The 5 Best Large-cap Stocks to Buy According to Ray Dalio

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1. Alibaba Group Holding Limited (NYSE: BABA)

The Chinese e-commerce platform Alibaba Group Holding (NYSE: BAB) is the largest sock investment of Dalio’s portfolio, accounting for 4.72% of the overall portfolio. The hedge fund first bought BABA stock in the second quarter of 2018 and it has raised the stake in the Chinese online e-commerce platform by 40% in the September quarter. The investment is valued at $392 million.

Alibaba is a pure growth stock. The shares of Chinese company soared 30% this year despite concerns over Donald Trump’s strict stance against Chinese firms trading on US stock markets. Like other online platforms, Alibaba benefited greatly from the pandemic and staying at home policies.

The Chinese e-commerce platform has generated 38% year over year revenue growth in the latest quarter. Its mobile active users on its China retail marketplaces hit 881 million in September 2020, up 7 million over June 2020. The company says, “We remain focused on our three long-term growth engines – domestic consumption, cloud computing, and data intelligence, and globalization – to effectively capture opportunities from the ongoing changes in consumer demand and acceleration of digitalization of businesses across our digital economy.”

Please also see 10 Best Dividend Paying Stocks To Buy Under $50 and 5 Dividend Stocks To Boost Cash Flow in 2021

Disclosure: None.

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