he’s an American businessman and founder
of the investment firm Bridgewater
associates he appeared on the annual
time 100 list of the hundred most
influential people in the world
according to Forbes he’s the 30th
richest person in America with a net
worth of over fifteen billion dollars
he’s Ray Dalio and here are his top ten
rules for success one sentence that I
try to describe Bridgewater by and it’s
meaningful work and meaningful
relationships I is what I want
meaningful work and meaningful
relationships through radical truth and
radical transparency so meaningful work
means like we’re in a mission together
we’re excited about we do we want to do
it excellently that’s meaningful work
meaningful relationships are these
relationships in where there’s you know
like the honesty helps you you can argue
things through but you always know that
there’s honesty and that there’s mutual
caring for each other
radical truth means that knowing what is
true to be able to deal with reality
whether you like the reality or not but
to know what reality is like do you have
imagine if you had a disease would you
want to know that you had that disease
or would you want not want to know I’d
want to know and so to know do you if
you have a weakness do you want to know
you have the weakness or do you not want
to know
radical truth and radical transparency
needs you get to see everything that’s
very powerful failure is a part of the
learning process right what’s the risk
of failure what you’ll be embarrassed or
risk of how do you distinguish failure
from learning uh in your whole life you
know failure implies that it stopped
that the game stops right if it’s part
of a you’re failing and then you learn
then that learning is part of the moving
forward right so that is what the
process is like fail learn move forward
and constantly do that because you’re
cutting edge you’re going where people
haven’t been before an inventiveness so
pervasively we were talking about
culture it is when people disagree and
you you can take thoughtful people
disagree
a you have then the potential of
learning a lot if people who were
disagreeing can say why do we disagree
and work through that conversation in an
intelligent way to try to find out
what’s true you can learn you can make
progress it can be a fabulous thing I
believe that everything works like a
machine so when we talk about markets
and we talk about economics you know how
I think it’s just a machine
everything has cause-effect
relationships and you can program all of
that we’re machines human brains a
machine and we operate that way and in
today’s age we have data we have a lot
of data and so to be able to look at
what people are like is a powerful thing
when I when I hear the interview of
about General Motors and you think about
one country one company or another you
think of Tesla and by contrast okay look
there are two things that make a
difference
it’s either people or culture okay and
that’s everything and so everybody’s
talking about this was done of that is
done step back
what were your people like how are they
different what is your culture like and
how is that different and that’s all
that matters and so if you look at it
that way and you compare what the future
of general motors are going to be and
the future of Tesla’s going to be or any
such things that’s what all that makes
up the difference and you can put data
together that shows that and you can
operate in that way and that’s what
makes you effective what happens with
meditation as you know on its it’s just
a simple exercise that allows you first
to clear your head and then brings an
equanimity to everything everything it
eliminates the stress it eliminates the
emotion would how often it um your busy
guy yeah I I’ve been doing it for 44
years but I do it you know twice a day
on a third of the time once a day
probably a third of the time and not
over 20 minutes twice a day yes you
spend a day as part of your oh it’s such
a great investment I would say that more
than any other factor of
having any effect on my success it’s
been meditation because the equanimity
and also the creativity because it opens
between the literally the prefrontal
cortex and the amygdala it opens the two
sides of the brains and allows a
spontaneity a creativity and
open-mindedness and and so it’s good for
that not only the health because because
it you get with stress as a terrible
thing but it also is very good in terms
of the clarity and you don’t get the
emotional hijacking and it’s great for
creativity so it’s helped me a lot
it’s the biggest gift I can give anyone
I’m 64 years old yeah I don’t want to
have fears fears of things being open
fears of another I’m not going to let a
fear stand in the way of something that
I believe is valuable mistakes are good
things
mistakes are good things meaning if
they’re made in learning in other words
so mistakes are how we learn because
mistakes produce pain and if you produce
that and you convert that to learning
like for example punishing people for
mistakes is bad because they hide things
where if you were to say to your kid and
they make some mistake
the only thing you have to do was tell
me what would you have done different in
the future and then we’ll be good that
learns makes that a learning process or
weaknesses everybody has a weaknesses
has a number of weaknesses the great
people that I’ve seen in almost any area
always have weaknesses they just have
known what their weaknesses are and have
ways of getting around those weaknesses
we break it into two parts we have two
basic portfolios there is the strategic
asset allocation mix which we call
all-weather and that just has nothing to
do with bets it has to do with how to
make all the assets the same risk parity
on the core risk parity the problem is
when people try to diversify and they
own some equities and equities has a
volatility right that’s large or they
own assets that do well when the economy
does well and do
sadly when the economy does badly they
have a concentration of their risk in
some assets like they need to have they
need to change the portfolio they need
to not buy longer duration bonds or
leverage the bonds or bring up so that
