Ray Dalio turns 74 years old today!
He founded and ran one of the world's biggest and most successful hedge funds.
For years, he's been sharing lessons on life and investing.
To celebrate his birthday, here are some of his greatest lessons👇
He founded and ran one of the world's biggest and most successful hedge funds.
For years, he's been sharing lessons on life and investing.
To celebrate his birthday, here are some of his greatest lessons👇
1. Power of Not Knowing
No matter how confident you are, there's always the possibility you're wrong.
Being aware of that is a superpower. Only then you can protect yourself.
Look for the smartest people that disagree with your opinion and hear them out.
No matter how confident you are, there's always the possibility you're wrong.
Being aware of that is a superpower. Only then you can protect yourself.
Look for the smartest people that disagree with your opinion and hear them out.
2. Independent/Contrarian Ideas
In investing, big money is in contrarian ideas.
Focus on becoming an independent thinker and seek those contrarian ideas.
It's important, however, that you don't force them.
The consensus is mostly right and being contrarian and right is rare.
In investing, big money is in contrarian ideas.
Focus on becoming an independent thinker and seek those contrarian ideas.
It's important, however, that you don't force them.
The consensus is mostly right and being contrarian and right is rare.
3. All Things Come to an End
One big mistake on Wall Street is to extrapolate trends far into the future.
That's why one bad quarter can lead to billions lost in market valuation.
Don't do that mistake. Avoid the recency bias.
Businesses don't change dramatically that often.
One big mistake on Wall Street is to extrapolate trends far into the future.
That's why one bad quarter can lead to billions lost in market valuation.
Don't do that mistake. Avoid the recency bias.
Businesses don't change dramatically that often.
4. The Missing Piece
Great investors operate with a margin of safety.
For one, that's a matter of price.
But it's also a mindset.
Always assume you are still missing a piece of the puzzle.
Worrying about that piece will make you review your decision with more skepticism.
Great investors operate with a margin of safety.
For one, that's a matter of price.
But it's also a mindset.
Always assume you are still missing a piece of the puzzle.
Worrying about that piece will make you review your decision with more skepticism.
5. Reflection
Start an Investment Journal.
Keep track of your buying and selling decisions, and, most importantly, write down the reasons for each.
This will not only improve your decisions in the first place, it'll also make the reflection process more effective.
Start an Investment Journal.
Keep track of your buying and selling decisions, and, most importantly, write down the reasons for each.
This will not only improve your decisions in the first place, it'll also make the reflection process more effective.
6. Big-Picture Thinking
Dalio is known for thinking about the big picture.
He's an investor that focuses a lot on macroeconomics.
But this also applies to micro-focused investors.
The best of the best have the ability to zoom in and out and connect the dots.
Dalio is known for thinking about the big picture.
He's an investor that focuses a lot on macroeconomics.
But this also applies to micro-focused investors.
The best of the best have the ability to zoom in and out and connect the dots.
That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
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