How To Build A Unshakable Stock Portfolio: Ray Dalio

Ray Dalio is the hedge fund manager at the world’s largest hedge fund Bridgewater Associates. Under Bridgewater Ray Dalio manages around $123.5 billion. Dalio always tries to protect his clients’ wealth by diversifying their wealth into many asset classes.

Dalio says that the main key to success as an individual investor is to know how to diversify well & in a balanced way. One of the things that Dalio is best at is not losing money from his clients.

“There are many ways to diversify. Some of the biggest & most important ones are across asset classes, sectors, currencies, countries & investment styles like small cap, growth, etc.”

Ray Dalio

When he is talking about asset classes the main thing he is talking about is stocks & bonds. If we look at Ray Dalio’s all-weather portfolio he has the largest portion of his fund in bonds. 40% in long-term bonds & 15% in intermediate-term bonds.

When it comes to stocks Bridgewater adds up to 30% of its. When it comes to stocks he likes to diversify it too. Bridgewater owns many ETFs. The main ETF Bridgewater owns is the S&P 500. He also owns the Vanguard Emerging Markets ETF. These ETFs help him to diversify his stock portfolio all around the world.

As Dalio believes diversifying well is the most important thing you need to do to invest well. When it comes to diversification Dalio is a huge fan of Gold. Unlike Warren Buffett or Charlie Munger, Ray Dalio has allocated 7.5% of his fund to Gold. Gold is a historically proven hedge against hyperinflation. When the stock market crashes gold holds its value & can be used as a protection.