307+ Ray Dalio Quotes [Principles, Life, Investing, Politics]

Ray Dalio is a well-known American investor, hedge fund manager, and philanthropist.

He is the founder of Bridgewater Associates, one of the world’s largest hedge funds.

Dalio is also the author of several books, including “Principles: Life and Work,” in which he shares his philosophy on life, business, and investing.

Here are some of the characteristics of Ray Dalio’s quotes on principles, life, and investment:

Straightforward and practical: Ray Dalio’s quotes are often straightforward and practical. He believes in a common-sense approach to life and investing, and his quotes reflect this belief.
Focused on principles: Dalio is a firm believer in the power of principles. He believes that having a set of guiding principles is essential for success in any endeavor. His quotes often emphasize the importance of identifying and adhering to principles.
Reflective and introspective: Dalio is known for his reflective and introspective approach to life and work. His quotes often encourage readers to take a step back and reflect on their experiences and decisions.
Data-driven: Dalio is a big believer in using data to inform decision-making. His quotes often emphasize the importance of collecting and analyzing data to make better decisions.
Long-term perspective: Dalio is known for his long-term perspective on investing. His quotes often emphasize the importance of taking a long-term view and avoiding short-term thinking.
Humble and open-minded: Dalio is a humble and open-minded person, and his quotes reflect this trait. He encourages readers to be open to new ideas and to embrace feedback and criticism.
Emphasis on teamwork and collaboration: Dalio believes that teamwork and collaboration are essential for success. His quotes often emphasize the importance of working together and learning from others.

Overall, Ray Dalio’s quotes are characterized by a practical, principle-driven approach to life and work, a focus on long-term thinking, and a belief in the power of teamwork and collaboration.

Ray Dalio Quotes

Ray Dalio Quotes:

“The most important thing I learned is an approach to life based on principles that helps me find out what’s true and what to do about it.”
“Pain plus reflection equals progress.”
“Don’t worry about looking good—worry about achieving your goals.”
“The biggest mistake investors make is to believe that what happened in the recent past is likely to persist.”
“Be radically open-minded and radically transparent.”
“I never cared much about others’ conclusions — only for the reasoning that led to these conclusions.”
The greatest tragedy of mankind — or one of them — is that people needlessly hold wrong opinions in their minds.”
(A variation of the above) “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 determine what’s true.”
“The most important thing is that you have the courage to admit when you’re wrong.”
“Good work habits are vastly underrated. People who push through successfully have to-do lists that are reasonably prioritized, and they make certain each item is ticked off in order.”
“If you don’t look on yourself and think, ‘Wow how stupid I was a year ago,’ then you must not have learned much in the last year.”
“The worst thing you can be is a phony, because if you’re a phony you will lose people’s trust and your own self-respect.”
“You must be clear about your principles and then you must “walk the talk.” If inconsistencies seem to exist, you should explain them. It’s best to do that in writing because by doing so, you will refine your written principles.
“Remember that the best way to learn is through mistakes.”
“Truth—more precisely, an accurate understanding of reality—is the essential foundation for producing good outcomes.”
“You need to be able to think independently and be comfortable disagreeing with the consensus.”
“Radical truth and radical transparency are fundamental to meaningful work and relationships.”
“The biggest mistake people make is to not see themselves and others objectively.”
“If you have good principles that guide you from your values to your day-to-day decisions but you don’t have a systematic way of making sure they’re regularly applied, they’re not of much use. It’s essential to build your most important principles into habits and help others do so as well.”
“Don’t let your ego get in the way of making the best decision.”
“The most important thing is that you understand what you don’t know.”
“Painful experiences are the best way to learn.”
The key is to balance your passion with discipline.
“People who achieve success and drive progress deeply understand the cause-effect relationships that govern reality and have principles for using them to get what they want.”
“Idealists who are not well grounded in reality create problems, not progress.”
“If you want to be successful, you have to be willing to be wrong and change your mind.”
“An idea meritocracy is a system in which the best ideas win out.”
“In order to be successful, you need to be both confident and humble.”
“The more you learn, the more you earn.”
“It’s important to remember that success is a process, not an event.”
“You have to be willing to fail in order to succeed.”
“Don’t be afraid to take risks and make mistakes.”
“It’s important to always be learning and growing.”
“Good communication is essential to success.”
You need to be able to see things from multiple perspectives.
“Success is a function of persistence and doggedness and the willingness to work hard for 22 minutes to make sense of something that most people would give up on after 30 seconds.”
“It’s important to always be thinking about how you can improve.”
“The best way to learn is through experience.”
“You need to be willing to embrace change in order to succeed.”
“You need to have a clear understanding of your goals and objectives.”
“Don’t be afraid to ask for help.”
“It’s important to surround yourself with people who challenge you.”
“You need to be willing to take responsibility for your mistakes.”
“The key to success is to focus on what you can control and let go of what you can’t.”
“Success is not a destination, it’s a journey.”
“What does a successful life look like? We all have our own deep-seated needs, so we each have to decide for ourselves what success is. I don’t care whether you want to be a master of the universe, a couch potato, or anything else—I really don’t. Some people want to change the world and others want to operate in simple harmony with it and savor life. Neither is better. Each of us needs to decide what we value most and choose the paths we take to achieve it.”

