Thirty nine years ago, Ray Dalio started Bridgewater Associates from his apartment in Manhattan. Today it is the world's largest hedge fund, with assets under management of more than US$150 billion. I got the rare opportunity to talk with this self-effacing about his investment philosophy his radical - you might even say bizzare - approach to management and his world view. He also talked about meditation, to which he credits many of his insights and much of his success
For all those interested in "The Economic Way of Thinking" - my new infoposter "ECONOMICS" is now available:
- the poster gives an overview of the development of economic theory from its beginnings.
- the poster shows the historical roots of economic ideas and their application to contemporary economic policy debates.
View and order at http://www.cee-portal.at/PrestaShop
Best regards
Martin Kolmhofer
The document outlines 9 key principles of economic thinking: [1] Everything has a cost; [2] People choose for good reasons based on weighing costs and benefits; [3] Incentives matter and influence behavior; [4] Economic systems are created to influence choices and incentives; [5] People gain from voluntary trade; [6] Economic thinking considers marginal changes; [7] The value of goods is subjective; [8] Economic actions create secondary effects; [9] Economic theories are tested based on their ability to predict behavior.
01 introducing the economic way of thinkingNepDevWiki
This chapter introduces key economic concepts such as scarcity, resources, and the difference between microeconomics and macroeconomics. It explains that scarcity exists because human wants are unlimited but resources are limited, forcing individuals and societies to make choices. Resources are categorized as land, labor, and capital. Entrepreneurs organize these resources to produce goods and services. Economics studies how people make choices to satisfy wants. Microeconomics examines individual decision-making units while macroeconomics looks at whole economies. Models are used to understand and predict economic behavior.
Solidarity eocnomy building alternatives for people and planet papers and rep...roland_saavedra
This document provides an introduction and summary of the book "Solidarity Economy: Building Alternatives for People and Planet". It describes the book as compiling papers and reports from the U.S. Social Forum in 2007 focused on building economic alternatives and the solidarity economy. It acknowledges the organizers of the U.S. Social Forum and the contributors to the book for documenting their presentations and discussions on developing a solidarity economy network in the United States.
Palmer warsaw school of economics presentationsknsz
1) Property rights and free markets that allow for voluntary exchange have led to unprecedented prosperity by incentivizing cooperation and specialization through trade based on comparative advantage.
2) Secure and transferable private property rights are necessary to define ownership, allow for the efficient allocation of resources via prices set by supply and demand, and incentivize innovation and wealth creation.
3) Countries with institutions that protect private property and allow for free exchange and trade, as measured by indices of economic freedom, tend to experience greater prosperity and growth.
The document discusses various behavioral biases that can negatively impact investment decision making, such as overconfidence, hindsight bias, and familiarity bias. It explains how these biases can cause investors to make poor decisions by buying high and selling low. The document advocates using a disciplined and diversified long-term investment approach to help control for behavioral biases and avoid attempts to time the market.
Dynamic Capabilities: Contemporary Triggers, Classical Antecedents, and Impli...David Teece
This document discusses the need for a capabilities perspective in organizational theory and strategic management. It notes several empirical irregularities and statements from prominent economists that point to the importance of firm capabilities. It reviews how classical economists like Marshall, Knight, Keynes, and others hinted at concepts now captured by dynamic capabilities theory, such as the importance of management skills, decision-making under uncertainty, and "animal spirits." It discusses how the resource-based view provides insights but is limited by being static, while dynamic capabilities can explain competitive advantage over time in uncertain environments. The document emphasizes the importance of distinguishing between risk and uncertainty in strategic management.
For all those interested in "The Economic Way of Thinking" - my new infoposter "ECONOMICS" is now available:
- the poster gives an overview of the development of economic theory from its beginnings.
- the poster shows the historical roots of economic ideas and their application to contemporary economic policy debates.
View and order at http://www.cee-portal.at/PrestaShop
Best regards
Martin Kolmhofer
The document outlines 9 key principles of economic thinking: [1] Everything has a cost; [2] People choose for good reasons based on weighing costs and benefits; [3] Incentives matter and influence behavior; [4] Economic systems are created to influence choices and incentives; [5] People gain from voluntary trade; [6] Economic thinking considers marginal changes; [7] The value of goods is subjective; [8] Economic actions create secondary effects; [9] Economic theories are tested based on their ability to predict behavior.
01 introducing the economic way of thinkingNepDevWiki
This chapter introduces key economic concepts such as scarcity, resources, and the difference between microeconomics and macroeconomics. It explains that scarcity exists because human wants are unlimited but resources are limited, forcing individuals and societies to make choices. Resources are categorized as land, labor, and capital. Entrepreneurs organize these resources to produce goods and services. Economics studies how people make choices to satisfy wants. Microeconomics examines individual decision-making units while macroeconomics looks at whole economies. Models are used to understand and predict economic behavior.
Solidarity eocnomy building alternatives for people and planet papers and rep...roland_saavedra
This document provides an introduction and summary of the book "Solidarity Economy: Building Alternatives for People and Planet". It describes the book as compiling papers and reports from the U.S. Social Forum in 2007 focused on building economic alternatives and the solidarity economy. It acknowledges the organizers of the U.S. Social Forum and the contributors to the book for documenting their presentations and discussions on developing a solidarity economy network in the United States.
Palmer warsaw school of economics presentationsknsz
1) Property rights and free markets that allow for voluntary exchange have led to unprecedented prosperity by incentivizing cooperation and specialization through trade based on comparative advantage.
2) Secure and transferable private property rights are necessary to define ownership, allow for the efficient allocation of resources via prices set by supply and demand, and incentivize innovation and wealth creation.
3) Countries with institutions that protect private property and allow for free exchange and trade, as measured by indices of economic freedom, tend to experience greater prosperity and growth.
