On Tuesday, US billionaire Ray Dalio stepped down from his role as one of three co-CEOs of Bridgewater Associates, aged 73. It is one of the largest hedge funds in the world.. Dalio will remain as the company’s mentor, as it is a role that he has publicly cultivated over the years.
The investor is also the author of several educational books on investing and work, highlighting his 2017 bestseller “Principles: Life and work“. In the work are collected four tips that he himself carried out during his professional careerin the company he founded in 1975.
Practice a radical open-mindedness
To be successful at work, one must be good at making decisions, and according to Dalio this requires an advanced mental opening. This skill implies the ability to analyze different points of view, without allowing the ego to block the process.
The investor says that, before deciding, one should always keep in mind that one can be wrong. In fact, he himself explains that look for people who do not agree with him, in order to make the effort to understand their reasoning. Only after having analyzed the information provided by all possible points of view, Dalio makes the decision.
“The more open-minded you are, the less likely you will then be to fool yourselfand in turn it will be more likely that others will give you honest feedback,” Dalio explains in his book.
The “meritocracy of ideas”
The most satisfying workplaces are those in which the best ideas always win, no matter who or where they come from, as Ray Dalio writes. For the “meritocracy of ideas” to work, however, internal disagreements must be respectful and constructive. Avoid being dishonest and defaming colleagues.
“The most meaningful relationships are achieved when both you and others you can talk to each other openly and about everything that is importantlearning together, and understanding the need to hold each other accountable for being as great as you can be.”
“All those who are in this environment must remain calm and respectful of the process. It is not acceptable to be upset if the meritocracy of ideas does not result in the decision you personally wanted“, highlights.
Beware of charlatans
“Charlatans are the people who eloquently and affirmatively say things before they can be evaluated, as a way to superimpose your agenda on the objections or analyzes of others“, warns Ray Dalio.
the investor he asks his readers not to be intimidated by these kinds of people, since one has “the responsibility to make sense of things” for oneself. This, Dalio comments, is better than pretending to understand what a “quack” might be saying.
And if you feel pressured, you can choose to say something along the lines of, “Sorry for being stupid, but I’m going to have to ask you to slow down so I can understand what you’re saying.” Once that person is stopped, Ray Dalio says that It’s time to ask questions, all you have.
Learn from mistakes
“Everyone makes mistakes. The main difference between successful and mediocre people is that the first learn from their mistakesDalio sentences.
The investor continues: “My painful mistakes changed my perspective from ‘I know I’m right’ to one of ‘How do I know I’m right?’ these faults they gifted me with the humility I needed to balance my boldness“.
Thus, this last lesson shows that one must force oneself to learn from every situation, even when it is complicated. The investor is clear: “If you can not tolerate being wrong, then you will not grow, and you will make yourself and those around you miserable.”
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These are billionaire investor Ray Dalio’s tips for working life