The Tim Ferriss Show Reflection – #264: The Steve Jobs of Investing — Ray Dalio

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Ray Dalio Podcast Summary: 

Source: The Tim Ferriss Show Reflection – #264: The Steve Jobs of Investing — Ray Dalio

The best podcast heard to date, where Ray covers extensively on mirroring patterns of excellence and his mindset on success. He talks a little on his methodology on investing towards the end of the podcast and his macro view on how he approaches the market.


Learning Points:


  1. ​'I'm a professional mistake maker.' Growth comes from mistakes, not from success. You repeat your successes and grow from mistakes. I seek growth, and maintain my successes. - Strangely enough, there is a phobia in today's society about making mistakes. 

  2. Beyond one's experiences to grow, identify the solutions from people who have done it before rather than to come from a situation where it is 'completely new' or a new encounter. Just because it's your first time, doesn't mean that someone else has not done the same thing repeatedly in the past. Gain that perspective and you'll have an incredible advantage. Identify 'what is it', 'how does it work' and your principles in handling it.' 

  3. Successful people know how to compensate for their weaknesses, whereas Stupid people don't acknowledge their weaknesses and grow. 

  4. Pain + Reflection = Progress 

  5. There are 3 things that make up for a successful life by and large:
    - Have big dreams. - You'll face problems while heading towards your big dreams.
    - Deal with them and learn from your failures.
    - Determination. Have big dreams and deal with your problems with determination.

  6. Research has shown the following:
    Intelligence has no correlation with Happiness.
    Money has little correlation with Happiness.
    Community has the highest correlation with Happiness.

  7. It is important to go to bed early. People who goes to bed late have more 'down times' and 'depressive episodes'. 

  8. The greatest tragedy about humanity is listening to wrong opinions. All opinions should be subjected to stress tests to see if they are right. You always think your own opinion is the highest value and is biased. It's so stupid. What you should be doing is to get the right opinion. 

  9. You have 2 'Yous' within you - a thoughtful you and an emotional-driven you and they are constantly at war with each other. The emotional-driven you is the one that makes you want to eat cakes though you're supposed to be dieting, or punch someone. 

  10. Build an investment portfolio of 15-20 stocks that are uncorrelated and generate great returns to diversify, lower risks and have good risk to reward (return) ratio. Similarly, great to build different businesses with high profit margins and scalable that are uncorrelated.


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