Ray Dalio

I mean, it wasn't exactly like that, but basically, I know so many people who don't earn much but are there. Because if you start to think about what it is that it costs you to live in terms of, let's say, the basics, give me a bed to sleep in, give me the food, let me be educated, and so on and so forth, I think most people can get themselves in a position where they're net positive.

So if you can be net positive, And you could do that, you know, that's number one, you know, as I carry that. So that's, you know, that's number one. Then I guess it was the list that we went to. You know, the second is, you know, what do you do next in terms of what do you need? What do you invest in? You know, and then, you know, going beyond it.

So if you can be net positive, And you could do that, you know, that's number one, you know, as I carry that. So that's, you know, that's number one. Then I guess it was the list that we went to. You know, the second is, you know, what do you do next in terms of what do you need? What do you invest in? You know, and then, you know, going beyond it.

And then avoid the following mistake, the most common mistake of investing. thinking that the investment that did good is a good investment. People rather more expensive. Quite often, those markets that did really, really well became more expensive. And everybody, smart money is all the time comparing them and competing them.

And then avoid the following mistake, the most common mistake of investing. thinking that the investment that did good is a good investment. People rather more expensive. Quite often, those markets that did really, really well became more expensive. And everybody, smart money is all the time comparing them and competing them.

So what happens is the naive money buys the thing that was hot or is hot. The thing that has been terrible, which might be the thing that's beaten down. So I would say also an important element. Okay, so here's another one that's really important, diversify. So don't put all your eggs in one basket. Right, because what I learned about this, is that first of all, all investments compete.

So what happens is the naive money buys the thing that was hot or is hot. The thing that has been terrible, which might be the thing that's beaten down. So I would say also an important element. Okay, so here's another one that's really important, diversify. So don't put all your eggs in one basket. Right, because what I learned about this, is that first of all, all investments compete.

And it's not easy to tell whether one investment is better than the other, because if people could do that, life would be easy and everybody would make a ton of money. And this is a competitive game that's very difficult to compete in. So it's very difficult to say which one's better or worse.

And it's not easy to tell whether one investment is better than the other, because if people could do that, life would be easy and everybody would make a ton of money. And this is a competitive game that's very difficult to compete in. So it's very difficult to say which one's better or worse.

You could take experts and do all sorts of tests, and you'll find out that they can pick that and you can't tell whether the worst ones are going to be better. So because of that,

You could take experts and do all sorts of tests, and you'll find out that they can pick that and you can't tell whether the worst ones are going to be better. So because of that,

you understand that even picking the best ones is difficult and particularly if you're naive like we spend hundreds of millions of dollars each year on research to try to give us an edge okay now you've got to compete with us so uh competing in the markets is more difficult than competing in the olympics You wouldn't go think I'm going to compete in the Olympics.

you understand that even picking the best ones is difficult and particularly if you're naive like we spend hundreds of millions of dollars each year on research to try to give us an edge okay now you've got to compete with us so uh competing in the markets is more difficult than competing in the olympics You wouldn't go think I'm going to compete in the Olympics.

But there are more people who try harder in order to do that. So it's a zero sum game. But diversification, that they're different, will reduce your risk without reducing your return. So if you know how to diversify well, So that's critical. So I would say, again, get your savings right. And the reasons I say, I would say, have great humility about what you don't know.

But there are more people who try harder in order to do that. So it's a zero sum game. But diversification, that they're different, will reduce your risk without reducing your return. So if you know how to diversify well, So that's critical. So I would say, again, get your savings right. And the reasons I say, I would say, have great humility about what you don't know.

Don't buy the thing that was hot just because you think it's hot. And then know how to diversify well. Those would be the most important things I could convey.

Don't buy the thing that was hot just because you think it's hot. And then know how to diversify well. Those would be the most important things I could convey.

It is one of the most important things possible, and it's not easy to do. So I needed to do two things. I found that by writing down my principles and the rules, and then testing how they would have performed over time. And that's where the algorithms came so that I can basically, just like a machine, play it click, click, click, click, click, okay, with execute the game plan.

It is one of the most important things possible, and it's not easy to do. So I needed to do two things. I found that by writing down my principles and the rules, and then testing how they would have performed over time. And that's where the algorithms came so that I can basically, just like a machine, play it click, click, click, click, click, okay, with execute the game plan.

You know, don't do it because I know what the experience is like. The experience is like you're wrestling around with it, you're losing money. The day you put on a trade, It doesn't go either straight up or straight down. It goes against you. So now, I don't know, you're losing money.