Bridgewater Associates is an investment firm founded by Ray Dalio in 1975. Over the last two years, the firm ranked as the largest and best-performing hedge fund in the world. Dalio describes Bridgewater Associates as a global macro firm that assesses what the world's economy is like and manages money for pension funds and endowments in order to keep them safe. Today, it manages around $125 billion in global investments. Its clients include: foreign governments, sovereign banks, central banks and institutional pension funds. In 2010, its returns were greater than the profits of Google (GOOG), Amazon (AMZN), and eBay (EBAY) combined.
Dalio is convinced of the power of thoughtful conversation. He explained that when thoughtful people disagree, they have the potential of learning a lot. He believes that one can disagree with another person but if they engage in a conscious and respectful conversation and carry out that conversation in an intelligent way, they both can learn a lot and reach the truth.
In connection with this, Dalio explained the following. He said that if the government raises taxes by 3%, which will result in a cut of expenditures by 3%, something that all individuals can do, the government will eliminate half the budget deficit over the next 10 years. Instead, there is a division when we talk about the government budget balance: On the one hand, republicans say that we should neither raise taxes nor reduce deductions; on the other hand, democrats maintain that we must raise taxes because we cannot cut the spending. Instead of looking at the problem with different interests on the in issue, both democrats and republicans should engage in a quality conversation of what is truth, how they can handle the problem in the best way possible.
For Dalio, the way to get to success is knowing what one does not know. He further stated that the process of learning is to say: “I do not know, I am totally comfortable with being incompetent.” He convincingly agreed with Rose when he said that failure teaches you more than success, and he also mentioned that the greatest fallacy of all mankind is: People know more than what they do.
In Bridgewater Associates, the number-one principle is that if something does not make sense to you, you not only have the right to explore it but also the obligation to look for what makes sense to you. He wants to be around thinking people. He believes that every place should have a culture, and for him the culture represents the values of a place. In Bridgewater Associates the number one value is: It has to make sense to you.
Dalio further said that he considers himself an independent thinker and a person who likes to innovate. He explained to Rose that if you are going to have an innovative thinker, there is a high chance that he will be wrong, and if you have to have an independent thinker he is going to have a different point of view that the next person, so if you are going to have innovative and independent thinking, you have to have the ability to disagree, to find out what is wrong. Through his experience, Dario learned that the cost of being wrong is a terrible thing, he worries about being wrong and because he worries he wants to know what is the truth.
During the interview, Dalio mentioned that he will be more than happy to give half of his money to the government if the government put together programs in which he believes that the money is efficiently use to help people. He highlighted the importance of education and opportunity; for him what is of great importance is to give people opportunities.
Dalio also spoke about the economy and the issues that exist related to this subject. He pointed out three important things: First, he explained that we are going through a deleveraging process; second, he highlighted the fact that we have a problem with both monetary and fiscal policy; third, he stressed the problem that people are at each others' throats, politically and globally in terms of having a problem resolving those problems.
Throughout the interview, Dalio emphasized the importance of quality conversation where participants should get pass their ideology, where they come together and try to move forward, where they try to resolve the problem in the best possible way together, instead of talking behind each others' backs, looking for someone to blame, and most importantly they have to acknowledge that any of them can be wrong. He not only practices this in his personal life but also in his company.
Dalio is convinced of the power of thoughtful conversation. He explained that when thoughtful people disagree, they have the potential of learning a lot. He believes that one can disagree with another person but if they engage in a conscious and respectful conversation and carry out that conversation in an intelligent way, they both can learn a lot and reach the truth.
In connection with this, Dalio explained the following. He said that if the government raises taxes by 3%, which will result in a cut of expenditures by 3%, something that all individuals can do, the government will eliminate half the budget deficit over the next 10 years. Instead, there is a division when we talk about the government budget balance: On the one hand, republicans say that we should neither raise taxes nor reduce deductions; on the other hand, democrats maintain that we must raise taxes because we cannot cut the spending. Instead of looking at the problem with different interests on the in issue, both democrats and republicans should engage in a quality conversation of what is truth, how they can handle the problem in the best way possible.
For Dalio, the way to get to success is knowing what one does not know. He further stated that the process of learning is to say: “I do not know, I am totally comfortable with being incompetent.” He convincingly agreed with Rose when he said that failure teaches you more than success, and he also mentioned that the greatest fallacy of all mankind is: People know more than what they do.
In Bridgewater Associates, the number-one principle is that if something does not make sense to you, you not only have the right to explore it but also the obligation to look for what makes sense to you. He wants to be around thinking people. He believes that every place should have a culture, and for him the culture represents the values of a place. In Bridgewater Associates the number one value is: It has to make sense to you.
Dalio further said that he considers himself an independent thinker and a person who likes to innovate. He explained to Rose that if you are going to have an innovative thinker, there is a high chance that he will be wrong, and if you have to have an independent thinker he is going to have a different point of view that the next person, so if you are going to have innovative and independent thinking, you have to have the ability to disagree, to find out what is wrong. Through his experience, Dario learned that the cost of being wrong is a terrible thing, he worries about being wrong and because he worries he wants to know what is the truth.
During the interview, Dalio mentioned that he will be more than happy to give half of his money to the government if the government put together programs in which he believes that the money is efficiently use to help people. He highlighted the importance of education and opportunity; for him what is of great importance is to give people opportunities.
Dalio also spoke about the economy and the issues that exist related to this subject. He pointed out three important things: First, he explained that we are going through a deleveraging process; second, he highlighted the fact that we have a problem with both monetary and fiscal policy; third, he stressed the problem that people are at each others' throats, politically and globally in terms of having a problem resolving those problems.
Throughout the interview, Dalio emphasized the importance of quality conversation where participants should get pass their ideology, where they come together and try to move forward, where they try to resolve the problem in the best possible way together, instead of talking behind each others' backs, looking for someone to blame, and most importantly they have to acknowledge that any of them can be wrong. He not only practices this in his personal life but also in his company.