55 Best Ray Dalio Quotes On Investing and Principles Of Success

Ray Dalio Quotes – Principles

Ray Dalio Quotes – Principles:

“Embrace reality and deal with it.”
“Pain + Reflection = Progress.”
“Don’t mistake a clear view for a short distance.”
“An idea meritocracy is a system in which the best ideas win.”
“Radical transparency and radical truthfulness are essential for an idea meritocracy.”
“Recognize the power of knowing what you don’t know.”
“To be effective, you must be honest about what you know and what you don’t know.”
“Be clear on what you want, and why you want it.”
“Make your passion and your work one and the same and do it with people you want to be with.”
“Remember that almost everything will take more time and cost more money than you initially anticipate.”
“The greatest mistake you can make in life is to be continually fearing you will make one.”
“Don’t worry about looking good; worry about achieving your goals.”
“Understand and accept your weaknesses so you can hire people who are strong in those areas.”
“Be radically open-minded and radically transparent to get the best possible outcomes.”
“Don’t let your ego get in the way of making the best decision.”
“Make sure everyone’s goals are aligned, and everyone understands what success looks like.”
“The key to success is having the right people in the right roles.”
“To achieve success, you need to have a culture of learning and improvement.”
“Remember that pain is a signal that something needs to change.”
“Always be learning and seeking new knowledge.”
“Be willing to take risks and fail, but learn from those failures and move forward.”
“Don’t let your past mistakes limit your future potential.”

Ray Dalio Quotes on Life

Ray Dalio Quotes on Life:

“Embrace reality and deal with it.”
“Pain plus reflection equals progress.”
“Be radically open-minded and radically transparent.”
“The biggest mistake most people make is to not see themselves and others objectively.”
“The greatest gift you can give someone is the power to be successful.”
“The more vividly you can visualize how the scenario you create will play out, the more likely it is to happen as you plan. Visualize who will do what when and the result they’ll produce. This is your mental map of your machine.”
“Recognize that some people are better or worse at visualization. Accurately assess your own abilities and those of others so you can use the most capable people to create your plans.”
“Either literally or vicariously (through reading reports, job descriptions, etc.), temporarily insert yourself into the workflow of the area you’re looking at to gain a better understanding of what it is that you are dealing with. As you design, you’ll be able to apply what you’ve learned, and revise the machine appropriately as a result.”
“Success is the result of your habits.”
“Mistakes are a natural part of the learning process. Learn from them and move on.”
“People who are successful are not necessarily smarter or more talented. They are simply more disciplined and focused.”
“Be true to yourself, but also be open to feedback and criticism.”
“The most important thing in life is to have meaningful relationships.”
“Strive for excellence in everything you do, but also be kind to yourself and others.”
“Radical honesty and radical transparency lead to better decision-making.”
“Painful experiences are the best opportunities for growth and learning.”
“Beyond having the basics, it doesn’t get much better.”
“Be self-sufficient plus.”

Ray Dalio Quotes on Values

Ray Dalio Quotes on Values:

“Truth – more precisely, an accurate understanding of reality – is the essential foundation for producing good outcomes.”
“I believe that the key to success lies in knowing and accepting your weaknesses, seeking out criticism and surrounding yourself with people who are better than you are.”
“The greatest tragedy of mankind is that people hold onto their opinions and beliefs with such tenacity that they fail to see beyond them.”
“Radical open-mindedness and radical transparency are invaluable for finding truth and making good decisions.”
“There are all kinds of different people in the world, many of whom value different kinds of things. If you find you can’t get in sync with someone on shared values, you should consider whether that person is worth keeping in your life. A lack of common values will lead to a lot of pain and other harmful consequences and may ultimately drive you apart. It might be better to head all that off as soon as you see it coming.”
“The most important thing in life is meaningful work and meaningful relationships.”
“Challenges are gifts that force us to search for a new center of gravity. Don’t fight them. Just find a new way to stand.”
“Excellence is a journey, not a destination.”
“I learned that everyone makes mistakes and has weaknesses and that one of the most important things that differentiates people is their approach to handling them.”
“The greatest mistake of all is to avoid making one.”
“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.”
Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”
“It’s not enough to just have principles. You have to be willing to stick to them when they’re inconvenient.”
“People who overweigh the first-order consequences of their decisions and ignore the effects of second- and subsequent-order consequences rarely make good decisions.”
“Great opportunities come from great problems.”
“The biggest mistake investors make is to believe that what happened in the recent past is likely to persist.”
“I believe that the most valuable asset you can have is a well-functioning team.”
“The best way to make money is not to focus on making money.”
“You can have anything you want, but you can’t have everything you want.”
“You don’t need to have brilliant ideas or be the smartest person in the room to be successful. You just need to be able to recognize the good ideas, and have the humility to learn from others.”

