Ray Dalio

Ray Dalio

Last Update: 11-13-2017

Number of Stocks: 286
Number of New Stocks: 83

Total Value: $14,906 Mil
Q/Q Turnover: 27%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ray Dalio Watch

  • Ray Dalio’s Bridgewater Boosts Gold and Emerging Markets Holdings

    Ray Dalio (Trades, Portfolio)’s Bridgewater, the largest hedge fund in the world, strongly increased its investments in emerging markets and gold during the third quarter, according to its portfolio announcement.

    Exchange traded funds, composed of blocks of positions under a single category, form the bulk of Bridgewater’s portfolio. The $160 billion fund has more than half its long portfolio in emerging markets and the S&P 500 as of the end of the third quarter. The top 17 positions are a variety of ETFs.  

  • Risk/Reward With Cheesecake Factory

    As a shareholder of almost any stock, you should want stable and consistent brand growth coupled with proper financial management. With the Cheesecake Factory (NASDAQ:CAKE), you get that in spades plus a strong dividend and a stock price that is currently discounted to its historical average, the industry average and the Standard & Poor's.

    Cheesecake Factory has a brand that is well known throughout the U.S. As long as people eat out, it will be a preferred destination. More important the company has rock-solid financials including 22% return on equity, 11% return on assets and gross margins north of 20%. Here’s what the company did in the last 10 years.


  • 6 Stocks With Rising Book Values

    According to GuruFocus’ All-In-One Screener, the following companies have grown their book values per share (BV/S) over the past 10 years.

    BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.


  • DaVita: Buffett’s Next Acquisition?

     Warren Buffett (TradesPortfolio)’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) owns over 38.5 million shares of DaVita Inc. (NYSE:DVA), good for a 20% stake. It is only a matter of time before they buy the whole entity, right? Especially since it is better as another wholly-owned subsidiary producing $2.4 billion in pre-tax income than as a losing stock transaction. Buffett (or his investment team) first bought DaVita back in 2011 and is down slightly on the total position.



  • General Mills Slides on Disappointing Earnings

    Cereal and yogurt manufacturer General Mills Inc. (NYSE:GIS) reported disappointing results for the first quarter of fiscal 2018 before the opening bell on Sept. 20.

    The Minnesota-based company posted earnings per share of 71 cents, which narrowly missed expectations of 76 cents. Quarterly revenue of $3.77 billion was just shy of estimates of $3.79 billion and decreased 3.5% from the year-ago quarter.


  • It's 1937 All Over Again: Ray Dalio

    Ray Dalio (Trades, Portfolio), founder of the world's largest hedge fund, Bridgewater Associates, over the past few weeks has been promoting his book, "Principles," which is filled with tenets fundamental to his career and success. Dalio also gave an analysis of the economy, saying it parallels the post-depression era.


  • Hedge Funds Outperform as Korean Peninsula Sizzles

    Gondor Capital Management, the New York-based hedge fund management firm founded by Vincent Au, continues its winning streak as its two funds generated returns in August, a month punctuated by fears over the escalating tension in the Korean Peninsula.

    Au said that his domestic Gondor Partners LP generated a +1.07 return last month (+14.93% year to date) while the offshore Gondor Funds LTD gained +0.76 during (+13.04% year to date). Gondor’s strong performance dwarfed the average hedge funds last month as HFR's widely followed HFRX Global Hedge Fund Index gained +0.29% for the month, reversing a slight loss in place midway through the period. For the year to date, the benchmark index is up +3.81%. Meanwhile, HFR's HFRX Absolute Return, HFRX Equal Weighted Strategies, and HFRX Market Directional indexes returned +0.65%, +0.19% and -0.63%.


  • Risk-Reward With Chipotle at $300

    Big money managers like Ray Dalio (TradesPortfolio), Joel Greenblatt (TradesPortfolio), Frank Sands (TradesPortfolio), Paul Tudor Jones (TradesPortfolio), Ruane Cunniff (TradesPortfolio), Jim Simons (TradesPortfolio) and Bill Ackman (TradesPortfolio) have stakes in Chipotle Mexican Grill Inc. (NYSE:CMG).

    In fact, Ackman has built a sizable position over 10%, which is almost 20% of his assets under management. He may start to use his 10% stake to lean on management for activist goals, which is actually good news for shareholders.


  • The Investment Clock

    (The following is an excerpt from our monthly Macro Intelligence Report.)

    The month of September is shaping up to be an eventful one for markets.


  • Express Scripts Is on Sale

    Express Scripts Holding Co. (NASDAQ:ESRX) acts as a third-party administrator of prescription drug programs. It is a good business. In fact, it is the largest pharmacy benefits manager (PBM) in the United States, generating revenue from the delivery of prescription drugs to client-pharmacies, processing pharmacy claims, compliance programs and data analysis.

    The stock is trading at essentially the same price it was five years ago even though the company’s earnings are up more than $2 billion and it remains on track to see north of $7 a share in 2017, and even more in 2018. What is more, it is trading at a 10 times multiple because of a disagreement with Anthem Inc. (NYSE:ANTM) over cost savings. CEO Tim Wentworth indicated he does not expect the relationship to be mended before the contract concludes in 2019.


