Ray Dalio Quotes
Ray Dalio Quotes
Ray Dalio Quotes
People who confuse what they wish were true with what is really true create distorted pictures of reality that make it impossible for them to make the best choices.
the happiest people discover their own nature and match their life to it.
Life is like a game where you seek to overcome the obstacles that stand in the way of achieving your goals. You get better at this game through practice. The game consists of a series of choices that have consequences. You can’t stop the problems and choices from coming at you, so it’s better to learn how to deal with them.
Success is achieved by people who deeply understand reality and know how to use it to get what they want. The converse is also true: idealists who are not well-grounded in reality create problems, not progress.
Principles are concepts that can be applied over and over again in similar circumstances as distinct from narrow answers to specific questions. Every game has principles that successful players master to achieve winning results. So does life. Principles are ways of successfully dealing with the laws of nature or the laws of life. Those who understand more of them and understand them well know how to interact with the world more effectively than those who know fewer of them or know them less well.
I believe that for the most part, achieving success – whatever that is for you – is mostly a matter of personal choice and that, initially, making the right choices can be difficult.
I do think people need to recognize that a lot of journalists want to write a story a certain way because the story will be better or the portrayal will be better, or at least recognize that whenever you’re looking at something, you’re seeing it through somebody’s eyes who may actually not be the person who is the most insightful.
For me, the best things in life – meaningful work, meaningful relationships, interesting experiences, good food, sleep, music, ideas, sex, and other basic needs and pleasures – are not, past a certain point, materially improved upon by having a lot of money.
By and large, life will give you what you deserve and it doesn’t give a damn what you like. So it is up to you to take full responsibility to connect what you want with what you need to do to get it, and then to do those things.
You’ll see that excuses like “That’s not easy” are of no value and that it pays to “push through it” at a pace you can handle. Like getting physically fit, the most important thing is that you keep moving forward at whatever pace you choose, recognizing the consequences of your actions.
When you’re faced with a choice, you have one of three choices that you can have. You can have those with power decide. You can have one man, one vote. Or you can have believability-weighted decision-making.
Radical transparency is critical to having an idea meritocracy because it shows what’s actually happening without spin and prevents people from manoeuvring politically behind each other’s’ backs. It brings problems and weaknesses to the surface and allows people to see how they are dealt with, so it’s great for training people on how to deal with real problems.
There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes.
Never say anything about a person you wouldn’t say to them directly, and don’t try people without accusing them to their face. Badmouthing people behind their backs shows a serious lack of integrity and is counterproductive. It doesn’t yield any beneficial change, and it subverts both the people you are badmouthing and the environment as a whole.
When you’re centered, your emotions are not hijacking you.
The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment. Typically, high past returns simply imply that an asset has become more expensive and is a poorer, not better, investment.
Most people have a hard time confronting their weaknesses in a really straightforward, evidence-based way. They also have problems speaking frankly to others. Some people love knowing about their weaknesses and mistakes and those of others because it helps them be so much better, while others can’t stand it.
Sometimes we forge our own principles and sometimes we accept others’ principles, or holistic packages of principles, such as religion and legal systems. While it isn’t necessarily a bad thing to use others’ principles – it’s difficult to come up with your own, and often much wisdom has gone into those already created – adopting pre-packaged principles without much thought exposes you to the risk of inconsistency with your true values.
Meditation helps you stay in a calm, clear-headed state so that when challenges come at you, you can deal with them like a ninja – in a calm thoughtful way. When you’re centered, your emotions are not hijacking you.
One of the things meditation gives you is creativity because creativity really comes from the subconscious brain – intuition, imagination – so it’s not like you can go there and say, I’m going to go be creative now. Maybe you can, but the real way you get creativity is, you know, you’re taking a hot shower and great ideas come to you from the subconscious. Essentially, meditation opens a pipeline between the conscious and the subconscious.
