Raymond Thomas Dalio is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York.
Diversification is critical - don't put all your eggs in one basket. Spread investments across different sectors, geographies, etc.
Pay attention to correlations between asset classes. Some may move in the same direction in a crisis, reducing diversification value.
Allocate based on expected returns and volatility of each asset class. Bonds and stocks play different roles. Buy assets cheaply. Dalio says the best values come from contrarian bets against the herd mentality.
Be patient and stick to your asset allocation. Don't panic during market drops. Rebalance to get allocations back in line. Macroeconomic moves drive returns more than individual securities. Study economic cycles and trends.
Keep an open mind. Challenge your views through reflective thinking and engaging with others.Achieve meaningful diversification. 15-20 good uncorrelated return streams better than 100 stocks.
The key is balance, diversification, and risk management rather than betting on big winners. Dalio believes this allows superior risk-adjusted returns.