Ray Dalio’s Top 5 Stock Picks in 2023

Below is the list of the top 5 stock picks of Ray Dalio’s Bridgewater Associates. For a detailed discussion about what Ray Dalio doing these days and his investment philosophy please see What Ray Dalio Is Doing These Days – Top 10 Stock Picks in 2023.

5. Costco Wholesale Corporation (NASDAQ:COST)

Value of Bridgewater Associates’ 13F Position: $434 million

Number of Hedge Fund Shareholders: 68

Costco Wholesale Corporation (NASDAQ:COST) stock has gained 140% in the last five years. It has also outperformed the S&P 500 index so far in 2023, owing to consistent revenue and earnings growth. Costco Wholesale Corporation (NASDAQ:COST) reported net sales of $18.42 billion in August 2023, up 5% from $17.55 billion the previous year. In addition, the company reported net sales of $232.95 billion for the 52 weeks, up 4.6% from $222.70 billion during the same period last year. Furthermore, market analysts expect Costco Wholesale Corporation (NASDAQ:COST) to generate high single-digit to double-digit percentage growth in the coming years. Overall, Costco Wholesale Corporation (NASDAQ:COST) appears like a solid stock to hold for the long term due to its potential to generate a sustainable share price and dividend returns for shareholders.  

In the second quarter earnings call, RiverPark Advisors, an investment advisory firm, highlighted confidence in Costco Wholesale Corporation (NASDAQ:COST). Here is what the firm stated:

“Costco Wholesale Corporation (NASDAQ:COST), founded in 1983, is the world’s third-largest retailer with 850 stores, $240 billion in revenue and 68 million members spread across North America, Europe, Asia, and the Southern Pacific Region. The company is known for its strong value proposition driven by high-quality low-cost offerings including a well-regarded private-label brand. Costco regularly ranks at the top of customer surveys related to brand trust, product price and quality, and all-around experience. Historically, 90% of the company’s shoppers renew their memberships, which generate more than 50% of operating income.

Through expanding market share, new store openings, increasing member productivity, and omnichannel expansion, we believe the company can grow revenues annually in the high single-digit percentage range. This revenue growth should yield steadily growing margins and EPS growth in the low-to-mid-teens, which should drive shareholder returns in the same range.”