I’m scared of one man, one vote because it suggests that everybody has an equal ability at making decisions, and I think that’s dangerous.
In order to get past disagreements, you just can’t have one person with power decide. In other words, so just because I’m a boss, it would be terrible if I then said, “Okay, we’re gonna go do this.” That’s why, after that thoughtful disagreement, there has to be a process of an idea meritocracy. That means okay, now you have to vote, not that the decision resides with power. And then you vote and move beyond it.
The pain of problems is a call to find solutions rather than a reason for unhappiness and inaction, so it’s silly, pointless, and harmful to be upset at the problems and choices that come at you (though it’s understandable).
Remember that experience creates internalization. Doing things repeatedly leads to internalization, which produces a quality of understanding that is generally vastly superior to intellectualized learning.
I think if you look at the statistics and you deal with fake media – and fake media and distorted media is a continuum – the vast majority of the population says, “I don’t know what to believe.” There are no checks and balances in quality control.
There are far more good answers “out there” than there are in you.
Though how nature works is way beyond man’s ability to comprehend, I have found that observing how nature works offers innumerable lessons that can help us understand the realities that affect us.
I learned that if you work hard and creatively, you can have just about anything you want, but not everything you want. Maturity is the ability to reject good alternatives in order to pursue even better ones.
I just want to be right—I don’t care if the right answer comes from me.
Though how nature works is way beyond man’s ability to comprehend, I have found that observing how nature works offers innumerable lessons that can help us understand the realities that affect us.
The media has the power to create an entrenched perception of reality that’s incorrect.
When there is pain, the animal instinct is ‘fight or flight’ (i.e., to either strike back or run away) – reflect instead. When you can calm yourself down, thinking about the dilemma that is causing you pain will bring you to a higher level and enlighten you, leading to progress.
There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes.
Over the long run, the price of gold approximates the total amount of money in circulation divided by the size of the gold stock. If the market price of gold moves a long way from this level, it may indicate a buying or selling opportunity.
Most people have a hard time confronting their weaknesses in a really straightforward, evidence-based way. They also have problems speaking frankly to others. Some people love knowing about their weaknesses and mistakes and those of others because it helps them be so much better, while others can’t stand it.
So I learned that the people who make the most of the process of encountering reality, especially the painful obstacles, learn the most and get what they want faster than people who do not. … In short, I learned that being totally truthful, especially about mistakes and weaknesses, led to a rapid rate of improvement and movement toward what I wanted.
You’ll see that excuses like “That’s not easy” are of no value and that it pays to “push through it” at a pace you can handle. Like getting physically fit, the most important thing is that you keep moving forward at whatever pace you choose, recognizing the consequences of your actions.
In the end, what matters most is that the people you work with share your values, so I’ve wanted people who value the meaningful work and meaningful relationships that always motivated me in building Bridge water.
There is a strong tendency to get used to and accept very bad things that would be shocking if seen with fresh eyes.
With the media, we don’t know what’s true, and we don’t have radical transparency because we’re seeing everything through somebody else’s eyes. There’s no other industry that has as much power and as much freedom and as little quality control. I can’t imagine how anyone could not think that’s a problem.
Nature gave us pain as a messaging device to tell us that we are approaching, or that we have exceeded, our limits in some way.
Since the only way you are going to find solutions to painful problems is by thinking deeply about them – i.e., reflecting – if you can develop a knee-jerk reaction to pain that is to reflect rather than to fight or flee, it will lead to your rapid learning/evolving.
To test if you are worrying too much about looking good, observe how you feel when you find out you’ve made a mistake or don’t know something.
Demand is best measured in terms of spending. You know, I think in traditional economics, it’s a mistake to measure it in terms of the quantity of goods.
Be wary of the arrogant intellectual who comments from the stands without having played on the field.
I think meditation has been the single biggest reason for whatever success I’ve had
What I’m trying to say is that for the average investor, what I would encourage them to do is to understand that there’s inflation and growth. It can go higher and lower and to have four different
portfolios essentially that make up your entire portfolio that gets you balanced.
