The Principles of Ray Dalio to Achieve the Goals of Business.

Ray Dalio is a billionaire investor, a speculative fund manager, and a writer. Over-named the “Steve Jobs of Investment”, he is best known as the founder of the World's largest speculative fund company Bridgewater Associates, which manages approximately $160 billion in Bridgewater investment. It is one of the world's 100 most influential figures. In February 2020, Bloomberg ranked him as the World's 79th richest person.

Before that happened, Dalio went through many difficult phases, particularly in 1982 when his poor market analysis cost him all his money and money from his clients. It was then forced to license many employees.

He explains in his TED conference that it was one of the most difficult moments in his life, but also one of the best lessons he could have received.

If Ray Dalio managed to recover from his failures, it was thanks to his philosophy of life. He considers that behind each of our experiences, there is the opportunity to learn something new.

According to the successful investor, all successful individuals operate according to principles that guide them. Acting without principle forces us to react to the circumstances in a thoughtful way, without taking into account what we value and what we really want.

We all have values. Our values are the things we attach great importance to. Of course, they differ according to people. But everyone who we are, we value

some things.

The question then arises to each of us is: How to live a life that is consistent with the values we have? So, how do we do to flourish personally and professionally?

In his successful book “The Principles of Success”, Ray Dalio explores the process of developing principles and their implementation. Imagine you have to face every small obstacle and problem that life throws you for the first time, every time.

This would be what it would be like to cross life without any established principle on which to rely. It would be like sailing on a river in a boat without rows, trying to find its way in a forest without a compass, or having to question its emotions, reports and decision-making process whenever something comes up.

Having a set of principles is like having a backpack on yourself at any time, filled with various tools ready to be used in all situations.

Ray Dalioʼs “Principles” provided countless people who have succeeded invaluable ideas and advice, including Bill Gates.In this article, we will see what these principles are and how they can help us every day.

The principles are the concepts we establish over time, through different experiences and interactions, and which can be applied over and over again in similar circumstances. These are the means we use to deal with the immutable laws of nature and the whims of human character. Like any other game, life has principles that can be mastered and used for final victories by the most performing players. And each of us has the potential to be a performing player in the game of life. A good set of principles reveals the fundamental truths you need to face and overcome any obstacles on your way to greatness. All successful people are guided by principles that helped them on their way, but according to the final goal, principles can vary considerably. Principles can be defined as a link between your values and your actions, they essentially guide your actions and guide your decision-making process.

Ray Dalio believes that in order to advance in life, we must go through the following five steps:

Step 1: Define clear objectives. We need to know exactly where we want to go and what we want to accomplish with our lives.

Step 2: Identify problems. When you pursue a goal, you face a number of problems that you need to identify.

Step 3: Diagnostic. To overcome our problems, we need to diagnose them to understand what is at the source.

Step 4: Define a plan. After diagnosing the source of our problems, we need to prepare an action plan to solve them.

Step 5: Apply the plan. We apply our action plan.

Once the five steps are completed, we start again. New objectives are defined, new problems are identified, new diagnostics are made, new plans are defined and applied. These steps form loops that allow us to progress permanently.

Dalio considers that whenever we complete this cycle and we manage to solve a particular problem, we are awarded new knowledge that will help us face future challenges. This knowledge is like Gems that you win after you have completed a level in a game. So the more you complete these five steps, the more you progress.

To succeed in life, we must have dreams and determination, but more importantly, we must be able to face reality. Many things alter our perception of reality. To cope with reality, we must avoid our view to failing to miss any opportunity to learn. Too often we stay on our opinion and on how we should like things to be, only that is moving away from reality. Being open-minded is the best way to deal with reality. A person who is not open-minded will always be limited to his vision of the world and reject all arguments that contradict him even if they are just and relevant. To remain open to mind, we must look for further advice. Find experts who perceive the world differently and consider their arguments.

Staying open-minded can sometimes hurt our ego, shake our beliefs and upset our beliefs. This is especially the case when what we believed in the past for years is finally false. This awareness is painful but as Dalio explains, pain and reflection are a source of progress. The last principle to succeed in his life according to Ray Dalio is to make effective decisions. We all face thousands of decisions every day. Many are trivial, but some are important. Important decisions are the ones that shape our lives. These are the ones that determine the course of our company. Good decisions can build us just like bad decisions can destroy us. In his book Dalio gives some tips to make good decisions: We need to look for the radical truth: The quality of our decisions depends largely on the quality of the information we collect. One reason for why bad decisions are made is that incorrect or incomplete information is based. So, in order to make better choices, we need to look for the right information, the ones that bring us closer to reality. Encouraging constructive disagreement: Disagreement is often misperceived. We see him as something conflicting. However, some disagreements may promote good decision-making. But in order to do so, we must be open to disagreement, accept the information that contradicts us and truly consider them in our decision-making. Looking for credible advisors: When you get help from someone to make decisions, you have to make sure that they are credible.

Reference:

Riley, Brian. “Book Review: My 5 Key Lessons from Ray Dalio's Principles.” Medium, Medium, 28 Mar. 2018, medium.com/@brianriley/book-review-my-5-key-lessons-from-ray-dalios-principles-8f980efbc045. Accessed on April 26,2021.