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...
"The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. Being open-minded about what you don't know is the key."
Intellectual humility about unknowns is essential.
Read Full Analysis →"Don't let your ego barrier or blind spot barrier prevent you from seeing things as they really are. Be radically open-minded."
Overcome ego to see reality clearly.
Read Full Analysis →"Not all opinions are equally valuable. Weigh the opinions of believable people more heavily — those who have repeatedly succeeded at the thing in question."
Weight opinions by the track record of the person.
Read Full Analysis →Ray Dalio has 3 key principles on circle of competence. The most important one is "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.
Ray Dalio applies circle of competence through several key principles including "Know What You Don't Know" and "Radical Open-Mindedness". These principles guide practical investment decisions and have been tested across decades of market cycles.
Ray Dalio's approach to circle of competence is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Ray Dalio provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