There are far more good answers “out there” than there are in you.
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Ray Dalio Quotes on Investing
The more you think you know, the more closed-minded you’ll be.
More than anything else, what differentiates people who live up to their potential from those who don’t is a willingness to look at themselves and others objectively
Ray Dalio Quotes on Investment
The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment. Typically, high past returns simply imply that an asset has become more expensive and is a poorer, not better, investment.
Ray Dalio Quotes about Worry
To test if you are worrying too much about looking good, observe how you feel when you find out you’ve made a mistake or don’t know something.
Don’t worry about looking good – worry about achieving your goals.
People who worry about looking good typically hide what they don’t know and hide their weaknesses, so they never learn how to properly deal with them and these weaknesses remain impediments in the future.
Ray Dalio Quotes on Opinion
I think the greatest tragedy of mankind is that people have ideas and opinions in their heads but don’t have a process for properly examining these ideas to find out what’s true. That creates a world of distortions.
School typically doesn’t prepare young people for real life – unless their lives are spent following instructions and pleasing others. In my opinion, that’s why so many students who succeed in school fail in life.
Ask yourself whether you have earned the right to have an opinion. Opinions are easy to produce, so bad ones abound. Knowing that you don’t know something is nearly as valuable as knowing it. The worst situation is thinking you know something when you don’t.
Ray Dalio Quotes about Understanding
I believe that understanding what is good is obtained by looking at the way the world works and figuring out how to operate in harmony with it to help it evolve.
Remember that experience creates internalization. Doing things repeatedly leads to internalization, which produces a quality of understanding that is generally vastly superior to intellectualized learning.
There is nothing to fear from truth…. Being truthful is essential to being an independent thinker and obtaining greater understanding of what is right.
Ray Dalio Quotes about Goals
Don’t worry about looking good – worry about achieving your goals.
Life is like a game where you seek to overcome the obstacles that stand in the way of achieving your goals. You get better at this game through practice. The game consists of a series of choices that have consequences. You can’t stop the problems and choices from coming at you, so it’s better to learn how to deal with them.
I believe that our society’s “mistake-phobia” is crippling, a problem that begins in most elementary schools, where we learn to learn what we are taught rather than to form our own goals and to figure out how to achieve them. We are fed with facts and tested and those who make the fewest mistakes are considered to be the smart ones, so we learn that it is embarrassing to not know and to make mistakes. Our education system spends virtually no time on how to learn from mistakes, yet this is critical to real learning.
Ray Dalio Quotes about Values
Principles are what allow you to live a life consistent with those values. Principles connect your values to your actions.
What matters most is that the people you work with share your values.
Ray Dalio Quotes about Progress
When there is pain, the animal instinct is ‘fight or flight’ (i.e., to either strike back or run away) – reflect instead. When you can calm yourself down, thinking about the dilemma that is causing you pain will bring you to a higher level and enlighten you, leading to progress.
Success is achieved by people who deeply understand reality and know how to use it to get what they want. The converse is also true: idealists who are not well-grounded in reality create problems, not progress.
I believe there are an infinite number of laws of the universe and that all progress or dreams achieved come from operating in a way that’s consistent with them. These laws and the principles of how to operate in harmony with them have always existed. We were given these laws by nature. Man didn’t and can’t make them up. He can only hope to understand them and use them to get what he wants.
Ray Dalio Quotes about Decisions
I’m scared of people with power making the decision.
I also believe that everyone needs to think independently and make their own decisions on what makes the most sense.
Ray Dalio Quotes about Principles
If you’re not failing, you’re not pushing your limits, and if you’re not pushing your limits, you’re not maximizing your potential.
Principles are what allow you to live a life consistent with those values. Principles connect your values to your actions.
Ray Dalio Quotes about Giving
I pay about a third in taxes, I give away about a third, and I follow the law.