The document discusses various behavioral biases that can negatively impact investment decision making, such as overconfidence, hindsight bias, and familiarity bias. It explains how these biases can cause investors to make poor decisions by buying high and selling low. The document advocates using a disciplined and diversified long-term investment approach to help control for behavioral biases and avoid attempts to time the market.
Dynamic Capabilities: Contemporary Triggers, Classical Antecedents, and Impli...David Teece
This document discusses the need for a capabilities perspective in organizational theory and strategic management. It notes several empirical irregularities and statements from prominent economists that point to the importance of firm capabilities. It reviews how classical economists like Marshall, Knight, Keynes, and others hinted at concepts now captured by dynamic capabilities theory, such as the importance of management skills, decision-making under uncertainty, and "animal spirits." It discusses how the resource-based view provides insights but is limited by being static, while dynamic capabilities can explain competitive advantage over time in uncertain environments. The document emphasizes the importance of distinguishing between risk and uncertainty in strategic management.
El documento describe diferentes tipos de computadoras, incluyendo supercomputadoras que pueden procesar grandes cantidades de información rápidamente, macrocomputadoras diseñadas para manejar grandes cantidades de entrada, salida y almacenamiento, minicomputadoras con capacidad entre macrocomputadoras y computadoras personales, y computadoras personales comúnmente encontradas en oficinas, salones de clase y hogares en diferentes formas y tamaños.
This document summarizes a prescription assistance program that helps patients save money on their medications. It explains that thousands struggle to afford rising drug prices and have tried many assistance programs but still cannot afford their prescriptions. The program simplifies the application process for patient assistance programs sponsored by pharmaceutical companies that provide free or discounted medications. It promises to diligently work on behalf of clients to obtain assistance and boasts of successfully helping many patients receive free medications through these programs.
Itaoca (SP) : histórico de acidentes e desastres relacionados a perigos geoló...Maria José Brollo
BROLLO, M.J.; SANTORO, J.; ROSSINI PENTEADO, D.; FERNANDES DA SILVA, P.C.; RIBEIRO, R.R. 2015. Itaoca (SP) : histórico de acidentes e desastres relacionados a perigos geológicos. In: SBG, Simpósio de Geologia do Sudeste, 14, Campos do Jordão-SP, 26 a 29 de outubro de 2015, Anais em meio eletrônico http://geosudeste.com.br/anais/ANAIS-GEOSUDESTE-2015-completo.pdf
El documento habla sobre el hip-hop. Explica que los seguidores del hip-hop suelen usar ropa deportiva o de calle ancha, influenciada por la ropa de deportes como el baloncesto o el béisbol. Esta ropa ancha se relaciona con la estética de los presos estadounidenses, a quienes se les da ropa holgada en prisión. También incluye una lista de canciones populares de hip-hop y un enlace para aprender a bailar este estilo musical.
[Mercado Pecuário] Principais Notícias 14-dez-2011AgroTalento
O documento resume as principais notícias do mercado pecuário brasileiro em 14 de dezembro de 2011. Inclui que consumidores americanos buscam carne de alta qualidade, a Marfrig deixou um grupo de sustentabilidade, e a Mataboi teve seu plano de recuperação judicial aprovado.
El estudiante aprendió a cambiar su contraseña y perfil en la computadora, a usar Google Drive, y a descargar información específica sobre temas en particular como parte de su práctica de computación para la licenciatura en psicología.
O boletim apresenta as cotações e preços do café no mercado brasileiro e internacional na primeira quinzena de abril de 2016. Fornece dados sobre os preços do café arábica e conillon em Nova York, Londres e no mercado brasileiro BM&F. Também fornece estatísticas sobre exportações brasileiras de café no mês de março de 2016.
The document discusses indigestion/dyspepsia (dyspepsia) from an Ayurvedic perspective in 3 paragraphs. It first describes the Ayurvedic concepts of the stomach and digestion process. It then explains the causes of indigestion according to Ayurveda, including abnormal states of digestive enzymes. Finally, it discusses the clinical description, diagnosis, and management of indigestion/dyspepsia according to Ayurvedic principles.
The document is a resume for Alexey Shmariovich, a Russian sound designer and composer seeking work in game audio or film post-production. It outlines his experience freelancing on audio projects for TV, film, and games since 2010. Previously, he worked at digital and music production studios from 2012-2014 and 2010-2014. Shmariovich has a Master's degree in sound design from Leeds Beckett University and a Bachelor's degree in sound production from St. Petersburg State University of Film and Television. His skills include audio recording, editing, mixing, and basic music composition and knowledge of audio middleware.
O documento apresenta um guia de implementação para a norma ABNT NBR 15401, que trata da implementação de um sistema de gestão da sustentabilidade em meios de hospedagem. O guia contém 15 seções que abordam tópicos como diagnóstico, mapeamento de atividades, identificação de aspectos e impactos, política de sustentabilidade, objetivos e metas, entre outros. O guia também fornece exemplos e orientações para a implementação dos requisitos da norma de forma a auxiliar meios de hospedagem no processo de implantação
Este documento describe cómo calcular el costo directo de los materiales para la presupuestación de obras. Explica que el costo unitario de los materiales se obtiene multiplicando el costo básico unitario del material por su consumo. Además, detalla los factores que afectan el costo básico como la calidad, distancia a la fuente, volumen de compra y condiciones de pago. También cubre conceptos como materiales permanentes vs temporales, fluctuaciones de precio, transporte y otros aspectos relevantes para la estimación correcta de los costos
The document lists 20 locations in northern Uganda where Internet Now! centres will be established in Phase I. The centres will be located across 5 districts - Nwoya, Gulu, Amuru, Adjumani, and Moyo. The centres will provide internet access to remote communities in northern Uganda for the first time.
