How’s it going, everyone? Today, we’re talking about the original influencer – Ray Dalio and Bridgewater Associates.
We’ll go over his firm, how he started, and some cool lessons he learned along the way!
He initially went to business school and became a researcher analyst.
With little professional experience, Ray quit that job after a few years and became a business consultant.
And even though it was the 70s, he started creating content.
Although there was no social media, but he published his insights that he gained through his research.
His published articles went into a newsletter/blog called Bridgewater Daily Observations.
It was soley comprised with his take on the markets.
People were interested and these articles supplied him big clients for his consulting company.
In fact, McDonald’s reached out and asked him to help with their chicken-pricing dilemma.
Dalio helped them build a hedging strategy so that the pricing of chicken was more stable and predictable!
Soon enough, big firms started asking Ray to manage their money!
Currently, Bridgewater is a $200 billion investment firm – one of the largest of all time!
Dalio understood the importance of starting early and getting his voice out there.
If you follow him on social today, he posts regularly.
Lincoln Archibald addressed all emerging managers in his video…
“There are so many of you obsessed with time frames, schedules, and waiting for your moment. Look at Ray Dalio! He started producing content before he was “know.”
Ray is a principle-driven fund manager; most of his processes are methodical and calculated because he does not like to lose money.
Let me share a few of Dalio’s principles on making principles…
- Reality works like a machine with everything we encounter being the result of cause-effect relationships
- Because most everything happens repeatedly, it’s likely varied versions, by studying many cases of something, you can understand the cause-effect relationships…
- Being explicit about your principles and stress-testing them improves your decision making and likelihood of success
Pure Alpha Fund
Most of his career consisted of helping people with their hedging strategies, trading strategies, etc.
His biggest fund, the Pure Alpha Fund, didn’t start until 1991, which would be concentrated in a few different areas.
5 years later, he started his All-Weather Fund, which focuses on diversification and risk management.
My point is that instead of pursuing multiple investment strategies at the same time, he put all his effort into one idea, waited, then went all in on his other idea.
The original influencer, Ray Dalio, is a great role model for emerging managers.
He created content long before he made it big, he knows how to allocate his time, and he is principle driven.
Check out my YouTube video to learn more about Ray Dalio!
Additionally, visit Fund Launch if you want help starting your own fund!
That’s it for today!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author