Ray Dalio (Trades, Portfolio), the founder, co-chairman, and co-chief investment officer of Bridgewater Associates, recently filed the firm's 13F report for the second quarter of 2023. Dalio, often referred to as the "Steve Jobs of Investing," has led Bridgewater from a two-bedroom apartment in New York to being the fifth most important private company in the U.S., according to Fortune Magazine. His investment philosophy and principles, outlined in his New York Times #1 Bestseller "Principles," have been the cornerstone of Bridgewater's distinctive culture and success.
As of June 30, 2023, Dalio's portfolio contained 698 stocks with a total value of $16.19 billion. The top holdings were IVV (5.54%), IEMG (5.46%), and PG (4.33%).
Top Three Trades of the Quarter
The following were the firm's top three trades of the quarter:
SPDR Gold Shares ETF (GLD, Financial)
Dalio's firm sold out of their 886,799-share investment in SPDR Gold Shares ETF (GLD), which previously accounted for 0.99% of the portfolio. The shares traded for an average price of $183.74 during the quarter. As of August 15, 2023, GLD had a price of $176.65 and a market cap of $55.04 billion. The stock has returned 6.60% over the past year.
Meta Platforms Inc (META, Financial)
Bridgewater reduced their investment in Meta Platforms Inc (META) by 464,180 shares, impacting the equity portfolio by 0.6%. The stock traded for an average price of $246.21 during the quarter. As of August 15, 2023, META had a price of $302.76 and a market cap of $779.05 billion. The stock has returned 67.11% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, META has a price-earnings ratio of 35.29, a price-book ratio of 5.79, a PEG ratio of 2.29, a EV-to-Ebitda ratio of 19.99, and a price-sales ratio of 6.61.
iShares Core S&P 500 ETF (IVV, Financial)
During the quarter, Bridgewater bought 184,684 shares of iShares Core S&P 500 ETF (IVV), bringing the total holding to 2,013,408 shares. This trade had a 0.51% impact on the equity portfolio. The stock traded for an average price of $420.31 during the quarter. As of August 15, 2023, IVV had a price of $446.72 and a market cap of $347.32 billion. The stock has returned 5.24% over the past year.
In conclusion, Dalio's Q2 2023 portfolio update reveals a strategic shift in investments, with a notable exit from gold ETF and a significant reduction in Meta Platforms Inc. Meanwhile, the firm increased its stake in the iShares Core S&P 500 ETF, indicating a continued belief in the strength of the broader U.S. market.