Diversification 5.0 Mastermind - Oct (without video).pptxWealth Migrate
This document discusses the formation of a Diversification 5.0 Mastermind group. It outlines agreements for confidentiality and engagement. The mastermind will have monthly check-ins with each member, focus on one main theme per month, and provide one-on-one coaching. Tools that will be available to members include tutorials, courses, forecasts, and the Wealth Hacker manifesto. The document also discusses introducing members to each other and having the Chief Investment Officer provide updates. The overall purpose is for members to support each other in diversifying their wealth through regular collaboration and accountability.
The document provides an overview of key lessons for investing and building wealth. It recommends starting to invest as early as possible to benefit from the power of compound interest over long periods. It also suggests saving over 20% of income and looking for ways to reduce expenses. For investing, it recommends initially putting money in a low-cost S&P 500 index fund, and later diversifying across asset classes to increase returns while managing risk. The goal is to build a portfolio of assets that generate income over time.
The document discusses whether ethics and business are an oxymoron by examining Milton Friedman's argument that the sole social responsibility of business is to increase profits while following basic legal rules. It outlines Friedman's view that executives are responsible to shareholders, not other stakeholders. The document also discusses Adam Smith's concept of the "invisible hand" and provides examples of businesses like Enron, Nike, and Madoff that failed to consider ethics, along with principles from the Caux Round Table and UN Global Compact that advocate for more ethical business practices.
This document discusses the relationship between ethics and business. It presents arguments that business' sole responsibility is to increase profits, as well as counterarguments that businesses also have responsibilities to stakeholders such as employees, customers, and society. It explores concepts like the invisible hand, stakeholder theory, and creating shared value. Overall, the document examines the debate around the social responsibilities of businesses beyond profit generation.
The document discusses strategies for wealth creation and financial success. It makes three key points:
1) Take responsibility for your own financial situation rather than blaming external factors. Successful people achieve wealth through their own choices and actions.
2) Spend less than you earn by limiting discretionary spending and saving the difference. Small amounts of savings add up over time.
3) Understand the difference between assets, which generate money, and liabilities ("flossets"), which reduce money. Focus on accumulating assets rather than possessions to achieve true wealth.
The document discusses entrepreneurship and its role in economic development. It defines an entrepreneur as someone who perceives opportunities, organizes resources to exploit opportunities, and exploits them. Entrepreneurship spurs economic development by creating wealth through new products/services and dispersing economic activities. It also speeds up the use of resources and development of backward regions. When entrepreneurs innovate continuously, they foster new industries and economic growth. Harnessing entrepreneurial talent moves a society from traditional ways to modern industry.
El documento describe diferentes tipos de computadoras, incluyendo supercomputadoras que pueden procesar grandes cantidades de información rápidamente, macrocomputadoras diseñadas para manejar grandes cantidades de entrada, salida y almacenamiento, minicomputadoras con capacidad entre macrocomputadoras y computadoras personales, y computadoras personales comúnmente encontradas en oficinas, salones de clase y hogares en diferentes formas y tamaños.
This document summarizes a prescription assistance program that helps patients save money on their medications. It explains that thousands struggle to afford rising drug prices and have tried many assistance programs but still cannot afford their prescriptions. The program simplifies the application process for patient assistance programs sponsored by pharmaceutical companies that provide free or discounted medications. It promises to diligently work on behalf of clients to obtain assistance and boasts of successfully helping many patients receive free medications through these programs.
Itaoca (SP) : histórico de acidentes e desastres relacionados a perigos geoló...Maria José Brollo
BROLLO, M.J.; SANTORO, J.; ROSSINI PENTEADO, D.; FERNANDES DA SILVA, P.C.; RIBEIRO, R.R. 2015. Itaoca (SP) : histórico de acidentes e desastres relacionados a perigos geológicos. In: SBG, Simpósio de Geologia do Sudeste, 14, Campos do Jordão-SP, 26 a 29 de outubro de 2015, Anais em meio eletrônico http://geosudeste.com.br/anais/ANAIS-GEOSUDESTE-2015-completo.pdf
El documento habla sobre el hip-hop. Explica que los seguidores del hip-hop suelen usar ropa deportiva o de calle ancha, influenciada por la ropa de deportes como el baloncesto o el béisbol. Esta ropa ancha se relaciona con la estética de los presos estadounidenses, a quienes se les da ropa holgada en prisión. También incluye una lista de canciones populares de hip-hop y un enlace para aprender a bailar este estilo musical.
[Mercado Pecuário] Principais Notícias 14-dez-2011AgroTalento
O documento resume as principais notícias do mercado pecuário brasileiro em 14 de dezembro de 2011. Inclui que consumidores americanos buscam carne de alta qualidade, a Marfrig deixou um grupo de sustentabilidade, e a Mataboi teve seu plano de recuperação judicial aprovado.
El estudiante aprendió a cambiar su contraseña y perfil en la computadora, a usar Google Drive, y a descargar información específica sobre temas en particular como parte de su práctica de computación para la licenciatura en psicología.
O boletim apresenta as cotações e preços do café no mercado brasileiro e internacional na primeira quinzena de abril de 2016. Fornece dados sobre os preços do café arábica e conillon em Nova York, Londres e no mercado brasileiro BM&F. Também fornece estatísticas sobre exportações brasileiras de café no mês de março de 2016.
The document discusses indigestion/dyspepsia (dyspepsia) from an Ayurvedic perspective in 3 paragraphs. It first describes the Ayurvedic concepts of the stomach and digestion process. It then explains the causes of indigestion according to Ayurveda, including abnormal states of digestive enzymes. Finally, it discusses the clinical description, diagnosis, and management of indigestion/dyspepsia according to Ayurvedic principles.