Ray Dalio Quotes on Success

Ray Dalio Quotes on Success:

To be successful, you must be in love with what you do.
“Pain + Reflection = Progress.”
Largely because they are the easiest to measure, memory and processing speed tend to be the abilities that determine success in school, so school performance is an excellent gauge of these qualities. School performance is also a good gauge of a person’s determination to succeed, as well as their willingness and ability to follow directions. But when it comes to assessing a candidate’s common sense, vision, creativity, or decision-making abilities, school records are of limited value. Since those traits are the most important, you must look beyond school to ascertain whether an applicant has them.”
“The biggest mistake most people make is to not see themselves and others objectively.”
“Teams should operate like those in professional sports, where different skills are required to play different positions. Excellence in each is mandatory, the success of the mission is uncompromisable, and members that don’t measure up may need to be cut. When teams operate with such high standards and shared values, extraordinary relationships are likely to develop.”
“The most important thing is to be able to take criticism, to be self-aware and to be able to see what you don’t know.”
“People who go through life expecting to have it easy and expecting everything handed to them are inevitably disappointed.”
“The greatest gift you can give someone is the power to be successful. Giving that power to others is what true leadership is all about.
“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.”
“Success is a state of mind. If you want to be successful, start thinking of yourself as a success.”
“If you’re not making mistakes, you’re not learning, and if you’re not learning, you’re not growing.”
The key to success is to know yourself, to know what you want and to have the courage to pursue it.
“The most successful people in the world are those who have learned to fail gracefully and to bounce back from setbacks quickly.”
“The best way to achieve success is to help others achieve success.”
“In order to be successful, you must be willing to take risks, to embrace uncertainty and to be comfortable with ambiguity.”
“The road to success is always under construction. It requires hard work, determination and perseverance.”
“Success is not a destination, it’s a journey. And the journey is always more important than the destination.”
“The most successful people are those who have learned to be adaptable, to embrace change and to evolve with the times.”
“To be successful, you must be able to handle adversity with grace, to stay calm in the face of chaos and to keep your eye on the prize.”
“The secret to success is not what you do, but how you do it. It’s about having the right mindset, the right attitude and the right approach.”
“The most successful people are those who have a strong sense of purpose, a clear vision of what they want to achieve and the determination to make it happen.”
“Success is not just about achieving your goals, it’s about the person you become in the process.”
“The most successful people in the world are those who have learned to embrace failure, to learn from their mistakes and to use setbacks as opportunities for growth.”

Ray Dalio Quotes on Business

Ray Dalio Quotes on Business:

“In order to be successful, you have to be independent-minded and able to tolerate uncertainty.”
“Don’t let your ego get in the way of making the best decision possible.”
“It’s important to have a clear understanding of your goals and to align your actions accordingly.”
Human managers process information spontaneously using poorly thought-out criteria and are unproductively affected by their emotional bias. These all lead to suboptimal decisions. Imagine what it would be like to have a machine that processes high-quality data using high-quality decision-making principles/criteria.”
“The most important thing in business is to be able to learn from your mistakes and keep moving forward.”
“The greatest tragedy of mankind is that people hold onto their opinions and don’t allow themselves to be open-minded.”
Don’t let the fear of failure hold you back from pursuing your dreams.
“The most successful people are those who are willing to take risks and make mistakes.”
“In order to be successful, you have to be willing to put in the hard work and make sacrifices.”
“Success is not about being lucky, it’s about being prepared and taking advantage of opportunities.”
“Don’t be afraid to ask for help or advice when you need it.”
“It’s important to surround yourself with people who have different perspectives and can challenge your thinking.”
“The best way to predict the future is to create it.”
“In business, it’s important to focus on what you can control and let go of what you can’t.”
“In order to be successful, you have to be able to adapt and change with the times.”
“Success is a result of taking action and not just thinking about it.”
“It’s important to have a clear understanding of your strengths and weaknesses and to surround yourself with people who complement them.”
“Don’t let setbacks discourage you from pursuing your goals.”
“The key to success is not just hard work, but smart work.”
“The best way to learn is through experience and making mistakes.”
“In business, it’s important to be honest and transparent with your customers and employees.”
“Success is not just about making money, it’s about making a positive impact on the world.”
“The greatest mistake you can make in life is to be too afraid to make one.”
Wealth = Buying Power
Wealth ≠ Financial Wealth
Making Wealth = Being Productive
Wealth Decline = Power Decline
“As for what is happening now, the biggest problem that we collectively now have is that for many people, companies, nonprofit organizations, and governments the incomes are low in relation to the expenses, and the debts and other liabilities (such as those for pension, healthcare, and insurance) are very large relative to the value of their assets. It may not seem that way—in fact it often seems the opposite—because there are many people, companies, nonprofit organizations, and governments that look rich even while they are in the process of going broke. They look rich because they spend a lot, have plenty of assets, and even have plenty of cash. However, if you look carefully you will be able to identify those who look rich but are in financial trouble because they have incomes that are below their expenses and/or liabilities that are greater than their assets so, if you project out what will likely happen to their finances, you will see that they will have to cut their expenses and sell their assets in painful ways that will leave them broke. We each need to do those projections of what the future will look like for our own finances, for others who are relevant to us, and for the world economy.”
Improving productivity is the only way incomes can rise to be greater than expenditures, and that’s what’s required to manage debts well.
Why don’t both sides of the political divide focus on productivity? Because most people are focused on what they get rather than what they produce to exchange with others so they can get what they need.
We ‘finance people’ see the world very differently from the way economists do. The views of finance people tend to be shaped more by trading experience than by formal economics. They assign much more weight to financial factors such as debt, asset prices and cash flow than do economists who emphasize “real economy” factors such as employment and investment. Finance people are wary of how macroeconomic data obscures crucial details of individual companies and households. Some economists do think like finance people, such as former Fed Chairman Alan Greenspan, but they are in the minority.

