YouSaid · the spoken record

Ray Dalio

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119
first
2017-09-13
most recent
2017-09-13
sittings or episodes
1
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podcast

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  1. “The nature of psychological pain is that it passes fairly quickly. The amygdala, this part of the brain, is the part that's the fight or flight part that gets adrenaline and it reacts quickly and then over a period of time, whatever the form of psychological pain, it diminishes. And that's an opportunity to reflect. And because it's been captured in the app, it then can allow somebody to go back and reflect on that. and reflect on what you should do about it when the next one comes along. And is it speak to the person who caused you the pain? Whatever it might be. And you write that down and you record it. And because it keeps in a graphic way a presentation, graphs your pains, the different types of pains and the causes, it gives you sort of a bio feedback.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  2. “It's like I said, pain plus reflection equals progress, whatever your form of pain. The best thing to do is to record it so this app, the way it works is as you experience psychological pain, you just quickly log it. You don't analyze it at the time, but you capture it. What was it about or who was it with and what happened exactly?”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  3. “Mistakes are part of the process, and everybody has weaknesses. The greatest people I know have weaknesses and have become successful because they know how to compensate for the weaknesses they're aware, the stupidest people I know, least successful people I know, are people who don't own up to those weaknesses and grow. So the exercises that we're going through are by people who choose to want to be in a radically truthful, a radically transparent environment and be evidence-based. But it's difficult. It's difficult because we're not brought up that way. It takes about 18 months to get used to because there's these subliminal reactions.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  4. “Most importantly, it's that people can be radically honest with each other. And they'll say, I don't think you're very good at that. And they said, I am very good at that. And then you go through a series of tests to think it's evidence-based to try to find out if somebody's good or bad at that. And then you move beyond it to think, okay, well, what can I do to get better? Or how can I guardrail myself so that if I'm weak at something and somebody else is strong at that thing, we can work together? The main thing here is to get at what people are like. You know, this is, to me, it's a weird world. That there's a phobia about making mistakes and there's a phobia about Knowing one's weaknesses.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  5. “I think the first thing that I have to convey is that we have an idea of meritocracy, so it's not like somebody is called into a room and the people like me or the bosses think that they know the answer. And that they're making an assessment of how that person is, and then they write down those notes. No, no, no. Everybody's equal in having an opinion. And by and large, if the person that's receiving, they receive great and bad feedback, and I receive great and bad feedback in a non-hierarchical way. We approach it with the idea of how do we find out if it's true. So it's got to be evidence-based. And then we will set up tests, let's say, if you get bad feedback. We're now talking about bad feedback. It could be for good feedback. If somebody's thinking somebody's not very good at something, they're speaking honestly.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  6. “How do those things work? And what are my principles for dealing with it? Then life is a whole lot easier if you're not dealing with it that way. Everything is a one-off and you'll be in the middle of a blizzard of things and you won't step above those and deal with those instinctual principles. For example, you have your principles. I really admire your stoicism. And I think you could rattle those principles off and you make the connection and it's connected to your realities. So we each have our own. I don't want to keep it in the realm of just economics because it applies to everything.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  7. “Develop? What are the usual linkages and why? And so that's been, I think, very helpful more recently in my understanding quite a bit about what's going on. It's affected my perspective. So it doesn't have to be just reading history books. It's in anything. People have a new child and they treat it as though that's the first time anybody's had a child. It's a game perspective. Can apply it, gain that perspective of what's happened over and over, and it can be applied to anything. If you start thinking that way. It's radically beneficial. So that way, what I'm referring to that is, in other words, What is this? What one of these is it?”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  8. “And that the key to success is to identify what one of those it is and to look how it's worked in the past many, many, many times, and then to understand the cause-effect relationships to develop one's principles for dealing with it. So it could be applied to anything. We were talking about economics to talk about politics. Nowadays, we're hearing the term populist and populism is something that is a bigger phenomenon than we're used to in our lifetimes, the time that populism was flourished the most was in the 1930s, pretty much leading up to World War II. And so I use that as an example, I think, okay, where were the populists in history? Where were those cases? How does this thing happen? How does it grow? How does it...”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  9. “Before I deal with the particular economic history, I'll start off by saying I believe that basically everything is another one of those. In other words, almost everything happens over and over and over again through history.