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jerryking : ray_dalio   15

Bridgewater Founder Ray Dalio’s Next Investment
Oct. 13, 2017 | WSJ | By Alexandra Wolfe.

Ray Dalio, founder of Bridgewater Associates, believes in radical truthfulness. He lives by a mélange of maxims about being transparent and embracing reality. “Don’t filter.” “Don’t treat all opinions as equally valuable.” “Don’t ‘pick your battles.’ Fight them all.”

New book, “Principles: Life and Work,” a new 592-page tome about how to succeed. Truth is “the essential foundation for producing good outcomes.” He says it’s also the foundation on which he built Bridgewater, which manages $160 billion.
Ray_Dalio  Bridgewater  hedge_funds  values  truth-telling  transparency  tough_love  books 
october 2017 by jerryking
Ray Dalio and the Market’s Pulse
Sept. 24, 2017 | WSJ | By Andy Kessler

Has Ray Dalio lost the pulse? The founder of the $160 billion hedge fund Bridgewater Associates is all over the place spouting his management philosophy of radical transparency. .....The investment whiz lives and manages by a set of principles that employees have to memorize. ..... “Most problems are potential improvements screaming at you.” Or this reworked cliché: “While most others seem to believe that pain is bad, I believe that pain is required to become stronger.”.....Bridgewater is losing money this year. Through July its flagship fund is down 3%, while the market is up more than 10%. ......The core of investing is quite simple: Determine what everyone else thinks, and then figure out in which direction they are wrong. That’s it. No one tells you what they think. You’ve got to feel it. .....It’s all about figuring out what is priced into a stock right now. That’s the pulse of the market, the collective mind meld aggregated into stock prices. I know from experience this is the hardest part of running a hedge fund. You can find the greatest story ever, but if everyone already knows it, there’s no money to be made..... the pulse changes with each government statistic, each daily ringing of cash registers and satellite images taken of parking lots. That’s why stocks trade every day. Real-world inputs and the drifting pulse drive the psychotic tick of the stock market tape. ....How do you find that pulse? .....

It’s best to survey your own people......Dalio doesn’t care about employees’ opinions or ideas; he just wants to take their pulse to figure out what the market already knows. Or as he puts it: “The biggest mistake most people make is to not see themselves and others objectively.”....Too much capital is often a burden. There are only so many good investment ideas out there, and it’s late in this cycle.....“Truth—more precisely, an accurate understanding of reality—is the essential foundation for any good outcomes.” Here’s a truth: If Bridgewater has lost its mojo, Mr. Dalio would be smart to manage a much smaller pot of money rather than torture his employees.
Andy_Kessler  Ray_Dalio  Bridgewater  hedge_funds  investors  investing  biases  pretense_of_knowledge  principles  transparency  market_sentiment 
september 2017 by jerryking
Ray Dalio's World
MAY 19, 2012 | - Barrons.com |SANDRA WARD
Ray_Dalio  Bridgewater  hedge_funds 
may 2012 by jerryking
Ray Dalio: Man and machine
Mar 10th 2012 | The Economist |
The economic ideas of the world’s most successful hedge-fund boss.

Mr Dalio says his ideas are entirely the product of his own reflections on his life as a trader and his study of economic history. He has read little academic economics (though his work has echoes of Hyman Minsky, an American economist, and of best-selling recent work on downturns by Carmen Reinhart and Kenneth Rogoff) but has conducted in-depth analysis of past periods of economic upheaval, such as the Depression in America, post-war Britain and the hyperinflation of the Weimar Republic. He has even simulated being an investor in markets in those periods by reading daily papers from these eras, receiving data and “trading” as if in real time.
Bridgewater  Ray_Dalio  hedge_funds  finance  economics  debt  business 
march 2012 by jerryking
The Buttonwood Gathering — Leading indicator
October 26th-27th 2011 in New York City. Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, spoke with Matthew Bishop, US business editor and New York bureau chief for The Economist, during the ‘Leading indicator’ session at The Economist’s Buttonwood Gathering.
Ray_Dalio  Bridgewater  hedge_funds  web_video  leading_indicators 
march 2012 by jerryking
Charlie Rose's Interview with Ray Dalio
October 20, 2011 | Charlie Rose Show | with Ray Dalio.

CHARLIE ROSE: And you always make a point that you know what you don`t know and that`s equally valuable.

RAY DALIO: More valuable. I want to say that -- so this is the whole philosophy. I -- I so, know that I can be wrong; and look, we all should recognize that we can be wrong. And if we recognize that we`re wrong and we worry about being wrong than what we should do is have a thoughtful dialogue....RAY DALIO: So the way I get to success. The way -- it`s not what I know. I`ve acquired some things that I know along the way and they`re helpful.

