Image source – CNBC

Ray Dalio is considered one of the greatest investors of all time. The American hedge fund manager is the founder of Bridgewater Associates, one of the world’s largest hedge funds with $150 billion dollars assets under management in 2016.

At the age of 12 is when Dalio began to invest. He first bought shares of Northeast Airlines for $300 which he tripled his investment. Later he received a bachelor’s degree in finance from Long Island University and also an MBA from Harvard business school.  Soon after graduated he worked on the floor of the New York Stock Exchange investing in commodity futures. From there he worked at Dominick & Dominick LLC, Shearson Hayden Stone. In 1975 he founded Wesport, Connecticut based investment management firm.

In 2012, Dalio was featured in the Times 100 list of 100 most influential people in the world.

Dalio is worth $15.9 billion USD according to Forbes making him the 69th richest person in the world.

Ray Dalio quotes

1. “School typically doesn’t prepare young people for real life — unless their lives are spent following instructions and pleasing others. In my opinion, that’s why so many students who succeed in school fail in life.”

2. “Don’t be a perfectionist, because perfectionists often spend too much time on little differences at the margins at the expense of other big, important things. Be an effective imperfectionist.”

3. “Success is achieved by people who deeply understand reality and know how to use it to get what they want. The converse is also true: idealists who are not well-grounded in reality create problems, not progress.”

4. “The best advice I can give you is to ask yourself what do you want, then ask ‘what is true’ – and then ask yourself ‘what should be done about it.’ I believe that if you do this you will move much faster towards what you want to get out of life than if you don’t!”

5. “I believe that understanding what is good is obtained by looking at the way the world works and figuring out how to operate in harmony with it to help it evolve.”

6. “Principles are concepts that can be applied over and over again in similar circumstances as distinct from narrow answers to specific questions. Every game has principles that successful players master to achieve winning results. So does life. Principles are ways of successfully dealing with the laws of nature or the laws of life. Those who understand more of them and understand them well know how to interact with the world more effectively than those who know fewer of them or know them less well.”

7. “Never say anything about a person you wouldn’t say to them directly, and don’t try people without accusing them to their face. Badmouthing people behind their backs shows a serious lack of integrity and is counterproductive. It doesn’t yield any beneficial change, and it subverts both the people you are badmouthing and the environment as a whole.”

8. “If you can stare hard at your problems, they almost always shrink or disappear, because you almost always find a better way of dealing with them than if you don’t face them head on. The more difficult the problem, the more important it is that you stare at it and deal with it.”

9. “Life is like a game where you seek to overcome the obstacles that stand in the way of achieving your goals. You get better at this game through practice. The game consists of a series of choices that have consequences. You can’t stop the problems and choices from coming at you, so it’s better to learn how to deal with them.”

10. “Success comes from knowing what you don’t know, more than coming from what you do know.”

11. “Mistakes are the path to progress.”

12. “For every mistake that you learn from you will save thousands of similar mistakes in the future, so if you treat mistakes as learning opportunities that yield rapid improvements you should be excited by them. But if you treat them as bad things, you will make yourself and others miserable, and you won’t grow.”

13. “Not being controlled by an emotion helps to see things at a higher level.”

14. “Don’t worry about looking good – worry about achieving your goals.”

15. “People who worry about looking good typically hide what they don’t know and hide their weaknesses, so they never learn how to properly deal with them and these weaknesses remain impediments in the future.”

16. “To test if you are worrying too much about looking good, observe how you feel when you find out you’ve made a mistake or don’t know something.”

17. “People who confuse what they wish were true with what is really true create distorted pictures of reality that make it impossible for them to make the best choices.”

18. “Know what you don’t know. Be comfortable with understanding your mistakes and weaknesses.”

19. “It is far more common for people to allow ego to stand in the way of learning.”

20. “The greatest tragedy of mankind, is people who have opinions that are wrong.”

Below: Ray Dalio on how the economy works 

21. “Do not feel bad about your mistakes or those of others. Love them! Remember that one: they are to be expected; two: they’re the first and most essential part of the learning process; and three: feeling bad about them will prevent you from getting better.”

22. “To make money in the markets, you have to think independently and be humble.”

23. “The more you think you know, the more closed-minded you’ll be.”

24. “When you think that it’s too hard, remember that in the long run, doing the things that will make you successful is a lot easier than being unsuccessful.”

25. “More than anything else, what differentiates people who live up to their potential from those who don’t is a willingness to look at themselves and others objectively.”

26. “The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment.”

27. “Every time you have pain, it’s in indication that something’s at odds.”

28. “People with good work habits have to-do lists that are reasonably prioritized, and they make themselves do what needs to be done. By contrast, people with poor work habits almost randomly react to the stuff that comes at them, or they can’t bring themselves to do the things they need to do but don’t like to do (or are unable to do).”

29. “Be wary of the arrogant intellectual who comments from the stands without having played on the field.”

30. “I believe there are an infinite number of laws of the universe and that all progress or dreams achieved come from operating in a way that’s consistent with them. These laws and the principles of how to operate in harmony with them have always existed. We were given these laws by nature. Man didn’t and can’t make them up. He can only hope to understand them and use them to get what he wants.”

31. “Experience creates internalization. A huge difference exists between memory-based “book” learning and hands-on, internalized learning. A medical student who has “learned” to perform an operation in his medical school class has not learned it in the same way as a doctor who has already conducted several operations. In the first case, the learning is stored in the conscious mind, and the medical student draws on his memory bank to remember what he has learned. In the second case, what the doctor has learned through hands-on experience is stored in the subconscious mind and pops up without his consciously recalling it from the memory bank.”

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Allen Byre

Posted by Allen Byre

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