“I know that the key to my success has not been so much what I know as much as how I deal with my not knowing,” writes Ray Dalio in his recently published book “Principles: Life and Work.” Ray Dalio is perhaps the most successful hedge fund manager in history. He built Bridgewater Associates from the ground up to later become the largest hedge fund in the world. A year ago, he and Bridgewater had 150 billion dollars in assets under management (AUM) and employed over 1,700 workers. Dalio became billionaire and appeared on a prominent spot in the Forbes 500 list of the world´s most wealthy individuals. And maybe even more important to our readers, Ray Dalio invests 15% of his “All Weather” fund in gold. But Dalio was not always as successful as today. As he explains himself, he foresaw and predicted the Mexico-crisis of 1982. Eventually the Mexican governments went, as he predicted, bankrupt. But to his very surprise, the market did exactly the opposite of what he anticipated: the stock market bottomed out and began to rise, whereas Dalio expected a crisis and a stock market crash. As his bet on a crash was considerable, he began losing money and ended up being forced to fire his entire staff, which he described as “family,” and at a certain point even borrowed 4000 dollars from his dad to make ends meet. Ever since, the hedge fund manager has been obsessed with avoiding mistakes at any cost. In our section here, we often anticipate and try to foresee future events. How can we apply the lessons of Ray Dalio to increase the odds of being right?

Stress Testing

But Even Then, You Will Make Mistakes

Better Early Than Late

Tony Robbins Interviews Ray Dalio

Recommended articles:


Sign up for our periodical newsletter to stay informed about the gold and silver markets and special offers.


GoldRepublic operates under license from the Dutch Authority for the Financial Markets (AFM),
Registration Number 12020650