Ray Dalio Quotes on Investing

Ray Dalio Quotes on Investing:

“Whenever I make an investment decision, I observe myself making it and think about the criteria I used. I ask myself how I would handle another one of those situations and write down my principles for doing so. Then I turn them into algorithms. I am now doing the same for management and I have gotten in the habit of doing it for all my decisions.
“In investing, what is comfortable is rarely profitable.”
“Timing the market is a fool’s game.”
“When you’re investing, always look at the downside before looking at the upside.”
“The best way to manage risk is to diversify your portfolio.”
“To be successful at investing, you need to have an open mind and be willing to learn from your mistakes.”
“Investing is about managing risk, not avoiding it.”
“Competing in the markets is more difficult than competing in the Olympics.”
“Have a balanced portfolio.”
“It’s a zero-sum game. So diversification, that they’re different, will reduce your risk without reducing your return. If you know how to diversify well, that’s critical.”
“All investments compete and it’s not easy to tell whether one investment is better than the other. Because if people could do that life would be easy and everybody would make a ton of money, and this is a competitive game that’s very difficult to compete in.”
“It’s very difficult to say which one’s better or worse. You could take experts and you could do all sorts of tests and you’ll find out that they can’t pick that and you can’t tell whether the worst ones are going to be better.”
“Because of that you understand that even picking the best ones is difficult and particularly if you’re naive. We spend hundreds of millions of dollars each year on research to try to give us an edge; okay, now you’ve got to compete with us.”
“There are more people trying to make money doing it and it’s a zero-sum game, yet most people think that they can do it.”
“First of all, the main thing I would worry about as an amateur investor is whether you can win at this game. I strongly doubt that you can. I believe that competing in the markets is more difficult than competing in the Olympics, because there are more people trying to make money doing it and it’s a zero-sum game, yet most people think that they can do it. However, history has shown that only a small percentage of the players of this game walk away with a lot of money and most lose money.”
“But when I mean financial engineering, I don’t mean go into an optimizer and throw things around and see what spits out. I mean understanding the parts and how to put those parts together.”
“The controlling of risk with diversification, the right balancing, and perhaps some leverage, is something that produces the best results.”
“The key is your return-to-risk ratio. Risk and diversification are of paramount importance, and the fact is that if you diversify well, you can reduce your risk by 70% or 80% if you take uncorrelated, good things.
“And if you have the right diversified portfolio, that means you can increase your return-to-risk ratio by a factor of 5 by knowing how to diversify without reducing your returns. So finding good, uncorrelated return streams is of paramount importance.”

For more on Ray Dalio’s approach to investing, please check the article on his All Weather Portfolio.