(CROSSTALK)

CHARLIE ROSE: It is -- it is -- it`s not what you know but it is --

(CROSSTALK)

RAY DALIO: It`s knowing what I don`t know or worrying that I won`t -- that I`ll be wrong that makes me find --

CHARLIE ROSE: Yes.

RAY DALIO: Well, I want people to criticize my point of view -- I want to hold down.

CHARLIE ROSE: Right.

RAY DALIO: Say I have a -- I think this but I may be wrong. And if you can attack what I`m saying -- in other words stress test what I`m saying -- I`ll learn....CHARLIE ROSE: And you have not been precise, and your assumptions are flawed.

RAY DALIO: Oh it`s so essential, right. There`s -- the -- the number one principle at our place is that if something doesn`t make sense to you, you have the right to explore it, to see if it makes sense.

I don`t want people around who do things that they don`t -- they don`t think makes sense because I`m going to have not-thinking people.

(CROSSTALK)

CHARLIE ROSE: Right.

RAY DALIO: So that they have not only the right, they have obligation. Don`t walk away thinking something`s wrong.

CHARLIE ROSE: Failure teaches you more than success?

RAY DALIO: Of course. One of my favorite books is "Einstein`s Mistakes."

CHARLIE ROSE: Right. And because it showed you that even Einstein, the most brilliant person of the century in common judgment made mistakes?

RAY DALIO: The great fallacy of all -- I think of all of mankind practically -- I mean that`s a big statement -- but the great fallacy is that people know more than what they do and there`s a discovery process and so when you look at -- that`s the process for learning.

The process for learning is to say "I don`t know." Like, I`m -- I`m totally comfortable being incompetent. If I -- if I -- I like being incompetent. I don`t mind being an incompetent. If I don`t -- how -- how much can you be competent about?

And so that whole notion of do you like learning? Do you like finding out what`s true and building on it without an ego? And that becomes the problem. How many statements do you listen to people that begin "I think this, I think that," where they should be asking "I wonder."
Ray_Dalio  interviews  truth-clarity  philanthropy  stress-tests  Charlie_Rose  truth-telling  Bridgewater  hedge_funds  deleveraging  organizational_culture  economics  unknowns  pretense_of_knowledge  Albert_Einstein  mistakes 
january 2012 by jerryking
EINSTEIN'S MISTAKES | Hans C. Ohanian
Although Einstein was the greatest genius of the twentieth century, many of his groundbreaking discoveries were blighted by mistakes, ranging from serious errors in mathematics to bad misconceptions in physics and failures to grasp the subtleties of his own creations. This forensic biography dissects Einstein’s scientific mistakes and places them in the context of his turbulent life and times. In lively, accessible prose, Hans C. Ohanian paints a fresh, insightful portrait of the real Einstein at work, in contrast to the uncritical celebrity worship found in many biographies.

Of the approximately 180 original scientific papers that Einstein published in his lifetime, about 40 are infested with mistakes. For instance, Einstein’s first mathematical proof of the famous formula E = mc2 was incomplete and only approximately valid; he struggled with this problem for many years, but he never found a complete proof (better mathematicians did). Einstein was often lured by irrational and mystical inspirations, but his extraordinary intuition about physics permitted him to discover profound truths despite—and sometimes because of—the mistakes he made along the way. He was a sleepwalker: his intuition told him where he needed to go, and he somehow managed to get there without quite knowing how.

As this book persuasively argues, the defining hallmark of Einstein’s genius was not any special mathematical ability but an uncanny talent to use his mistakes as stepping stones to formulate his revolutionary theories.
Albert_Einstein  books  book_reviews  Bridgewater  groundbreaking  hedge_funds  mistakes  Ray_Dalio 
january 2012 by jerryking
Ray Dalio’s Richest and Strangest Hedge Fund
JULY 25, 2011 |: The New Yorker | by John Cassidy.
How Ray Dalio built the world’s richest and strangest hedge fund.
profile  Ray_Dalio  Bridgewater  hedge_funds  organizational_culture  transparency 
august 2011 by jerryking
Bridgewater -
August 11, 2011, BusinessWeek
The principles that build the hedge fund's billions

By Roben Farzad
Bridgewater  hedge_funds  Ray_Dalio 
august 2011 by jerryking
Big Win for a Big Bear - WSJ.com
OCTOBER 22, 2010 | WSJ | By MICHAEL CORKERY. Hedge Fund Bridgewater Profits on Foresight of World Woes.
hedge_funds  Bridgewater  Ray_Dalio 
october 2010 by jerryking
Hedge Fund Boss Ray Dalio Gives Life Lessons - WSJ.com
JUNE 19, 2010 | Wall Street Journal | By MICHAEL CORKERY.
Money Talks: A Hedge-Fund King Philosophizes on Truth and Weasels. Staff
Must Be Brutally Honest, or Else; Separating Hyenas from the Wildebeest
hedge_funds  organizational_culture  Bridgewater  Ray_Dalio  life_lessons 
june 2010 by jerryking

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