Billionaire Ray Dalio bets 3 shares of “Strong Buying”
When billionaire billionaire Ray Dalio pulls the move, Wall Street pays attention. Dalio, who began work on the floor of the New York Mercantile Exchange, founded the world’s largest hedge fund, Bridgewater Associates, in 1975. With a firm that manages global investments of about $ 140 billion and Dali’s net worth of $ 17 billion, it has gained legendary status on Wall Street. Summing up his success, Dalio has three tips for investors. First, diversify. Keeping a wide range of stocks in a multi-sector portfolio is the safest way to invest well. Second, don’t think that growing markets will grow forever. This is Dalí’s variation of the old saw that the previous effect does not guarantee future returns. Dalio will tell you that all the strong past returns are really a guarantee of the current high price. Finally, Dalio tells investors, “Do the opposite of what your instincts are.” In other words, do not follow the herd, because such thinking often leads to suboptimal results. In our search for Dalio to invest in inspiration, we used the TipRanks database to find out if the three stocks the billionaire recently added to the fund represent striking performances. According to the platform, the analytical community believes they are, all selections have earned a consensus rating of “Strong Buying”. Linde PLC (LIN) The first new position is in Linde, the world’s largest industrial gas production company, in terms of revenue or market share. Linde produces a range of gases for industrial use and is the dominant supplier of argon, nitrogen, oxygen and hydrogen, along with gases such as carbon dioxide for the soft drinks industry. The company also manufactures gas storage and transmission equipment, welding equipment and refrigerants. In short, Linde embodies Dali’s saying about “diversification”. Linde’s industry leadership and core products helped the company recover from the corona crisis. The company’s revenue slipped in the first half of the year, but rose in the second half, reaching pre-corona levels in Q3 and surpassing them in Q4. In confidence, the company kept its dividend stable throughout the “crown year” at 96 cents a share – in a recent Q1 statement, Linde increased its payout to $ 1.06 a share. That amounts to $ 4.24 per year and yields 1.7%. The key thing here is not a modest return, but the company’s confidence in the security of its positions, which allows it to maintain a stable dividend at a time when many colleagues are reducing profit sharing. So it’s no wonder an investor like Dalio would be interested in a company like Linde. The billionaire fund picked up 20,149 shares during the fourth quarter, worth $ 5.05 million at current prices. Assessing Linde for BMO, analyst John McNulty expresses his confidence in Linde’s current performance. “LIN continues to apply its growth strategy to encourage solid double-digit earnings growth, especially without the need for further macro improvement. In our opinion, the 11-13% management guide for 2021 remains conservative guided by its future projects, continuous pricing, profits in efficiency and solid buyouts with a strong balance sheet and cash flows.Furthermore, the solid position of FCF provides them with a lot of dry powder for mergers and acquisitions, deductions, etc. We believe LIN is ready to continue to surprise investors and outperform the wider group even on cyclical market, the largest global industrial gas company, “McNulty said. Consistent with his bull comments, McNulty rates LIN as a purchase, and its $ 320 price represents growth of ~ 28% for next year. (To view McNulty’s record, click here) Wall Street analysts broadly agree on the quality of Linda’s stock, as shown by 15 Buy reviews that over-balance 3 retentions. This gives stocks a consensus rating by Strong Buy analysts. The stock is worth $ 250.88, and their average target price of $ 295.73 suggests they are expected to grow by ~ 18%. (See LIN stock analysis on TipRanks) BlackRock (BLK) The next largest asset manager in the world. BlackRock has over $ 8.67 trillion in assets under management. The company is one of the dominant index funds on the U.S. financial scene, and last year recorded revenue of $ 16.2 billion, with net income of $ 4.9 billion. BlackRock’s recent Q4 report shows its strength, as much as numbers can. EPS achieved $ 10.02 per share, a sequential gain of 12% and a profit of 20% compared to last year. Quarterly revenue of $ 4.8 billion was up 17% year-over-year. The full annual line grew by 11% compared to 2019. BlackRock achieved all this even when the corona crisis flattened the economy in the first half of the year. In the first quarter of this year, BlackRock declared a regular quarterly