The document is a resume for Alexey Shmariovich, a Russian sound designer and composer seeking work in game audio or film post-production. It outlines his experience freelancing on audio projects for TV, film, and games since 2010. Previously, he worked at digital and music production studios from 2012-2014 and 2010-2014. Shmariovich has a Master's degree in sound design from Leeds Beckett University and a Bachelor's degree in sound production from St. Petersburg State University of Film and Television. His skills include audio recording, editing, mixing, and basic music composition and knowledge of audio middleware.
O documento apresenta um guia de implementação para a norma ABNT NBR 15401, que trata da implementação de um sistema de gestão da sustentabilidade em meios de hospedagem. O guia contém 15 seções que abordam tópicos como diagnóstico, mapeamento de atividades, identificação de aspectos e impactos, política de sustentabilidade, objetivos e metas, entre outros. O guia também fornece exemplos e orientações para a implementação dos requisitos da norma de forma a auxiliar meios de hospedagem no processo de implantação
Este documento describe cómo calcular el costo directo de los materiales para la presupuestación de obras. Explica que el costo unitario de los materiales se obtiene multiplicando el costo básico unitario del material por su consumo. Además, detalla los factores que afectan el costo básico como la calidad, distancia a la fuente, volumen de compra y condiciones de pago. También cubre conceptos como materiales permanentes vs temporales, fluctuaciones de precio, transporte y otros aspectos relevantes para la estimación correcta de los costos
The document lists 20 locations in northern Uganda where Internet Now! centres will be established in Phase I. The centres will be located across 5 districts - Nwoya, Gulu, Amuru, Adjumani, and Moyo. The centres will provide internet access to remote communities in northern Uganda for the first time.
Diversification 5.0 Mastermind - Oct (without video).pptxWealth Migrate
This document discusses the formation of a Diversification 5.0 Mastermind group. It outlines agreements for confidentiality and engagement. The mastermind will have monthly check-ins with each member, focus on one main theme per month, and provide one-on-one coaching. Tools that will be available to members include tutorials, courses, forecasts, and the Wealth Hacker manifesto. The document also discusses introducing members to each other and having the Chief Investment Officer provide updates. The overall purpose is for members to support each other in diversifying their wealth through regular collaboration and accountability.
The document provides an overview of key lessons for investing and building wealth. It recommends starting to invest as early as possible to benefit from the power of compound interest over long periods. It also suggests saving over 20% of income and looking for ways to reduce expenses. For investing, it recommends initially putting money in a low-cost S&P 500 index fund, and later diversifying across asset classes to increase returns while managing risk. The goal is to build a portfolio of assets that generate income over time.
The document discusses whether ethics and business are an oxymoron by examining Milton Friedman's argument that the sole social responsibility of business is to increase profits while following basic legal rules. It outlines Friedman's view that executives are responsible to shareholders, not other stakeholders. The document also discusses Adam Smith's concept of the "invisible hand" and provides examples of businesses like Enron, Nike, and Madoff that failed to consider ethics, along with principles from the Caux Round Table and UN Global Compact that advocate for more ethical business practices.
This document discusses the relationship between ethics and business. It presents arguments that business' sole responsibility is to increase profits, as well as counterarguments that businesses also have responsibilities to stakeholders such as employees, customers, and society. It explores concepts like the invisible hand, stakeholder theory, and creating shared value. Overall, the document examines the debate around the social responsibilities of businesses beyond profit generation.
The document discusses strategies for wealth creation and financial success. It makes three key points:
1) Take responsibility for your own financial situation rather than blaming external factors. Successful people achieve wealth through their own choices and actions.
2) Spend less than you earn by limiting discretionary spending and saving the difference. Small amounts of savings add up over time.
3) Understand the difference between assets, which generate money, and liabilities ("flossets"), which reduce money. Focus on accumulating assets rather than possessions to achieve true wealth.
The document discusses entrepreneurship and its role in economic development. It defines an entrepreneur as someone who perceives opportunities, organizes resources to exploit opportunities, and exploits them. Entrepreneurship spurs economic development by creating wealth through new products/services and dispersing economic activities. It also speeds up the use of resources and development of backward regions. When entrepreneurs innovate continuously, they foster new industries and economic growth. Harnessing entrepreneurial talent moves a society from traditional ways to modern industry.
Bill George discussed the importance of staying true to one's core values and not losing sight of why one is qualified for their job. Leaders must continuously work on developing their skills. Malcolm Gladwell spoke of a doctor who took the risk to combine drugs to treat leukemia, and that real risk takers are those who do nothing. Tal Ben-Shahar emphasized the importance of resilience, setting goals, having role models, and focusing on strengths.
The document provides quotes from 20 famous investors such as Warren Buffett, George Soros, and Peter Lynch. Some of the key ideas expressed in the quotes include:
- Warren Buffett emphasizes the importance of value over price when investing.
- George Soros stresses the need to recognize mistakes to be successful as an investor.
- Several investors advise patience, taking a long-term view, and not overreacting to short-term fluctuations.
- Clinton delivered a State of the Union address in 2000 touting strong economic indicators, but markets soon collapsed into the worst decade in 80 years.
- Obama's 2010 State of the Union acknowledged economic struggles of high unemployment and falling home values since the recession. Stocks then surged after his speech.
- Most individual investors perform poorly despite believing they are above average. Cognitive biases, inability to predict the future, and lack of patience often cause investors to make suboptimal decisions.
