Thursday 4 October 2018

Principles by Ray Dalio







Principles are fundamental truths that serve as the foundations for behavior that gets you what you want out of life.



Having a good set of principles is like having a good collection of recipes for success. 



My painful mistakes shifted me from having a perspective of "I know I'm right" to having one of "How do I know I'm right?"



Time is like a river that carries us forward into encounters with reality that require us to make decisions.  We can't stop our movement down this river and we can't avoid these encounters.  We can only approach them in the best way possible.



The most painful lesson that was repeatedly hammered home is that you can never be sure of anything.  There are always risks out there that  can hurt you badly, even in the seemingly safest bets, as it's always best to assume you're missing something.



If you work hard and creatively, you can have just about anything you want, but not everything you want.  Maturity is the ability to reject good alternatives in order to pursue even better ones.



Wise people stick with sound fundamentals through the ups and downs, while flighty people react emotionally to how things feel, jumping into things while they're hot and abandoning them when they're not.



When faced with the choice between two things that you need that are seemingly at odds, go slowly to figure out how you can have as much of both as possible.



While one gets better at things over time, it doesn't become any easier if one is also progressing to higher levels -- the Olympic athlete finds his sport to be every bit as challenging as the novice does.



Idealists who are not well grounded in reality create problems, not progress.



Truth -- or, more precisely, an accurate understanding of reality -- is the essential foundation for any good outcome.



If you're not failing, you're not pushing your limits, and if you're not pushing your limits, you're not maximizing your potential.



Every time you confront something painful, you are at a potentially important juncture in your life -- you have the opportunity to choose healthy and painful truth or unhealthy but comfortable delusion.



It's up to you to connect what you want with what you need to do to get it and then find the courage to carry it through.



Don’t confuse what you wish were true with what is really true.



If you want to reach your goals, you must be calm and analytical so that you can accurately diagnose your problems, design a plan that will get you around them, and do what's necessary to push through to results. 



View painful problems as potential improvements that are screaming at you.



Acknowledging your weaknesses is not the same as surrendering to them.  It's the first step toward overcoming them.



Once you identify a problem, don't tolerate it.



Remember that there are typically many paths to achieving your goals.  You only need to find one that works.



Weaknesses don't matter if you find solutions.



Everyone has at least one big thing that stands in the way of their success.



The two biggest barriers to good decision making are your ego and your blind spots.  Together, they make it difficult for you to objectively see what is true about your and your circumstances.



To be effective you must not let your need to be right be more important than your need to find out what's true. 



To be radically open-minded, you need to be so open to the possibility that you could be wrong that you encourage others to tell you so.



Recognize that 1) the biggest threat to good decision making is harmful emotions, and 2) decision making is a two-step process (first learning and then deciding).



Don't mistake possibilities for probabilities.



In order to have the best life possible, you have to: 1) know what the best decisions are and 2) have the courage to make them.



Tough love is effective for achieving both great work and great relationships.



Your organization is a machine made up of culture and people that will interact to produce outcomes, and those outcomes will provide feedback about how well your organization is working.



Make your passion and your work one and the same and do it with people you want to be with.



Being radically truthful and radically transparent are probably the most difficult principles to internalize, because they are so different from what most people are used to.



Great cultures, like great people, recognize that making mistakes is part of the process of learning.



While their "upper-level yous" understand the benefits of it, their "lower-level yous" tend to react with a flight-or-fight response.



It is a fundamental law of nature that you get stronger only by doing difficult things.



While concealing the truth might make people happier in the short run, it won't make them smarter or more trusting in the long run.



Realize that you have nothing to fear from knowing the truth.



Never say anything about someone that you wouldn't say to them directly.



Radical transparency isn't the same as total transparency.  It just means much more transparency than is typical.



Share the things that are hardest to share.



Meaningful relationships and meaningful work are mutually reinforcing, especially when supported by radical truth and radical transparency.



The most meaningful relationships are achieved when you and others can speak openly to each other about everything that's important, learn together, and understand the need to hold each other accountable to be as excellent as you can be.



Everyone makes mistakes.  The main difference is that successful people learn from them and unsuccessful people don't. 



When you know what someone is like, you know what you can expect from them.



Radical truth doesn't require you to be negative all the time.



Remember that a root cause is not an action but a reason. 



Think about both the big picture and the granular details, and understand the connections between them.  Avoid fixating on irrelevant details.  You have to determine what's important and what's unimportant at each level.