Principle Of The Day: An Accurate Understanding Of Reality

Most people fight seeing what’s true when it’s not what they want it to be. That’s bad, because it is more important to understand and deal with the bad stuff since the good stuff will take care of itself.

Principle Of The Day: A Successful Life

People who achieve success and drive progress deeply understand the cause-effect relationships that govern reality and have principles for using them to get what they want. The converse is also true: Idealists who are not well grounded in reality create problems, not progress. 

What does a successful life look like? We all have our own deep-seated needs, so we each have to decide for ourselves what success is. I don’t care whether you want to be a master of the universe, a couch potato, or anything else—I really don’t. Some people want to change the world and others want to operate in simple harmony with it and savor life. Neither is better. Each of us needs to decide what we value most and choose the paths we take to achieve it.

Principle Of The Day: Be A Hyperrealist

Understanding, accepting, and working with reality is both practical and beautiful. I have become so much of a hyperrealist that I’ve learned to appreciate the beauty of all realities, even harsh ones, and have come to despise impractical idealism. 

Don’t get me wrong: I believe in making dreams happen. To me, there’s nothing better in life than doing that. The pursuit of dreams is what gives life its flavor. My point is that people who create great things aren’t idle dreamers: They are totally grounded in reality. Being hyperrealistic will help you choose your dreams wisely and then achieve them.

"Listening to uninformed people is worse than having no answers at all." 
- Ray Dalio

Principle Of The Day: Embrace Reality

There is nothing more important than understanding how reality works and how to deal with it. The state of mind you bring to this process makes all the difference. I have found it helpful to think of my life as if it were a game in which each problem I face is a puzzle I need to solve. By solving the puzzle, I get a gem in the form of a principle that helps me avoid the same sort of problem in the future. Collecting these gems continually improves my decision making, so I am able to ascend to higher and higher levels of play in which the game gets harder and the stakes become ever greater.

What It Means to Be Principled and Why You Need to Do It

Having clearly written down principles = being crystal clear about what you stand for and how you will behave in various circumstances = having integrity = building trust = knowing your direction = being effective. It’s all about eliminating duality and having consistency of what you say you will do and what you actually do, regardless of who you are with and regardless of whether or not people are looking, and accomplishing what you set out to do. Being radically truthful and radically transparent is invaluable for doing that because it demonstrates that you are doing this and it holds you accountable for doing it. 

While I wrote my principles down, I urge you to have and write down your own principles, feeling free to take anyone’s you like. To help you do that, I’m planning to share one of mine or one of someone else’s every day over the next year or so. I’d like you to ask me questions about them here and then take them or leave them as you see fit. I will also be taking the best posts of people who are participating in this exercise and will share them with people more broadly. It should be fun and productive.

Work Principle Of The Day: See Things From The Higher Level

You are expected to go to the higher level and look down on yourself and others as part of a system. In other words, you must get out of your own head, consider your views as just some among many, and look down on the full array of points of view to assess them in an idea-meritocratic way rather than in your own possessive way. Seeing things from the higher level isn’t just seeing other people’s point of view; it’s also being able to see every situation, yourself & others as though you were looking down on them as an objective observer.

Work Principle Of The Day: Meritocracy vs Anarchy

Principle 6.4B: Never allow the idea meritocracy to slip into anarchy

In an idea meritocracy, there is bound to be more disagreement than in a typical organization, but when it’s taken to an extreme, arguing and nitpicking can undermine the idea meritocracy’s effectiveness.

Principle 2.1: Be loyal to the common mission

Be loyal to the common mission and not to anyone who is not operating consistently with it. Loyalty to specific people who are not in tight sync with the mission and how to achieve it will create factionalism and undermine the well-being of the community.

What It Means to Be Principled and Why You Need to Do It

Having clearly written down principles = being crystal clear about what you stand for and how you will behave in various circumstances = having integrity = building trust = knowing your direction = being effective. It’s all about eliminating duality and having consistency of what you say you will do and what you actually do, regardless of who you are with and regardless of whether or not people are looking, and accomplishing what you set out to do. Being radically truthful and radically transparent is invaluable for doing that because it demonstrates that you are doing this and it holds you accountable for doing it. 

While I wrote my principles down, I urge you to have and write down your own principles, feeling free to take anyone’s you like. To help you do that, I’m planning to share one of mine or one of someone else’s every day over the next year or so. I’d like you to ask me questions about them here and then take them or leave them as you see fit. I will also be taking the best posts of people who are participating in this exercise and will share them with people more broadly. It should be fun and productive.

Principle Of The Day (4.5A & 4.5B)

1 + 1 = 3

Two people who collaborate well will be about three times as effective as each of them operating independently, because each will see what the other might miss—plus they can leverage each other’s strengths while holding each other accountable to higher standards.

3 to 5 is more than 20.

Three to five smart, conceptual people seeking the right answers in an open-minded way will generally lead to the best answers. It may be tempting to convene a larger group, but having too many people collaborate is counterproductive even if the members of the larger group are smart and talented.

Principle Of The Day (4.6)

When you have alignment, cherish it. 

While there is nobody in the world who will share your point of view on everything, there are people who will share your most important values and the ways in which you choose to live them out. Make sure you end up with those people.

Principle Of The Day (4.7)

If you find you can't reconcile major differences - especially in values - consider wether the relationship is worth preserving. 

There are all kinds of different people in the world, many of whom value different kinds of things. If you find you can’t get in sync with some-one on shared values, you should consider whether that person is worth keeping in your life.

Ray Dalio: Building A Company Where The Best Ideas Win

Short Bio: Ray Dalio is an hedge fund manager, writer and philanthropist. Dalio founded Bridgewater Associates, currently one of the world's biggest hedge funds. His estimated net worth is around 18 billion dollars.

Video duration: 16m33s

In this video presentation at Ted Talks, Ray Dalio explained how he got started in trading the markets and how investors must act in order to become successful. Here are some of the highlights:

"When I was 12 years old I hated school but I fell in love with trading the markets."

"In order to be an effective investor one has to bet against the consensus and be right and it's not easy to bet against the census and be right when has the bet against the consensus and be right because the consensus is built into the price." 

"I made a lot of painful mistakes and with time my attitude about those mistakes began to change I began to think of them as puzzles that if I could solve the puzzles they would give me gems and the puzzles were what would I do differently in the future so I wouldn't make that painful mistake and the gems were principles that I would then write down so I would remember them that would help me in the future."

You can find Ray Dalio's books on Amazon:

Principles: Life and Work (2017)
Big Debt Crises (2018)