The Tim Ferriss Show #264: Ray Dalio, The Steve Jobs of Investing
Early Investing
- At 12, Ray Dalio bought a stock for under $5/share, thinking more shares meant more profit.
- The company nearly went bankrupt but was acquired, tripling his money and sparking his market interest.
1982 Setback
- In 1982, Ray Dalio predicted a depression after Mexico defaulted on its debt, leading him to make significant market positions.
- The market rose instead, causing substantial losses and forcing him to borrow money from his father.
Learning from Mistakes
- Ray Dalio emphasizes learning from mistakes, viewing them as puzzles that yield valuable principles.
- He advocates for reflecting on past errors to improve future decision-making.
Ray Dalio (@raydalio) grew up a middle-class kid from Long Island. He started his investment company Bridgewater Associates out of a two-bedroom apartment at age 26, and it now has roughly $160 billion in assets under management. Over 42 years, he has built Bridgewater into what Fortune considers the fifth most important private company in the U.S. Along the way, Dalio became one the 100 most influential people in the world (according to Time) and one of the 100 wealthiest people in the world (according to Forbes). Because of his unique investment principles that have changed industries, aiCIO Magazine called him "the Steve Jobs of investing." Ray believes his success is the result of principles he's learned, codified, and applied to his life and business. Those principles are detailed in his new book Principles: Life and Work. In this interview, we cover a lot, including: How Ray thinks about investment decisions, how he thinks about correlation, etc. The three books he would give to every graduating high school or college senior How he might assess cryptocurrency And much, much more... Enjoy! This podcast is brought to you by Four Sigmatic. I reached out to these Finnish entrepreneurs after a very talented acrobat introduced me to one of their products, which blew my mind (in the best way possible). It is mushroom coffee featuring chaga. It tastes like coffee, but there are only 40 milligrams of caffeine, so it has less than half of what you would find in a regular cup of coffee. I do not get any jitters, acid reflux, or any type of stomach burn. It put me on fire for an entire day, and I only had half of the packet. People are always asking me what I use for cognitive enhancement right now -- this is the answer. You can try it right now by going to foursigmatic.com/tim and using the code Tim to get 20 percent off your first order. If you are in the experimental mindset, I do not think you'll be disappointed. This podcast is brought to you by Athletic Greens. I get asked all the time, "If you could only use one supplement, what would it be?" My answer is, inevitably, Athletic Greens. It is my all-in-one nutritional insurance. I recommended it in The 4-Hour Body and did not get paid to do so. As a listener of The Tim Ferriss Show, you'll get 30 percent off your first order at AthleticGreens.com/Tim. Show notes and links for this episode can be found at tim.blog/podcast.
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