July 24, 2011

Ray Dalio’s Principles of Life and Principles to Run a Company

Ray Dalio’s principles of life and principles to run a company.

Ray Dalio runs a successful $90B hedge fund, Bridgewater Associates. Bridgewater invests in macroeconomic trends - exchange rates, GDP, inflation etc with instruments such as currency contracts, precious metals futures and central bank bonds.

Ray Dalio’s principles is a long, perhaps long-winded, but interesting read. An example -
I learned that everyone makes mistakes and has weaknesses and that one of the most important things that differentiate people is their approach to handling them. I learned that there is an incredible beauty to mistakes, because embedded in each mistake is a puzzle, and a gem that could get if I solved it, i.e., a principle that I could use to reduce my mistakes in the future. I learned that each mistake was probably a reflection of something that I was (or others were) doing wrong, so if I could figure out what that was, I could learn how to be more effective. I learned that wrestling with my problems, mistakes, and weaknesses was the training that strengthened me. Also, I learned that it was the pain of this wrestling that made me and those around me appreciate our successes.
You have to look for the nuggets of wisdom sprinkled throughout.
I believe that the desire to evolve, i.e., to get better, is probably humanity’s most pervasive driving force. 
A summary of the 200+ Management principles starts at page 43.

Makes you wonder when will Steve Jobs publish his Steve Jobs’ Principles.