Warren Buffett (Trades, Portfolio) is widely considered the best investor, living or dead. Ray Dalio (Trades, Portfolio) is – verifiably – the best hedge fund manager.
The two titans have entirely different investing approaches. Buffett relies primarily on himself and partner Charlie Munger (Trades, Portfolio) to excavate ideas and limits Berkshire Hathaway's (BRK.A, Financial)(BRK.B, Financial)'s portfolio to a modest number of holdings. Dalio employs a host of analysts and quantitative traders to manage vast portfolios for numerous individual, institutional and sovereign clients. Yet both work with similar quantities of money. Buffett’s portfolio as of March 31 was valued at $199.48 billion; Dalio’s Bridgewater Associates had approximately $133 billion in assets under management as of Dec. 31.
Despite their differences, they held exactly five stocks in common as of first quarter-end, mostly in the financial sector. Buffett and Dalio agree on: Bank of America (BAC, Financial), Wells Fargo & Co. (WFC, Financial), US Bancorp (USB, Financial), Goldman Sachs (GS, Financial) and Southwestern Airlines (LUV, Financial).
Bank of America (BAC, Financial)
Warren Buffett (Trades, Portfolio) holds 896,167,600 shares of Bank of America, worth about 12.39% of his portfolio. Ray Dalio (Trades, Portfolio) owns 146,634 shares, accounting for 0.02% of the reported equity portfolio.
Bank of America Corp. has a market cap of $275.74 billion; its shares were traded around $29.00 Friday with a price-earnings ratio of 10.78 and price-sales ratio of 3.19. The trailing 12-month dividend yield of Bank of America Corp. is 2.08%. The forward dividend yield of Bank of America Corp. is 2.13%.
Wells Fargo & Co. (WFC, Financial)
Buffett has 409,803,773 Wells Fargo & Co. shares, giving it 9.93% portfolio weight. Dalio holds 18,426 Wells Fargo shares, at 0.01% portfolio weight.
Wells Fargo & Co. has a market cap of $212.67 billion; its shares were traded around $47.32 Friday with a price-earnings ratio of 10.48 and price-sales ratio of 2.63. The trailing 12-month dividend yield of Wells Fargo & Co. is 3.72%. The forward dividend yield of Wells Fargo & Co. is 3.89%.
Buffett’s US Bancorp stake totals 896,167,600 shares, or 3.12% of the portfolio. Dalio’s 12,238 shares equal less than 0.01% of the portfolio.
US Bancorp has a market cap of $83.42 billion; its shares were traded around $52.40 with a price-earnings ratio of 12.54 and price-sales ratio of 3.76. The trailing 12-month dividend yield of US Bancorp is 2.81%. The forward dividend yield of US Bancorp is 2.85%.
Buffett’s 18,353,635 shares of Goldman Sachs were worth 1.77% of the portfolio. Dalio’s holding consisted of 64,423 shares, occupying 0.08% portfolio space.
Goldman Sachs Group Inc. has a market cap of $74.85 billion; its shares were traded around $204.60 Friday with a price-earnings ratio of 8.51 and price-sales ratio of 2.44. The trailing 12-month dividend yield of Goldman Sachs Group Inc. is 1.60%. The forward dividend yield of Goldman Sachs Group Inc. is 1.71%.
Southwestern Airlines (LUV, Financial)
Buffett holds 53,649,213 shares of Southwest Airlines, giving it 1.4% portfolio weight. Dalio has purchased 119,439 of the airlines shares, equivalent to 0.04% of the portfolio.
Southwest Airlines Co. has a market cap of $27.58 billion; its shares were traded around $50.78 Friday with a price-earnings ratio of 12.02 and price-sales ratio of 1.28. The trailing 12-month dividend yield of Southwest Airlines Co. is 1.31%. The forward dividend yield of Southwest Airlines Co. is 1.42%. Southwest Airlines Co had an annual average earnings growth of 23.70% over the past 10 years. GuruFocus rated Southwest Airlines Co. the business predictability rank of 5-star.
See Warren Buffett (Trades, Portfolio)’s portfolio here. See Ray Dalio (Trades, Portfolio)’s portfolio here.
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