Ray Dalio

Once you have that, you can move on from that to do other things, to take more chances and so on to do that. You will have freedom and security. There is nothing more important than that. Because if you know what your worst case scenario is, and you know you're good, and you know your family's good, Then you have peace of mind and you have power. And then you can take risk.

Once you have that, you can move on from that to do other things, to take more chances and so on to do that. You will have freedom and security. There is nothing more important than that. Because if you know what your worst case scenario is, and you know you're good, and you know your family's good, Then you have peace of mind and you have power. And then you can take risk.

So the first thing I would say when I'm looking at investors or when I'm looking at people is know what that number is and then know how to build a diversified portfolio so that that operates well. I put out information on courses and things, but the most important thing, I think, is to be in that position. Once you are there, then have a second portfolio. Have that first base portfolio that way.

So the first thing I would say when I'm looking at investors or when I'm looking at people is know what that number is and then know how to build a diversified portfolio so that that operates well. I put out information on courses and things, but the most important thing, I think, is to be in that position. Once you are there, then have a second portfolio. Have that first base portfolio that way.

So the first thing I would say when I'm looking at investors or when I'm looking at people is know what that number is and then know how to build a diversified portfolio so that that operates well. I put out information on courses and things, but the most important thing, I think, is to be in that position. Once you are there, then have a second portfolio. Have that first base portfolio that way.

And then you go on to take risk.

And then you go on to take risk.

And then you go on to take risk.

Yes. And whether it goes up or down, you don't lose return in order to reduce risk. That's the most important thing. that one of the great things about investing is what I call the holy grail of investing. The holy grail of investing means that you can reduce risk without reducing returns by knowing how to diversify well.

Yes. And whether it goes up or down, you don't lose return in order to reduce risk. That's the most important thing. that one of the great things about investing is what I call the holy grail of investing. The holy grail of investing means that you can reduce risk without reducing returns by knowing how to diversify well.

Yes. And whether it goes up or down, you don't lose return in order to reduce risk. That's the most important thing. that one of the great things about investing is what I call the holy grail of investing. The holy grail of investing means that you can reduce risk without reducing returns by knowing how to diversify well.

In other words, if you take two equally good investments and they move differently, you will have the same return because they're equally good But you will have less risk because they diversify each other. And my mantra is 10 to 15 good uncorrelated investments produces a risk reduction by almost five times. In other words, you can have the same return with one fifth the risk.

In other words, if you take two equally good investments and they move differently, you will have the same return because they're equally good But you will have less risk because they diversify each other. And my mantra is 10 to 15 good uncorrelated investments produces a risk reduction by almost five times. In other words, you can have the same return with one fifth the risk.

In other words, if you take two equally good investments and they move differently, you will have the same return because they're equally good But you will have less risk because they diversify each other. And my mantra is 10 to 15 good uncorrelated investments produces a risk reduction by almost five times. In other words, you can have the same return with one fifth the risk.

That's a mantra of investing. So my main point here, because it can get complicated as to how exactly you do that, is know your number, achieve that, have that well diversified, and be humble. Competing in the markets is more difficult than competing in the Olympics. You wouldn't think I'm going to go compete in the Olympics. It's a zero-sum game.

That's a mantra of investing. So my main point here, because it can get complicated as to how exactly you do that, is know your number, achieve that, have that well diversified, and be humble. Competing in the markets is more difficult than competing in the Olympics. You wouldn't think I'm going to go compete in the Olympics. It's a zero-sum game.

That's a mantra of investing. So my main point here, because it can get complicated as to how exactly you do that, is know your number, achieve that, have that well diversified, and be humble. Competing in the markets is more difficult than competing in the Olympics. You wouldn't think I'm going to go compete in the Olympics. It's a zero-sum game.

In other words, in order for somebody to make a better return, somebody's going to have to have a worse return. So that's the challenge of active management, for example. And so you have to appreciate that with your humility. Take an asset class, any asset class, stocks. It regularly goes down 50% to 70% in real dollars. So the power of diversification is something that I want to convey.

In other words, in order for somebody to make a better return, somebody's going to have to have a worse return. So that's the challenge of active management, for example. And so you have to appreciate that with your humility. Take an asset class, any asset class, stocks. It regularly goes down 50% to 70% in real dollars. So the power of diversification is something that I want to convey.

In other words, in order for somebody to make a better return, somebody's going to have to have a worse return. So that's the challenge of active management, for example. And so you have to appreciate that with your humility. Take an asset class, any asset class, stocks. It regularly goes down 50% to 70% in real dollars. So the power of diversification is something that I want to convey.