroughs that will affect our daily lives. Stage 5 is the last-chance stage before going into Stage 6 which is the financial crisis and war part of the cycle. It seems to me that that will make the environment very challenging for those who are following the traditional leveraged long approach to investing in traditional areas, while it will provide great opportunities in those geographic and subject areas that are benefiting from these changes.
Whether it’s life or investment, Ray Dalio is a guru, and while he stepped down as the fund’s co-chief investment officer late last year, Bridgewater’s bets as the new year starts are still worth looking at. Some companies that it has piled into are PepsiCo, Inc. (NASDAQ:PEP), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
Our Methodology
We sifted through Bridgewater Associates’ filing with the SEC for the fourth quarter of last year to determine which companies it has invested in. Out of these, the top fifteen are listed down. To see how the hedge fund’s investment approach evolved over the quarter, you can also look at Billionaire Ray Dalio’s Bridgewater Associates 13F Portfolio: Top 10 Stock Picks, which lists down the investments for Q3 2022.
Ray Dalio Stock Portfolio: Top 15 Stock Picks
15. Pfizer Inc. (NYSE:PFE)
Bridgewater Associates’ Q4 2022 Stake: $140 million
Number of Hedge Fund Holders in Q3 2022: 77
Pfizer Inc. (NYSE:PFE) is a pharmaceutical giant headquartered in New York, New York. The firm researches for, develops and sells medicines and vaccines. It also offers its manufacturing facilities to other companies to make drugs.
Bridgewater Associates held a $140 million stake in Pfizer Inc. (NYSE:PFE) by the end of December 2022, which came through 2.7 million shares. The firm is currently aggressively marketing its coronavirus treatment Paxlovid, as sales are dropping. By the end of last year’s third quarter, 77 of the 920 hedge funds polled by Insider Monkey had invested in Pfizer Inc. (NYSE:PFE).
Pfizer Inc. (NYSE:PFE)’s largest investor is Cliff Asness’ AQR Capital Management which owns 10.6 million shares that are worth $467 million.
14. Colgate-Palmolive Company (NYSE:CL)
Bridgewater Associates’ Q4 2022 Stake: $149 million
Number of Hedge Fund Holders in Q3 2022: 57
Colgate-Palmolive Company (NYSE:CL) is an American consumer goods company that sells different products such as toothpaste, shampoos, deodorants, and dental care pharmaceuticals. The firm is based in New York, New York.
Colgate-Palmolive Company (NYSE:CL) was left red faced in February 2023 after it recalled its Fabuloso multi purpose cleaner due to a risk of bacterial infection. Mr. Dalio’s hedge fund held a $149 million stake in the company in Q4 2022 as it owned 1.8 million shares, and in the prior quarter, 57 of the 920 hedge funds surveyed by Insider Monkey had invested in the company.
Dan Loeb’s Third Point is Colgate-Palmolive Company (NYSE:CL)’s largest investor. It owns 11.5 million shares that are worth $811 million.
13. Visa Inc. (NYSE:V)
Bridgewater Associates’ Q4 2022 Stake: $174 million
Number of Hedge Fund Holders in Q3 2022: 165
Visa Inc. (NYSE:V) is a payments platform products and services company that provides banks with debit and credit cards for consumer use and merchant with a platform to collect payments. It is based in San Francisco, California.
Bridgewater Associates owned 838,784 Visa Inc. (NYSE:V) shares for a $174 million investment in 2022’s final quarter. While other companies are laying off employees, the firm actually plans to hire more as it opened an office in Atlanta in February 2023. 165 of the 920 hedge funds part of Insider Monkey’s September quarter of 2022 survey also held a stake in Visa Inc. (NYSE:V).
Out of these, Visa Inc. (NYSE:V)’s largest investor is Chris Hohn’s TCI Fund Management which owns 19 million shares that are worth $4 billion.
12. Mondelez International, Inc. (NASDAQ:MDLZ)
Bridgewater Associates’ Q4 2022 Stake: $192 million
Number of Hedge Fund Holders in Q3 2022: 52
Mondelez International, Inc. (NASDAQ:MDLZ) is a food and beverage company operating out of Chicago, Illinois. The firm sells snacks, powdered beverages, and other products.
