A Breakdown Of Ray Dalio’s Portfolio

Let's take a look at what Ray Dalio's portfolio looks like as of 2021.

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Ray Dalio. I’m sure you all know who he is, he’s the founder & manager of the largest hedge fund in the world Bridgewater. Dalio’s one of the most followed investors in modern times & 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 see how his portfolio balances out. Let’s get into it…

Investment 1: SPDR S&P 500 ETF Trust

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 it’s the S & P 500. The S & P 500 is an index of 500 very large USA 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 & Johnson, those huge American companies.

This is the largest investment of Dalio’s portfolio making up 11.9% of it. He owns $1.38 billion dollars of the S & P 500, straight away allowing for diversification and the lowering of risk…

Investment 2: Vanguard FTSE Emerging Markets ETF

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 USA companies, they own companies throughout emerging markets. In China, Brazil, Taiwan, and South Africa.

The etfs 10 largest holdings from 1 to 10 are, Taiwan Semiconductor Manufacturing, Tencent, Alibaba, Meituan, Naspers, Ping Insurance, Reliance Industries, JD.com, China Construction Bank & last is NIO the electric car company.

This ETF makes up 5.7% of Dalios portfolio over at Bridgewater a total value of $659 million dollars. What you’ll notice, right from the start Dalio is diversifying across the globe. His biggest investments are in the USA, but second is those high growth emerging markets around the world…

Investment 3: SPDR Gold Trust

Anyone who has been a Dalio follower for a while will not be surprised by this investment. Dalio 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 3rd largest investment, at 4.6% of his portfolio. His total investment is $532 million dollars of Bridgewaters assets…

For any of you guys out there looking to own the SPDR gold trust, the ticker symbol is GLD, the expense ratio for holding this is 0.4% a year, and even I Cooper have owned this investment for some time now…

Investment 4: Walmart

Now we start getting into the individual stocks that Dalio has picked out…
His biggest individual stock position is Walmart, ticker symbol WMT on the nyse exchange. This makes up 3.8% of his portfolio, valued at $443.8 million dollars…

Walmart as we all know it’s the chain of discount department stores, scattered throughout America, Canada, Mexico & a couple of other countries. Altogether they have 11,443 stores, bringing in $548 billion dollars of total revenue, making them the largest company in the world based on that figure.

This 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…

The stock currently sells for $132 a share, generating yearly earnings of $4.75. Their dividend is $2.20 per share giving them a nice 1.65% annual dividend return…

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. This video was made for educational and entertainment purposes only. Consult your financial adviser. * Some of the links on this webpage are affiliate links. This means at no additional cost to you, we earn a commission if you click through and make a purchase and/or subscribe. This has no impact on my opinions, facts or style of video.

[Queenbrenda]

Risk management should always come first, the reason many traders lose money is not simply due to inexperience or a lack of knowledge of the market, but because of poor risk management

[stellamoore]

My strategy is; buy quality stocks, expect to hold no matter what, pay up but don’t over pay, keep track, sell rarely, be ready to course correct.

[RobertBrown..]

Great Video. I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains within months, I'm really just confused at this point.

[rtu]

I've been diligently working, saving, and investing toward financial independence and early retirement, but the economy since the pandemic has eaten up the majority of my $3 million portfolio. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[InvestorCenter]

As someone who works in the hedge fund industry, Ray Dalio and Bridgewater is the gold standard

[emptyeye]

if my portfolio was that spread i would have like $15 in each company...

[robinsonjon]

RICH PEOPLE PLAYS THE MONEY GAME TO WIN. POOR PEOPLE PLAY THE MONEY GAME TO NOT LOSE. THE GOAL OF TRULY RICH PEOPLE IS TO HAVE MASSIVE WEALTH AND THE POOR SEES A SURPLUS AS AN OPPORTUNITY FOR CONSUMPTION INSTEAD OF INVESTING IT..change your mindset and do what the rich does, , which is investing, investing and investing

[emilyhowe]

I have made a few investments in individual companies, There are so many stocks going to rocket in the long run. but right now it's safe to invest in an ETF that tracks the S&P500, I've put in quite an effort into VIGAX, VXUS, VFTAX too and my portfolio has grown over 240% this year just hit the 7 figure mark..

[HermannTheGreat]

He's basically ultra diversified. That's what a money manager should be. This is what most of them who do fairly average to well look like.

[januszkraus]

What's the point of investing in active Mutual fund which is then investing in ETF"s? I can invest in these ETF"s on my own and I don't have to pay for "management"

[dimitris]

Interesting video. For future ones, It might be useful to also include when he opened the position for each stock or even some data about position changes.

[stealthven]

Them: So how much diversification do you want?
Ray Dalio: Yes

[wesleytillman]

This is so diversified it basically just follows the market. Much simpler would be to put all your money in Vanguard's Total Stock Market ETF and leave it there.

[GoldenChuricken]

Here’s the thing about manually diversifying by investing in a lot of individual stocks vs. investing in an ETF. Although the market as a whole, tracked by the ETF, will go up or down, individual stocks will also go up or down differently from that global average. Selling an ETF to realize capital gains means you are forced to sell some underlying stocks at a time when they might not be performing very well. If you invest in individual stocks, this gives you greater liquidity, and you can sell cyclical stocks when they’re performing well, to maximize capital gains. Of course, the caveat is that ETFs will usually be far more diversified than what you could build yourself. Still, something to keep in mind.

[TheIcelandicInvestor]

He is very diversified, which is probably better to do if you manage so much money.

[simontrees]

I appreciate this video
This is exactly what I need as motivation

[YSapphireGroup]

I feel great owning some of the companies my greatly admired Ray Dalio owns, I need some more cash to add in some really good ones! Thanks for this!

[ravsingh]

Hi Cooper, such a great detailed and informative video. I can only imagine how much time it takes. Thank you very much for breaking it down.

[SarahGoss-kn]

Copy plus fashion, sports, and entertainment investments

[maximilian_de_luxe]

Reminds of Warren Buffett's investing style, but looks abroad (emerging markets). Also: interesting that he is HEAVY into S&P 500 ETF:s and Vanguard funds : ) Like it. Like a "very advanced beginner portfolio"