Ray Dalio Profile picture
May 23 9 tweets 3 min read
I’m at a stage in my life where my goal is to pass what I’ve learned along to others, and I often get asked for my advice for young people in particular. (1/9)
One thing that has helped me is an exercise to help put your life in perspective and to plan for the future to help you get the life you want. (2/9)
As you know, I have found that most everything happens over and over again for pretty much the same reasons, so in order to understand anything, it pays to understand how a typical case unfolds and observe the cause-effect relationships that make it unfold that way. (3/9)
In this exercise, I am going to ask you to look at both the typical life arc and your own life arc and reflect on them. This exercise will help you imagine what probably will come at you, plan for it, and deal with it when it comes. (4/9)
Not all life arcs are the same & no arc is better in any way than another—they’re each their own unique journey, reflecting the circumstances faced by & decisions of the person traveling the arc—but the archetypical life lasts about 80 years & evolves in 3 different phases. (5/9)
Even if your life arc bears little resemblance to the typical one, my hope is that you’ll find value in reflecting on your journey.

I suggest that you get a few pieces of paper and a pen, copy the basic arc, and put a tick where you are with “me” next to it. (6/9)
Looking through these phases, note how the descriptions of what’s happening to the typical person match up with your own experiences, especially at the critical junctures. The choices you make at these junctures have big implications on the life that you will have. (7/9)
As you will see, the paths we take along the way affect the type of journey we have.

This perspective has helped me and many people I have shared it with, and I hope it will help you too. (8/9)
If you’d like to experience an interactive version of the exercise, you can in the free Principles in Action app here: principles.app.link/fonGGoiDzeb. (9/9)

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More from @RayDalio

May 24
As a global macro-investor for over 50 years, I’ve spent a lot of time studying what makes countries healthy and unhealthy, and observing how the decisions made by policymakers impact the trajectories of their countries. (1/5)
I like to quantitatively measure those forces so I can build systems for making decisions better. For that reason, I converted my learnings into measures and models that show each country’s strengths and weaknesses, or what I call their “powers.” (2/5)
I measure 18 different types of powers, in 18 different indices, which are each made up of many indicators. These power indices measure the strengths of influences such as education, innovation and technology development, the civility of the people, economic output... (3/5)
Read 5 tweets
May 20
I want to help you come up with your own great principles that are tailored to you—and to have you write them down so you can easily refer to them and share them with others. (1/4)
In the five years since I published Principles, I’ve had thousands of great interactions with people who told me how life-changing the approach described in the book has been for them. Many asked me for advice on how to come up with their own principles. (2/4)
So I’m excited to announce that later this year I’ll be putting out Principles: Your Guided Journal, which will help develop your own great principles for dealing with reality well. I know from my own experience that doing so is responsible for whatever success I’ve had. (3/4)
Read 4 tweets
May 20
This evolutionary cycle is not just for people but for countries, companies, economies—for everything. And it is naturally self-correcting as a whole, though not necessarily for its parts. (1/4)
For example, if there is too much supply and waste in a market, prices will go down, companies will go out of business, and capacity will be reduced until the supply falls in line with the demand, at which time the cycle will start to move in the opposite direction. (2/4)
Similarly, if an economy turns bad enough, those responsible for running it will make the political and policy changes that are needed—or they will not survive, making room for their replacements to come along. (3/4)
Read 4 tweets
May 13
Learning is the product of a continuous real-time feedback loop in which we make decisions, see their outcomes, and improve our understanding of reality as a result. (1/5)
Being radically open-minded enhances the efficiency of those feedback loops, because it makes what you are doing, and why, so clear to yourself and others that there can’t be any misunderstandings. (2/5)
The more open-minded you are, the less likely you are to deceive yourself—and the more likely it is that others will give you honest feedback. If they are “believable” people (and it’s very important to know who is “believable”), you will learn a lot from them. (3/5)
Read 5 tweets
May 5
People cannot be given the privilege of receiving information and then use the information to harm the company, so rules and procedures must be in place to ensure that doesn't happen. (1/6)
For example, we provide great transparency inside Bridgewater on the condition that Bridgewater citizens do not leak it outside; if they do, they will be dismissed for cause (for unethical behavior). (2/6)
Additionally, the rules for how issues are explored and decisions are made must be maintained, and because different people have different perspectives, it's important that the paths for resolving them are followed. (3/6)
Read 6 tweets
May 3
Since releasing my book and animated video, Principles for Dealing with the Changing World Order, many people have told me that both would be helpful for teaching history in schools and asked me if I would help make that happen. (1/5)
So, during this Teacher Appreciation Week I will give a copy of the book to any high school or college educator who wants it—and to all of their students if they intend to have them read it. And if there’s a lot of interest, I’d be happy to extend the offer past this week. (2/5)
Of course, the Youtube video is already free and easily available and I encourage you to check that out if you want an overview of what’s in the book. (3/5)
Read 5 tweets

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