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11 Best S&P 500 Stocks To Buy According to Ray Dalio’s Bridgewater Associates

Affan Mir
12 min read

In This Article:

In this article, we discuss the 11 best S&P 500 stocks to buy according to Bridgewater Associates. To skip the details about the firm's performance and Q2 bets, go directly to the 5 Best S&P 500 Stocks To Buy according to Bridgewater Associates.

Bridgewater Associates was founded by Ray Dalio in 1975, merely two years after he received his MBA from Harvard Business School. While Dalio stepped down from the position of the co-CIO of the firm in 2022, he still acts as the mentor of the three co-chief investors of the firm. Dalio has no plans of returning to the firm and plans to keep running his family office and focus on his mentor role. Ray Dalio is also spending his time researching and monitoring the markets in addition to actively presenting his viewpoint on the current economic and political conditions on social media. As of November 4, Ray Dalio is worth $15.4 billion.

Bridgewater’s Performance Over the Years

Ray Dalio has found success in his investments since he was just 12 years old. By the time he graduated high school, he had already made several thousand dollars. His business acumen combined with his Harvard education has made Bridgewater Associates one of the largest and best performing hedge funds. By 2022, Bridgewater’s flagship fund, Pure Alpha II, posted an average annual return of 11.4% since its inception in 1991.

Moreover, Bridgewater Associates has been known to take advantage of major global economic events. For example, Ray Dalio predicted the Great Financial Crisis in 2006 and was well prepared for it. In 2008, Bridgewater Associates posted gains of 8.7% after fees, while the S&P 500 was down nearly 38.5%. In 2018, the firm impressed everyone once again when its flagship fund posted returns of 14.6% when other hedge funds lost 6.7% on average. In that year, it was reported that Dalio's personal compensation was around $2 billion. After the phenomenal gains, when asked how he managed such an incredible feat, he said in a LinkedIn post:

“I regret that I won’t be able to adequately provide it in this limited space (though I will eventually pass along the most important principles in my upcoming Economic & Investment Principles.) But I will pass along one important thought. If you are worried when the stock market goes down and happy when it goes up it probably indicates that your portfolio is unbalanced. If your income is also tied to how the economy does, you are doubly at risk because your portfolio can go down when your income is worst which is scary. Most people and companies are in that position and many make it even riskier by borrowing money to be in that position in an even bigger way. That’s what makes the financial rollercoaster ups and downs so big and dramatic. To me, the key is to not have any systematic biases by structuring your portfolios and your incomes so that they hedge each other and are in balance. Achieving good balance is the most important thing.”

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