Ray Dalio Stock Portfolio: Top 5 Stock Picks

4. The Coca-Cola Company (NYSE:KO)

Bridgewater Associates’ Q4 2022 Stake: $535 million

Number of Hedge Fund Holders in Q3 2022: 59

The Coca-Cola Company (NYSE:KO) is a multinational food and beverages giant with a variety of soft drinks, energy drinks, and other products in its portfolio.

As 2022’s December quarter ended, SEC filings revealed that Ray Dalio’s hedge fund had owned 8.4 million The Coca-Cola Company (NYSE:KO) shares that were worth $535 million. As part of its fourth quarter earnings, The Coca-Cola Company (NYSE:KO) revealed in February 2023 that it will continue to raise prices.

Insider Monkey’s September quarter of 2022 survey covering 920 hedge funds revealed that 59 had bought The Coca-Cola Company (NYSE:KO)’s shares.

Out of these, Jim Simons’ Renaissance Technologies is The Coca-Cola Company (NYSE:KO)’s largest shareholder after Mr. Dalio’s firm.  It owns 4.5 million shares that are worth $292 million.

Rowan Street Capital mentioned the company in its latest investor letter, outlining that:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next years forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”