Billionaire Ray Dalio’s 5 Long-Term Stock Picks

2. Johnson & Johnson (NYSE:JNJ)

Bridgewater Associates’ Stake Value: $769.83 million

Percentage of Bridgewater Associates’ 13F Portfolio: 3.89%

Number of Hedge Fund Holders: 85

Johnson & Johnson (NYSE:JNJ) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Ray Dalio’s hedge fund currently owns over 4.7 million shares in the company, worth nearly $770 million. He first added the firm to his portfolio in the first quarter of 2011.

On November 17, Credit Suisse analyst Trung Huynh initiated coverage of Johnson & Johnson (NYSE:JNJ) with a Neutral rating and $170 price target. Although the analyst sees value in the company’s consumer separation, that could drive an improved valuation for the remaining businesses, he believes that this could pressure J&J’s new dividend.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 5.92 million shares worth more than $967.3 million. Overall, 85 hedge funds tracked by Insider Monkey owned stakes in Johnson & Johnson (NYSE:JNJ), with a total value of over $5.46 billion.

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:

“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales come from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)