Ray Dalio Quotes

One of the best investors in the world is Ray Dalio. He is a billionaire American philanthropist and hedge fund manager with a master's degree in ADE (Business Administration). It currently has a net worth of more than 20 billion dollars. For this reason it can be very interesting to read the phrases of Ray Dalio.

If you want to learn and motivate yourself to start or continue your career in the financial world, I recommend that you keep reading. Learning from the best investors in the world can go a long way. For this same reason, it is highly recommended that you read and internalize the great phrases of Ray Dalio.

The 72 best phrases of Ray Dalio

Big investors like Ray Dalio have a long history in the financial world. Therefore, it never hurts to read his most outstanding phrases, for they harbor a lot of experience and wisdom. Next we will see a list of the 72 best phrases of Ray Dalio:

1. "Not being controlled by an emotion helps to see things at a higher level."
2. Don't be a perfectionist, because perfectionists often spend too much time on small differences in the margins at the expense of other big and important things. Be an effective imperfection.
3. “Time is like a river that takes us to encounters with reality that force us to make decisions. We cannot stop our movement down this river and we cannot avoid those encounters. We can only get closer to them in the best possible way.
4. "I believe that understanding what is good comes from looking at the way the world works and figuring out how to operate in harmony with it to help it evolve."
5. "Remember not to be too confident in your evaluations, as you may be wrong."
6. "If you can think for yourself while being open-minded in a clear way to find out what is best for you, and if you can invoke the courage to do so, you will make the most of your life."
7. "If you are not failing, you are not exceeding your limits, and if you are not exceeding your limits, you are not maximizing your potential."
8. "Listening to uninformed people is worse than having no answers at all."
9. “I learned that if you work hard and creatively, you can have almost anything you want, but not everything you want. Maturity is the ability to reject good alternatives to pursue even better ones.
10. "Mistakes are the way to progress."
11. Choose your habits well. Habit is probably the most powerful tool in your brain's toolbox.
12. "Every time you face something painful, you are at a potentially important juncture in your life: you have the opportunity to choose a healthy and painful truth or an unhealthy but comfortable illusion."
13. "The most important thing is that you develop your own principles and ideally write them down, especially if you are working with others."
14. Never say anything about a person that you wouldn't say directly to them, and don't try to accuse people without looking them in the face. People who speak badly behind your back show a serious lack of integrity and are self-defeating. It does not produce any beneficial change, and it subverts both the people you are badmouthing and the environment as a whole.
15. “If you can stare at your problems, they almost always shrink or disappear, because you almost always find a better way to deal with them than if you don't deal with them. The more difficult the problem, the more important it is that you stare at it and face it.
16. “Life is like a game in which you seek to overcome the obstacles that stand in the way of reaching your goals. Improvements in this game through practice. The game consists of a series of choices that have consequences. You can't stop problems and options from coming to you, so it's best to learn to deal with them.
17. "Success comes from knowing what you don't know, more than what you know."
18. "The best advice I can give you is to ask yourself what you want, then ask 'what is true' - and then ask 'what should be done about it'. I think that if you do this you will move much faster towards what you want to get out of life than if you don't! ».
19. “For every mistake you learn from yourself, you will save thousands of similar mistakes in the future, so if you treat mistakes as learning opportunities that produce rapid improvements, you should be excited about them. But if you treat them like bad things, you will make yourself and others miserable, and you will not grow.
20. "Don't worry about looking good, worry about reaching your goals."
21. “Success is achieved by people who deeply understand reality and know how to use it to get what they want. The reverse is also true: idealists who are not well grounded in reality create problems, not progress.
22. "People who care about looking good usually hide what they do not know and hide their weaknesses, so they never learn to deal with them properly and these weaknesses remain impediments in the future."
23. "To test whether you care too much about looking good, see how you feel when you find out you've made a mistake or don't know something."
24. "People who confuse what they really want with what is really true create distorted images of reality that prevent them from making the best decisions."
25. Learn what you don't know. Get comfortable with understanding your mistakes and weaknesses.
26. "It is much more common for people to let the ego get in the way of learning."
27. "The greatest tragedy of humanity is people who have wrong opinions."
28. Don't feel bad about your mistakes or those of others. I love! Remember that one: they are to be expected; two: they are the first and most essential part of the learning process; and three: feeling bad for them will prevent you from getting better.
29. "To make money in the markets, you have to think independently and be humble."
30. The more you think you know, the more closed-minded you will be.
31. "When you think it's too difficult, remember that in the long run, doing the things that will make you succeed is much easier than not being successful."
32. "More than anything else, what differentiates people who live up to their potential from those who are not is a willingness to look at themselves and others objectively."
33. “The biggest mistake investors make is believing that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment.
34. "Every time you have pain, it is an indication that something is in disagreement."
35. “People with good work habits have to-do lists that are reasonably prioritized, and they do what needs to be done. In contrast, people with bad work habits react almost randomly to things that come their way, or they can't do the things they need to do because they don't like to do them (or can't do them). '
36. "Beware of the arrogant intellectual who comments from the stands without having played on the ground."
37. “I believe that there are an infinite number of laws of the universe and that all the progress or dreams achieved come from operating in a way that is consistent with them. These laws and the principles of how to operate in harmony with them have always existed. They gave us these laws by nature. Man did not make them and cannot invent them. You can only hope to understand them and use them to get what you want.
38. Don't hire people just to fit into the first job they'll do; hire people you want to share your life with.
39. "The happiest people discover their own nature and match their life with it."
40. "If you can't do something successfully, don't think you can tell others how it should be done."
41. «First principle: Think for yourself to decide 1) what you want, 2) what is true, and 3) what you must do to achieve the first in light of the second ... and do it with humility and an open mind to that you consider the best thought available to you.
42. Reflect and remember that accurate criticism is the most valuable feedback you can receive.
43. "It is more important to do big things well, than to do small things perfectly."
44. "When a problem occurs, conduct the discussion at two levels: 1) the machine level (why that result occurred) and 2) the case-at-hand level (what to do about it)."
45. "In most companies, people are doing two jobs: their actual job and the job of managing others' impressions of how they are doing their job."
46. "He also feared boredom and mediocrity much more than he feared failure."
47. "Managers who don't understand people's different thinking styles can't understand how the people who work for them will handle different situations."
48. “Pay for the person, not for the job. See what people in comparable jobs with comparable experience and credentials do, add a small bonus on that, and build on bonuses or other incentives so they are motivated to take the cover off the ball. Never pay based on job title alone.
49. "The people who work for you must constantly challenge you."
50. "What you will be will depend on your perspective."
51. "Having nothing to hide relieves stress and builds confidence."
52. "Beneficial change begins when you can recognize and even accept your weaknesses."
53. “Although I used to get angry and frustrated with people because of the decisions they made, I realized that they were not intentionally acting in a way that seemed counterproductive; They were just living things the way they saw them, based on how their brains worked.
54. "No manager at any level can hope to be successful without the skill set of an organizational engineer."
55. "Over time, I realized that the satisfaction of success does not come from reaching your goals, but from fighting well."
56. "Beware of statements that begin with" I think. . . » just because someone "thinks something" doesn't make it true. "
57. "I came to see that people's greatest weaknesses are the sides of their greatest strengths."
58. "Heroes inevitably experience at least one very big failure that tests whether they have the resilience to come back and fight smarter and with more determination."
59. "Reality, in turn, will send you strong signals about how well your principles work by rewarding or punishing you, so that you learn to fine-tune them accordingly."
60. “It seems to me that life consists of three phases. In the first, we depend on others and we learn. In the second, others depend on us and we work. And in the third and last, when others no longer depend on us and we no longer have to work, we are free to savor life.
61. "My painful mistakes changed from having a 'I know I'm right' perspective to having a 'How do I know I'm right?'
62. "Distinguish between you as the designer of your machine and you as a worker with your machine."
63. "Great is better than terrible, and terrible is better than mediocre, because terrible at least gives flavor to life."
64. "The most important thing was not knowing the future, it was knowing how to react appropriately to the information available at each point in time."
65. "I think all organizations basically have two types of people: those who work to be part of a mission, and those who work for pay."
66. "Beware of people who confuse goals and tasks, because if they can't make that distinction, you can't trust them with responsibilities."
67. "People are hard to find, so make sure you think about how to keep them."
68. Don't just pay attention to your work; pay attention to how your work will be done if you are no longer around.
69. “The challenges you face will test you and strengthen you. If you are not failing, you are not exceeding your limits, and if you are not exceeding your limits, you are not maximizing your potential.
70. 'Principles are ways of successfully dealing with the laws of nature or the laws of life. Those who understand them more and understand them well know how to interact with the world more effectively than those who know less about them or know them less well.
71. “Throughout our lives, we make millions and millions of decisions that are essentially gambling, some big and some small. How we do it is worth thinking about because they are what ultimately determine the quality of our lives.
72. "As Carl Jung said, 'Until you take the conscious unconscious, it will direct your life and you will call it destiny." It's even more important that decision-making is evidence-based and logical when groups of people are working together.

