Ray Dalio calls himself a "dumb shit" who doesn't know much compared to what he needs to know. This is the foundation of his approach to life. His success comes not from knowing everything, but from knowing how to handle not knowing.Principles, as Dalio explains, are simply fundamental truths that guide your behavior and help you get what you want. Good principles save you time and mental energy by providing reliable frameworks for decision-making. But this book isn't about blindly...
The Making of Principles
So! How exactly did a middle-class kid from Long Island become one of the world's most successful investors and developed a framework for life and work that's now studied globally?Born in 1949, young Ray wasn't exactly a star student. He struggled with memorization but had natural curiosity. While other kids played, twelve-year-old Ray took his caddying money and bought stocks. His first investment? Northeast Airlines; chosen simply because it was cheap! When he tripled his money (pure luck, as he...
Life Principles
Life Principles are simply ideas that apply to human lives in general. Dalio shares three awesome life principles: embrace reality, learn from pain, and evolve constantly.People who create great things aren't dreamers - they're grounded in reality. They understand cause-effect relationships and use principles to get what they want. Most people fight seeing what's true when it's uncomfortable or not what they want. But our life principles teach hyperrealism - appreciating the beauty of all realities, even the harsh ones.To...
The 5-Step Process
Your ongoing evolution requires both strategic thinking and relentless determination. The plan of attack? This five-step process!We begin with crystal-clear goal setting. And we mean crystal clear - not vague, wishy-washy dreams that evaporate after 3 a.m. Be ruthlessly specific about what you want. And you've got to choose; deliberately say no to some tempting alternatives, pick one path and commit.And now, the real work starts cause you'll face... problems! Problems aren't your enemies. They're your personal growth coaches. Most...
Principles for Building an Extraordinary Workplace
Dalio's work principles tackle something most people dread: workplace culture. Most workplaces are broken, and the fix isn't complicated. Just understand that people are the real machinery of your organization.So, the very first work principle to fix work culture? Trust in radical truth and radical transparency. This principle helps create a workplace where mistakes aren't hushed up or swept under the rug, but celebrated as learning opportunities. When Ross, a key trader, forgot to execute a critical trade, Dalio didn't...
Principles for The Human Factor
Getting the right people isn't just a hiring challenge - it's the fundamental heartbeat of any successful organization. People matter infinitely more than processes. So, our work principles for getting the people right begin with selecting the right people for roles.Obviously, selecting this right "Responsible Parties" (RPs) becomes an art form of extraordinary precision. An RP isn't just someone assigned a task, but someone who genuinely understands the mission, bears authentic accountability, and possesses the intrinsic motivation to deliver exceptional...
Principles for Perfecting the Organizational Machine
Running an organization is like engineering! Your machine needs to be constantly analyzed, improved, and optimized. The moment you start viewing your organization through this lens, everything changes.Your first job is to step back. Way back. Like a pilot flying high above the terrain, you need to see the entire landscape of your organization. Most managers get caught in the day-to-day tornado of tasks, missing the bigger picture. Your superpower? The ability to do two things at once: carry out...
Summary
And that's a wrap! You now have the map for transforming how to work, learn, and achieve extraordinary results. But remember, creating and applying principles is a long, long journey, and not a destination. It requires patience, persistent effort, and a genuine commitment to continuous improvement. All the best!
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About the Author
Ray Dalio is an American investor, author, and philanthropist who founded Bridgewater Associates, the world's largest hedge fund. He is known for writing the #1 New York Times Bestseller, Principles: Life & Work, and other books like Principles for Dealing with the Changing World Order and Principles for Navigating Big Debt Crises. Dalio graduated from Long Island University and Harvard Business School and began his investment career early, buying his first stock at age 12.
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