A Breakdown Of Ray Dalio’s 2021 Portfolio

Speaker 1: Ray Dalio, I’m sure you all know who he is. He’s the founder and the manager of the largest hedge fund in the world, Bridgewater. Dalio is one of the most followed investors in modern times. And in this video, we’re going to reveal his portfolio at Bridgewater.

I want to break each investment down piece by piece, tell you a bit about them, and then see how his portfolio balances out. Let’s get straight into it. So the first investment is what’s known as an ETF, an ETF is just a group of different stocks bunched together in this case as the S&P 500, the S&P 500 as an index of 500 very large U.S. companies. These stocks are a good indicator of the entire USA market as a whole. So straight away, Dalio is exposing his portfolio to companies like Apple, Microsoft, Amazon, Facebook, Tesla, Alphabet, Berkshire Hathaway, Johnson and Johnson, those huge American companies. And this is the largest investment of Delia’s portfolio, making up eleven point nine percent of its. He owns one point thirty eight billion dollars of the S&P, five hundred straightaway allowing for diversification and the lowering of risk. Now, again, his second largest position is an ETF, but this is completely different. The Vanguard Emerging Markets ETF, instead of holding groups of large U.S. companies, they own companies throughout emerging markets in China, Brazil, Taiwan and South Africa. The ETFs, ten largest holdings from one to 10, are the Taiwan Semiconductor Manufacturing Company Tencent, Alibaba, Tsan, Naspers, Peng Insurance, Reliance Industries, JD.com, China Construction Bank. And last is Neoh, the electric car company. The ETF makes up five point seven percent of Dalia’s portfolio over at Bridgewater, a total value of six hundred fifty nine million dollars.

And what you’ll notice right from the start, Dalio is diversifying his portfolio across the globe. His biggest investments are in the USA, but second, as those high growth emerging markets around the world. Anyone who has been a dalio follower for a while will not be surprised by this investment, Dall’Oglio likes gold. One of his famous quotes is, if you don’t own gold, you know neither history nor economics. And he’s put his money where his mouth is. The SPDR Gold Trust makes up his third largest investments at four point six percent of his portfolio. His total investment is five hundred thirty two million dollars of Bridgewater’s assets. For any of you guys out there looking to own the SPDR Gold Trust, the ticker symbol is gold. The expense ratio is fine at zero point four percent a year. And even I, Cooper, have owned this investment for quite some time now. Now we start getting into the individual stocks that Dallas picked, his biggest individual stock is Wal-Mart ticker symbol WMT on the New York Stock Exchange. This makes up three point eight percent of his portfolio, valued at four hundred forty three point eight dollars million. Wal-Mart, as we all know, as the chain of discount department stores scattered throughout mainly America, but also Canada, Mexico and a couple of other countries or together they have eleven thousand four hundred forty three stores, bringing in five hundred forty eight billion dollars of total revenue a year, making them the largest company in the world based on that figure. The stock exposes the portfolio nicely to a steady part of the market, which is retail retail.

That’s a sector that’s been going on since humans started trading and it will continue to do so in the future. The stock currently sells for one hundred thirty two dollars a share, generating yearly earnings of four point seventy five. Their dividend point nice, two point twenty per share, giving them dividend annual yield of one point sixty five percent. Next is Dalio second largest stock position, that’s Procter & Gamble, Panji makes up three point two percent of the portfolio with a value of three hundred seventy five million dollars. Panji, it’s the consumer goods company. They sell products in the categories of beauty, health care, grooming, home care and baby feminine and family care. Pretty well-known company. I’m sure you guys have heard of them, but you don’t want to just know of the company. The question is, are you an owner of them? Dalio is the stock sells for one hundred twenty six dollars a share. These guys pay a dividend with a two point four eight percent yield with a P e ratio of twenty three point nine. The next dock breaks outside of the USA and starts looking at China. Alibaba accounts for three point two percent of Dalia’s portfolio, valued around 372 million dollars. It can be bought on the New York Stock Exchange under the ticker symbol. Bah bah bah bah. It’s one of those companies that has their hands in a range of businesses. Predominantly, they’re an e-commerce company of similar to Amazon. They have Timonen, Taobao, which operates throughout China. Then they have Alibaba, Dotcom and Ali Express, which operates globally. But they’re also the fifth largest AI company. They also have a big cloud computing segments through Ali Cloud. They have an online payment side of things similar to PayPal in Alpay. So when you buy Bahbah, you diversify your portfolio and businesses throughout the whole of China. This is kind of similar to Dalia’s first and second largest possessions, again, investment seven, it’s in Emerging Markets ETF, but this one is through iShares, not Vanguard Dalio. He likes to diversify not only through businesses, but his investment operators as well. Investment seven is a low cost way of owning businesses throughout China, Taiwan, Korea, Russia, Thailand and a range of other growing nations.

