How to Make Decisions like Ray Dalio

How to Make Decisions like Ray Dalio

Unravel the decision-making prowess of Ray Dalio, a titan in the world of finance. Discover the principles that guide his choices, and learn how to apply these strategies to your own life and career.

Most interesting to me about Ray Dalio is his decision-making process

People who have a sound decision making process have better outcomes in life

“When you have a view that’s different from the consensus, you’re gonna be wrong a certain number of times”

Find people of alternative points of view and have quality conversations back and forth

What typically gets in the way of the process like Dalio wants to create? Ego and organizational politics

The ego of the decision maker is so often the source of a problem or mistake.

As context, what Dalio is setting out to do as an investor is extraordinarily hard

To say that a tiny number of people outperform the markets by making macro bets is a radical understatement. A handful of people have been able to do this successfully over many years at scale.

Organizational politics

One advantage that Buffett and Munger have is that in many cases the “radically transparent” discussion is just between the two of them

Other approaches to decision-making

Munger uses a two-track analysis: what are the factors that really govern the interests involved, rationally considered?

Recognize the Power of Knowing How to Deal with Not Knowing

The cost of a bad decision is equal to or greater than the reward of a good decision, so knowing what you don’t know is at least as valuable as knowing

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