3 Ray Dalio Stocks That Can Survive the Next Market Crash

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  • All three companies have solid resilience and high adaptability, making them potential survivors of market crashes.
  • Walmart (WMT): Achieves high performance with solid revenue and operating income growth.
  • McDonald’s (MCD): Reports constant comparable sales growth and revenue expansion, emphasizing effective strategies.
  • Starbucks (SBUX): Has aggressive global expansion plans and progressive digital engagement initiatives.
Ray Dalio Stock Picks - 3 Ray Dalio Stocks That Can Survive the Next Market Crash

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Investors want stability as much as prosperity in the constantly shifting stock market. The investment philosophy of renowned investor Ray Dalio is highly respected. Because of his emphasis on stability, his method is especially applicable in market turbulence. Three enduring companies stand below.

The first one leads in the consumer staple market. Due to its recession-proof business model, the company aligns with legendary investors’ principles and fits the all-weather portfolio. The second one demonstrates its skill at adjusting to changing consumer tastes and market conditions, as consumers do not change preferences for fast food in a recession. Finally, the third one establishes itself as a leader by establishing strong community branding. It holds a solid moat in consumption influenced by trends.

Certainly, Bridgewater Associates‘ substantial holdings in these companies strategically align with the investment values of its founder, Ray Dalio. Each exhibits resilience that surpasses economic uncertainty, whether it’s the first one’s progressive entry into e-commerce, the second one’s focus on customer loyalty programs, or the third one’s pursuit of worldwide market share.

Walmart (WMT)

Walmart (WMT) logo on a store front
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Dalio’s emphasis on market stability aligns with Walmart’s (NYSE:WMT) strong financials and flexibility. Bridgewater Associates, founded by Ray Dalio, holds 2,543,789 shares, reflecting 2.2% of the total portfolio as of the end of 2023.

In detail, the company’s performance demonstrates its solid market position, reflecting considerable sales growth of 5.7% in the fourth quarter and 6.0% for the whole year. Furthermore, adjusted operating income increased notably, rising 10.2% for 2023 and 13.2% for Q4. Hence, this demonstrates its capacity to manage its operations and seize market opportunities efficiently.

Additionally, Walmart surpassed $100 billion in sales for 2023 with a 23% increase in worldwide e-commerce during the fourth quarter. Walmart has demonstrated its core edge in adjusting to shifting consumer tastes and progressively using online channels to boost sales, as seen by the notable increase in e-commerce.

Finally, Walmart increased its market share locally and abroad, reflecting the company’s sharpness in drawing in customers and maintaining a competitive edge. Thus, the comp sales increased by 4% in Walmart’s U.S. operations, and there was an improvement in unit volume and market share in the two categories of grocery and general goods.

McDonald’s (MCD)

McDonald's restaurant in Thailand.
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McDonald’s (NYSE:MCD) long-term growth and customer-centric focus adhere to Dalio’s philosophy. Bridgewater Associates owns 1,355,664 shares in McDonald’s, representing 2.3% of its portfolio value (2023).

With growth running at 30% over the past four years, McDonald’s comparable sales increased positively for the thirteenth quarter in a row. Growth in comparable sales has been stable due to high consumer demand for McDonald’s products.

Further, the year’s first quarter generated over $6 billion in total revenues. This is a more than 4% increase in constant currencies over the previous year. Sales across the board rose by 3% in constant currency. The rise in revenues and systemwide sales shows the expansion of McDonald’s business operations, deriving more income streams with long-term viability.

Likewise, over $6 billion was sold to loyalty members across 50 reward markets during the quarter, accounting for over $25 billion in systemwide sales throughout the previous 12 months. Therefore, the noteworthy contribution of loyalty members to overall system sales demonstrates the efficacy of McDonald’s digital engagement techniques.

Starbucks (SBUX)

the Starbucks (SBUX) logo on a sign outside of a coffee shop
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As of 2023, 1.3% of Bridgewater Associates’ portfolio is made up of 2,419,064 shares of Starbucks (NASDAQ:SBUX). Its worldwide expansion and digital activities reflect Dalio’s forward-thinking outlook.

For instance, the company plans to design and construct over 3,000 new locations globally this year, demonstrating its Solid store development capabilities. The company has the potential for rapid expansion, leveraging good unit economics and high incrementality. Moreover, Starbucks has a strategy of adding new stores and increasing revenue in key regions. These include Latin America, Asia Pacific, and Japan, positioning the company to edge on market demand possibilities.

Additionally, Starbucks has heavily invested in digital efforts to improve consumer engagement and increase top-line. These efforts include the Rewards program and mobile app. Starbucks adapts to changing consumer tastes and habits using digital platforms like mobile order and pay (MOP), accounting for 31% of all transactions in the U.S. Hence, this gives the company a structural edge to capture market opportunities.

Overall, the company can quickly adapt to changing customer preferences and industry trends by introducing new food and beverage flavors.

As of this writing, Yiannis Zourmpanos held a long position in SBUX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.


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