How Ray Dalio Became a Renowned Investor and Entrepreneur (Video)

“Almost everything in life repeats itself. That is the essence of my book “Principles”. When you encounter a challenging situation that you wouldn’t want to experience again, wait until the pain subsides, then write down your experience. Think about the principles that guided your decisions and record them. Over time, this collection of insights becomes invaluable.”

Dalio was born in Queens, New York, to a jazz musician father and a homemaker mother. He struggled in school, had poor memory, and disliked rote learning. However, he began working at the age of eight, washing dishes in a restaurant and carrying golf clubs. Unlike his school years, he excelled in college, later earning a place at Harvard Business School.

“My father was a jazz musician. Though I rarely saw him due to his nighttime performances, I remember him as a strong and capable man. Over time, we became closer. My mother, on the other hand, was a source of boundless love and care. I was truly fortunate to have a loving mother and a father with a strong character and creative thinking.”

At just 12 years old, Dalio made his first stock investment, buying shares worth $300. When the airline he invested in merged with another company, the stock price soared, marking his first successful trade.

“To succeed in the market, you need to be an independent thinker. Being an entrepreneur means daring to go against the crowd and, in the end, proving yourself right. Market prices already reflect general opinion, so to truly excel, you must think differently. Naturally, you will often be wrong, especially in entrepreneurship, where you are creating something new without certainty of success.”

Dalio worked on Wall Street, gaining experience at several investment firms before founding his own company in a small apartment. Over the next four decades, Bridgewater Associates grew into the most profitable hedge fund in history and the fifth-largest private company in the United States.

“Life has three main stages. In the first, we learn from others and depend on them. In the second, we work, others depend on us, and we strive for success. In the third stage, we step back, allowing others to succeed without us. That is true freedom.

I am now in that stage. In 1975, my success story began in a two-room apartment where I founded Bridgewater. Today, according to Fortune magazine, it is the fifth most important private company in the United States. We have achieved real success. Now, my mission is to help others succeed.

Over the years, I have developed certain principles. With each decision I made, I wrote down my reasoning, debated it with others, analyzed it, and refined it. That’s how my Principles were formed.”

Dalio stepped away from Bridgewater in 2017. Today, the firm manages $160 billion in assets. He is married to Barbara Dalio and has four sons. In 2011, he and his wife joined Bill Gates and Warren Buffett in pledging to donate at least half of their fortune to charity.