Ray Dalio (2024)

FAQs

What stocks is Ray Dalio buying? ›

Absolutely! I think everyone should read Principles. If you want to better understand yourself, the world we live in and the path to success, Principles can help you a lot. If you want to learn how to think better and more accurately, this is a great book for you.

Dalio is a big proponent of diversification. He recommends diversifying across 15 or more uncorrelated assets to reduce the risk-to-return ratio.

Based on Dalio's diversification theory, Dalio and his team at Bridgewater Associates developed the All-Weather Portfolio, which we can call Ray Dalio's holy grail of investing: 55% bonds. 30% US stocks (US stocks are about 50% of world market capitalization) 15% hard assets and commodities.

Bridgewater, founded in 1975 by Ray Dalio, the billionaire investor, generally requires that clients have at least $7.5 billion of investable assets in order to put money into the hedge fund. Many investors pay at least $500,000 — and sometimes as much as $4 million — a year in fees to Bridgewater.

"For new Client relationships, Bridgewater's standard minimum fee is expected to be $500,000 for its All Weather strategy, $6,000,000 for its Pure Alpha and Pure Alpha Major Markets strategies, and $2,700,000 for Optimal Portfolio," its ADV states. The investment minimum if $7.5 million, the ADV adds.

Rather, I mean that Dalio is something of a Marxist in diagnostic terms—that is, how he sees history unfolding in response to the contradictions of capitalism.

Benjamin Graham, a renowned economist and investor, is often referred to as the "Father of Value Investing." His groundbreaking work on investment theory and practice has left an indelible mark on the world of finance.

How much leverage does Bridgewater use? ›

That not Dalio's style. (In fact, he hates being called a hedge fund manager.) For one thing, he doesn't magnify his bets with a lot of borrowed money—his leverage ratio is about 4 to 1, far less than other investors have used.

Today Bridgewater is the largest hedge fund in the world and Dalio has a personal fortune of approximately $19 billion. The fund serves institutional clients such as pension funds, foreign governments and central banks, as well as charitable foundations, family offices and high net worth individuals.

Bridgewater Associates, LPs top holdings are BlackRock Institutional Trust Company N.A. - iShares Core S&P 500 ETF (US:IVV) , BlackRock Institutional Trust Company N.A. - iShares Core MSCI Emerging Markets ETF (US:IEMG) , Procter & Gamble Co. (US:PG) , Johnson & Johnson (US:JNJ) , and Coca-Cola Co (US:KO) .

It generally requires clients to have a minimum of $7.5 billion of investable assets. Bridgewater has several strategies: Pure Alpha, Pure Alpha Major Markets, All Weather and Optimal Portfolio. The firm has been managing its Pure Alpha strategy since 1991.

Ray Dalio, founder of Bridgewater Associates, said China's debt crisis is due for a shake-up. Ray Dalio currently has approximately $3 billion invested in Chinese businesses, but even he's convinced the country's economy needs a massive restructuring.