Mondelez International, Inc. (NASDAQ:MDLZ) is currently investing heavily in making wheat farming sustainable in Europe, as the commodity forms a major component of its products. Bridgewater Associates held a $192 million stake in the firm in Q4 2022, through owning 2.8 million shares.
Insider Monkey dug through 920 hedge fund portfolios for last year’s third quarter to discover that 52 had invested in Mondelez International, Inc. (NASDAQ:MDLZ).
Mondelez International, Inc. (NASDAQ:MDLZ)’s largest shareholder is Josh Overdeck and David Siegel’s John Overdeck And David Siegel which owns 4 million shares that are worth $220 million.
11. Abbott Laboratories (NYSE:ABT)
Bridgewater Associates’ Q4 2022 Stake: $243 million
Number of Hedge Fund Holders in Q3 2022: 62
Abbott Laboratories (NYSE:ABT) is a diversified healthcare company that makes and sells medicines, nutrition products, and medical devices. The firm is based in North Chicago, Illinois.
Abbott Laboratories (NYSE:ABT)’s problems with last year’s infant formula shortage in the U.S. continue to cause headaches as the Justice Department is investigating the company in a probe whose nature is unclear. 62 of the 920 hedge funds polled by Insider Monkey had invested in the firm during September 2022.
Ray Dalio’s Bridgewater Associates owns 2.2 million Abbott Laboratories (NYSE:ABT) shares for a $243 million stake.
Abbott Laboratories (NYSE:ABT)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 9.3 million shares that are worth $1 billion.
Vulcan Value Partners mentioned the firm in its Q4 2022 investor letter, outlining that:
“Abbott Laboratories (NYSE:ABT) is one of the largest and most diversified health care companies in the world. It operates in four segments: diagnostics, medical devices, nutritional products and established pharmaceuticals. The company quickly established itself as a global leader in the development and deployment of COVID-19 rapid diagnostic tests. Consequently, its revenue and profit growth accelerated during the pandemic. As demand for testing slowed to a more sustainable level, the company is facing difficult earnings comparisons. In addition, Abbott voluntarily recalled certain infant formula products and shut down a plant in Michigan where the products were manufactured, which put more pressure on its earnings comparisons. The plant has resumed production, and Abbott is regaining lost market share. We believe that these events, one positive and one negative, have distorted Abbott’s sustainable earning power and has given us an opportunity to purchase it with a margin of safety.”
10. CVS Health Corporation (NYSE:CVS)
Bridgewater Associates’ Q4 2022 Stake: $255 million
Number of Hedge Fund Holders in Q3 2022: 67
CVS Health Corporation (NYSE:CVS) is a health services provider that lets customers take out health insurance, pharmacies manage their networks, and regular people buy prescription and over the counter drugs.
CVS Health Corporation (NYSE:CVS) is busy diversifying its business model away from insurance as it announced in February 2023 that it will buy a primary healthcare provider for a whopping $9.5 billion. By the end of September 2022, 67 of the 920 hedge funds polled by Insider Monkey had invested in the company, and Ray Dalio’s hedge fund held a $255 million stake at the close of the year.
CVS Health Corporation (NYSE:CVS)’s largest investor is Cliff Asness’ AQR Capital Management which owns 3.8 million shares that are worth $365 million.
9. Starbucks Corporation (NASDAQ:SBUX)
Bridgewater Associates’ Q4 2022 Stake: $259 million
Number of Hedge Fund Holders in Q3 2022: 54
Starbucks Corporation (NASDAQ:SBUX) is a specialty coffee retailer with thousands of stores all over the globe. It is headquartered in Seattle, Washington.
Starbucks Corporation (NASDAQ:SBUX) is currently facing a lot of controversies, as the National Labor Relations Board ordered the company to stop targeting baristas in favor of unionizing in February 2023. 54 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the company.
In the following quarter, Bridgewater Associates owned 2.6 million Starbucks Corporation (NASDAQ:SBUX) shares that were worth $259 million.