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  10. “Not in my lifetime. And one of the things that I've learned over the years is that many surprises come because things that happen as surprises never happened in one's lifetime before. So that it's advantageous to look at beyond one's lifetime or beyond one's own experiences to understand how the world works. So that one can anticipate all of those things and learn all the rules of how the world works. And that's the beauty of it, right? And that's the excitement, to learn how does reality work? What are the cause-effect relationships? And then how do I deal with my realities? So that's a case. But I mean, there are so many mistakes.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  11. “Well, I mean, there are just so many mistakes. When I was Just getting out of college, I clerked on the floor of the New York Stock Exchange. And this is when the dollar was attached to gold. And there was a financial crisis. And Richard Nixon gets on the television and says there's no more attachment to gold. And back then, money was like checks in a checkbook that didn't have much value. What really mattered was the fact that you could get something tangible in the form of gold that you can make the conversion. So it was a crisis. Our money wouldn't be taken in other countries and so on. And I walked on the floor of the New York Stock Exchange, expecting a collapse, and the stock market went through the roof. It never happened to me before. So that was a case. And I went and researched currency declines in the past. And I learned that it happened before.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  12. “Keep you doing the same things, and so you don't grow from successes. Successes keep you doing the same thing so you don't grow from successes. But mistakes, if you can deal with them the right way is where the growth plus the reflection is where the growth comes from. So anyway, that's what happened.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  13. “Principle that would let me do a better job the next time that sort of thing came about. And I wrote those principles down and refined them over a period of time, which is what makes up my book. But it was that process of making enough mistakes and having painful mistakes that led to an instinctual reaction to have reflections on what I could have done differently that led to the progress that I'm referring to when I say paying plus reflection equals progress. And I think we all learn. I don't think it's particularly just true of me. I mean, I think anybody who's open-minded and smart knows you're going to learn more from mistakes. There's so much more that you can learn from mistakes. Because, I mean, mistakes, look, I mean, first of all, they're giving you a loud signal and reward.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  14. “I think for everyone and for me at the time, when you encounter the mistake and you experience in that pain and there's an emotional pain, and that was true for me at the time, and then the pain passes and it requires thought and making the connection of what did I do wrong and being analytical about it. And that was that experience. And that led me to do that as a habit. It became an increased habit. I would literally, every time I would make a mistake, I would develop an instinct. So it changed my attitude about mistakes. I think basically they became like puzzles. And if I solve the puzzle, the puzzle being, what would I do differently in the future, I would get a gem. And that gem would be a”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  15. “Mind a lot. It made me look for people who disagreed with the smartest and it also made me manage my risks better and so on. So that's the story”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  16. “Mexico defaulted on its debt, and not many people had expected that, and I did. And I had these positions on. And I thought the stock market, I thought we were going to go into a depression. I thought the stock market was going to go through the floor. I just didn't understand, really. And the stock market rose, and this was after I had testified to Congress and I was on Wall Street week, and then I lost the money that you referred to. And that's how it happened. And in retrospect, it really was the best thing that ever happened to me because it gave me the humility that I needed to become more successful. And that was because I shifted my attitude from thinking I'm right to asking myself, how do I know I'm right? And that opened my mind.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  17. “Let me first say that, by the way, I'm a professional mistake maker. Being in the markets or being an entrepreneur requires one to bet against the consensus. And when one does that a fair amount of times, you're going to be wrong a fair amount of times. And I've learned a lot more from my mistakes. So I just want to let you know that any perception that being right is part of it. No, the main thing is knowing what you don't know and how to deal with it. But anyway, what happened at the time is I analyzed the payments that countries owed banks. And I calculated that those countries were not going to be able to pay the U.S. back. And it was a very controversial view at the time. And as a result of that, I took positions in the markets. And I got a lot of attention.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  18. “Yell when I was a kid. I used to caddy. And at the time the stock market was hot. And when I was 12, I got hooked on the markets. I bought a company that, you know, everybody was talking about the markets, and I decided I would take my cadding money and put it in the stock market. So I picked the stock, the only stock I knew that was selling for less than $5 a share, and it was kind of a stupid idea, but I thought if I bought more shares and it went up, I'd make more money. The company was about to go bankrupt, and somebody came along and acquired it, and I tripled my money. I was lucky, and I was hooked on the stock market. So that had a big effect, you know. So from then on, it drove my whole addiction to the game and everything I've been doing since related to my career.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT

  19. “I grew up in New Hyde Park, Long Island, and I would describe my childhood as being middle class or maybe a little bit lower middle class family. My dad was a jazz musician. My mother was a stay-at-home mom. I was an only child.”

    2017-09-13 · The Tim Ferriss Show · #264: Ray Dalio, The Steve Jobs of Investing · IDENTIFIED FROM THE TRANSCRIPT