Free read Principles Life and Work

characters » Principles Life and Work ↠ E-book, or Kindle E-pub Ray Dalio ✓ 9 Summary Ude Dalio laying out the most effective ways for individuals and organizations to make decisions approach challenges and build strong teams He also describes the innovative tools the firm uses to bring an idea meritocracy to life such as creating “baseball cards” for all employees that distill their strengths and weaknesses and employing computerized decision making systems to make believability weighted decisions While the book brims with novel ideas for organizations and institutions Principles also offers a clear straightforward approach to decision making that Dalio believes anyone can apply no matter what they’re seeking to achieveHere is a rare opportunity to gain proven advice unlike anything you’ll find in the conventional business pre. IMPORTANCE OF PRINCIPLES The most important thing i learned is an approach to life based on principles that helps me find out whats true and what to do about it Principles are fundamental truths that serve as the foundations for behaviour that gets you what you want out of life They can be applied again and again in similar situations to help you achieve your goals 1 What do you want 2 What is true 3 What should you do to achieve what you want in light of what is true Having a good set of principles is like having a good collection of recipes for success The lesson When everybody thinks the same thing such as what a sure bet the Nifty 50 is it almost certainly reflected in the price and betting on it is probably going to be a mistake The most painful lesson that was repeatedly hammered home is that you can never be sure of anything There are always risks out there that can hurt you badly even in the seemingly safest bets so its always best to assume you re missing something This lesson changed my approach to decision making in ways that will reverberate throughout this book and to which I attribute much of my success There is almost always a good path that you just haven t figured out yet so look for it until you find it rather than settle for the choice that is then apparent to you I believed strongly that we should bring problems and disagreements to the surface to learn what should be done to make things better So Ross and i worked to build out an error log in the trading department I saw that to do exceptionally well you have to push your limits and that if you push your limits you will crash and it will hurt a lot You will think you have failed but that won t be true unless you give up Believe it or not your pain will fade and you will have many other opportunities ahead of you though you might not see them at the time The most important thing you can do is to gather the lessons these failures provide and gain humility and radical open mindedness in order to increase your chances of success Then you press on I learned a great fear of being wrong that shifted my mind set from thinking Im right to asking myself how do i know I m right And I saw clearly that the best way to answer this uestion is by finding other independent thinkers who are on the same mission as me and who see things differently from me By engaging them in thoughtful disagreement id be able to understand their reasoning and have them stress test mine That way we can all raise our probability of being right What happens after we crash is most important Successful people change in ways that allow them to continue to take advantage of their strengths while compensating for their weaknesses and unsuccesful people don t making money in the markets is tough Learning from history What had happened after all was another one of those Meditation has benefited me hugely throughout my life because it produces a calm open mindedness that allows me to think clearly and creativelyI gradually learned that prices reflect peoples expectations so they go up when actual results are better than expected and they go down when actual results are worse than expected And most people tend to be biased by their recent experiences p 11

characters ò E-book, or Kindle E-pub ✓ Ray Dalio

characters » Principles Life and Work ↠ E-book, or Kindle E-pub Ray Dalio ✓ 9 Summary Ray Dalio one of the world’s most successful investors and entrepreneurs shares the unconventional principles that he’s developed refined and used over the past forty years to create uniue results in both life and business and which any person or organization can adopt to help achieve their goalsIn 1975 Ray Dalio founded an investment firm Bridgewater Associates out of his two bedroom apartment in New York City Forty years later Bridgewater has made money for its clients than any other hedge fund in history and grown into the fifth most important private company in the United States according to Fortune magazine Dalio himself has been named to Time magazine’s list of the 100 most influential people in the world Along the way Dalio discovered a s. Ray Dalio showed us that in order to build a successful hedge fund it s not enough to follow your intuition It s much wiser to follow a set of principles that will guide you and protect you from bad decisions He divided those principles into life principles and work principlesThe top 3 principles I applied to my life are Think of yourself how to achieve what you want by analyzing what s true Be radically open minded Look at the machine you and your life from the higher levelI wrote a short summary and list of all the principles with enough details to understand the benefits of them here