bonds and commodities and pieces have
comparable impacts so that whatever
happens in the economy will then have a
balancing effect because the one thing
you could be most confident is that
asset class is on average will
outperform cash okay so if you have
that’s a strategic asset allocation
that’s what the all-weather piece is
then there’s the bets the bets are
zero-sum right in order for you to beat
me in the game you’re going to you it’s
like poker it’s a zero-sum game I have
we have 1,500 people work at Bridgewater
we spend hundreds of millions of dollars
on research and so on we’ve been doing
this for 37 years and we don’t know that
we’re going to win in other words we
work that we have to have diversified
bets we have a lot of diversified bets
and so on so it’s very important for
most people to know when not to make a
bet because if you’re going to come to
the poker table you’re going to have to
beat me and they’re going to have to
beat those who take money so the nature
of investing is that a very small
percentage of the people take money
essentially in that poker game away from
other people who don’t know when prices
go up whether that means it’s a good
investment or if it’s a more expensive
investment sometimes the high points
come from the low points they’re
simultaneously meaning I you know like I
learned the most when I am making
mistakes and so I know like for if I’m
making money in the market it might seem
like a high point because you figure
okay you’re making money but you don’t
test yourself as much when you’re making
a low point and you’re in misery you’re
saying how am I doing this wrong and
you’re learning a lot or at least I’m
learning a lot first of all I have a
terrible rote memory on very unreliable
I really am incredibly forgetful I need
people around who will take care a lot
of things that I’m for me in other words
I need handlers and people who are
meticulous and organized and those are
my you know those are Deva the major I
miss by the way I mean like at any time
I believe that I’m missing a lot like I
look at there’s so many things that I’m
not seeing the one thing that’s good
about that is that I know that I’m not
seeing them and so that’s why I keep
going to other people who I find see
differently and that’s my biggest
advantage my biggest advantage is not
what I know what I know is a small
percentage of what I need to know my
biggest advantage is that I know that I
don’t know a lot and I’m worried about
not knowing and that I know how to speak
to people who might know a lot and then
I do have that process and then through
that I learn a lot and I minimize my
chances of harming myself because I
don’t know thank you guys so much for
watching I made this video because Syed
Zhen asked me to so there’s a famous
entrepreneur that you want me to profile
next leave it in the comments below and
I’ll see what I can do I’d also love to
know which of Ray Dalio top 10 rules had
the biggest impact on you
leave it in the comments I’m going to
join the discussion thank you so much
for watching continue to believe and
I’ll see you soon
of the investment firm Bridgewater
associates he appeared on the annual
time 100 list of the hundred most
influential people in the world
according to Forbes he’s the 30th
richest person in America with a net
worth of over fifteen billion dollars
he’s Ray Dalio and here are his top ten
rules for success one sentence that I
try to describe Bridgewater by and it’s
meaningful work and meaningful
relationships I is what I want
meaningful work and meaningful
relationships through radical truth and
radical transparency so meaningful work
means like we’re in a mission together
we’re excited about we do we want to do
it excellently that’s meaningful work
meaningful relationships are these
relationships in where there’s you know
like the honesty helps you you can argue
things through but you always know that
there’s honesty and that there’s mutual
caring for each other
radical truth means that knowing what is
true to be able to deal with reality
whether you like the reality or not but
to know what reality is like do you have
imagine if you had a disease would you
want to know that you had that disease
or would you want not want to know I’d
want to know and so to know do you if
you have a weakness do you want to know
you have the weakness or do you not want
to know
radical truth and radical transparency
needs you get to see everything that’s
very powerful failure is a part of the
learning process right what’s the risk
of failure what you’ll be embarrassed or
risk of how do you distinguish failure
from learning uh in your whole life you
know failure implies that it stopped
that the game stops right if it’s part
of a you’re failing and then you learn
then that learning is part of the moving
forward right so that is what the
process is like fail learn move forward
and constantly do that because you’re
cutting edge you’re going where people
haven’t been before an inventiveness so
pervasively we were talking about
culture it is when people disagree and
you you can take thoughtful people
disagree
a you have then the potential of
learning a lot if people who were
disagreeing can say why do we disagree
and work through that conversation in an
intelligent way to try to find out
what’s true you can learn you can make
progress it can be a fabulous thing I
believe that everything works like a
machine so when we talk about markets
and we talk about economics you know how
I think it’s just a machine
everything has cause-effect
relationships and you can program all of
that we’re machines human brains a
machine and we operate that way and in
today’s age we have data we have a lot
of data and so to be able to look at
what people are like is a powerful thing
when I when I hear the interview of
about General Motors and you think about
one country one company or another you
think of Tesla and by contrast okay look
there are two things that make a
difference
it’s either people or culture okay and
that’s everything and so everybody’s
talking about this was done of that is
done step back
what were your people like how are they
different what is your culture like and
how is that different and that’s all
