At its core, the concept of acquiring Ray Dalio stocks is akin to the reason people buy securities that Warren Buffett owns: it comes down to investing with the best. As you know, the Internet is full of data, but not much information, relatively speaking. That is, it doesn’t take much to disseminate pure baloney, which is why people do it.
However, when it comes to stocks Ray Dalio likes, you can rest assured you’re putting your money into a legitimate avenue, not a clown show. According to Investopedia, Ray Dalio is the founder of Bridgewater Associates, which blossomed into the world’s largest hedge fund. Plus, the legendary investor has seen it all, adding credibility to top Dalio-approved stocks.
And that point bears repeating (no pun intended). Too often, we see fly-by-night operations promising systems that yield gargantuan gains. But as the secular bull market fades, so too do those promised returns. With leading picks from Ray Dalio, you’re trading alongside the best of the best who has proven himself across decades. Honestly, the legendary investor doesn’t need my preamble. Below are Dalio’s investment choices to consider.
McDonald’s (MCD)
A favorite among consumers and investors, McDonald’s (NYSE:MCD) is one of the top Ray Dalio stocks. According to data aggregator Finbox, Dalio’s hedge fund Bridgewater holds $423.4 million worth of MCD or 2.6% of its portfolio. Since the start of the year, shares have only moved up a bit more than 6%. However, the Golden Arches is built for those interested in the long game.
For one thing, the fast-food icon occupies the lower rungs of the consumer discretionary space. Rather than eating at pricey sit-down restaurants or even trendy fast-casual eateries, people may elect the lowest-cost option available while still enjoying the not-cooking part. In that regard, McDonald’s fits the bill.
Second, the company provides cheap caffeine on the go. Over time, as companies start getting aggressive about their return-to-office mandates, MCD could easily become one of the leading picks from Ray Dalio. Finally, analysts dig MCD, pegging it a strong buy. As well, their average price target lands at $331.27, implying nearly 18% upside potential.
Intuitive Surgical (ISRG)
One of the most frequently discussed Ray Dalio stocks, Intuitive Surgical (NASDAQ:ISRG) specializes in minimally invasive surgery through the utilization of robotic medical systems. Per Finbox, Bridgewater holds $140.2 million worth of ISRG stock. This translates to 0.9% of its portfolio. Since the start of the year, shares returned nearly 18%. Over the past five years, ISRG gained over 74%.
Fundamentally, there could be more upside, making ISRG an enticing name among stocks Ray Dalio likes. According to Allied Market Research, the underlying industry reached a valuation of $60.64 billion in 2020. However, by 2030, the segment could hit $94.42 billion. Given the myriad positives of minimally invasive procedures – such as fewer hospitalization stays – it’s possible the sector could be undervalued.
Another factor that makes ISRG one of the top Dalio-approved stocks is support among Wall Street analysts. Currently, the market experts peg ISRG as a consensus strong buy. This assessment breaks down as 12 buys and two holds. Lastly, the average price target hits $377.14, implying nearly 21% upside potential.
Meta Platforms (META)
With so much attention paid to companies like Nvidia (NASDAQ:NVDA) and their role in advancing artificial intelligence, it’s easy to forget about Meta Platforms (NASDAQ:META). That would be a mistake that Bridgewater refuses to make. Currently, the hedge fund holds $154.3 million worth of META, or 1% of its portfolio. Since the Jan. opener, META gained over 137%, making it one of the best-performing Ray Dalio stocks.
Fundamentally, if you’re interested in AI stocks, Meta could be enticing. Featuring solid revenue growth and consistent profitability, the company formerly known as Facebook invests heavily in generative AI. Specifically, it’s developing Llama 2, Meta’s open-source large language model. As a major player in the generative AI space, you may want to target META rather than a heavily hyped entity that could end up correctly later.
Based on analysts’ consensus, the social media and tech giant represents a top player among Dalio’s investment choices. With 41 buys and only two holds as the worst individual rating, the experts love META. Also, the price target clocks in at $376.19, implying over 27% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
