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.”
4. Philip Morris International Inc. (NYSE:PM)
Bridgewater Associates’ Stake Value: $6,838,000
Percent of Bridgewater Associates’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 46
Philip Morris International Inc. (NYSE:PM), a multinational cigarette and tobacco manufacturing company, has a track record of 13 years of consistent dividend growth. The company currently pays an annual dividend of $5.00 per share, with a dividend yield of 5.34%.
In Q3, Bridgewater Associates started building its position in Philip Morris International Inc. (NYSE:PM), with shares worth roughly $7 million. The company represents 0.03% of Ray Dalio’s portfolio. In its Q3 results, Philip Morris International Inc. (NYSE:PM) reported a 9% growth in its revenue at $8.12 billion. The revenue also beat the analysts’ estimates by $190 million. Recently, Deutsche Bank lifted its price target on Philip Morris International Inc. (NYSE:PM) to $120, while keeping a Buy rating on the shares.
Of the 873 hedge funds tracked by Insider Monkey, 46 hedge funds held stakes in Philip Morris International Inc. (NYSE:PM) in Q2, down from 48 in the previous quarter. The total value of these stakes is roughly $6 billion.
In its Q2 2021 investor letter, Broyhill Asset Management mentioned Philip Morris International Inc. (NYSE: PM) and discussed its stance on the firm. Here is what the fund said:
“Philip Morris (PM) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 23%. We shared our thoughts on these regulations during the quarter, which are available here.
‘PM Valuation. PM is up ~ 15% YTD and would have the most to gain under a nicotine cap. A cap would likely accelerate conversion to iQOS, which is 100% incremental for PM (PM also has zero exposure to combustible cigarettes in the U.S. and licenses its IQOS product for MO to distribute domestically). As such, the decline in PM was much more muted, with the stock hitting new 52 week highs a day after the Biden headline, driven by yesterday’s earnings release. It didn’t take long for investors to shift their attention back to fundamentals and the fundamentals here are best in class. In short, results beat estimates across the board (a recurring theme here), and management raised guidance for the full year (another recurring theme). IQOS continued to deliver impressive growth, recording continued market share gains on the heels of continued user acquisition growth, up 1.5M to 19.1M total users. Importantly, IQOS now represents nearly 30% of PM net revenues (management expects “smoke-free” products to represent more than half of their business by 2025, which should make the ESG folks happy), which is driving top-line growth and margin expansion. Hard to believe that they have created a product with higher margins than combustible cigarettes!! We expect PM operating margins to increase by 100bps – 200bps annually as IQOS continues to gain share. The stock trades at ~ 15x today or 2/3 of the market’s multiple for a business likely to generate $35B in cash flow – or 25% of the market cap – in just the next three years. Over the last decade, shares have traded at an average multiple of 18x and within a range of ~ 14x – 22x (+/-1 standard deviation). The stock yields 5.1% at the current price, and we expect management to resume share purchases in the back half of this year.’”
3. Moderna, Inc. (NASDAQ:MRNA)
Bridgewater Associates’ Stake Value: $3,198,000
Percent of Bridgewater Associates’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 37
Moderna, Inc. (NASDAQ:MRNA), an American biotech company, recently got FDA’s approval to widen Covid-19 booster eligibility for all adults, aged 18 years and above. As of Q3, the company represents 0.01% of Ray Dalio’s portfolio.
At the end of Q2 2021, 37 hedge funds in Insider Monkey’s database reported owning stakes in Moderna, Inc. (NASDAQ:MRNA), compared with 39 in the previous quarter. The total value of these stakes is over $5.7 billion, up significantly from $1.6 billion as recorded in the previous quarter.
Recently, Piper Sandler reiterated an Overweight rating on Moderna, Inc. (NASDAQ:MRNA), while keeping a $348 price target on the stock, after the company presented a successful trial of its medicine for solid tumors and lymphoma. In its Q3 earnings, Moderna, Inc. (NASDAQ:MRNA) presented a striking 3,047.4% year-over-year growth in revenue at $4.97 billion.
Carillon Tower Advisers mentioned Moderna, Inc. (NASDAQ:MRNA) in its recently published Q3 2021 investor letter. Here is what the firm has to say:
“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock proved to be an impressive contributor once again in the quarter, as investors continue to evaluate the potential for future growth driven primarily by the firm’s revolutionary COVID-19 vaccine. Strong global demand for the vaccine may persist for the foreseeable future in order to maintain immunity as well as provide protection against any additional future variants. The potential for the firm’s mRNA technology to be used in a number of other use cases, specifically influenza, could also provide an additional tailwind for future growth.”
2. Lithia Motors, Inc. (NYSE:LAD)
Bridgewater Associates’ Stake Value: $2,390,000
Percent of Bridgewater Associates’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 63
Lithia Motors, Inc. (NYSE:LAD) is an American automotive retailer company, based in Oregon, U.S. In Q3, Dalio’s Bridgewater Associates started building its position in the company with shares worth $2.39 million. Lithia Motors, Inc. (NYSE:LAD) represents 0.01% of Ray Dalio’s portfolio.
As of Q2, Insider Monkey’s data showed that hedge fund interest spiked in Lithia Motors, Inc. (NYSE:LAD), as 63 hedge funds held stakes in the company, up from 40 in the previous quarter. The total value of these stakes is roughly $3 billion, compared with $2.3 billion in Q1.
On October 20, Lithia Motors, Inc. (NYSE:LAD) announced its Q3 earnings and posted an EPS of $11.21, beating the consensus by $1.91. The company also reported a solid 53.9% quarter-over-quarter growth in new-vehicle retail revenues. Recently, Craig Hallum lifted its price target on Lithia Motors, Inc. (NYSE:LAD) to $520, while keeping a Buy rating on the shares.
1. Levi Strauss & Co. (NYSE:LEVI)
Bridgewater Associates’ Stake Value: $3,319,000
Percent of Bridgewater Associates’ 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 30
Levi Strauss & Co. (NYSE:LEVI), an American clothing company, gained about 3% on October 6 as the company announced its solid Q3 earnings. The company posted an EPS of $0.48, beating the estimates by $0.11. Moreover, Levi Strauss & Co. (NYSE:LEVI) also reported $1.5 billion in revenue, even though its 4% stores are still closed globally due to the resurgence of Covid-19 cases.
As of Q3, Bridgewater Associates owns 135,430 shares in Levi Strauss & Co. (NYSE:LEVI), valued at $3.3 million. The company accounts for 0.01% of the hedge fund’s 13F portfolio.
At the end of Q2 2021, 30 hedge funds tracked by Insider Monkey were bullish on Levi Strauss & Co. (NYSE:LEVI), up from 19 in the previous quarter. The total value of these stakes is $414.2 million. In Q3, Select Equity Group is the company’s leading shareholder, owning shares worth $22.8 billion.
You can also take a look at 10 Best New Stocks To Buy Now and 10 Best New Stocks to Buy in 2021 According to Billionaire Paul Singer
