Ray Dalio
Ray Dalio's framework turns an investing idea into a decision memo: what to check, what to avoid, and what would change your mind. Use the 54 principles below as a checklist—not as buy/sell signals—and verify any numbers or quotes with primary sources. If you're new, start with Global Macro to frame business quality, valuation discipline, and risk, then browse topics to find the rules that match your situation. Pair each principle with a concrete trigger so you can review whether you followed the process after the decision.
- Start with the principles as questions (not trade signals).
- Write down your thesis, risks, and “what would change my mind”.
- Cross-check with scenarios, filings, and your own data sources.
Educational only. This is not investment advice.
"Pain plus reflection equals progress."
About Ray Dalio
Raymond Thomas Dalio (born August 8, 1949) is an American billionaire investor and hedge fund manager. He founded Bridgewater Associates in 1975, which became the world's largest hedge fund with over $150 billion in assets under management at its peak. Dalio is known for developing the "All Weather" portfolio strategy, designed to perform well across all economic environments, and pioneering risk parity investing. His systematic, principles-based approach to investing and management has been highly influential in the institutional investment world. His investment philosophy emphasizes understanding how the economic machine works, studying historical patterns of debt cycles and currency movements, and maintaining radical transparency in decision-making. Dalio believes in creating systematic processes that remove emotional biases from investment decisions. His book "Principles" became a worldwide bestseller, sharing his life and work principles developed over 40+ years. He has also published extensive research on economic cycles, debt crises, and the rise and fall of empires throughout history.
Core Investment Principles
All Weather Valuation
Don't bet on any single economic scenario. Diversify your bets across different environments so you always have somethin...
→Price Relative to Value
Almost all good and bad outcomes come from the price you pay. Most people's biggest mistake is to not think independentl...
→Expected Value Calculation
Raising the probability of being right is valuable no matter what your probability already is. I make my decisions based...
→Business as a Machine
Think of yourself as a machine operating within a machine. A good business is a well-designed machine that produces outc...
→Understand the Machine
To be a good investor, you need to understand the economic machine and how each of its parts works together. The economy...
→Browse Ray Dalio's Principles by Topic
Famous Quotes
"He who lives by the crystal ball will eat shattered glass."
"If you're not failing"
"you're not pushing your limits"
"and if you're not pushing your limits"
"you're not maximizing your potential."
