October 11, 2018

What Can A Financial Crisis Lead To?

"It should now be clear to everyone that this is not just a trade war. Where exactly this broader confrontation/war leads is unknown to anyone, including the policy makers who are setting policy." - Ray Dalio

October 2, 2018

Explaining How Debt Crisis Happen

I'm at a stage of my life that I want to pass along the principles that helped me. This was really research that was done before the 2008 financial crisis and it lays out a template of how these things happen over and over again. In other words, I believe that same things happen over and over again and if you study the patterns of them you understand the cause-effect relationships and then can write down principles for dealing with them well.

September 18, 2018

Video: The Next Financial Crisis Will Look Different

Ray Dalio, hedge fund manager, discusses his new book, "A Template for Understanding Big Debt Crises," and discusses where we are in the debt cycle and when can we expect another downturn, recession or financial crisis.

The Next Crisis Will Be More Difficult To Handle

I think that the next downturn is going to be a different type of downturn. I think pension problems, healthcare problems in terms of obligations that are not funded. Next time I think it'll be more severe in terms of the social political problems and I think it'll be more difficult to handle.

September 13, 2018

Video: Emerging Markets Crisis

Ray Dalio gives his take on the current crisis in Emerging Markets like Turkey and Argentina and explains his expectations for the next economic downturn.

September 6, 2018

Embrace Reality and Deal With It

The path you take in life is your most important decision. In my case, I wanted my life to be great and I feared boredom and mediocrity more than I feared failure.

Since I didn't start out with money, and I didn't need much more than a bed to sleep in and food to eat, I could skew my decisions to pursue my adventures. So ever since I was a kid, I ran after the things I wanted, crashed, got up and ran again, and crashed again. And each time I crashed I learned something, got better, and crashed less. By doing that over and over again, I learned to love this process, even the crashing part of it. Through it, I encountered reality, and I learned how to deal with it, which inspired another one of my most fundamental principles which is that truth is the essential foundation for producing good outcomes. By truth, I don't mean anything more than the way the world works.

I believe that we were given the laws of reality by nature. Humans didn't create them, but we can use them to foster our own evolution and achieve our goals. Realizing that made me a hyperrealist, by which I mean I became someone who has discovered the great rewards of deeply understanding, accepting, and working with reality as it is and not as I wish it would be. 

When I say I'm a hyperrealist, people sometimes think I'm saying that dreams can't come true. That's absolutely not true. Without pursuing dreams, life is mundane. What I mean is that to me, hyperrealism is the best way to choose one's dreams and then achieve them. Having big dreams plus embracing reality plus having lots of determination will bring you a successful life. 

I believe this formula is true for everyone, but what does a successful life look like? 

We each have to decide for ourselves what success is. I don't care whether you want to be a master of the universe or to live under a palm tree or anything else. I really don't. Each of us chooses goals based on our values and decides on the best path to achieve them, but we all need approaches to making decisions that work well, especially when facing problems, mistakes, and weaknesses that stand in our way. 

To succeed, we must embrace all our realities, especially the harsh realities that we wish weren't true. At first, looking at these harsh realities caused me a lot of pain, but I learned that this pain was just psychological and that by seeing things differently made all the difference. I came to view problems like puzzles that would reward me if I could solve them. They would help me deal with the problem at hand, and they would give me principles for dealing with similar problems in the future. 

I learned to treat pain as a cue that a great learning opportunity is at hand, which led me to realize that pain plus reflection equals progress. Meditation has been invaluable in helping me see things that way. I found that when I calmed myself down and embraced my realities and dealt with them, the rewards brought me pleasure and the pain faded. Each of us has the unique capability to think logically to reflect on ourselves and our circumstances and to direct our own personal evolution. Doing this well is just a matter of following a simple five-step process. 

September 5, 2018

Principle Of The Day: 3.3 - Thoughtful Disagreement

Principle of the Day: Life Principle 3.3 - Appreciate the Art of Thoughtful Disagreement

"When two people believe opposite things, chances are that one of them is wrong. It pays to find out if that someone is you. That’s why I believe you must appreciate and develop the art of thoughtful disagreement. In thoughtful disagreement, your goal is not to convince the other party that you are right—it is to find out which view is true and decide what to do about it."

September 3, 2018

Principle Of The Day: 3.2f - Looking For The Best Answer

The answer doesn’t have to be in your head; you can look outside yourself:
"Remember that you’re looking for the best answer, not simply the best answer that you can come up with yourself."

August 31, 2018

Principle Of The Day: 3.2b - Decision Making Is a Two-Step Process

Recognize that decision making is a two-step process: First take in all the relevant information, then decide.

August 30, 2018

Principles: Reasons For Making A Decision

I started Bridgewater out of a two-bedroom apartment in 1975 and I've brought it to where it is now ( according to Fortune, it's the 5th most important private company in the United States). It's been successful, it's been good and my objective at this particular stage is to help others be successful without me. I learned along the way certain principles: every time I would make a decision I would write down the reasons why I would make that decision and I put them out, I debated them and I developed these principles. So think about principles as just being these reasons for making a decision if you're in a situation how do you deal with it.

Precious Metals: Dalio’s Bridgewater Keeps Faith in Gold Despite Its Slide

Read Dalio’s latest comment on precious metals and particularly gold on this Bloomberg.com article: 

"Dalio’s Bridgewater Associates maintained its 3.9 million shares in GLD, and 11.3 million in iShares Gold Trust, the second-largest, according to regulatory filings." - in Bloomberg.com

Related trading instruments: SPDR Gold Trust (GLD)

August 28, 2018

Achieving Your Goals

Your choice of goals will determine your direction. Read Dalio's thoughts on how goal setting might improve your career and your life:

August 27, 2018

Principles: Managing Teams

Ray Dalio is the author of 'Principles: Life and Work,' which is a best selling book that guided companies on how to develop and evolve them to become successful. Back in September 2017 when the book was released, both Head Coach Dan Quinn and Head Coach Erik Spoelstra of the Miami Heat read and studied "Principles" to help guide their coaching and leadership down a successful path.

August 24, 2018

The Secrets Of Dalio's Mind

In the book Bridgewater Associates founder Ray Dalio is sharing his principles that helped him to create a company that manages $150 billion in global investments. All of this is because of his core principles set over the years. Now everyone of us can read about these principles and can apply them to their own life. This is a short video in which we will share with you some of the most useful advice we have found in the book.

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