Investment Principles from the Greatest Investors

📈🔄 Howard Marks

Market Pendulum at Extremes

The mood swings of the securities markets resemble the movement of a pendulum. Although the midpoint of its arc best des...

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📈🔄 Howard Marks

Taking Market Temperature

We can never know where we're going, but we'd better have a good idea of where we are. The ability to assess market temp...

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💭🔄 Howard Marks

Emotion is the Enemy

The biggest investing errors come not from factors that are informational or analytical, but from those that are psychol...

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📌🔄 Howard Marks

Consensus is Comfortable

Unconventionality is required for superior investment results. You can't do the same things others do and expect to outp...

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🔄🔄 Howard Marks

Know Your Position in Cycle

The most important thing is to know where you stand in the cycle and act accordingly. We might not know where we're goin...

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💼🔄 Howard Marks

Defensive Investing System

There are old investors, and there are bold investors, but there are no old bold investors. The road to long-term invest...

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📊⚖️ Ray Dalio

All Weather Valuation

Don't bet on any single economic scenario. Diversify your bets across different environments so you always have somethin...

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💎⚖️ Ray Dalio

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...

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💎⚖️ Ray Dalio

Expected Value Calculation

Raising the probability of being right is valuable no matter what your probability already is. I make my decisions based...

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🏢⚖️ Ray Dalio

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...

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💡⚖️ Ray Dalio

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...

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📌⚖️ Ray Dalio

Culture is Everything

The most important thing is to have a great culture. An idea meritocracy where the best ideas win creates the most succe...

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💡⚖️ Ray Dalio

Know What You Don't Know

The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. Being open-...

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📌⚖️ Ray Dalio

Radical Open-Mindedness

Don't let your ego barrier or blind spot barrier prevent you from seeing things as they really are. Be radically open-mi...

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🎯⚖️ Ray Dalio

Believability-Weighted Decisions

Not all opinions are equally valuable. Weigh the opinions of believable people more heavily — those who have repeatedly ...

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🔄⚖️ Ray Dalio

Debt Cycle Psychology

Throughout history, economies have gone through long-term and short-term debt cycles. Understanding these cycles helps y...

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📌⚖️ Ray Dalio

Pain Plus Reflection Equals Progress

Pain plus reflection equals progress. The most painful moments in investing teach you the most — if you reflect on them ...

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📌⚖️ Ray Dalio

Herd Behavior Danger

When everyone is in agreement, it is almost certain to be wrong. The biggest risks are those that most people don't see ...

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🌐⚖️ Ray Dalio

Diversification is the Holy Grail

The holy grail of investing is to find 15 or more uncorrelated return streams. This dramatically reduces risk without re...

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📁⚖️ Ray Dalio

Stress Test Your Portfolio

Make sure your portfolio works in every type of economic environment. Ask yourself: what would happen to my portfolio in...

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🎯⚖️ Ray Dalio

Systematize Your Decisions

Write down your decision-making criteria so you can refine it over time. The best way to make good decisions consistentl...

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📈⚖️ Ray Dalio

Buy Diversified Streams

Rather than trying to pick the best investments, focus on building a portfolio of uncorrelated bets. Each bet should be ...

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📌⚖️ Ray Dalio

Balance Alpha and Beta

Separate your alpha from your beta. Have a diversified beta portfolio as your foundation, and overlay alpha strategies o...

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⚖️ Ray Dalio

Acknowledge Mistakes Fast

Don't worry about looking good — worry about achieving your goal. If you're wrong, acknowledge it quickly and move on. T...

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📜⚖️ Ray Dalio

Review Through Principles

When things go wrong, diagnose what went wrong by comparing the outcome to your principles. Was it an error in your prin...

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📌⚖️ Ray Dalio

Process Over Outcome

Judge decisions by the quality of the process, not by the outcome. Good decisions can have bad outcomes, and bad decisio...

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📌⚖️ Ray Dalio

Economic Machine Model

The economy works like a simple machine. Transactions are the building blocks. Credit drives cycles. Productivity growth...

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🎯⚖️ Ray Dalio

Five-Step Decision Process

Have clear goals, identify problems, diagnose root causes, design solutions, and push through to completion. This five-s...

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📌⚖️ Ray Dalio

Radical Transparency Model

Radical truth and radical transparency are fundamental. If you agree that a real idea meritocracy is what you want, then...

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📜⚖️ Ray Dalio

Principles-Based Investing

Think for yourself to decide what you want, what is true, and what to do about it. Principles are fundamental truths tha...

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