  • 7 Stocks Mario Gabelli Keeps Buying

    Mario Gabelli (Trades, Portfolio) is the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors), a $30 billion global investment firm headquartered in Rye, New York. In both the first and second quarters the guru bought shares in the following stocks:

    Endo International PLC (ENDP)


  • Ray Dalio's Latest: Risks Are Rising While Low Risks Are Discounted

    There are returns, and there are risks. We think of them individually, and then we combine them into a portfolio. We think of returns and opportunities as coming from those things we’d bet on, and we think of risks as the adverse market consequences of us being wrong due to our being out of balance. We start with our balanced beta portfolio—i.e., that portfolio that would most certainly fund our intended uses of the money. Everyone should have their own based on their own projected uses of money, though more generally, it’s our All Weather portfolio. We then create a balanced portfolio of opportunity/alpha bets based on what we think is likely to happen. We then combine them.

    We bet on the events/outcomes that we think we have an edge in understanding. For events/outcomes where we don’t think we have a particular edge—e.g., political events—we aim to construct our portfolio to be relatively neutral or balanced to those risks.


  • 7 Stocks With Rising Earnings and Margins of Safety

    Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. According to the discount cash flow (DCF) calculator, the following are undervalued companies that have grown EPS over a five-year period.

    The EPS of Signature Bank (SBNY) has grown 19% over the last five years.


  • The Summer Heats Up

    The temperature in the stock market heated up again this month. Like a hot day at the beach, the Dow Jones Industrial Average stock index burned +542 points higher this month (+2.5%), while scorching +2,129 points ahead in 2017 (or +10.8%).

    Despite these impressive gains (see 2009-2017 chart below), overall, investors remain concerned. Rather than stock participants calmly enjoying the sun, breeze, and refreshingly cool waters of the current markets, many investors have been more concerned about getting sunburned to a geopolitical crisp; overwhelmed by an unexpected economic tsunami; and/or drowned by a global central bank-induced interest rate crisis.


  • Deere Expands Its Product Portfolio

    Last month, Deere & Co. (NYSE:DE) announced the acquisition of German road-building equipment manufacturer Wirtgen Group for more than $5 billion. The deal is expected to close in the first quarter of fiscal 2018.

    The purchase involves cash and new debt of about $1 billion. But looking at the financial structure of the company, it does not appear to be a problem. This combination will provide Deere with a portfolio of top products as more than two-thirds of Wirtgen's sales come from products that are number one or two in their markets. This strategic move should provide a lot of value in the future as the stock hit an all-time high after the announcement in June.


  • Ray Dalio: Central Banks’ Reversals Signal the End of One Era and the Beginning of Another

    For the last nine years, central banks drove interest rates to nil and pumped money into the system creating favorable carries and abundant cash. These actions pushed up asset prices, drove nominal interest rates below nominal growth rates, pushed real interest rates on cash negative, and drove real bond yields down to near zero percent, which created beautiful deleveragings, brought about balance sheet repairs, and led to more conventional economic conditions in which credit growth and economic growth are growing in relatively good balance with debt growth. That era is ending.

    Central bankers have clearly and understandably told us that henceforth those flows from their punch bowls will be tapered rather than increased—i.e., that the directions of policy are reversing so we are at a) the end of that nine-year era of continuous pressings down on interest rates and pushing out of money that created the liquidity-fueled moves in the economies and markets, and b) the beginning of the late-cycle phase of the business/short-term debt cycle, in which central bankers try to tighten at paces that are exactly right in order to keep growth and inflation neither too hot nor too cold, until they don’t get it right and we have our next downturn. Recognizing that, our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves.


  • Rising Book Value and Margin of Safety: GameStop, Steven Madden

    The following companies have grown their book values per share (BV/S) over the last 10 years.

    BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.


  • Ray Dalio: Odds That Conflict Will Lead to Political Ineffectiveness Rising

    Ray Dalio (Trades, Portfolio), head of the world's largest hedge fund, Bridgewater Associates, has published several commentaries on how the stormy political environment is interacting with the markets. Dalio posted the following memo, 'The Last 24 Hours’ Developments in the UK and US Increase the Odds That Conflict Will Lead to Political Ineffectiveness,' on Friday:

    Ordinarily, politics and economics influence each other with economics being more of a driver on politics than politics is on economics—e.g., bad economic conditions normally lead to political changes—and normally we don't need to pay much attention to politics to get the economics and markets right. However, there are times when politics becomes the most important driver. History has shown us that these times are when there is great economic, social, and political polarity within a country and there is the selection of populist leaders to fight for “the common man" in a battle against “the elites." These conditions exist now. The 1930s were the last time this happened in the developed world and globally.  

  • 8 Stocks Ray Dalio Continues to Buy

    Ray Dalio (Trades, Portfolio) founded Greenwich, Connecticut-based hedge fund Bridgewater Associates in 1975. In both fourth-quarter 2016 and first-quarter 2017 the guru bought shares in the following stocks:

    Carnival Corp. (CCL)


  • How Much of the US Debt Is Good?

    Debt – a word often associated with being broke and one to which most people do not like being tied has often been the livelihood of many Americans. It has virtually become their way of life; paying their way through just about anything using borrowed money.

    When you want to buy a new car and you apply for an auto loan, you are using debt; when you apply for mortgage for a new home – that is more debt. When you swipe for futons, gasoline or even buy a stick of gum using your credit card again, you are using debt.


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