In this article, we discuss top 5 stock picks of billionaire Ray Dalio. If you want to read our detailed analysis of these stocks, go directly to Top 10 Stock Picks of Billionaire Ray Dalio.
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
The Coca-Cola Company (NYSE:KO) operates as a beverage firm. It is the favorite beverage stock on Wall Street. 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 $20 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 increased its stake in the firm by 4% between October and December last year.
4. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 55
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. During the fourth quarter of 2021, the fund increased its stake in the firm by 8% quarter-over-quarter.
There is positive hedge fund sentiment around Costco Wholesale Corporation (NASDAQ:COST). At the end of the third quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $4.39 billion in Costco Wholesale Corporation (NASDAQ:COST), up from 54 in the preceding quarter worth $4.32 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 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 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 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: 88
Johnson & Johnson (NYSE:JNJ) makes and sells healthcare products. It is a top value stock among hedge funds as the market becomes more volatile. At the end of the third quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $6.8 billion in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter worth $7 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 increased its stake in the firm by 13% compared to filings for the third quarter of 2021.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 61
PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food and beverage company. 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 investment firm increased its stake in the firm by 14% during the fourth quarter.
PepsiCo, Inc. (NASDAQ:PEP) is a top food stock on Wall Street. At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $4 billion in PepsiCo, Inc. (NASDAQ:PEP), compared to 66 in the previous quarter worth $5 billion.
1. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 69
The Procter & Gamble Company (NYSE:PG) markets consumer packaged goods. 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 7.4 million shares worth more than $1 billion.
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 increased its stake in the tech giant by 11% quarter-over-quarter between October and December.
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
