Ray Dalio: Predicting Our Future Using Our Past | Business Casual

G

reat talk by Ray Dalio On the 'Business Casual' podcast by Morning Brew.

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Summary

Ray Dalio, billionaire philanthropist and hedge fund demigod, thinks we can utilize historical precedent to insulate ourselves from the inevitable pain points life throws at us. Do you?Part I of our two-part interview with Dalio will help you make a decision. In this episode of Business Casual, Ray makes a case for becoming a voracious student of history. And yes, Ray thinks we could have seen today’s global health and economic crisis coming—he even goes as far in the episode as to divulge what he would have done differently if he’d paid a little more attention to the history books. Because as far as he sees it, there is such a thing as a formula for success. He shared that formula, plus tips for…Learning how to make decisions even when armed with imperfect information at bestPositioning yourself to take advantage of your weaknesses as much as you do your strengthsUnderstanding what the role of the billionaire class should be in times of global panicListen to the episode now. And make sure you’re subscribed so you don’t miss Part II of the interview, up next from Business Casual.

Takeaways

Meaningful work and radical transparency
1 yr worth of cash in an emergency fund then play with your 'chips'
Diversify!
This is historical..1917, 1933..
Find smartest people can find and disagree with me
Value of misktakes and humility
Write down principles and be taken into an algorithm
Values, skills, abilities is what look for in people
Meditation twice a day is important

My Covid Personal Strategy (Also see my Overall Financial Advice)

3 months worth expenses and 6 months in bonds (i.e. risk averse)
Have a plan to capitalize on market shortfall (i.e. 10-20% re-investment liquid)
Should already be cost-dollar investing into your index funds weekly to minimize market down turn (i.e. put money into each fund every week)
Total market index funds (e.g. PREIX, PRASX, VINEX, VTWAX) and start putting in much can spare while there is downturn.
Lastly, I've used this time to buy solid individual stocks that I normally wouldn't do. I use the Robinhood app which has no fees and picked stocks that I thought were strong undervalued funds that got hit hard (e.g. LUV, SPLK, HUBS, GPRO, WORK, RHHBY, BABA, TSLA, CGC, SPCE, PRLB, MSFT, LYV, MGM, DAL, LIT, NVDA, TWLO)