June 8, 2018

Bitcoin: Is It a Currency?

There are two things that are required for a currency. The first is that you can make transactions in it, it's a medium of exchange and the second thing is that it's a storage of wealth. Those would be the two purposes of a currency.

Bitcoin today, you really can't make much transactions in it and in terms of a storage of wealth it's not an effective storage of wealth because it's it has a volatility to it unlike gold. Bitcoin is a highly speculative market.

May 25, 2018

Principles Are Smart Ways For Handling Things

Early on I discovered I needed principles. Principles are smart ways for handling things that happen over and over again in similar situations. There are principles for everything from skiing to parenting to cooking and so on.

I'm going to share some of my most important overarching life principles that influence how we approach everything. I didn't start out with principles, I acquired them over a lifetime of experiences mostly from making mistakes and reflecting on them. 

My life principles are simple but they're not complete I still struggle to make the best decisions and I still make mistakes and learn new principles all the time. This is the reality.

May 17, 2018

May 15, 2018

Principles For Success

Before we begin let me just establish the fact that I don't know much relative to what I need to know whatever success I've had in life has more to do with my knowing how to deal with my not knowing than anything I know.

(an excerpt from Principles for Success: The Call to Adventure, Episode 1)

Episode 1: The Call to Adventure

Principles For Success, an ultra mini-series adventure in 30 minutes and in eight episodes. 

Episode 1: The Call to Adventure

May 14, 2018

Video: Ray Dalio @ Google Talks

Ray Dalio talks at Google about his book "Principles: Life and Work."

April 26, 2018

The Greatest Mistake Of The Individual Investor

The greatest mistake of the individual investor is to think that a market that did well is a good market rather than a more expensive market. And that a market that did badly is a worse market ... rather than a cheaper market. - in CNBC

December 21, 2017

Principles: Animated Version

Ray Dalio has a net worth of over 17 billion dollars and has been named one of the most influential people in the world.

How did that come to be?

His story starts when he was 12 years old, when he wanted to earn some extra money and became a golf caddie. He overheard people talking about stocks and he ended up investing $300 dollars in stocks and ended up tripling his money shortly thereafter.

During this young age he learned many valuable lessons such as:

Lesson #1: Be an independent thinker. With trading stocks you have to think independently because the price is dictated by the consensus and this idea applies to all of Ray's life and is a really useful idea for him.

Lesson #2: Don't be overconfident.  Make sure you always stress test your ideas and seek smart people to challenge your ideas because some mistakes could be very costly.

Lesson #3: Maturity is the idea of rejecting good opportunities to take even better ones.

Lesson #4: Be radically transparent and open. By doing this the best ideas come to the top and you can really understand how people operate and what motivates them.

Lesson #5: Embrace idea meritocracy. This way everyone has the ability to help influence the group's decisions. Those that are most credible or believable have the most weight in their votes.

Ray Dalio recently wrote a book, Principles where he outlines a lot of his best ideas that he's used to make decisions in his work and life and if these ideas interest you I highly recommend you check it out.

October 26, 2017

Video: Is A Bear Market In Stocks Coming?

Ray Dalio discussed the possibilities for a bear market in U.S. stocks with Bloomberg's Tom Keene on Bloomberg Radio.

Related trading instruments: SPDR S&P 500 ETF Trust(NYSEARCA:SPY), PowerShares QQQ Trust, Series 1 (ETF)(NASDAQ:QQQ), iShares Russell 2000 Index (ETF)(NYSEARCA:IWM), SPDR Dow Jones Industrial Average ETF(NYSEARCA:DIA)

October 25, 2017

Alpha Is a Zero-Sum Game

Alpha is a zero-sum game. I think the for any manager the amount that they have is a function really of almost how much they transact. I think we have the most capacity because we deal in all liquid markets in the world, I mean not only stocks, bonds, currencies, commodities, everything that's liquid and we tend to move very slowly in those positions we take.