The best advice I can give you is to ask yourself what do you want, then ask ‘what is true’ – and then ask yourself ‘what should be done about it.’ I believe that if you do this you will move much faster towards what you want to get out of life than if you don’t!
Ray Dalio Quotes about Being Successful
This is my year of transition from what I’m calling the second phase of my life to the third phase of my life. And I wanted to pass it along. What I mean by that is, in the first days of your life you’re dependent on others and you learn. You’re basically a kid, depending on your parents. In the second phase of your life, you’re working and others are dependent on you and you’re trying to be successful. And then when you go to the third phase of your life it’s no longer as much of a kick to be successful. There’s a natural, instinctual desire to help other people be successful.
To be successful, we need everyone to think independently and work through disagreement to decide what’s best.
We wouldn’t be successful if we didn’t have independent thinkers who can argue and then resolve their arguments.
Ray Dalio Quotes about School
Unlike in school, in life you don’t have to come up with all the right answers. You can ask the people around you for help – or even ask them to do the things you don’t do well. In other words, there is almost no reason not to succeed if you take the attitude of 1) total flexibility – good answers can come from anyone or anywhere (and in fact, as I have mentioned, there are far more good answers ‘out there’ than there are in you) and 2) total accountability: regardless of where the good answers come from, it’s your job to find them.
School typically doesn’t prepare young people for real life – unless their lives are spent following instructions and pleasing others. In my opinion, that’s why so many students who succeed in school fail in life.
Ray Dalio Quotes about Pain
The pain of problems is a call to find solutions rather than a reason for unhappiness and inaction, so it’s silly, pointless, and harmful to be upset at the problems and choices that come at you (though it’s understandable).
When there is pain, the animal instinct is ‘fight or flight’ (i.e., to either strike back or run away) – reflect instead. When you can calm yourself down, thinking about the dilemma that is causing you pain will bring you to a higher level and enlighten you, leading to progress.
Ray Dalio Quotes about Choices
When you’re faced with a choice, you have one of three choices that you can have. You can have those with power decide. You can have one man, one vote. Or you can have believability-weighted decision-making.
Credit is a promise to deliver money. It will produce GDP but you’ll create credit… So you reach a certain point that that you can’t do that anymore… There are choices. And how do we best support, apportion the money? How much is going to be transferred?
Ray Dalio Quotes about Harmony
I believe that understanding what is good is obtained by looking at the way the world works and figuring out how to operate in harmony with it to help it evolve.
I believe that we all get rewarded and punished according to whether we operate in harmony or in conflict with nature’s laws, and that all societies will succeed or fail in the degrees that they operate consistently with these laws.
I believe there are an infinite number of laws of the universe and that all progress or dreams achieved come from operating in a way that’s consistent with them. These laws and the principles of how to operate in harmony with them have always existed. We were given these laws by nature. Man didn’t and can’t make them up. He can only hope to understand them and use them to get what he wants.
Ray Dalio Quotes about Opportunity
Over the long run, the price of gold approximates the total amount of money in circulation divided by the size of the gold stock. If the market price of gold moves a long way from this level, it may indicate a buying or selling opportunity.
I have been very lucky because I have had the opportunity to see what it’s like to have little or no money and what it’s like to have a lot of it. I’m lucky because people make such a big deal of it and, if I didn’t experience both, I wouldn’t be able to know how important it really is for me. I can’t comment on what having a lot of money means to others, but I do know that for me, having a lot more money isn’t a lot better than having enough to cover the basics.
For every mistake that you learn from you will save thousands of similar mistakes in the future, so if you treat mistakes as learning opportunities that yield rapid improvements you should be excited by them. But if you treat them as bad things, you will make yourself and others miserable, and you won’t grow.
