March 11, 2012

Ray Dalio Principles

Ray Dalio writes about his most fundamental life and management principles in his text titled "Ray Dalio Principles" which is required reading for all employees at Bridgewater. A major part of Bridgewater’s corporate culture is a relentless focus on the open discussion of mistakes and weaknesses.

Several gems of Ray Dalio Principles. Below is a link to the ‘Principles’ of Ray Dalio founder of Bridgewater Associates:

Ray Dalio Principles

- I remained wary about being overconfident, and I figured out how to effectively deal with my not knowing. I dealt with my not knowing by either continuing to gather information until I reached the point that I could be confident or by eliminating my exposure to the risks of not knowing.

- While most others seem to believe that learning what we are taught is the path to success, I believe that figuring out for yourself what you want and how to get it is a better path.

- How much do you let what you wish to be true stand in the way of seeing what is really true?

- How much do you worry about looking good relative to actually being good?

- The most important qualities for successfully diagnosing problems are logic, the ability to see multiple possibilities, and the willingness to touch people’s nerves to overcome the ego barriers that stand in the way of truth.

- Know what you want and stick to it if you believe it’s right, even if others want to take you in another direction.

- In a nutshell, this is the whole approach that I believe will work best for you—the best summary of what I want the people who are working with me to do in order to accomplish great things. I want you to work for yourself, to come up with independent opinions, to stress-test them, to be wary about being overconfident, and to reflect on the consequences of your decisions and constantly improve.

While most others seem to believe that mistakes are bad things, I believe mistakes are good things because I believe that most learning comes via making mistakes and reflecting on them. – Ray Dalio

Ray Dalio is an American businessman and founder of Bridgewater Associates. Bridgewater Associates has since attracted many clients including pension funds and is currently (as of January 2012) the largest hedge fund in the world with nearly $120 billion under management.