Summary
Thoughts
Notes
Principles (Ray Dalio)
- Your Highlight on page 2 | Location 22-23 | Added on Monday, June 15, 2015 6:01:42 PM
Principles are concepts that can be applied over and over again in similar circumstances as distinct from narrow answers to specific questions.
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Principles (Ray Dalio)
- Your Highlight on page 4 | Location 50-51 | Added on Monday, June 15, 2015 7:19:19 PM
those principles that are most valuable to each of us come from our own encounters with reality and our reflections on these encounters – not from being taught and simply accepting someone else’s principles.
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Principles (Ray Dalio)
- Your Highlight on page 5 | Location 71-73 | Added on Monday, June 15, 2015 7:23:09 PM
I believe that having principles that work is essential for getting what we want out of life. I also believe that to understand each other we have to understand each other’s principles.
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Principles (Ray Dalio)
- Your Highlight on page 6 | Location 82-84 | Added on Monday, June 15, 2015 7:24:26 PM
Your values are what you consider important, literally what you “value.” Principles are what allow you to live a life consistent with those values. Principles connect your values to your actions; they are beacons that guide your actions, and help you successfully deal with the laws of reality. It is to your principles that you turn when you face hard choices.
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Principles (Ray Dalio)
- Your Highlight on page 7 | Location 93-94 | Added on Monday, June 15, 2015 7:25:14 PM
created—adopting pre-packaged principles without much thought exposes you to the risk of inconsistency with your true values.
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Principles (Ray Dalio)
- Your Highlight on page 8 | Location 112-114 | Added on Monday, June 15, 2015 7:26:58 PM
To be successful, you must make correct, tough choices. You must be able to “cut off a leg to save a life,” both on an individual level and, if you lead people, on a group level. And to be a great leader, it is important to remember that you will have to make these choices by understanding and caring for your people, not by following them.
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Principles (Ray Dalio)
- Your Highlight on page 8 | Location 108-111 | Added on Monday, June 15, 2015 7:27:06 PM
As another example, “I won’t steal” can be a principle to which you refer when the choice of whether or not to steal arises. But to be most effective, each principle must be consistent with your values, and this consistency demands that you ask: Why? Is the reason you won’t steal because you feel empathy for your potential victim? Is it because you fear getting caught? By asking such questions, we refine our understanding, and the development of our principles becomes better aligned with our core values.
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Principles (Ray Dalio)
- Your Highlight on page 10 | Location 142-143 | Added on Monday, June 15, 2015 7:29:54 PM
I made money because I was lucky, though I didn’t see it that way then. I figured that this game was easy.
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Principles (Ray Dalio)
- Your Highlight on page 12 | Location 170-171 | Added on Monday, June 15, 2015 7:31:47 PM
I want you to work for yourself, to come up with independent opinions, to stress-test them, to be wary about being overconfident, and to reflect on the consequences of
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Principles (Ray Dalio)
- Your Highlight on page 14 | Location 206-207 | Added on Monday, June 15, 2015 7:34:16 PM
failure is by and large due to not accepting and successfully dealing with the realities of life, and that achieving success is simply a matter of accepting and successfully dealing with all my realities.
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Principles (Ray Dalio)
- Your Highlight on page 14 | Location 208-209 | Added on Monday, June 15, 2015 7:34:21 PM
finding out what is true, regardless of what that is, including all the stuff most people think is bad—like mistakes and personal weaknesses—is good because I can then deal with these things so that they don’t stand in my way.
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Principles (Ray Dalio)
- Your Highlight on page 14 | Location 210-212 | Added on Monday, June 15, 2015 7:34:36 PM
there is nothing to fear from truth. While some truths can be scary—for example, finding out that you have a deadly disease—knowing them allows us to deal with them better. Being truthful, and letting others be completely truthful, allows me and others to fully explore our thoughts and exposes us to the feedback that is essential for our learning.
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Principles (Ray Dalio)
- Your Highlight on page 15 | Location 220-221 | Added on Monday, June 15, 2015 7:35:25 PM
making judgments about people so that they are tried and sentenced in your head, without asking them for their perspective, is both unethical and unproductive.
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Principles (Ray Dalio)
- Your Highlight on page 16 | Location 235-235 | Added on Monday, June 15, 2015 7:36:42 PM
great people become great by looking at their mistakes and weaknesses and figuring out how to get around them.
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Principles (Ray Dalio)
- Your Note on page 17 | Location 257 | Added on Monday, June 15, 2015 7:39:48 PM
Success is a lagging indicator.
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Principles (Ray Dalio)
- Your Highlight on page 17 | Location 257-257 | Added on Monday, June 15, 2015 7:39:48 PM
success.
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Principles (Ray Dalio)
- Your Highlight on page 14 | Location 200-204 | Added on Monday, June 15, 2015 7:42:34 PM
working for what I wanted, not for what others wanted me to do; 2) coming up with the best independent opinions I could muster to move toward my goals; 3) stress- testing my opinions by having the smartest people I could find challenge them so I could find out where I was wrong; 4) being wary about overconfidence, and good at not knowing; and 5) wrestling with reality, experiencing the results of my decisions, and reflecting on what I did to produce them so that I could improve.
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Principles (Ray Dalio)
- Your Highlight on page 18 | Location 268-274 | Added on Monday, June 15, 2015 7:43:22 PM
In pursuing my goals I encountered realities, often in the form of problems, and I had to make decisions. I found that if I accepted the realities rather than wished that they didn’t exist and if I learned how to work with them rather than fight them, I could figure out how to get to my goals. It might take repeated tries, and seeking the input of others, but I could eventually get there. As a result, I have become someone who believes that we need to deeply understand, accept, and work with reality in order to get what we want out of life. Whether it is knowing how people really think and behave when dealing with them, or how things really work on a material level—so that if we do X then Y will happen—understanding reality gives us the power to get what we want out of life, or at least to dramatically improve our odds of success. In other words, I have become a “hyperrealist.”
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Principles (Ray Dalio)
- Your Highlight on page 18 | Location 276-276 | Added on Monday, June 15, 2015 7:43:37 PM
hyperrealism is the best way to choose and achieve one’s dreams.
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