Ray Dalio Is One Smart MF'er
I’VE RECENTLY BEEN DELVING INTO THE WORLD OF RAY DALIO, ONE OF THE MOST ADVANCED FINANCIAL MINDS OF THE LAST HALF CENTURY. CURRENTLY READING PRINCIPLES IN WHICH HE LAYS OUT HIS ORIGIN STORY AND THE THEORETICAL PILLARS HE CONSTRUCTED TO BUILD THE SUCCESS OF BRIDEWATER ASSOCIATES.
I am always interested in origin stories as they provide a historical ledger for the formation of the building blocks of one’s journey. And often that journey is as equally intriguing as the destination.
Mr. Dalio’s principles and systems have not only made him wildly successful, but also informed millions on investing and management strategy. Bridgewater’s foresight via its unique analytical models allowed it to both predict and weather the 2008 financial crisis.
Beyond finance, Dalio’s principles serve as strong tenants for anyone in management and leadership. While being notoriously hard on employees, his ethos of firing or promoting quickly and a bedrock refusal to accept subpar work is undoubtedly what has driven the success of Bridgewater. It is interesting to read how making himself replaceable presented perhaps the largest challenge of all and, I believe, is one of the most difficult and important challenges that faces leaders across industries. Ego inherently fights the urge to make oneself redundant, but we must in order to relieve burdens and move on in our careers and lives.
Read the book, but equally important, take 30-minutes of your time and watch How the Economy Works in which Dalio explains the economy in a simplified, no BS way. Time is valuable and this lays out the base principles of economies at large in plain terms in just half an hour. Worth every minute.
Updated Bonus: Check out Dalio’s The Changing World Order video (45 mins) on the rise and fall of empire’s and where the US stands in relation to historical precedent (it’s not the best…).