Ken Fisher’s Fisher Asset Management is Starbucks Corporation (NASDAQ:SBUX)’s largest investor. It owns 10 million shares that are worth $1 billion.
8. Pinduoduo Inc. (NASDAQ:PDD)
Bridgewater Associates’ Q4 2022 Stake: $297 million
Number of Hedge Fund Holders in Q3 2022: 54
Pinduoduo Inc. (NASDAQ:PDD) is a Chinese internet retailer that sells a wide variety of products such as toys, appliances, apparel, shoes, and food and beverages.
Pinduoduo Inc. (NASDAQ:PDD) caught attention in February 2023 as it became a rare Chinese company to buy an advertisement during the Super Bowl. By the end of December 2022, Mr. Dalio’s hedge fund had held a $297 million stake in the company via 3.6 million shares, while in Q3 2022, 54 of the 920 hedge fund portfolios part of Insider Monkey’s research had held a stake in Pinduoduo Inc. (NASDAQ:PDD).
After Bridgewater, Jim Simons’ Renaissance Technologies is Pinduoduo Inc. (NASDAQ:PDD)’s largest investor. It owns 3.3 million shares that are worth $274 million.
7. McDonald’s Corporation (NYSE:MCD)
Bridgewater Associates’ Q4 2022 Stake: $416 million
Number of Hedge Fund Holders in Q3 2022: 53
McDonald’s Corporation (NYSE:MCD) is one of the world’s most famous and largest fast food chains. It has tens of thousands of restaurants all over the world.
Cashing in on the recent hype around artificial intelligence, McDonald’s Corporation (NYSE:MCD) is also implementing an automated AI based ordering system in its restaurants. Bridgewater Associates’ Q4 2022 stake in the company was worth $416 million and it came through 1.5 million shares.
By the end of last year’s third quarter, 53 of the 920 hedge funds part of Insider Monkey’s study had held McDonald’s Corporation (NYSE:MCD)’s shares.
McDonald’s Corporation (NYSE:MCD)’s second largest largest investor in our database is Jim Simons’ Renaissance Technologies which owns one million shares that are worth $288 million.
6. Costco Wholesale Corporation (NASDAQ:COST)
Bridgewater Associates’ Q4 2022 Stake: $427 million
Number of Hedge Fund Holders in Q3 2022: 69
Costco Wholesale Corporation (NASDAQ:COST) is a discount store company headquartered in Isaquah, Washington. The firm has a global operational footprint, with stores in the U.K., Puerto Rico, Taiwan, China, Australia, and other countries.
Costco Wholesale Corporation (NASDAQ:COST) faced a minor legal setback in February 2023 when it was ordered by a California court to pay $1.7 million to an aggrieved customer after the company failed to adequately accommodate her disabilities. Insider Monkey took a look at 920 hedge fund holdings for 2022’s September quarter to find out that 69 had invested in the firm.
Ray Dalio’s Bridgewater associates had invested $427 million in Costco Wholesale Corporation (NASDAQ:COST) during the fourth quarter of 2022, as it owned 937,521 shares of the company.
Costco Wholesale Corporation (NASDAQ:COST)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 2.5 million shares that are worth $1.1 billion.
Madison Investment Management mentioned the company in its Q4 2022 investor letter as it outlined that:
“Costco Wholesale Corporation (NASDAQ:COST) stock fell after November sales results showed a slowing consumer. The slower November sales were followed by a slight first quarter miss with lower-than-expected margins. Costco commented that they are not seeing trade-down but private label penetration has increased modestly. Traffic continues to be positive, and Costco remains well-positioned in a more challenging macro environment due to its strong value proposition.”
PepsiCo, Inc. (NASDAQ:PEP), Costco Wholesale Corporation (NASDAQ:COST), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) are some of Ray Dalio’s top stock picks.
Click to continue reading and see Ray Dalio Stock Portfolio: Top 5 Stock Picks.
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Disclosure: None. Ray Dalio Stock Portfolio: Top 15 Stock Picks is originally published on Insider Monkey.