Principals | Ray Dalio

Editor’s notes:  This month’s article of the month is based on this work by a billionaire hedge fund founder, Ray Dalio.  Noticing the reference when Stewart Kohl sent me the article. I immediately downloaded the book and am reading it.  As with my favorite financial writer, John Bogle, (who founded Vanguard and wrote “Enough”) I was happy to find Dalio is among the Buffet/Gates Giving Pledgers.  That means he will give over half his wealth to charity.  I’ve only made it through the life portion of “Principles” so far and am indeed impressed.  Like Bogle, Dalio seems to be the type of guy who would have succeeded as a leader of any organization, not just a financial one.  His approach is pretty comprehensive but simple:  Identify your principles, then follow them boldly.

Excerpt:  “Our biggest barriers to [being radically open minded] are the ego barrier and the blind spot barrier.  Our ego barrier is our innate desire to be capable and having other recognize us as such.  The blind spot barrier is the result of our seeing things through our own subjective lens; both barriers can prevent us from seeing how things really are.  The most important anti-dote for them is radical open-mindedness…it is the ability to effectively explore different points of view and different possibilities without letting your ego or your blind spots get in the way.”