Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, is one of the world’s most followed investors. Its strategy is mainly based on large-scale long-term operations, based on its exceptional global macroeconomic vision.
It is also known for its “All Weather” concept, which relies on the allocation of risk rather than capital. As such, the billionaire investor has been through many economic cycles over the decades, and his portfolio has performed relatively well during market downturns.
According to the latest Form 13F filed with the United States Securities Commission (SEC), the hedge fund had a portfolio value of $24.8 billion at the end of the first quarter (Q1) of 2022.
The finance guru recently expressed concern “about the impact of and conflict, within and between countries.” In the first quarter, he mainly invested in the healthcare, financials, consumer discretionary, consumer staples and communications sectors.
Examples of shares held by Ray Dalio
InvestingPro provides access to various Ray Dalio stocks that may be of interest to long-term investors. For example, the largest holdings in Bridgewater’s investment portfolio are:
- Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:)
- Procter & Gamble (NYSE:)
- iShares Core MSCI Emerging Markets ETF (NYSE:)
- iShares MSCI Emerging Markets ETF (NYSE:);
- SPDR® S&P 500 (NYSE:)
- Ali Baba (NYSE:)
- Johnson & Johnson (NYSE:)
- Coca Cola (NYSE:)
- PepsiCo (NASDAQ:)
- Costco Wholesale (NASDAQ:).
These ten names represent about a third of all positions.
Large cap stocks include Berkshire Hathaway (NYSE:), Johnson & Johnson, Visa (NYSE:), Exxon Mobil (NYSE:), JPMorgan Chase (NYSE:) and Procter & Gamble.
According to the last two 13F filings, the largest stock purchases are in the iShares MSCI Emerging Markets ETF; the iShares Core MSCI Emerging Markets ETF; Alibaba Group; shares of the ETF Vanguard FTSE Emerging Markets Index Fund; and Procter & Gamble.
As for the fastest growing companies in the portfolio, we have Chinese electric vehicle (EV) names Xpeng (NYSE:), Li Auto (NASDAQ:) and Nio (NYSE:); Chinese online recruitment service provider Kanzhun (NASDAQ:); Conoco Phillips (NYSE:); Pfizer (NYSE:); and Airbnb (NASDAQ:).
Investors looking for stocks that are undervalued relative to fair value might look to Chinese names Alibaba, Baidu (NASDAQ:) and Pinduoduo (NASDAQ:), Berkshire Hathaway, LyondellBasell Industries (NYSE:), based in UK, and General Electric (NYSE:).
Similarly, stocks with a low price-to-earnings (P/E) ratio also deserve readers’ attention. Examples include Ford Motor (NYSE:); Chinese personal financial services platform Lufax Holding (NYSE:); LyondellBasell Industries; chemical giant Dow Inc (NYSE:); Intel (NASDAQ:); Tyson Foods (NYSE:); and Berkshire Hathaway.
High-dividend stocks to favor are Southern Copper (NYSE:); the iShares Core MSCI Emerging Markets ETF; AT&T (NYSE:); International Business Machines (NYSE:); Philip Morris International (NYSE:); and Kraft Heinz (NASDAQ:).
Finally, readers may be interested to know that several stocks in Ray Dalio’s portfolio have bullish analyst targets. For example, biotech company BeiGene (NASDAQ:), Chinese companies NIO, Kanzhun, Bilibili (NASDAQ:) and GDS (NASDAQ:) and medical device company DexCom (NASDAQ:) could see a significant upside from their current price levels.
Choosing appropriate stocks for long-term portfolios requires research, which can be difficult for most retail investors. It should also be noted that the stock listings provided on the InvestingPro site do not always meet all of the portfolio goals of all readers. In this case, they may also consider looking for an exchange-traded fund (ETF) that offers exposure to several stocks held by Ray Dalio.
Fidelity MSCI Consumer Staples Index ETF
- Current price: $44.75
- 52 week range: $41.54 – $49.03
- Dividend yield: 2.27%.
- Expense ratio: 0.08% per year
Our fund today, the Fidelity MSCI Consumer Staples Index ETF (NYSE:), offers exposure to US consumer staples names. This passively managed fund began trading in October 2013.
Food retail and commodity names have the highest slice at 23.3%. Next come beverages (23.1%), food products (20.6%), household products (20.6%), tobacco (8.2%) and personal products (3.9%). The top ten holdings in the portfolio represent more than 60% of the net assets of $1.1 billion.
The main names in the fund are Procter & Gamble, Coca-Cola, PepsiCo, Costco Wholesale and Walmart (NYSE:).
So far in 2022, the ETF is down 4%, but it still outperformed the index, which is down 12.3% year-to-date. Meanwhile, the FSTA has posted a return of nearly 2.5% over the past 12 months.
Finally, the price/earnings (P/E) and price/book (P/B) ratios of the fund are 24.76x and 4.88x. A potential drop towards $43 or even below could improve the margin of safety.