Principles Life and Work

Dallio's Ray Dallio's writing about this double bottom line and triple bottom line where it's not just about your profit, but it's also about some social good.

Dalio wrote this book in 2017 called Principles, which is kind of an ironic title based on what I'm about to tell you.

In 2008 we've anticipated the financial crisis by thinking differently and that got a lot of attention and I was faced with the choice of letting it be misunderstood or I put them out.

They were downloaded three and a half million times.

I just want to be clear. What my aspiration here is to make clear how effective principled level thinking in general is.

Wouldn't you like to know Elon Musk's principles? Wouldn't you like to know Bill Gates' principles? Wouldn't you like to know Einstein's principles or whoever that is? Because they're the recipes for success.

And it's explained in greater depth in the book.

I don't know if you've seen the new book by Ray Dalio.

Yeah. I think it's a hell of a book. Now, he may be an extreme, but we're both asking for truth.

He's a guy who's written a book called Principles, which is hilarious when you're watching that clip.

If you haven't read it, highly recommend that you get it.

He's the number one New York Times bestselling author of one of my favorite books, Principles.

Now I read this book when it first came out and there were so many incredible insights of wisdom in there.

And today I get to sit down with the one and only Ray Dalio.

So today I want to dive into life and work and many different areas that you speak about in your incredible book Principles.

It's a compendium of these principles that I wrote over 25 years on that situation.

If you haven't already, if you have read the book, which I know many of you are very excited we're going to have Ray on the podcast.

Pain plus reflection equals progress.

Pain plus reflection equals progress. If you cross out the word reflection, all you're left with is pain. Pain doesn't equal progress.

If we choose to reflect, we can actually rapidly grow and evolve and help those around us do the same.

Ray Dalio, when he wrote the book Principles, he said every founder, every CEO, everyone who's running a company has a secret algorithm in their head. Not all ideas are equal.

Now I read this book when it first came out and there were so many incredible insights of wisdom in there.

And today I get to sit down with the one and only Ray Dalio.

So today I want to dive into life and work and many different areas that you speak about in your incredible book Principles.

If you haven't already, if you have read the book, which I know many of you are very excited we're going to have Ray on the podcast.

I put the book and also video case studies and everything in a free app. So you don't have to buy a book. You can get the book.

Principles is a great book.

whatever success I've had in life has had to do more with how to deal with what I don't know than anything I know and that's after doing this investing game for over 50 years.

the future is not just another better version of the present it's much different in reality and that's something I believe that I took from principles

some of the principles that I've grown in principles help me a lot like for example it's correct that each of us are vessels for our DNA and our vessels are passing through and I could see in his daughter and I could see us in her and move on and so he's with us in that way and then we are.

I will recommend to people to go check this out especially regarding radical transparency.

You do mention in the book the Ego Barrier that blocks us from learning the blind spots that we need to identify within ourselves and you have a lot of techniques to get down to brass tax with your bridge water team as well.

and you said that the antidote in many ways to those things is that radical open-mindedness believing you may not have the best possible path as you said recognizing that decision-making is a two-step process.

I think it's probably wise of you to have yourselves examine this internally rather than waiting for a judge or even a judge in a jury or a grand jury to examine it for you at some point.

there was a lot more in the book about decision making and critical thinking once again big thank you to read all your his book principles and principles of success will be linked in the show notes

I would say like I said in the book meaningful work and meaningful relationships have for me been the most important things and I do want the security for my family and I want to be able to have freedom and then on the increment when you start to get more money than that then the questions are what do you choose and I choose other things but I'm not working for money

I recommend people definitely check out the app but also don't think oh I got the app so I don't need to read the book obviously a deeper explanation is going to be suitable well but I'm saying the book is in the app oh the whole book is in the app as well yeah I don't know that yeah if you want that and it's on your iPhone attendee but anyway either way you know there are different ways of getting it I just wanted to touch on that because I'm gonna move along past the principles pretty quickly and I don't want people to think left the best part out or that I'm leaving them in the in the dust here

the principles are what would you call these systems rubrics for making decisions based on inputs or is that too basic well that's good I would say recipes in other words we encounter things and everything has happened before many times and so through those encounters there's sort of our recipes for success when you're in this situation what should you do you can go get them for mothers you can come up with them yourself

what I did in my early days of running bridge water is reflect on what I was doing and I also to videos of it and had everybody take videos of themselves doing whatever thing but most importantly I reflected on why I would do what principles I would use for certain circumstances I wrote them down and I shared them with the people I worked with and shared my life with and then I said would you handle it the same way would you use the same principle so we went from individual cases of things happening in decisions to reflecting on what recipes would you use for certain circumstances

I will recommend to people to go check this out especially regarding radical transparency.

You do mention in the book the Ego Barrier that blocks us from learning the blind spots that we need to identify within ourselves.

You've said most people decide too early when they're making a decision and then simply seek to reinforce their existing opinion.

In the book there are five things that you need to do to be successful if you do these five things you will be successful and you don't have to do them alone.

You can practically have anything you want but you can't have everything you want so you have to know what your goals are.

