Ray Dalio’s Top 5 Stock Picks for 2021

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. Recently Oregon became the first state to legalize psychedelic mushrooms which are shown to have promising results in treating depression, addiction, and PTSD in early stage academic studies. So, we are checking out this psychedelic drug stock idea right now. We go through lists like the 10 best biotech stocks to invest in to pick the next stock 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 (or at the end of this article). 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.”