PRESENTATION USED FOR PGPSE PARTICIPANTS OF AFTERSCHOOOL. JOIN AFTERSCHOOOL - IT IS THE BEST WAY TO BECOME AN ENTREPRENEUR AND WORK FOR SOCIAL DEVELOPMENT
come and Joint AFTERSCHOOOL - the world's fastest growing network of social entrepreneurs - join it to strengthen it. value life, value humanity, value creativity,
We are a community that is built with a purpose to create wealth through multiple sources of income Mr. Anil Jetwani is the founder of the Growth Circle, and his objective is very simple Grrowth Circle strongly believes that a community which is built on very strong foundations of collective growth and empowered by skill building programs to generate income can achieve any impossible task.
The document discusses the importance of focusing on sales fundamentals and principles rather than just product knowledge. It provides examples of successful salespeople like Vince Lombardi, Ben Feldman, and Frank Bettger who focused on basics like problem solving, enthusiasm, and packages tailored to clients' specific needs. While technology has changed, the document argues that long-standing sales principles will always be effective if combined with knowledge of current products and tools.
STRATEGYLeadershipLighting a fire under theniWhy urgen.docxcpatriciarpatricia
STRATEGY
Leadership
Lighting a fire under theni
Why urgency—not panic—is the key
to getting ahead in a recession
John Kotter got an enviable—if
unintentional—endorsement when
then-candidiitc liarack Obama began
inserting the phrase it sense ofurgeney
into his comments about the economy.
A Sense ofUrgeney (Harvard Business
Press, 2008) is the title of Kotter s
latest book on fostering change in
organizations—a subject the Harvard
Business School professor has owned
since publishing the seminal Leading
Change, in 1996.
Kotter believes there arc two kinds
of urgency—and, like cholesterol, one
is good and one is bad. The good kind
is characterized by constant scrutiny of
external promise and peril. It involves
relentless focus on doing only those
things that move the business forward in
the marketplace and on doing them right
now, if not sooner. 'I'he bad kind—to
which many companies have recently
succumbed^—is panic driven and charac-
terized by breathless activity that winds
up prodticing nothing demonstrably new,
Kotter advises leaders to stamp out
the bad urgency, which demoralizes and
drains people, and use the^—tiare we say
it?—opportunity of the economic crisis
to remake their organizations with a lean
and hungry look. And he encourages
them to sustain that newfound urgency
even when flush times return. Editor-at-
large I.eigh Fiuchanan spoke with Kotter
about his urgent call to urgency.
Samue! Johnson said nothing focuses
the mind like a hanging. Has that
happened with the recession? Has
it focused the minds of company
leaders and created the sense of
urgency you advocate?
1
Relentless Leadership guru John Kotter, author of 4 Sense oí Urgency,
says you should be doing something right now, today this very moment,
to move your company forward.
I wish that it had. Many companies
probably think they're responding with
urgency, and there are certainly a lot ot
people running aroujid tr)ing to come up
with solutions. But most ofthat activity is
going to be ineffectual, because it is driven
by a fear of losing. It's not that gut-level
determination to win and to make abso-
lutely sure that they do something every
single day to keep pushing that goal
forward. That's true urgency.
How can you distinguish good urgency
fronn bad urgency?
There are lots of signs of false urgency.
Frenetic activity. Everyone is exhausted,
working 14-hour days. One red flag is
how difficult it is to schedule a meeting.
With true urgency, people leave lots of
white space on their calendars, because
they recognize that the important
stuft^—the stuff they need to deal with
immediately—is going to happen. If
8 6 . I N C SEPTEMBER 2009 PHOTOGRAPH BY ADAM AMENGUAL
STRATEGY
you're overbooked, you can't manage
pressing problems or even recognize
they're pressing until tot) late.
People think that in urgent situations,
they're expected to take on Enore and
more. They're worried about keeping
their jobs, so they try to demonstrate
their value hy being incredihh' b.
The document discusses factors that top private equity fund managers employ to consistently deliver high returns to investors. It summarizes responses from interviews with several top performers. Some common factors cited include proactively initiating opportunities rather than reacting to deals, having a rigorous process to assess management teams and deals, specializing in specific sectors, getting hands-on involved with portfolio companies, managing capital levels to avoid diminishing returns, carefully selecting sectors and markets, learning from proven solutions elsewhere, mitigating cultural and risk factors when operating internationally, and avoiding deals that exploit workers or harm the environment.
The Blunder Of Confusing Jugaad As Or Leading To InnovationAditya Yadav
The document discusses the concept of "jugaad" in India, which refers to creative, improvised solutions born from lack of resources. While some argue jugaad could be considered a form of "frugal innovation", the document argues strongly that jugaad is actually an act of desperation, not a sustainable strategy, and disregards safety, quality and legal standards. Jugaad is presented as the source of poor service culture, illegal acts, and a barrier to meritocracy in India. Rather than leading to innovation, the document says jugaad needs to be avoided and "fixed" due to its disastrous effects on society, business, and the economy over time. Western companies are warned not to
Successful leaders execute on their goals and visions, which builds trust with others. They do the right things rather than just having a great vision. Vision and goals are important for leaders to articulate. Planning, focus, and perseverance are keys to achieving goals and becoming a successful leader.
This long document discusses the concept of excellence through numerous quotes and examples. It emphasizes that excellence requires enthusiasm, energy, empathy, execution, and constantly striving to improve. It highlights businesses and individuals who achieved success through innovative approaches, adapting to change, and a relentless focus on customers, people and execution. Key individuals mentioned include Muhammad Yunus and his work providing microloans to the poor.
The document discusses various issues that contributed to the global financial meltdown, including stupidity, greed, arrogance, self-interest, and short-sightedness. It argues that too many "artificial jobs" were created in financial engineering and consulting that focused on instant rewards rather than long-term value. However, the document provides optimism by encouraging focusing on contributions over just doing work, finding areas to make a positive impact, and assuring there are opportunities for bringing new energy to solve important problems.
