Ray Dalio

When we are in meetings, we use a tool for what we call "dotting." It allows everyone to convey what they are seeing and how each person is behaving in real time. You can look at a screen and see, in color, how people are seeing each other. You see who thinks something is the most arrogant thing, or the stupidest thing, or that you aren't being considerate. When you see that visualization in real time, you are forced to ask yourself: How do I know that I’m seeing it the right way? How do I know that I’m not the wrong one? You realize you are just one of those dots in that line and in that grid. It causes you to go above yourself and provides perspective. Once you see how everyone else is seeing the situation, it raises a fundamental question: Together, how do we know what’s best? Just because an idea is in your head doesn’t mean it’s best. To make the right decisions, we have to look past our own individual assumptions and work together to find the truth.

They are rare. Such relationships take time to build and can only be built if you treat such people well. #principleoftheday

The holy grail of investing is knowing how to balance. When you can take equally good things where your expectation of return is equal, but because they are uncorrelated and move differently, they balance each other. That is how you can reduce your risk without reducing your returns. You have to understand that the market is a zero-sum game. The consensus is already reflected in the price, and trying to beat it is a difficult game. In fact, it is more difficult to compete and be successful in the markets than it is to compete in the Olympics. We must be humble about that. But achieving that balance so you can get a good return without losing a lot of money is everything. Most of my own money is invested in exactly that. #Investing #AssetAllocation #RiskManagement #Principles

You need to develop a fierce intolerance of badness of any kind, regardless of its severity. #principleoftheday

This is a requirement. Being considerate means allowing other people to mostly do what they want, so long as it is consistent with our principles, policies, and the law. It also means being willing to put others ahead of your own desires. If the people on both sides of an argument approach their disagreements in this way, we will have many fewer disputes about who is offending whom. #principleoftheday

Worrying about "blame" and "credit" or "positive" and "negative" feedback impedes the iterative process that is essential to learning. Remember that what has already happened lies in the past and no longer matters except as a lesson for the future. #principleoftheday

Though it won't feel that way at first, each and every problem you encounter is an opportunity; for that reason, it is essential that you bring them to the surface. Most people don't like to do this, especially if it exposes their own weaknesses or the weaknesses of someone they care about, but successful people know they have to. #principleoftheday

Everyone makes mistakes. The main difference is that successful people learn from them and unsuccessful people don’t. By creating an environment in which it is okay to safely make mistakes so that people can learn from them, you’ll see rapid progress and fewer significant mistakes. This is especially true in organizations where creativity and independent thinking are important, as success will inevitably require the acceptance of failure as a part of the process. As Thomas Edison once said, “I have not failed. I’ve just found ten thousand ways that do not work.” #principleoftheday

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You only need to find one that works. #principleoftheday

Thinking about problems that are difficult to solve may make you anxious, but not thinking about them (and hence not dealing with them) should make you more anxious still. When a problem stems from your own lack of talent or skill, most people feel shame. Get over it. I cannot emphasize this enough: Acknowledging your weaknesses is not the same as surrendering to them. #principleoftheday

Go back before you go forward. Think about your problem as a set of outcomes produced by a machine. Remember that there are typically many paths to achieving your goals. Think of your plan as being like a movie script in that you visualize who will do what through time. Write down your plan for everyone to see and to measure your progress against. Recognize that it doesn’t take a lot of time to design a good plan. #principleoftheday