How do you invest?

After having read the phrases of Ray Dalio we must know that he bases his investments on different steps and principles. This is generally a rational investment. It can be difficult, but it is also the best way to earn money. This great investor has created a series of common sense steps to make the task easier. They are called "Ray Dalio's Investing Principles" and we will discuss them below.

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1. Values: The company in which we are going to invest must have values ​​and even a culture of its own, as it will define its way of working. It will be considered good if its culture is based on transparency, the search for the excellent and the truth.
2. Permission to be wrong: As we have already seen in several of Ray Dalio's phrases, mistakes should also be allowed, since for him they are part of experimentation. However, they must be identifiable to learn from them.
3. Search for the truth: For this principle, humility and assertiveness are fundamental both in the mindset of the directors and in the culture of the company. This aspect is reflected in several phrases by Ray Dalio.
4. Choosing the right people: It is about betting on companies that hire exceptional people when it comes to work.
5. Treat problems: To deal with problems, you have to look at them head-on and find a solution. Systems must be designed and their errors detected in order to create a smooth plan, maximizing opportunities.
6. The opportunity cost: Sometimes it may be the case that there are two or more solutions to a problem with the same efficiency. However, it is necessary to determine which of the options is the most efficient. An opportunity cost assessment will help us to do this.
7. Make rational decisions: Although it seems obvious, many times people get carried away by intuition or emotions, even unconsciously. For this reason, it is important to invest in those companies that analyze problems rationally and logically through expected value calculations for each of the possible responses. This also applies to the investor.

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I hope that Ray Dalio's phrases have helped to motivate you and have transmitted you important wisdom and advice to take into account when investing. You can tell us about your experience in the comments.