Similar to My interview with hedge fund king Ray Dalio (20)
How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Cater...beulahfernandes8
The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
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KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
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How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
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How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
1. I
N 1994, the Government of Sin-
gapore Investment Corporation
(GIC) recruited a small and lit-
tle-known hedge fund in the US
called Bridgewater Associates as
one of its external fund manag-
ers. Led by a maverick founder
named Ray Dalio, Bridgewater
had a staff of 39, an unorthodox approach
to investing and a corporate culture that
wasconsideredunconventionalandevenbi-
zarre.
Fast forward to the present. Last month,
Bridgewater and GIC celebrated the 20th an-
niversary of their relationship. With a client
base that includes many of the world’s top
sovereign wealth funds, central banks and
institutional investors, Bridgewater has
grown to become the world’s largest hedge
fund, with a staff of 1,500 and assets under
management in excess of US$150 billion.
Mr Dalio, 65, the son of a jazz musician,
is one of America’s richest individuals with
a net worth estimated by Forbes at US$15.2
billion. A cult-like figure who dispenses ad-
vicenotonly aboutinvestmentandeconom-
ics but also about life, he is the new king of
hedge funds.
Candid, communicative and philosophi-
cal, Mr Dalio is a man of eclectic interests
that include neuroscience and hunting, scu-
ba-diving,oceanography,musicandmedita-
tion – the last of which he credits for much
of his success as an investor.
That success has been phenomenal.
Bridgewater is reported to have made re-
turnsofcloseto14percentayearforaquar-
ter of a century. For GIC, it has returned 18
per cent a year on average over the last 20
years.
ItsPureAlphafundhasconsistentlybeat-
en not only the US market but also most oth-
er hedge funds.
But Bridgewater’s “killer-app” for which it
is arguably most famous is its pioneering
concept of the “all-weather” portfolio, which
is constructed to make money under any
economic scenario – whether it’s rising
growth and rising inflation, falling growth
and falling inflation, rising growth and fall-
ing inflation or falling growth and rising in-
flation.Theall-weatherportfolioissegment-
ed into assets – stocks, bonds and curren-
cies – that do well in each of these scenarios.
Sonomatter whathappens,theoverallport-
folio tends to outperform the market.
TIMELESS AND UNIVERSAL
One of Mr Dalio’s key investing rules is what
he describes as “timeless and universal”.
“Those rules should be timeless,“ he says. “If
I go back 100 years, they should work. And
they should be universal – so they should
work in any country. To me, the economy
and the markets are like a machine. They
have cause and effect relationships.”
The criteria for making investments are
put into computers as formulas, which are
constantly updated as new data comes in.
These formulas then help determine invest-
ment decisions. “It’s like a GPS,” Mr Dalio ex-
plains. “I’m driving my car and wondering
what turns I should make. I have a GPS that
says, ‘now you are going to buy this’. There
is this totally automated decision-making
system which takes in data and says ‘buy
this, or sell that’.”
But the final investment decision is a
blend of judgment and automated instruc-
tion. “If the machine says do something and
wethinksomething different,thereconcilia-
tion of those things alerts me to the fact that
I forgot some of the criteria that I have used
in the machine. Two thirds of the time, the
machine wins. One third of the time, I say
there’s something else we need, to make the
machine work better.”
Mr Dalio’s quest for a “timeless and uni-
versal” system of investing has led him to
delve deep into economic history. “I learnt
that the times I was wrong (about invest-
ments) was whenthingshappened to mefor
the first time, but they had always hap-
pened before.”
For example, after the dollar crisis of
1971 when then US President Richard Nixon
took the decision to de-link the dollar from
gold, the dollar became a floating currency
and was effectively devalued. “This looked
like the biggest crisis I had ever seen,“ re-
calls Mr Dalio. “The next morning, I thought
the stock market would be down a lot. But
the market jumped the most it had jumped
for years. It turned out that there had been
currency devaluations before – just that I
had just never experienced them, because I
had only experienced fixed exchange rates.
And when I looked at those past devalua-
tions, I saw that all of them caused stock
prices to rise.
“In history, everything happens over and
over again. Every single thing is ‘another
one of those’. And if you find out which ‘one
of those’ it is you can learn how to handle
‘those’.”
Mr Dalio believes that patterns repeat in
life as well. “Principles are the way of deal-
ing with all the things that happen over and
over again,” he suggests. “Individuals in
their lifetimes make millions of decisions. If
you look at them individually, you can get
confusedbythem.Butifyourealisethateve-
ry one of them is ‘just another one of those’,
that makes it easier.”
Hehas written a 123-pagetract on princi-
ples – which is said to be required reading
for everyone at Bridgewater. “All my deci-
sions on management came down to about
200 principles. So while there may be mil-
lions of decisions, actually they come down
to 200. Or if you look at how the economic
machine works, it comes down to 30 min-
utes.” Mr Dalio has made a 30-minute video
on “How the economic machine works”,
which is posted on YouTube.
“I LOVE MY MISTAKES”
He claims that his greatest source of learn-
ing, as an investor, has been his own mis-
takes. “I love my mistakes,“ he says. “I have
an expression: pain plus reflection equals
progress. Every mistake is a learning oppor-
tunity. Every time you make a mistake,
thinkofit asa puzzleyou have tosolveas to
what you should do differently next time. If
you crack that puzzle, you will get a gem.”
His biggest mistake – one that he says
changed his life – happened in 1979-82. The
US had double-digit inflation and interest
rates. Banks had lent hundreds of billions of
dollars to Latin American countries and
wereinbad shape.“Itwasaperiodofgreater
uncertainty and turbulence than 2008,” Mr
Daliopointsout.“It lookedto methere wasa
choice between inflation and depression. I
anticipated that these countries would de-
fault on their debts and, in August 1982,
Mexico defaulted.