Ray Dalio Quotes on Algorithms & Algorithmic Decision-Making

Ray Dalio Quotes on algorithms:

“Algorithms are principles in action on a continuous basis. I believe that systemized, evidence-based decision-making will radically improve the quality of management.”
“Human managers process information spontaneously using poorly thought-out criteria and are unproductively affected by their emotional biases. These all lead to suboptimal decisions.”
“Imagine what it would be like to have a machine that processes high-quality data using high-quality decision-making principles/criteria. Like the GPS in your car, it would be invaluable, whether you follow all of its suggestions or not.”
“When I started investing, I would think about how I would make decisions. And then I started to write down my criteria, and then I realized that if I specified them very clearly in equations, that I could go back-test them and see how they would have performed, and I learned a great deal from that.”
“And I found that when I did those things, it brought me into a deeper way of thinking because almost everything happens over and over again. And all decisions are based on criteria that are in our heads. And so I did that with every aspect of life. In a lot of that I systemized the decision-making in terms of these equations so that the computer could help me and help Bridgewater in making those decisions.”
And then writing down these principles, which are essentially the criteria for making decisions, the recipe, so to speak. And that made me think in a better way, made me more systematic, made me communicate better to those I was operating with. So that was the background of all these principles.”

Ray Dalio Quotes on Cash

Ray Dalio Quotes on Cash:

Cash is trash.” – In an interview with CNBC in January 2020, Dalio stated that he would rather own other assets such as stocks or real estate than hold cash. He argued that with interest rates at historic lows, cash is not a good investment and that investors should diversify their portfolios.
“Don’t let cash be your largest holding.” – In his book, “Principles: Life and Work,” Dalio advises against holding too much cash and suggests that investors should diversify their portfolios across different asset classes.
“The best investment strategy is to have a balanced portfolio of diversified investments that perform well in both inflationary and deflationary environments.” – In an interview with Yahoo Finance in November 2020, Dalio emphasized the importance of diversification and investing in a variety of assets to hedge against market volatility and inflation.
“Cash is a bad long-term investment.” – In a LinkedIn post from October 2019, Dalio argued that holding cash over the long-term is a bad investment because it doesn’t provide a return that keeps up with inflation.

Ray Dalio Quotes on Risk Management

Here are some of his notable quotes on Dalio’s risk management:

“Don’t bet on what you hope will happen; bet on what you think is most likely to happen.”
“The biggest mistake investors make is to believe that what happened in the recent past is likely to persist in the future.”
“Diversification is the only free lunch in finance.”
“The best way to manage risk is to be diversified across a variety of uncorrelated assets.”
“The only way to avoid mistakes is not to invest—which is the biggest mistake of all.”
“The greatest mistake of the individual investor is to think that a market that did well is a good market rather than a more expensive one.”
“The key to success is to bet big on your best ideas and small on your worst ideas.”
“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.”
“The more you can spread your bets, the less you have to depend on any one bet being right.”
“Don’t let fear stop you from taking risks. Without risks, there can be no reward.”

Overall, Dalio emphasizes the importance of diversification, betting on the most likely outcomes, and not letting fear hold you back from taking calculated risks.

Ray Dalio Quotes on Gold

Here are some of Dalio’s notable quotes on gold:

“If you don’t own gold, you know neither history nor economics.”
“Gold should be a part of everyone’s portfolio to some degree because it diversifies the portfolio and it is a storehold of wealth.”
“Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.
“Gold is a timeless and universal currency. It serves as a hedge against inflation and a store of value, and it has been used for thousands of years as a medium of exchange.”

Overall, Ray Dalio believes that gold is an important asset to own due to its historical and economic significance, as well as its ability to serve as a store of value and a hedge against inflation.

Ray Dalio Quotes on Evolution

Ray Dalio Quotes on Evolution:

“Evolution is the single greatest force in the universe. It is the only thing that is permanent and it drives everything.”
“Evolution is a process of constant improvement. It’s a process of trial and error, where the things that work survive and the things that don’t work die off.”
“Evolution is about adapting to change. Those who can adapt will survive and those who can’t will perish.”
“The most successful people are those who are constantly evolving. They are never satisfied with the status quo and are always looking for ways to improve.”
“Evolution is not about being the strongest or the smartest, it’s about being the most adaptable.”

Overall, Ray Dalio views evolution as a powerful force that drives everything in the universe.

He sees it as a process of constant improvement and adaptation, and believes that those who can evolve and adapt will be the most successful.

Ray Dalio Quotes on Philanthropy

Ray Dalio Quotes on Philanthropy:

“Giving is the highest level of living.”
“If you have been successful, you should give back to society in a significant way.”
“Wealth is not created solely for the purpose of personal consumption, but also for the greater good.”
“Philanthropy is an investment in the future. By supporting causes that make a positive impact, we can help create a better world for future generations.”
“Philanthropy is not just about giving money, it’s about giving time, knowledge, and resources to make a difference.”
“There are many good double bottom-line investments in education, infrastructure, fighting the drug problem, addressing mental illness, and other programs that produce broad-based opportunities.”

Dalio believes that giving back is an important part of living a fulfilling life, especially for those who have been successful.

He sees philanthropy as an investment in the future and a way to create a better world for future generations.