that matters and so if you look at it
that way and you compare what the future
of general motors are going to be and
the future of Tesla’s going to be or any
such things that’s what all that makes
up the difference and you can put data
together that shows that and you can
operate in that way and that’s what
makes you effective what happens with
meditation as you know on its it’s just
a simple exercise that allows you first
to clear your head and then brings an
equanimity to everything everything it
eliminates the stress it eliminates the
emotion would how often it um your busy
guy yeah I I’ve been doing it for 44
years but I do it you know twice a day
on a third of the time once a day
probably a third of the time and not
over 20 minutes twice a day yes you
spend a day as part of your oh it’s such
a great investment I would say that more
than any other factor of
having any effect on my success it’s
been meditation because the equanimity
and also the creativity because it opens
between the literally the prefrontal
cortex and the amygdala it opens the two
sides of the brains and allows a
spontaneity a creativity and
open-mindedness and and so it’s good for
that not only the health because because
it you get with stress as a terrible
thing but it also is very good in terms
of the clarity and you don’t get the
emotional hijacking and it’s great for
creativity so it’s helped me a lot
it’s the biggest gift I can give anyone
I’m 64 years old yeah I don’t want to
have fears fears of things being open
fears of another I’m not going to let a
fear stand in the way of something that
I believe is valuable mistakes are good
things
mistakes are good things meaning if
they’re made in learning in other words
so mistakes are how we learn because
mistakes produce pain and if you produce
that and you convert that to learning
like for example punishing people for
mistakes is bad because they hide things
where if you were to say to your kid and
they make some mistake
the only thing you have to do was tell
me what would you have done different in
the future and then we’ll be good that
learns makes that a learning process or
weaknesses everybody has a weaknesses
has a number of weaknesses the great
people that I’ve seen in almost any area
always have weaknesses they just have
known what their weaknesses are and have
ways of getting around those weaknesses
we break it into two parts we have two
basic portfolios there is the strategic
asset allocation mix which we call
all-weather and that just has nothing to
do with bets it has to do with how to
make all the assets the same risk parity
on the core risk parity the problem is
when people try to diversify and they
own some equities and equities has a
volatility right that’s large or they
own assets that do well when the economy
does well and do
sadly when the economy does badly they
have a concentration of their risk in
some assets like they need to have they
need to change the portfolio they need
to not buy longer duration bonds or
leverage the bonds or bring up so that
bonds and commodities and pieces have
comparable impacts so that whatever
happens in the economy will then have a
balancing effect because the one thing
you could be most confident is that
asset class is on average will
outperform cash okay so if you have
that’s a strategic asset allocation
that’s what the all-weather piece is
then there’s the bets the bets are
zero-sum right in order for you to beat
me in the game you’re going to you it’s
like poker it’s a zero-sum game I have
we have 1,500 people work at Bridgewater
we spend hundreds of millions of dollars
on research and so on we’ve been doing
this for 37 years and we don’t know that
we’re going to win in other words we
work that we have to have diversified
bets we have a lot of diversified bets
and so on so it’s very important for
most people to know when not to make a
bet because if you’re going to come to
the poker table you’re going to have to
beat me and they’re going to have to
beat those who take money so the nature
of investing is that a very small
percentage of the people take money
essentially in that poker game away from
other people who don’t know when prices
go up whether that means it’s a good
investment or if it’s a more expensive
investment sometimes the high points
come from the low points they’re
simultaneously meaning I you know like I
learned the most when I am making
mistakes and so I know like for if I’m
making money in the market it might seem
like a high point because you figure
okay you’re making money but you don’t
test yourself as much when you’re making
a low point and you’re in misery you’re
saying how am I doing this wrong and
you’re learning a lot or at least I’m
learning a lot first of all I have a
terrible rote memory on very unreliable
I really am incredibly forgetful I need
people around who will take care a lot
of things that I’m for me in other words
I need handlers and people who are
meticulous and organized and those are
my you know those are Deva the major I
miss by the way I mean like at any time
I believe that I’m missing a lot like I
look at there’s so many things that I’m
not seeing the one thing that’s good
about that is that I know that I’m not
seeing them and so that’s why I keep
going to other people who I find see
differently and that’s my biggest
advantage my biggest advantage is not
what I know what I know is a small
percentage of what I need to know my
biggest advantage is that I know that I
don’t know a lot and I’m worried about
not knowing and that I know how to speak
to people who might know a lot and then
I do have that process and then through
that I learn a lot and I minimize my
chances of harming myself because I
don’t know thank you guys so much for
watching I made this video because Syed
Zhen asked me to so there’s a famous
entrepreneur that you want me to profile
next leave it in the comments below and
I’ll see what I can do I’d also love to
know which of Ray Dalio top 10 rules had
the biggest impact on you
leave it in the comments I’m going to
join the discussion thank you so much
for watching continue to believe and
I’ll see you soon
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