“And that was the bottom of the stock
market. Mexico defaulted on its debts and
theUSandtheworldbegan 15yearsofdisin-
flationary growth. That stuck in my mind.
Latin American countries went into depres-
sions but because of that dynamic, we went
into a boom. Depression in other countries
gave us a deflationary force that allowed the
easing of interest rates.”
From that episode, he learnt many
things, he says – notably, the power of cen-
tral banks and the importance of being ag-
gressive and defensive at the same time. “If
you’renotaggressiveyouwon’t achieveany-
thing, but if you’re aggressive without being
defensive, you will get killed,” he says.
Up to that time he had been making a lot
of discretionary decisions, but the experi-
ence of 1979-82 inspired him to build sys-
temstoinvest–bothaggressivelyanddefen-
sively. The seeds of the “all-weather port-
folio” were planted.
Systemsandautomateddecisionrules al-
so helped him take emotion out of deci-
sion-making. “When you’re in the middle of
a chaos that’s moving fast and you’re hold-
ing positions – winning positions and losing
positions – I learnt that by computerising
the decision-making
process, I could make
decisions better.”
He never gets emo-
tionally affected. “You
just look at it as a ma-
chineanddon’tletyour-
self get caught up in the
minute-by-minute. If
you can have perspec-
tive, stay back and re-
main calm – that’s the
test of you.”
Nor does he trust
“gut-level” decisions,
which many money
managers and corpo-
rate leaders rely on. “Our gut is determined
by our experiences,” he points out. “And the
things that happen in our lifetime make up
our experiences. You’re going to be fooled
bythe experiencesthat haven’t happened to
you yet. So it’s not good enough to go by
your experiences and your gut.”
His decisions come more from intuition,
tempered by logic. He claims that his most
creative ideas come from his subconscious.
“Some of the best thinking takes place in the
subconscious part of the brain,“ he says.
“For me, the way to know whether some-
thing is good or bad is when it comes up to
the conscious. If I can reconcile it with my
logic and bring the two together, then they
become a decision rule.
“I think this is true for all people. You will
have subconscious motivations and they
will come up. If you can reconcile them with
your conscious logic, then they’re probably
good for you.”
THE POWER OF MEDITATION
Meditation helps him a lot, he says. “It gives
me equanimity. It allows me to take myself
out of the situation and look at reality as a
beautiful machine. I can get rid of my con-
scious thoughts and go into the subcon-
scious state. That is where good things
comefrom. Ithelpsbringupthingslikeintu-
ition and imagination into my conscious
mind.” He meditates twice a day for 20 min-
utes each time.
“RADICAL TRUTH, RADICAL
TRANSPARENCY”
Aside from automated decision rules and
creative ideas, Mr Dalio also attributes
Bridgewater’s success to its unique corpo-
rate culture. All meetings are recorded for
viewing by anyone in the company. Mis-
takes are openly pointed out. There are no
pretences. Egos are not allowed to hold
sway. Or at least that’s the theory.
“Meaningful work and meaningful rela-
tionships through radical truth and radical
transparency” is how he describes it. He ex-
plains:“Ithinkeverybody hastobeonamis-
sion and be excited about their work. Mean-
ingfulrelationshipsareasourceofgreat sat-
isfaction to me. So if you can put meaning-
ful work and meaningful relationships to-
gether, it’s a wonderful combination.
“Radical truth means being able to talk
about anything, particularly problems and
weaknesses. This is the main differentiating
quality of our culture. Most people do not
like to talk about weaknesses. Yet every-
body has weaknesses. Successful people –
and I have been able to meet many success-
ful people in the world – all have weakness-
es, and what has made them successful is
that they recognise their weaknesses and
have developed compensating mecha-
nisms. So they’re not afraid to face their
weaknesses. Radical truth means looking at
problems and weaknesses and embracing
them.”
As for radical transparency – the record-
ing of all meetings, for instance – Mr Dalio
suggests that it helps people know the full
truthofwhat’sgoingonallthetime –andit’s
a good thing.
“Imagine you’re in a place where you
know that nobody can talk about you with-
out you seeing that conversation. So you
cansee every conversation that I have or the
leadership of the company has with each
other, on every topic. Nothing is hidden.”
He acknowledges that this may not work
for everybody. “It certainly selects people –
people hate it or they can't do without it ...
It’s like going into the Navy Seals.
“But the key is, are you afraid of the
truth? Are you afraid of being embarrassed?
We all stumble, we all make mistakes, we’re
all humanly flawed. If you can be comforta-
blebeingthiswaytogether,somethingmagi-
cal happens. It’s fantastic.”
Mr Dalio is exacting
in his selection of peo-
ple – and there are
thousands of gradu-
ates who want to join
Bridgewater. “It’s al-
ways more difficult
when you’re on top
and so many people
want to join you – it’s
almost like being rich
and so many people
want to be your
friend,” he says wryly.
He looks for three
main qualities – char-
acter, common sense
andcreativity.“By character I meanintegrity
– to be the same on the outside as on the in-
side and to have the ability to do the things
you don’t want to do, to do the right things
that are the difficult things. And common
sense – there’s a saying that common sense
is anything but common.”
Paper qualifications and mere intelli-
gence do not impress him. “I find that there
areway toomany brightpeople;peoplewho
graduate from the best universities with the
best grades are a dime a dozen. You have to
sort through that. Unconventional, inde-
pendent, thoughtful people are not as easy
to find. That’s what we look for.”
Thirty-nineyearsonfromstartingBridge-
water from his Manhattan apartment and
then guiding it into the force it has become,
MrDalio is handing over the reins to his suc-
cessors. While he is still chairman, he is not
the CEO any more. “Right now, my role is
largely as a mentor,” he says. “It’s a little bit
like Lee Kuan Yew becoming mentor.” And
Bridgewater is going through “a good,
smooth transition”.
