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BR 242: Principles by Ray Dalio

Category: 3 – SHELF it (All Categories are 1 – Read ASAP!, 2 – BUY it!, 3 – SHELF it, 4 – SOMEDAY it)

Comments: This is going to be a controversial rating for a book that has been lauded a fair bit in the mainstream media. Ray Dalio is a legendary investor and is clearly very smart. I just happened to follow his work via his videos and his “Principles” website after having done a case on Bridgewater in graduate school. So, a lot of the book wasn’t new to me. It would be in the “Buy it” category otherwise.

Top 3 Lessons: 

1. Ray Dalio’s success built on investing since he was 12 + reflecting on experiences + approaching every decision with a fear of being wrong (never being over confident).

2. First order and second order consequences are often in opposition. Unhealthy food has a good first auto consequence but a bad second out a consequence.
Question – Will you choose a painful healthy route or an unhealthy comfortable delusion?

3. Managers are engineers. They focus on setting up the machine to create the outcomes they seek. Build systems first, then put people in.

Book notes here