After going broke in 1982, Ray Dalio started doing something no one else on Wall Street was: writing down his mistakes and building algorithms from them. The result became Bridgewater — and Principles. In this episode, Dalio breaks down how to build an idea meritocracy, why most successful people stay wrong too long, and what he wishes every 18-year-old knew about failure.
Listen and Learn: | Apple Podcasts | Spotify | Transcript
Ray gave me over an hour and a half of his time, and I didn’t waste a minute. We cover a lot of ground, including:
- How most people are caught up in the “blizzard” of noise and information, and how Ray learned to operate above it
- How predicting a financial collapse just before one of the most prosperous eras in US history almost ruined him — and why he’s grateful he was wrong
- Ray’s meditation practices and a simple exercise you can use to foster more creativity, be more insightful, and eliminate stress
- The one question Ray started asking himself that instantly improved how he made important decisions
- Why the best decision isn’t always the one you have in your head — and how to know when to sacrifice your favorite ideas in exchange for the best ideas
- The “two yous” that wrestle inside everybody, and how to help them get along
- Why “tough love” is the greatest gift you can give somebody
- The most common mistake we make every day that can bring our progress to a screeching halt
- The five-step process Ray uses after a mistake has been made to make sure learning and growth occur
And much, much more.
Look, when you get the chance to ask one of the world’s most successful people how they did it, you should probably listen to what they have to say. I guarantee this will be time well spent.
Enjoy!
Timecodes
00:00 – Why Dalio punched his boss
01:25 – Dalio’s typical daily routine
03:54 – Why Dalio started meditating
07:29 – Dalio’s biggest influences during the 70s and 80s
09:35 – How Bridgewater almost went bankrupt & what he learned
20:15 – How to have an idea-meritocracy
31:22 – What to do if you’re not in an idea-meritocracy
34:18 – Dalio’s most misunderstood principles
38:06 – Tools for decision-making within Bridgewater
42:38 – On radical transparency
47:50 – How to spot imposters
50:10 – How to become open-minded
55:15 – Learned v. innate leadership
01:02:15 – On Bridgewater’s future culture
01:03:51 – Dalio’s principles for philanthropy
01:06:49 – Dalio predicts the future
01:13:29 – The most common mistake people make and why they’re unhappy
01:21:18 – Bridgewater’s process for decision making
01:26:06 – Dalio’s advice to high schoolers