Ray Dalio Quotes on Psychology

Ray Dalio Quotes on Psychology:

“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.”
“Pain plus reflection equals progress.”
“The greatest tragedy of mankind is that people hold onto their opinions and ideologies as if they are absolute truths. The truth is that our understanding of reality is limited, and we must constantly revise our beliefs based on new information and experiences.”
“Don’t let your ego get in the way of making the best decisions.”
“The only thing that’s constant is change, so you need to learn to embrace it.”
“Most people make the mistake of thinking they know what they want, and then they spend their lives chasing after it. The truth is, most of us don’t really know what we want, and that’s okay. The important thing is to keep exploring and experimenting until you find something that resonates with you.”
“Radical transparency and radical truthfulness are essential for personal and organizational success.”
“Pain is a signal that something is wrong, and we need to pay attention to it if we want to grow and improve.”
“Don’t let fear hold you back from pursuing your dreams. Embrace the uncertainty and take calculated risks.”
“Success is not just about achieving your goals, it’s about becoming the best version of yourself.”
“Misinterpretations are going to take place. Often, difficulty in communication is due to people having different ways of thinking (e.g., left-brained thinkers talking to right-brained thinkers).”
“The parties involved should 1) realize that what they might be transmitting or receiving might not be what was meant, 2) consider multiple possibilities, and 3) do a back and forth so that they can get in synch. People do the opposite — confidently thinking that they’ve communicated their intent clearly, not considering multiple possibilities and then blaming the other parties for the misunderstanding.”
“Some people see details (trees), and others see big pictures (forests). Those who “see trees” see the parts most vividly and don’t readily relate the parts to each other in order to see the big picture—e.g., they might prefer more literal, precise paintings. They are typically left-brained. Others connect the dots to pictures. In fact, they typically don’t even see the dots; they just see the pictures. They are typically right-brained. You can detect which type people are by observing what they focus on. Detailed thinkers can lose sight of the big picture and are more likely to focus in on a part than to go to the higher level and see the relationship between parts. For example, a person who focuses on details can be thrown off by word mistakes like “there“ instead of “their,” while big-picture thinkers won’t even notice the mistake. Similarly, big-picture thinkers can often understand the meaning of sentences even when key words are reversed—e.g., when “up” is mistakenly used instead of “down,” they understand that the person speaking couldn’t have meant “up” in that context. That is because their attention is focused on the context first and the details second. When describing the same meeting, these two different types will frequently focus on completely different things and disagree on their interpretations. In discussions, they can frustrate each other and discount what the other is saying. Similarly, a person of one type interviewing another type will usually yield an unsatisfactory result.” (Source: Dalio Principles Annotated)
” Some people rely more on remembering what they were taught when making decisions, and others rely more on their independent reasoning. Let’s call the first group memory-based learners and the second group reasoning-based thinkers. When using the word “learning” I intend to convey “acquiring knowledge by being taught,” and when using the word “thinking” I mean “figuring it out for oneself.” Memory-based learners approach decision-making by remembering what they were taught. They draw on their memory banks and follow the instructions stored there. They are typically left-brained. Reasoning-based thinkers pay more attention to the principles behind what happens. They are typically right-brained. You can tell the difference when what is learned (e.g., CAPM) conflicts with what is logical (e.g., All Weather). People who rely on memory-based learning will typically be more skeptical of unconventional ideas because their process is to more readily accept what they have been told and because they are less able to assess it for themselves. Those who rely on more on reasoning won’t care much about convention and will assess ideas on their merits. Those who rely on memory-based learning also tend to align themselves with the consensus more than people who rely on reasoning. Memory-based learners are more willing to accept the status quo, while reasoning-based thinkers are less biased by it. They are more likely to be innovative, while those who rely on learning are likelier to be cautious.
Remember that people who see things and think one way often have difficulty communicating and relating to people who see things and think another way. Keep in mind how difficult it is to convey what it means to think in an alternative way for the same reason it would be difficult to convey what the sense of smell is to someone who doesn’t have the ability to smell.
Performance in school will correlate well with the quality of one’s memory-based learning, but will not reliably correlate with one’s reasoning-based thinking. The most able learners are easily found, since they are, or were, the best students from the best schools. The best thinkers are tougher to find, as there are no obvious funnels through which they pass, especially before they develop track records in the “real world.”

Recognize that performance in school, while of some value in making assessments, doesn’t tell you much about whether the person has the values and abilities you are looking for. Memory and processing speed tend to be the abilities that determine success in school (largely because they’re easier to measure and grade) and are most valued, so school performance is an excellent gauge of these. School performance is also a good gauge for measuring willingness and ability to follow directions as well as determination. However, school is of limited value for teaching and testing common sense, vision, creativity, or decision-making. Since those traits all outweigh memory, processing speed, and the ability to follow directions in most jobs, you must look beyond school to ascertain whether the applicant has the qualities you’re looking for.