characters » Principles Life and Work ↠ E-book, or Kindle E-pub Ray Dalio ✓ 9 Summary Et of uniue principles that have led to Bridgewater’s exceptionally effective culture which he describes as “an idea meritocracy that strives to achieve meaningful work and meaningful relationships through radical transparency” It is these principles and not anything special about Dalio who grew up an ordinary kid in a middle class Long Island neighborhood that he believes are the reason behind his successIn Principles Dalio shares what he’s learned over the course of his remarkable career He argues that life management economics and investing can all be systemized into rules and understood like machines The book’s hundreds of practical lessons which are built around his cornerstones of “radical truth” and “radical transparency” incl. Amazing book must read for anyone who has to make decisions in life that means everyone but I think the impact your decisions have the useful his frameworks are I m giving it 5 stars for the big ideas and uniueness of them though I will warn you that the book is very long and highly repetitive there is probably a way to read only parts of it and still get all the big ideas Also as I do for most books these days I read it with a combo of Kindle ebook and Audible and Ray reads the first half of the book himself and given that part is backstorybio It s much powerful to hear it in his voiceDalio was successful because he timed it perfectly he was one of the first to apply computers to investing He also along the way invented what we call a hedge fund which is only possible to do well if you highly leverage computers He leveraged computers heavily turning all investment decision making he could into algorithms He found this worked so well that he attempted to turn ALL decision making into algorithms this book goes into personal life and management work algorithms aka principles This is one of the interesting ways Ray approaches life he is trying to turn all his life into algorithmsThe key to doing this well is to 1 Slow down your thinking so you can note the criteria you are using to make your decision 2 Write the criteria down as a principle 3 Think about those criteria when you have an outcome to assess and refine them before the next one of those comes alongAndWhenever I make an investment decision I observe myself making it and think about the criteria I used I ask myself how I would handle another one of those situations and write down my principles for doing so Then I turn them into algorithms I am now doing the same for management and I have gotten in the habit of doing it for all my decisionsI found the definition of his inspiration of a hedge fascinating as it applies to life in general too basically make lots of uncorrelated betsThat simple chart struck me with the same force I imagine Einstein must have felt when he discovered Emc2 I saw that with fifteen to twenty good uncorrelated return streams I could dramatically reduce my risks without reducing my expected returns It was so simple but it would be such a breakthrough if the theory worked as well in practice as it did on paper I called it the Holy Grail of Investing because it showed the path to making a fortuneOne of the Big Ideas of the book that Ray talks a lot about a lot is the notion of creating an idea meritocracyof all approaches to decision making an idea meritocracy is the best40 It s almost too obvious to warrant saying but I will anyway Knowing what you can and cannot expect from each person and knowing what to do to make sure the best ideas win out are the best way to make decisions Idea meritocratic decision making is better than traditional autocratic or democratic decision making in almost all casesIn order to do this Ray believes strongly in having radical transparency and being radically open minded I think these sections are worth reading if you don t read the whole book worth re reading too A transparent culture means everything is shared metrics and data how the company or teams are doing what is said in meetings all meetings are recorded at Bridgewater and anyone can access the recordings later strategic issues like if they are considering a merger of one group and even what people are like Bridgewater has opened sourced a big piece of people management what people s strengths and growth areas are They use personality tests as well as input from others in the company to assess this and then put it on baseball cards for each person which anyone in the company can see He describes how useful these tools are when creating a new project team to make sure you have a balance of the right skillsets and types of people on it and how without this many people are just naturally likely to pick people like themselves This way of operating is so interesting and different that many notable phycologists Eg Adam Grant have gone to study the Bridgewater culture In addition to collecting dots about people in meetings we collect data on our people in numerous other ways reviews tests the choices people make etc All these dots are analyzed via computerized algorithms based on stress tested logic in order to create pointillist pictures of what people are like That logic is typically shared with and vetted by the people in the company to help its objectivity and believability We then capture these pictures in Baseball Cards which are a simple way of presenting a person s strengths and weaknesses and the evidence behind them in much the same way as a baseball card does for a professional baseball playerOnce you know who is good at what it becomes a way to de risk decision making in a meritocratic way People who score high at things aka are believable get weight in their opinions on things in that area Most of us do this intuitively ask and listen to those who know about something but having a system to enforce that will catch a lot of cases where it isn t happening Thinking about where this might go if expanded broadly is a bit interesting feels like it could really turn into gamified decision makingAs Bridgewater s system currently exists everyone is allowed to give input but their believability is weighted based on the evidence their track records test results and other data Responsible Parties can overrule believability weighted voting but only at their peril