Below are Ray Dalio’s Top 5 Stock Picks for 2021. To read our detailed analysis of Ray Dalio’s investment philosophy and his hedge fund’s returns, go to Ray Dalio’s Top 10 Stock Picks for 2021.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at billionaire Ray Dalio’s top 5 stock picks:
5. The Procter & Gamble Company (NYSE: PG)
Ray Dalio’s hedge fund strong believes in the future fundamentals of The Procter & Gamble Company (NYSE: PG) despite its share price underperformance in the last twelve months. The firm took the share price underperformance as a buying opportunity. Bridgewater Associates has increased its position by 119% in Procter & Gamble Company during the fourth quarter to 3.25% of the overall portfolio, making it the fifth-largest stock holding of the 13F portfolio.
Distillate Capital, an investment management firm, highlighted the confidence in PG’s cash generation potential in the second quarter investor letter. Here is what Distillate Capital stated:
“P&G is an example of a stock where the free cash yield has actually improved over the course of the year on both next-twelve-month estimates and our normalized methodology.”