- Hedge fund legend Ray Dalio, who runs Bridgewater Associates, is the world's second richest hedge-fund manager.
- He says his investment philosophy is to bet against the consensus and make sure he is right.
- He also has a well-known principle to success — "Pain plus reflection equals progress."
- Keep reading to learn more about his insights into investing and his life principles.
Hedge fund legend Ray Dalio, who runs Bridgewater Associates, is widely considered to be one of the most successful hedge fund managers in the world.
Dalio has $18.4 billion in net worth, the second richest hedge-fund manager globally, just behind Jim Simons, a quant guru who founded Renaissance Technologies.
He says his investment philosophy is to bet against the consensus and make sure he is right.
And he says has a principle to success — "Pain plus reflection equals progress."
Keep reading to learn more about his insights into investing and his life principles.
"The main reason I write the daily observations is because I want to know where I'm wrong."
At the Bloomberg Markets 50 Summit in 2011, Dalio said that he gets feedback and criticism from a wide range of investors everyday.
"The main reason I write the daily observations is because I want to know where I'm wrong," the hedge-fund manager said. "So lots of times if somebody points something out it helps me, and I want to have a diversified bet of uncorrelated bets."
Source: Transcript
“I pay about a third in taxes, I give away about a third, and I follow the law.”
In 2011, Dalio appeared on Charlie Rose‘s program on PBS to talk about principles of his firm, Bridgewater.
“I think I did everything right,” he said. “I did well when others didn’t. I happen to earn one-fifth of the profits. I pay about a third in taxes, I give away about a third, and I follow the law. And if I’m doing something they think is incorrect, I’d like to know that.”
Source: Transcript
"He who lives by the crystal ball will eat shattered glass."
Speaking on a panel at the New York Times DealBook conference in 2012, Dalio warned that forecasting the timing of Federal Reserve's rising rates is probably a fool's errand.
"He who lives by the crystal ball will eat shattered glass," Dalio said.
Source: CNBC
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