We Study Billionaires - The Investor’s Podcast Network

RWH022: Multi-billionaire Masterclass w/ Ray Dalio

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Feb 19, 2023

William welcomes Ray Dalio, a titan in the investment world and founder of Bridgewater Associates. They discuss the essential habit of writing down personal principles for success. Ray shares insights on aligning personal strengths with collaboration, overcoming failures, and mastering pain as a growth tool. The conversation explores the intricacies of cryptocurrencies, effective investment strategies, and the importance of a growth mindset. Ray emphasizes the power of meditation and introspection in making sound decisions, crafting a fulfilling life, and navigating today’s complex economic landscape.

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ADVICE

Write Down Your Principles

Write down your decision-making criteria.
This process improves thinking and changes lives.

INSIGHT

Know Your Nature

Knowing your nature is crucial for success.
Match your nature with suitable paths to thrive.

ANECDOTE

Shaper and Details

Ray Dalio discovered he's a "shaper" who visualizes and builds.
He leverages others' strengths to compensate for his weakness in details.

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Richer, Wiser, Happier

How the World's Greatest Investors Win in Markets and Life

William Green

In Richer, Wiser, Happier, William Green draws on interviews conducted over twenty-five years with many of the world’s greatest investors. The book highlights that the most successful investors are mavericks and iconoclasts who question conventional wisdom and think rationally, rigorously, and objectively. They maximize their odds of long-term success in markets and life by drawing insights from diverse fields such as neuroscience, economic history, psychology, philosophy, and more. Green explains how these investors can teach us not only how to become rich but also how to improve our thinking, decision-making, risk assessment, and resilience, and how to turn uncertainty to our advantage.

Principles

Ray Dalio

In 'Principles: Life and Work', Ray Dalio shares the principles he has developed over his career that have helped him achieve success. The book is divided into three sections: the first section explains how Dalio's principles were formed from his personal and professional experiences; the second section outlines life principles, such as embracing reality, being radically open-minded, and understanding the importance of pain and reflection in personal growth; and the third section focuses on work principles, including the use of radical truth and radical transparency to transform an organization. Dalio advocates for systematizing decision-making into algorithms, learning from failures, and building a culture where it is okay to make mistakes but unacceptable not to learn from them.

Principles

Ray Dalio

William chats with Ray Dalio, one of the most successful investors of all time. Ray, whose net worth is estimated at $19.1 billion, founded the world’s largest hedge fund firm, Bridgewater Associates, which manages about $150 billion. He’s also the author of the #1 NYT bestseller “Principles: Life & Work,” which has sold over 4 million copies. Here, Ray shares invaluable lessons on how to develop your own principles for success, overcome your biggest obstacles, construct a resilient portfolio, invest wisely in China, think rationally about Bitcoin, & build a happy life that suits your personality. This is a true masterclass on investing & life.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:42 - How Ray Dalio’s habit of writing down his principles changed his life.

08:40 - Why it’s critical to understand yourself & find paths that suit your nature.

11:32 - What Ray discovered about his strengths, weaknesses, values, & motivations.

12:25 - How he succeeds by collaborating with people who are strong where he’s weak.

12:50 - What business leaders like Elon Musk, Bill Gates, & Reed Hastings have in common.

16:08 - How to convert your experiences into principles that will guide your decisions.

17:29 - What Ray learned about risk & survival after a disastrous investment mistake.

21:44 - How he taught himself to embrace pain, harnessing it to become a better investor.

26:59 - How meditation empowers him to make decisions in a calm & centered way.

31:32 - How to apply his five-step process for getting what you want out of life.

32:16 - How to improve your life by identifying the “one big thing” that stands in your way.

45:08 - How to combat your ego & your blind-spots.

47:23 - Why he’s comfortable investing billions in China, despite the uncertainties.

45:31 - How he balances risk & reward by seeking to own 15 “good, uncorrelated bets.”

52:00 - How regular investors can construct a well-diversified, resilient portfolio.

57:16 - What we should learn from the bubble & bust of high-tech stocks & crypto.

1:01:39 - Why he’s deeply skeptical about Bitcoin.

1:05:43 - How economies are driven by credit cycles, & where the U.S. stands in this cycle.

1:18:13 - How to prepare for the future by knowing where you are in the three phases of life.

1:23:57 - Why Ray is becoming more spiritual in the third & final phase of his life.

1:33:18 - Why he’s happy to cede control of his investment firm to a new generation of leaders.

1:38:10 - Why Ray sees ocean exploration, not space exploration, as the greatest adventure of all.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Listen to William Green's 2022 interview with Ray Dalio, The Changing World Order - TIP410, or watch the video.
Principles: Your Guided Journal by Ray Dalio.
Principles: Life and Work by Ray Dalio.
Ray Dalio’s animated video on How the Economic Machine Works.
Ray Dalio’s animated video on Principles for Success.
Ray Dalio’s animated video on Principles for Dealing with the Changing World Order.
Follow Ray Dalio on LinkedIn.
Take the free PrinciplesYou personality assessment test.
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
Follow William Green on Twitter.

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