dividend and increased the payout by 13% to $ 4.13 per ordinary share. With an annual payment of $ 16.52, this yields a yield of 2.3%. The company has kept the dividend reliable for the past 12 years. Not wanting to miss an attractive opportunity, Dalio’s fund pulled the trigger on 19,917 shares, giving him a new position at BLK. The value of this new addition? More than $ 14 million. Covering BLK for Deutsche Bank, analyst Brian Bedell writes: “We believe fourth-quarter results are very good with strong long-term net inflows into its products, which we expect to continue, despite a one-off outflow of low-fee pension funds of $ 55 billion dollar index assets expected in the first half of the 21st year, which is said to have a minimal impact on basic fee income. In addition, total net inflows led to an annual growth of organic base management fees of 13%, a quarterly record, at an annual long-term organic growth of AuM of 7%. We expect that the growth of basic organic fees will exceed the organic growth of AuM coming in 2021, driven by a combination of flows so far overshadowed by higher fee rates. “To that end, Bedell rates BLK’s purchase, and its $ 837 target suggests that the stock is up ~ 18%.” (To view Bedell’s records, click here) Analysts’ consensus tells a very similar story. BLK has been in the last three received 6 ratings to buy, against one hold – a clear sign that analysts are impressed with the company’s potential.The shares are being sold at a price of $ 710.11, and the average price of $ 832.17 gives the shares a growth potential of 17%. BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a leading name in the pharmaceutical industry, a manufacturer of Humira, an anti-inflammatory agent used to treat a wide range of chronic diseases, including rheumatoid arthritis, Crohn’s disease and psoriasis. The company’s immune drugs, Skyrizi and Rinvoq, were approved by the FDA in 2019 as a treatment for psoriasis and rheumatoid arthritis, and last year they recorded a total sales of 2.3 billion dollars. AbbVie expects these drugs to ‘fill the gap’ in profits when Humira patents expire in 2023, with sales up to $ 15 billion by 2025. Humira is currently the main driver of AbbVie’s immune portfolio and provides $ 19.8 billion of $ 22.2 billion. dollars portfolio of billions of annual revenues and a significant portion of the company’s total sales. For the full year 2020, in all departments, AbbVie generated revenue of $ 45.8 billion, with adjusted diluted EPS of $ 10.56. In addition to the high-profile anti-inflammatory line, AbbVie also has a ‘stable’ long-established drug on the market. As an example, the company owns Depakote, a common seizure medication. AbbVie also maintains an active research pipeline, with a multitude of drug candidates undergoing studies in the disciplines of immunology, neuroscience, oncology and virology. For investors, AbbVie has a long-standing commitment to returning profits to shareholders. The company has an eight-year history of keeping a reliable – and growing – dividend. In the latest statement released this month for the May payout, AbbVie raised its dividend by 10% to $ 1.30 per ordinary share. At an annual rate of $ 5.20, it yields 4.9%. Once again, we look at stocks that embody some of Dalí’s advice. Pulling the trigger on ABBV in the fourth quarter, Dali’s firm bought 25,294 shares. According to current estimates, this is worth $ 2.66 million. Leerink analyst Geoffrey Porges covers ABBV and is impressed with the way the company is preparing in advance for the loss of American exclusivity on its best-selling product. “Between the growth trajectory of ABBV’s former Humir portfolio and the broad catalyst portfolio in early, middle and late assets, it is difficult to find a biofarm company that would be better positioned, even with their sudden loss. ABBV is prepared for 2023 and has growth drivers that will drive better than the average growth at the top and bottom of the line in the period before (2021-2022) and after (2024-2028) 2023, “said Porges. Porges gives ABBV a better rating (i.e. Buy) and sets a target price of $ 140 which indicates space for a 33% one-year reward. (To view Porges records, click here) There are a total of 10 reviews of ABBV shares, 9 of which need to be bought – a margin that makes up analysts ’consensus with a Strong Buy rating. The stock is trading at $ 105.01 and has an average target price of $ 122.60. This suggests a growth of ~ 17% in the next 12 months. (See ABBV stock analysis on TipRanks) To find good stock trading ideas at attractive estimates, visit TipRanks ‘Best Stocks to Buy’, a newly launched tool that brings together all the insights into TipRanks equity. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.