Investment eight is a low cost way of owning big businesses throughout the USA. So number seven accounts for two point nine percent of Bridgewater’s overall portfolio, with a value of three hundred thirty four million dollars. Number eight is worth two point six percent of the portfolio, worth three hundred and one million. And number nine, Daliah owns even more gold. Did I mention how much he likes gold? The iShares Gold Trust accounts for two point four percent of his portfolio, valued at two hundred eighty point seven million dollars. As Dallier says, I believe it will be both risker Jostein and return enhancing to consider adding gold to one’s portfolio. Taleo he owns a fair amount of it’s his 10th largest position. A bit of a weird name for a company I know pendejo Ben Jojo as the largest agriculture focused technology platform in China. Basically, it connects the farmers with the consumers. It’s pretty big. It has seven hundred and thirty one million users and it’s the tenth biggest position for Dalio. Ticker symbol Paideia accounts for two point two percent of his portfolio, with a value of two hundred fifty three million dollars. Now, for those who don’t know, Dalio owns five hundred ninety nine different stocks in total at his portfolio over at Bridgewater there. And bit of the portfolio is filled with just tiny, tiny, tiny, different investments. Not even worth mentioning since they each make up such a small percentage of the overall portfolio. What we will do, however, is points out the main ones that Dallier owns, the ones that I believe are the most important.

Then we’ll finish with a quick summary of his portfolio and see how it all balances. That’s coming in at is the 11th largest position is a company that Warren Buffett is also a big fan of, and that’s Coca-Cola. This makes up two point one five percent of the portfolio and it’s starting to give nice exposure to the consumer staples sector is starting its largest position. It’s Coca Cola’s cousin Pepsi, and that makes up one point nine percent of the portfolio. It’s 15th and 16th positions is also consumer related. Costco, one of Charlie Munger’s big positions, and McDonald’s comes in at one point six and one point four percent of the portfolio respectively. Then seventeenth to 20th positions are all ETFs and bonds. These include more ETFs in China and developing markets as well as throughout Europe and Australia. Altogether, they make up around six percent of the portfolio. Its 21st largest position, making up one point three percent of the portfolio, is a Chinese company called Jadi Dotcom. JD is Alibaba s main competitor in China and invest heavily in technology and I to deliver products through drones and robots. They currently have the largest drone delivery system in the world. So one of the things that I really want you guys to know, Dan, about Dallas portfolio is truly how much he diversifies. You saw earlier on the amount of ETFs that Ali owns. They make up big positions throughout his portfolio. ETFs, if you recall, means you own a whole bunch of different companies in a particular sector. And when Dalio chooses individual stocks, he tends to not just pick one in a particular area. He picks a bunch, for example, and soft drinks. He owns both Coca-Cola and Pepsi in Chinese e-commerce. He owns both major players, Alibaba and JD Dotcom. In pharmaceuticals, he owns both JNJ and Abbott Laboratories. This is a different investing style compared to the likes of Warren Buffett, who will stick with an individual stock in a sector Dalio.

I call him the king of diversification. And you can see that here with his portfolio. As he says, the most important thing that you can have is a good strategic asset allocation mix. So what the investor needs to do is to have a balance structured portfolio, a portfolio that does well in different environments. And that’s what Dalio has gone and built with his investing firm at Bridgewater, just looking throughout the rest of his portfolio he owns. Starbucks and consumer discretionary, that’s one point one percent of his portfolio he owns Biddu, that’s Chinese communications zero point nine four percent of the portfolio. He owns Abbott Laboratories. That’s in health care, zero point eight seven percent of the portfolio. The more you go through the portfolio, the more stocks you can see. He’s the last of five throughout. So what I’ve looked at during this video is show you the most important investments that he owns. And the rest of the ones are very, very small positions of the total portfolio on average, while less than one percent each. So there you have it.

That’s what Dalio currently invests in. He’s not afraid one bit to hold both stocks and ETFs in countries around the world. Predominantly, his investments are in the USA, but also in China and a range of other emerging markets.

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