Shocking: Financier Ray Dalio unexpectedly offloads stocks in Nvidia and other companies.
Billionaire Investor Ray Dalio Shifts Portfolio, Sells Tech Stocks and Increases Holdings in Controversial Tech Giant
Ray Dalio, the acclaimed investor and founder of the world's largest hedge fund, Bridgewater Associates, has made significant changes to his portfolio, selling part of his stakes in tech giants like Nvidia and Microsoft, and investing instead in a somewhat contentious tech giant.
Dalio, 75, made his fortune by creating Bridgewater Associates in a small two-bedroom apartment in New York and growing it into a $171 billion powerhouse. His strategic prowess has not only benefited the company but also his personal wealth, making him a billionaire, according to "Forbes." Although he stepped down as CEO in 2017, he remains with the firm as a mentor, advisor, and holds a seat on the board, demonstrating his continued influence.
The recent disclosure of Dalio's portfolio at the end of 2024 reveals some intriguing changes. He significantly increased the SPDR S&P 500 ETF, the largest existing position in his portfolio, by a staggering 800 percent, indicating his confidence in the American economy. While the Alphabet stock was reduced by 17 percent, the decline in Apple and Microsoft stocks was more modest at 23 percent.
Interestingly, Dalio also added significantly to his positions in sectors outside tech, such as energy companies Vistra and Constellation Energy, and digital payment system PayPal.
Dalio's New Tech Bet: Tesla Stock
One of the most noteworthy changes in Dalio's portfolio is his newly acquired 153,000 shares of Tesla, the electric vehicle pioneer. Analysts are divided regarding this investment, with 13 recommending buying, 12 advising holding, and 10 suggesting selling. The mean price target is $340.50, which could represent a potential downside risk of approximately five percent.
He also bought new shares in cloud provider ServiceNow and biotech company Moderna. On the other hand, he completely divested from Micron Technology, Goldman Sachs, Electronic Arts, and Spotify.
A notable change: Dalio increased his stake in AT&T fivefold while selling nearly all his shares in Applied Materials.
These recent moves by Dalio suggest a prudent diversification strategy, possibly anticipating uncertainties in some tech stocks. His investments in renewable energy, digital payment systems, cloud technology, and Tesla indicate a bet on long-term growth areas. Investors should monitor Dalio's moves, as he has consistently shown a keen understanding of market dynamics.
Sources:
- "Boersenonline.de". Best of Billionaires Index. Retrieved December 31, 2024.
- Forbes. Ray Dalio. Retrieved December 31, 2024.
- "Investopedia.com". SPDR S&P 500 ETF (SPY). Retrieved December 31, 2024.
- Briefings.com. "Ray Dalio Sells Big Stakes in Tech Giants". Retrieved February 1, 2025.
- "Investopedia.com". Alibaba Group Holding Limited (BABA). Retrieved February 1, 2025.
- "Investopedia.com". Baidu, Inc. (BIDU). Retrieved February 1, 2025.
- "Investopedia.com". SPDR Gold Trust (GLD). Retrieved February 1, 2025.
Disclosure: The board and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Förtsch, has entered into direct and indirect positions in the following financial instruments mentioned in the publication, which could benefit from the potential price development resulting from the publication: Nvidia, Spotify, PayPal, AT&T. The author holds direct positions in the following financial instruments mentioned in the publication, which could benefit from the potential price development resulting from the publication: Nvidia, Microsoft. The price of the financial instruments is derived from an index as the underlying. Boersenmedien AG has developed this index and holds the rights to it. Boersenmedien AG has concluded a cooperation agreement with the issuer of the displayed securities, whereby it grants the issuer a license to use the index. In this respect, Boersenmedien AG receives remuneration from the issuer.
Ray Dalio, known for his investments in tech giants, has sold parts of his stakes in Nvidia and Microsoft while increasing holdings in a controversial tech giant, demonstrating a shift in his portfolio strategy. Additionally, Dalio, with a focus on long-term growth areas, has invested in Tesla, Tesla's electric vehicle pioneer, suggesting a bet on renewable energy.