Ray Dalio Quotes about Arguing
I’m sure Donald Trump will think that he has the truth, and some journalist is arguing that he has truth, and somebody else is arguing that they have the truth. And in fact it’s even worse than that because they’re so hell bent on their arguments that they will distort the truth consciously. They’ll manipulate the facts to support their arguments because they’re so hung up in the fight. That’s where the problem is, so we argue all the time.
We wouldn’t be successful if we didn’t have independent thinkers who can argue and then resolve their arguments.
I think the media argues all the time with itself.
Ray Dalio Quotes about Mistakes
When I say I believe in radical truth and radical transparency, all I mean is we take things that ordinarily people would hide, and we put them on the table, particularly mistakes, problems, and weaknesses. We put those on the table, and we look at them together. We don’t hide them.
I’ve 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.
Ray Dalio Quotes about Life
By and large, life will give you what you deserve and it doesn’t give a damn what you like. So it is up to you to take full responsibility to connect what you want with what you need to do to get it, and then to do those things.
Do not feel bad about your mistakes or those of others. Love them! Remember that one: they are to be expected; two: they’re the first and most essential part of the learning process; and three: feeling bad about them will prevent you from getting better.
Ray Dalio Quotes about Quality
With the media, we don’t know what’s true, and we don’t have radical transparency because we’re seeing everything through somebody else’s eyes. There’s no other industry that has as much power and as much freedom and as little quality control. I can’t imagine how anyone could not think that’s a problem.
To have an idea meritocracy, one needs to do three things. First, they have to put their honest thoughts on the table, for everyone to look at and everyone to work through. Second, they need to have thoughtful disagreement, by which there are quality exchanges, in which there’s open mindedness and the realization that no one has all the right answers. And you can work through that and get to better answers because good collective decision making is better than any individual decision making. And third, you have to have ways of getting past the disagreements if they remain.
Ray Dalio Quotes about Eyes
You have to put yourself in my shoes as a person who believes in radical truth and in being radically transparent, not in seeing things through somebody else’s eyes.
If you have the power to see things through somebody else’s eyes, it’s like going from black and white to color or two dimensions to three dimensions.
Ray Dalio Quotes about Weakness
When I say I believe in radical truth and radical transparency, all I mean is we take things that ordinarily people would hide, and we put them on the table, particularly mistakes, problems, and weaknesses. We put those on the table, and we look at them together. We don’t hide them.
I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are.
Ray Dalio Quotes about Running
When you think that it’s too hard, remember that in the long run, doing the things that will make you successful is a lot easier than being unsuccessful
Imagine if you had baseball cards that showed all the performance stats for your people: batting averages, home runs, errors, ERAs, win/loss records. You could see what they did well and poorly and call on the right people to play the right positions in a very transparent way.
Ray Dalio Quotes about Inflation
If inflation-adjusted interest rates decline in a given country, its currency is likely to decline.
When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.
There are two main drivers of asset class returns – inflation and growth.
Ray Dalio Quotes about Desire
There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes.
I believe that dreamers who simply imagine things that would be nice but are not possible don’t sufficiently appreciate the laws of the universe to understand the true implications of their desires, much less how to achieve them.
This is my year of transition from what I’m calling the second phase of my life to the third phase of my life. And I wanted to pass it along. What I mean by that is, in the first days of your life you’re dependent on others and you learn. You’re basically a kid, depending on your parents. In the second phase of your life, you’re working and others are dependent on you and you’re trying to be successful. And then when you go to the third phase of your life it’s no longer as much of a kick to be successful. There’s a natural, instinctual desire to help other people be successful.
Ray Dalio Quotes about Meditation
Meditation more than anything in my life was the biggest ingredient of whatever success I’ve had.
Meditation, more than any other factor, has been the reason for what success I’ve had.
Ray Dalio Quotes about Fighting
Since the only way you are going to find solutions to painful problems is by thinking deeply about them – i.e., reflecting – if you can develop a knee-jerk reaction to pain that is to reflect rather than to fight or flee, it will lead to your rapid learning/evolving.