Ray Dalio Quotes on History

Ray Dalio Quotes on History:

History shows that when an individual, organization, country, or empire spends more than what they earn, misery and turbulence are ahead.
Those who spend modestly and have a surplus are more sustainably successful than those who earn a lot more and have deficits.
History also shows that countries that have higher percentages of people who are self-sufficient tend to be more socially, politically, and economically stable.
The United States now is spending a lot more money than it’s earning and paying for it by printing money that is being devalued. To improve we have to raise productivity and cooperation. Right now we are on the wrong path.
Through time and across countries, history has shown that there is a symbiotic relationship between those who have wealth and those who have political power, and that the type of deal they have between them determines the ruling order.
Wealth and power are mutually supportive.

Ray Dalio Quotes on Politics

The conditions of the times create the type of leader that emerges because the evolutionary process pulls out the leader who suits the environment. In other words, how the times are transpiring determines the leader even more than the leader determines how the times are going.
What make a great leader at the time depended on what was needed at the time.
However, the “one person, one vote” democratic process has the drawback of having leaders selected via popularity contests by people who are largely not doing the sort of thoughtful review of capabilities that most organizations would do when trying to find the right person for an important job.

Ray Dalio Quotes on China

It is important to distinguish between the hand that Xi was dealt and how he has been choosing to play it. It is also important to understand what is happening now and how Xi is playing his hand without judging these things, because judging them can stand in the way of understanding them.
38% of China’s emperors died of unnatural causes while in power.
It appears that the “elites” are most concerned and least supportive of Xi, while many who feel Xi is trying to take care of them from being exploited by the elites are strongly supportive of him. It appears that Xi and the leadership think that most of those people who are discontented are spoiled and unappreciative of how much better off they are than they were not long ago and that they need to toughen up, get disciplined, and get in line with the program to help others.
History shows that in all countries through all times during these very difficult 100-year-storm-like periods, leaders go to much more autocratic policies because the alternative becomes great internal conflict and disorder, and typically there are forced changes of leadership that those in power fight against.
While people can debate the merits of Xi and the Chinese government creating a fearful and strict-control environment to get people to behave the way the government wants them to behave, just as people can debate the merits of the American government’s more democratic and disorderly approach, it is more important to see what’s happening as objectively as possible than to be quick to pass judgments on it.
Throughout Chinese history, it’s typically been the case that you can’t be rich and be a government official. The merchant-capitalist who sought financial gain was traditionally assumed to be dangerously greedy and easily corruptible, and not allowed to be in government.
It is certainly the case that the Chinese fight wars differently. Think about the “art of war”—fighting to win by focusing on the “pressure points” that can weaken or hurt the other side without even being seen.

Ray Dalio Quotes on Learning and Education

Ray Dalio Quotes on Learning and Education:

While most others seem to believe that learning what we are taught is the path to success, I believe that figuring out for yourself what you want and how to get it is a better path.
While most others seem to believe that finding out about one’s weaknesses is a bad thing, I believe that it is a good thing because it is the first step toward finding out what to do about them and not letting them stand in your way.
While most others seem to believe that mistakes are bad things, I believe mistakes are good things because I believe that most learning comes via making mistakes and reflecting on them.
While most others seem to believe that having answers is better than having questions, I believe that having questions is better than having answers because it leads to more learning.
While most others seem to believe that learning what we are taught is the path to success, I believe that figuring out for yourself what you want and how to get it is a better path.
I believe that our society’s “mistakephobia” 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.
As a result, 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.
What I wanted was to have an interesting, diverse life filled with lots of learning-and especially meaningful work and meaningful relationships. I feel that I have gotten these in abundance and I am happy by:
1. working for what I wanted, not for what others wanted me to do;
2. coming up with the best independent opinions I could muster to move toward my goals;
3. stress-testing my opinions by having the smartest people I could find challenge them so I could find out where I was wrong;
4. being wary about overconfidence, and good at not knowing; and
5. wrestling with reality, experiencing the results of my decisions, and reflecting on what I did to produce them so that I could improve. I believe that by following this approach I moved faster to my goals by learning a lot more than if I hadn’t followed it.
Enjoying your job, a craft, or your favorite sport comes from the innate satisfaction of getting better. the sequence of:
1. seeking new things (goals);
2. working and learning in the process of pursuing these goals;
3. obtaining these goals; and
4. then doing this over and over again is the personal evolutionary process that fulfills most of us and moves society forward.
Recognize that performance in school, while of some value in making assessments, doesn’t tell you much about whether the person has the values and abilities you are looking for. Memory and processing speed tend to be the abilities that determine success in school (largely because they’re easier to measure and grade) and are most valued, so school performance is an excellent gauge of these. School performance is also a good gauge for measuring willingness and ability to follow directions as well as determination. However, school is of limited value for teaching and testing common sense, vision, creativity, or decision-making. Since those traits all outweigh memory, processing speed, and the ability to follow directions in most jobs, you must look beyond school to ascertain whether the applicant has the qualities you’re looking for.
The importance of a skill will vary according to the job. The more knowledge-dependent and independent in nature the job is (e.g., a programmer or lawyer whose job isn’t to think about the direction of the company), the more relevant the required skills are.

