Ray Dalio, Founder of Bridgewater Associates

[Tradewinds 12]

This is an interesting interview with a very successful hedge fund manager. The interview was done on the Charlie Rose show:

 

Ray Dalio on Charlie Rose

 

Ray_Dalio - Wikipedia

 

New Yorker - How Ray Dalio built the richest and strangest hedge fund

 

90 Billion under management, 40% return in 2010

 

Barrons

 

His firm runs on a set of 295 principles that Mr. Dalio devised and distributed to all employees. The 83-page treatise, which draws lessons from the natural world, advises employees on how to achieve fulfillment at work and in life. MICHAEL CORKERY, WSJ

 

Wall Street Journal

[howthom 10]

Thanks Tradewinds. It's refreshing to hear someone who recognizes and is willing to talk about solutions to difficult problems come about when intelligent minds cooperate with one another. This is a test of "US" as he so eloquently stated.

[SIUYA 11]

thanks tradewinds....

Given many of the mental aspects discussed here at TL I thought it topical the New Yorker article has this....

 

He added, “I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are.”

 

 

and while there were the accusations of this being a criticism of his firm being like a cult - so long as there are enough checks and balances to avoid group think - it appears there have been from the results they get.....

 

"“Is it a better way to run a company? From a results perspective, probably so. Could a large portion of the working population be comfortable in that environment? Probably not."

 

and yet ultimately they actually still say the Ray is the key person, and that even with all the systems and principles he has in place - without him the firm would not be as good at trading.....of course he disagrees, his principles would not have much value if he didn't believe them....I guess only time will tell.

 

Additionally what I thought is most interesting is his ideas that you need to have a basic underlying philosophy/idea of how something works, before the application of all the disciplines.....this is often missing in many trading plans.