When there is pain, the animal instinct is ‘fight or flight’ (i.e., to either strike back or run away) – reflect instead. When you can calm yourself down, thinking about the dilemma that is causing you pain will bring you to a higher level and enlighten you, leading to progress.
Ray Dalio Quotes about Meritocracy
In order to get past disagreements, you just can’t have one person with power decide. In other words, so just because I’m a boss, it would be terrible if I then said, “Okay, we’re gonna go do this.” That’s why, after that thoughtful disagreement, there has to be a process of an idea meritocracy. That means okay, now you have to vote, not that the decision resides with power. And then you vote and move beyond it.
To have an idea meritocracy, one needs to do three things. First, they have to put their honest thoughts on the table, for everyone to look at and everyone to work through. Second, they need to have thoughtful disagreement, by which there are quality exchanges, in which there’s open mindedness and the realization that no one has all the right answers. And you can work through that and get to better answers because good collective decision making is better than any individual decision making. And third, you have to have ways of getting past the disagreements if they remain.
Radical transparency is critical to having an idea meritocracy because it shows what’s actually happening without spin and prevents people from manoeuvring politically behind each other’s’ backs. It brings problems and weaknesses to the surface and allows people to see how they are dealt with, so it’s great for training people on how to deal with real problems.
Ray Dalio Quotes about Past
The biggest mistake investors make is to believe that what happened in the recent past is likely to
persist. They assume that something that was a good investment in the recent past is still a good investment. Typically, high past returns simply imply that an asset has become more expensive and is a poorer, not better, investment.
In order to get past disagreements, you just can’t have one person with power decide. In other words, so just because I’m a boss, it would be terrible if I then said, “Okay, we’re gonna go do this.” That’s why, after that thoughtful disagreement, there has to be a process of an idea meritocracy. That means okay, now you have to vote, not that the decision resides with power. And then you vote and move beyond it.
For me, the best things in life – meaningful work, meaningful relationships, interesting experiences, good food, sleep, music, ideas, sex, and other basic needs and pleasures – are not, past a certain point, materially improved upon by having a lot of money.
Ray Dalio Quotes about Reality
That’s what I mean by radical truth. I mean accepting reality.
People who confuse what they wish were true with what is really true create distorted pictures of reality that make it impossible for them to make the best choices.
Ray Dalio Quotes about Growth
There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes.
Do not feel bad about your mistakes or those of others. Love them! Remember that one: they are to be expected; two: they’re the first and most essential part of the learning process; and three: feeling bad about them will prevent you from getting better.
Ray Dalio Quotes about Winning
The most important thing you can have is a good strategic asset allocation mix. So, what the investor needs to do is have a balanced, structured portfolio – a portfolio that does well in different environments…. we don’t know that we’re going to win. We have to have diversified bets.
Imagine if you had baseball cards that showed all the performance stats for your people: batting averages, home runs, errors, ERAs, win/loss records. You could see what they did well and poorly and call on the right people to play the right positions in a very transparent way.
Principles are concepts that can be applied over and over again in similar circumstances as distinct from narrow answers to specific questions. Every game has principles that successful players master to achieve winning results. So does life. Principles are ways of successfully dealing with the laws of nature or the laws of life. Those who understand more of them and understand them well know how to interact with the world more effectively than those who know fewer of them or know them less well.
Ray Dalio Quotes about Transparency
When I say I believe in radical truth and radical transparency, all I mean is we take things that ordinarily people would hide, and we put them on the table, particularly mistakes, problems, and weaknesses. We put those on the table, and we look at them together. We don’t hide them.
Radical transparency fosters goodness in so many ways for the same reasons that bad things are more likely to take place behind closed doors.
Radical transparency is critical to having an idea meritocracy because it shows what’s actually happening without spin and prevents people from manoeuvring politically behind each others’ backs. It brings problems and weaknesses to the surface and allows people to see how they are dealt with, so it’s great for training people on how to deal with real problems.
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