Ray Dalio Quotes on Creativity

“Get rid of irrelevant details so that the essential things and the relationships between them stand out. As the saying goes, “Any damn fool can make it complex. It takes a genius to make it simple. Not everyone has a mind that works that way, but just because you can’t do something naturally doesn’t mean you can’t do it – you just have to have creativity and determination. If necessary, you can seek the help of others.”
“When it comes to assessing a candidate’s common sense, vision, creativity, or decision-making abilities, school records are of limited value. Since those traits are the most important, you must look beyond school to ascertain whether an applicant has them.”
“A task-oriented person who is great with details might undervalue creativity–and worse still, may squelch it in the interests of efficiency.”
I practice Transcendental Meditation and believe that it has enhanced my open-mindedness, higher-level perspective, equanimity, and creativity. It helps slow things down so that I can act calmly even in the face of chaos, just like a ninja in a street fight.”
“Renaissance periods of great creativity that produce advances in most areas (sciences, arts, philosophies about how people should govern, etc.) come more during the peaceful & prosperous parts of the Big Cycle, when the systems for creating innovations are good rather than bad.”
Flexibility and resilience (i.e., the capacity to adapt to both “bad” and “good” things) allows people to minimize setbacks and maximize opportunities. Character, common sense, creativity, and consideration in most people make for a productive society.”
“The higher up you are in an organization, the more important vision and creativity become, but you still must have the skills required to manage/orchestrate well. Some young entrepreneurs start with the vision and creativity and then develop their management skills as they scale their companies; others start with management skills and develop vision as they climb the ladder. But like great musicians, all great managers have both creativity and technical skills. And no manager at any level can expect to succeed without the skill set of an organizational engineer.”

Ray Dalio Quotes on Meditation

“Transcendental Meditation has probably been the single most important reason for whatever success I’ve had.”
“I practice Transcendental Meditation and believe that it has enhanced my open-mindedness, higher-level perspective, equanimity, and creativity.”
I have meditated for 49 years and know TM leading light Bob Roth personally, so I can endorse listening to him if you’re interested in meditation. If you’re not, you’re overlooking the most powerful path to equanimity, creativity, and good decision making I know.”

FAQs – Ray Dalio Quotes

What are some famous quotes by Ray Dalio?

Ray Dalio, the founder of Bridgewater Associates, is a well-known American investor, philanthropist, and author.

Here are some of his famous quotes:

“Pain + Reflection = Progress” – This quote from Dalio emphasizes the importance of learning from mistakes and using them to move forward.
“The biggest mistake most people make is to not see themselves and others objectively, which leads to poor decision-making and adversarial relationships” – In this quote, Dalio emphasizes the importance of viewing oneself and others objectively to make better decisions and build better relationships.
“Don’t let your ego get in the way of truth” – This quote highlights the importance of humility in seeking the truth and making rational decisions.
“The greatest tragedy of mankind is that people hold onto their opinions and are not open-minded” – This quote emphasizes the importance of open-mindedness in learning and growing.
“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” – This quote encourages people to embrace failure as a necessary part of growth and development.
“Understand that people are wired differently” – In this quote, Dalio highlights the importance of recognizing and respecting individual differences to build better relationships and teams.
“Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change” – This quote highlights the importance of openness and transparency in creating a culture of learning and improvement.
“Be a hyperrealist” – In this quote, Dalio encourages people to be honest with themselves and face reality head-on, rather than avoiding difficult truths.
“Everything that happens is another opportunity to learn” – This quote emphasizes the importance of a growth mindset and seeing setbacks as opportunities for learning and improvement.
“Principles are ways of successfully dealing with reality to get what you want out of life” – This quote highlights the importance of having guiding principles to navigate through life’s challenges and achieve one’s goals.

What are Ray Dalio’s most famous quotes on investing and trading?

Here are some of Ray Dalio’s most famous quotes on investing and trading:

“Don’t let the fear of making a mistake prevent you from making anything.”
“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 today, and they buy it. It’s a big mistake.”
“In investing, what is comfortable is rarely profitable.”
“Diversification is a hedge against ignorance.”
“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.”
“The most important thing you can do is be humble in the face of the markets.”
“The greatest mistake investors make is to believe that what worked in the past will work in the future.”
“Successful investing is about managing risk, not avoiding it.”
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
“The key to success in investing is to balance your emotions with your analysis.”