I would say like I said in the book meaningful work and meaningful relationships have for me been the most important things and I do want the security for my family and I want to be able to have freedom and then on the increment when you start to get more money than that then the questions are what do you choose and I choose other things but I'm not working for money

I'm not working for money

the whole book principles has been you've talked about it a lot people should read it will link to it in the show notes along with the changing world order linked in post will be in there as well you can also if you want there's an app called principles in action right now it's on the Apple iOS store for free that has also the book in it and it also shows some of these principles in action so you can get that for free or you could buy the book or do whatever you want I recommend people definitely check out the app but also don't think oh I got the app so I don't need to read the book obviously a deeper explanation is going to be suitable

the principles are what would you call these systems rubrics for making decisions based on inputs or is that too basic

I would say recipes in other words we encounter things and everything has happened before many times and so through those encounters there's sort of our recipes for success when you're in this situation what should you do you can go get them for mothers you can come up with them yourself what I did in my early days of running bridge water is reflect on what I was doing and I also to videos of it and had everybody take videos of themselves doing whatever thing but most importantly I reflected on why I would do what principles I would use for certain circumstances I wrote them down and I shared them with the people I worked with and shared my life with and then I said would you handle it the same way would you use the same principle so we went from individual cases of things happening in decisions to reflecting on what recipes would you use for certain circumstances and so I would say their recipes for different circumstances everybody has principles every successful person if you were to say how does how did Steve Jobs do things he's got the actions he took in certain circumstances or he'd take anybody a Nobel Prize winner something and you want those principles so I wrote down mine I think it's important that people have their own and I think it would be good for people to exchange principles and say so I'm pulling the amount also of other accomplished people and we're going to have on that principles in action we're going to have the possibility that people can search for the most appreciated principles for the circumstances they face going to where they could say what are Bill Gates's principles or ex-YZ principles and then you could do that and it also makes it easy for people in that app to write down their own principles and then have easy access with them so that's what principles are recipe for success of how you'd handle certain circumstances

Whatever success I've had in life has had to do more with how to deal with what I don't know than anything I know and that's after doing this investing game for over 50 years.

...pain plus reflection equals progress...

...it's correct that each of us are vessels for our DNA and our vessels are passing through and I could see in his daughter and I could see us in her and move on and so he's with us in that way...

I will recommend to people to go check this out especially regarding radical transparency.

You do mention in the book the Ego Barrier that blocks us from learning the blind spots that we need to identify within ourselves and you have a lot of techniques to get down to brass tax with your bridge water team as well and you said that the antidote in many ways to those things is that radical open-mindedness believing you may not have the best possible path as you said recognizing that decision-making is a two-step process.

I think that that goes to show that well looking at the character of an organization you've said when mistakes and weaknesses are hidden in an organization poor characters developed but you also have to on the other side of that make sure that's any mistakes weaknesses bad decisions or the right to decide versus the right to know are clearly delineated otherwise you just have a messy soup of this is what's happening and we're still not sure how we got to that particular outcome.

there was a lot more in the book about decision making and critical thinking once again big thank you to read all your his book principles and principles of success will be linked in the show notes please use our website links if you buy the books it does help support the show worksheets for this episode in the show notes transcripts in the show notes there's a video of this interview on our YouTube channel at jordan harbinger calm slash youtube

Ray believes that wealth inequality is going to get worse and is a huge problem just as diseases affect people regardless of nationality there are economic diseases that happen in every country regardless of where or who additionally the future is not just another better version of the present it's a much different reality this tricks investors all the time and being successful in the market is more difficult than getting a gold medal in the Olympics but what's funny about this is no one thinks about trying their hand in the Olympics but everyone thinks they can compete in the market and invest in investing you have to understand the historical context and get smart people around you so you're not making big decisions on your own and that's a big thing over at bridgewater

I would say recipes in other words we encounter things and everything has happened before many times and so through those encounters there's sort of our recipes for success when you're in this situation what should you do you can go get them for mothers you can come up with them yourself what I did in my early days of running bridge water is reflect on what I was doing and I also to videos of it and had everybody take videos of themselves doing whatever thing but most importantly I reflected on why I would do what principles I would use for certain circumstances I wrote them down and I shared them with the people I worked with and shared my life with and then I said would you handle it the same way would you use the same principle so we went from individual cases of things happening in decisions to reflecting on what recipes would you use for certain circumstances

I recommend people definitely check out the app but also don't think oh I got the app so I don't need to read the book obviously a deeper explanation is going to be suitable well but I'm saying the book is in the app oh the whole book is in the app as well yeah I don't know that yeah if you want that and it's on your iPhone attendee but anyway either way you know there are different ways of getting it I just wanted to touch on that because I'm gonna move along past the principles pretty quickly and I don't want people to think left the best part out or that I'm leaving them in the in the dust here

the whole book principles has been you've talked about it a lot people should read it will link to it in the show notes along with the changing world order linked in post will be in there as well you can also if you want there's an app called principles in action right now it's on the Apple iOS store for free that has also the book in it and it also shows some of these principles in action so you can get that for free or you could buy the book or do whatever you want

I would say like I said in the book meaningful work and meaningful relationships have for me been the most important things and I do want the security for my family and I want to be able to have freedom and then on the increment when you start to get more money than that then the questions are what do you choose and I choose other things but I'm not working for money

I think you called that in the book reluctance don't mistake disagreement for conflict and thus avoid disagreement I think a lot of us do this I now lean into conflict perhaps a bit too much if he asks some of those who work with me every day but I certainly know that I used to do this it would be like I should say something but I don't want them to get mad at me so I'll just sweep this problem under the rug for three years or whatever

His book, Principles, really good.

Yeah. I've read it a bunch of times.