In this article, we discuss the 5 latest stock picks of billionaire Ray Dalio. If you want to read our detailed analysis of Ray Dalio’s hedge fund and his investment strategies, go directly to see the 10 Latest Stock Picks of Billionaire Ray Dalio.
5. Accenture plc (NYSE:ACN)
Bridgewater Associates’ Stake Value: $5,389,000
Percent of Bridgewater Associates’ 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 52
Accenture plc (NYSE:ACN) provides IT-related professional services to its consumers. As of Q3, the company represents 0.02% of Ray Dalio’s portfolio.
On September 23, Accenture plc (NYSE:ACN) increased its quarterly dividend by 10%, which now stands at $0.97 per share. The stock’s current dividend yield is 1.16%. In its fiscal Q4 2021 results, Accenture plc (NYSE:ACN) posted a GAAP EPS of $2.20, beating the estimates by $0.01.
Select Equity Group is the largest shareholder of Accenture plc (NYSE:ACN) in Q3, owning stakes worth $20.5 billion. As of Q2, Insider Monkey’s data shows that the smart money also took interest in the company, as 52 hedge funds were bullish on Accenture plc (NYSE:ACN), up from 48 in the previous quarter. The total value of these stakes is over $3.1 billion, up from $2.35 billion in Q1 2021.
Fiduciary Management Inc. mentioned Accenture plc (NYSE:ACN) in its Q1 2021 investor letter. Here is what the firm has to say:
“Even great companies can get too expensive. In early January, we sold our long-standing position in Accenture PLC after the company’s valuation exceeded 30 times next 12 months (NTM) earnings per share (EPS). We originally invested in Accenture at the launch of the FMI International strategy at a valuation below 15 times NTM EPS and held the stock for over ten years. We added to the holding numerous times in the early years, growing the position size to as high as 5.5% in late 2014, before dialing it back in recent years as the valuation became less compelling. It is one of the world’s largest information technology services firms, specializing in helping complex, global businesses navigate disruption, and focusing on next-generation services like digital, cloud, and security. For years, the investment allowed FMI to capture the inherently higher growth of technology-related industries (GDP+) without investing directly in pure “invention-oriented” technology companies. Through Accenture we were able to avoid some of the shortfalls of tech investing: technology obsolescence, short product cycles, and subpar return on invested capital (ROIC). It grew steadily, was solidly profitable, capital-light, and generated high returns, all while maintaining a rock-solid balance sheet. It compounded its business value for many years, outperforming the MSCI EAFE indices by over 450% during our holding period. Unfortunately, the market increasingly recognized the company’s positive attributes, and the stock’s discount to intrinsic value slowly evaporated. Despite our admiration for the business, it exceeded our valuation threshold. We will continue to follow the company closely for future opportunities.”