With a net worth equivalent to more than
5 per cent of Singapore’s GDP, Mr Dalio is
stupendously rich. He readily admits: “I
have quite a bit of excess money.” He has
committed to the Giving Pledge – that is, to
donate most of his wealth to philanthropic
causes. A great believer in creating opportu-
nity, he particularly favours microfinance –
“because Ican see the power of giving some-
body US$1,500” – and education. As a na-
ture lover, his foundation also supports
groupsthat worktowards preservingnature
and the oceans.
His attitude to money is pragmatic. He
wants to ensure that his family has enough
for what he calls “HEM” – health, education
and maintenance, but not much more be-
yond that. “The best gift I can give my chil-
drenisself-sufficiency,”he says.“Ineverun-
derstood how people would trade off their
free time to get a bigger house or a bigger
car, or status – I think status is a very un-
healthy thing. Even luxury is an unhealthy
thing.” He folds up his sleeve cuff to show
off his watch. “It’s an Orvis watch. It costs
about US$150.”
Making money for himself was, in fact,
never his goal, he says. “It was an accident. I
just happened to be in an industry that pro-
duced money. It was a game for me. I could
have been playing chess, or some other
game that didn’t make money. I just loved
the game.”
THE HEDGE
FUND KING
IN trying to understand the relationship
between the Government of Singapore
Investment Corporation (GIC) and
Bridgewater Associates, the first question
thatcomesto mindiswhy GICchoseBridge-
water as one of its external fund managers.
After all, back in 1994 the firm was little
known and nowhere near the world leader it
is today. And few people had heard of Ray
Dalio.
AccordingtoGIC’sformerGroupChiefIn-
vestment Officer (CIO) Ng Kok Song, who
took the decision to hire Bridgewater: “I
found that Ray had a deep understanding of
financial markets at the global level and had
a systematic way of translating those in-
sights to investment strategy. It was a rare
combination. We knew we could learn a lot
from him. He wanted to deploy his skills on
a greater scale, which GIC offered. So there
was a mutuality of interests. We took a
chance with him when Bridgewater was
small and untested. It has paid off hand-
somely for GIC beyond investment returns.”
“A20-yearfriendship”ishowMr Daliode-
scribes the relationship, which he says has
gone far beyond a typical commercial deal –
and remains that way under GIC’s current
CIO, Lim Chow Kiat.
There are two types of relationships, Mr
Dalio explains. One is a purely contractual,
functional relationship. “The dynamic here
is: ‘We will negotiate and I will seek the best
for me, and you will seek the best for you’.”
“But a quality relationship cannot be ful-
ly captured in a contract; you can’t have a
quality relationship with your friends or
your spouse through a contract.”
What GIC and Bridgewater were able to
do, he says, is “to put the quality of the rela-
tionship above the contract”. In other
words, “there was mutual consideration;
there was an ability to look out for each oth-
er’s well being”.
He adds : “We’ve given them a return of
about 18 per cent a year for 20 years. But
that’s not the most valuable thing. We gave
them some ideas, and vice-versa. So there
was a commercial aspect that was mutually
profitable, but when we sit here today and
lookback, it was a 20-year friendship, based
on mutual consideration and high stand-
ards.”
To be sure, there were cultural challeng-
es. Bridgewater had a corporate culture of
open debate on investment issues, even
with its clients. Mr Dalio said that GIC and
Bridgewater often disagreed – for example
onwhatthebest assetallocationmixshould
be.“Butwhatwasuniqueinourparticularre-
lationship was how they could embrace this
thoughtful disagreement. Usually, if I tell
you, ‘you’re doing something wrong’, many
organisations don’t like that. In GIC’s case,
they would say: ‘Why?’ And they would ex-
plore it. So there was a two-way open-mind-
ed relationship that was very unique.”
Mr Ng, who now serves as the chair of
GIC Global Investments, corroborates the
factthatthe twoorganisationsoftenhad dif-
ferences.“There were many occasionswhen
we debated vigorously. Ray did not pull his
punches ... He did not sugarcoat his criti-
cism of our views because we were clients.
At Bridgewater, there is almost a compul-
sion to challenge the consensus. Otherwise
how can you beat the market?”
He acknowledges that GIC took home
many lessons. “To be innovative, we learnt
fromBridgewater that wemust create an en-
vironmentforvigorousdebate.Mostorgani-
sational managers dislike challenging oth-
ers,especiallythe bosses,andfinddisagree-
ment unpleasant. But the financial market is
an expensive place to discover how far you
were from reality. Thoughtful debate can
sometimes avert going down the wrong
path.”
At the end of the day, what mattered was
the outcome. “GIC was always an organisa-
tion in which the individuals really cared
about the outcome,”’ said Mr Dalio. “They
wanted to do the right thing.” And to get
there,they couldriseaboveacontractualre-
lationship. “That was very much a function
of Ng Kok Song,” he added. “There are peo-
ple who understand principles and have
great character. He is such a person.”
Ray Dalio talks about
his approach to investing,
and his life philosophy.
BY VIKRAM KHANNA
Mr Dalio has a net worth equivalent to more than 5 per cent of Singapore’s GDP and
readily admits: “I have quite a bit of excess money.”
GIC and Bridgewater: A 20-year friendship
“If you’re not
aggressive you won’t
achieve anything, but
if you’re aggressive
without being
defensive, you will
get killed.”
RAY DALIO
“I found that Ray had a deep
understanding of financial
markets at the global level and
had a systematic way of
translating those insights to
investment strategy... We took
a chance with him when
Bridgewater was small and
untested. It has paid off
handsomely for GIC beyond
investment returns.”
Ng Kok Song, GIC’s former Group CIO
The Business Times | Friday, October 10, 2014
OPINION | 27