In this article, we discuss 5 stocks to buy and hold for over 10 years according to Ray Dalio. If you want to see more of these stocks, click 10 Stocks to Buy and Hold for Over 10 Years According to Ray Dalio.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 70
The Coca-Cola Company (NYSE:KO) is a beverage company based in Georgia. Elite hedge funds hold large stakes in the stock. Among the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE:KO), with 400 million shares worth more than $23 billion.
Latest filings show that Bridgewater Associates owned over 8.6 million shares of The Coca-Cola Company (NYSE:KO) at the end of the fourth quarter of 2021 worth more than $514 million, representing 2.99% of the portfolio. The fund has held a stake in the company since the fourth quarter of 2010.
4. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 57
Costco Wholesale Corporation (NASDAQ:COST) owns and runs membership warehouses. Securities filings reveal that Bridgewater Associates owned over 915,635 shares of the company at the end of December 2021 worth $519 million, representing 3.02% of the portfolio. The company has featured in the Bridgewater portfolio since the first quarter of 2011.
Hedge funds have been loading up on Costco Wholesale Corporation (NASDAQ:COST). At the end of the fourth quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $5.4 billion in Costco Wholesale Corporation (NASDAQ:COST), up from 55 in the preceding quarter worth $4.3 billion.
In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:
“We saw these dynamics at play in the Fund. Some of the worst-performing stocks this quarter were among our best performers in Q1 2020. Another example was the market’s reaction to Costco Wholesale (1.5% weight in the Fund) during the quarter. From December 31, 2020 to March 8th, Costco Wholesale Corporation (NASDAQ:COST) shares declined 17% and dropped below their pre-pandemic high. The common rationale offered by sell-side analysts was that Costco would face difficult one-year “comps” (i.e. same-store sales, which compare sales from stores open for at least a year). Because so many consumers rushed to Costco ahead of shelter-in-place and subsequent quarantines, it will be harder for Costco to meaningfully beat those results when compared year-over-year. That may indeed be true, but we struggle to understand how Costco could be “less valuable” than it was a year earlier when it concurrently increased its membership base by over 7%, or 3.9 million members. With membership renewal rates around 90%, the vast majority of the new customers Costco brought in last year will be around for years to come.
Analysts also complained about Costco Wholesale Corporation (NASDAQ:COST) raising its already industry-leading minimum wage to $16/hour, with an average “effective” pay of $23-$24/hour when you include overtime and bonuses. Costco paying its employees “too much” has been a common gripe of Wall Street analysts for at least two decades. While the extra pay does indeed impact short-term profit margins, it also serves to make Costco Wholesale Corporation (NASDAQ:COST) more durable, as its flywheel (i.e. a virtuous value cycle) starts with happy employees. A 20-year chart of Costco stock price is evidence that this strategy works and we’re confident that it will continue to work.”
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) markets healthcare products. Hedge funds are bullish on the stock as inflation rises. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Johnson & Johnson (NYSE:JNJ), compared to 88 in the previous quarter worth $6.8 billion.
According to the latest data, Bridgewater Associates owned more than 3 million shares of Johnson & Johnson (NYSE:JNJ) at the end of the fourth quarter of 2021 worth $529 million, representing 3.08% of the portfolio. The fund first bought a stake in the company during the first quarter of 2011.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 60
PepsiCo, Inc. (NASDAQ:PEP) markets beverages and convenience foods. Regulatory filings indicate that Bridgewater Associates owned over 3 million shares of the company at the end of December 2021 worth $530 million, representing 3.08% of the portfolio. The company has featured in the Dalio portfolio since late 2010.
At the end of the fourth quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in PepsiCo, Inc. (NASDAQ:PEP), compared to 61 in the previous quarter worth $4.4 billion.
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 67
The Procter & Gamble Company (NYSE:PG) sells consumer packaged goods. Major hedge funds are bullish on the long-term prospects of the stock. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company (NYSE:PG), with 6 million shares worth more than $985 million.
Latest data shows that Bridgewater Associates owned over 5 million shares of The Procter & Gamble Company (NYSE:PG) at the of the fourth quarter of 2021 worth $848 million, representing 4.93% of the portfolio. The fund has held a stake in the company since the fourth quarter of 2010.
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