Who is Ray Dalio?

Ray Dalio holds approximately 1% of his personal portfolio in Bitcoin, framing it as money that cannot be printed.

“I have about 1% of my portfolio in Bitcoin because there's different kinds of money and the money that you can't print, that's one kind.”

Holding 15 uncorrelated bets reduces portfolio risk by approximately 80% without any reduction in expected return.

“If you can get out to 15, you can get down to about reduce about 80% of your risk without reducing your return.”

Bridgewater's worst annual drawdown over 31 years was roughly 13% in 2020, with only two other down years at approximately 2% each.

“The worst down in a year was 2000 because of the COVID and we didn't know how to deal with the CO. Well, that was down through about 13. The next two times was down like 2%.”

Dalio explains how he built Bridgewater by converting life and investment principles into computer code, creating automated decision-making systems.

“I put those in computer code okay that's how I built Bridgewater I built okay if this happens you do that okay and you put it in computer code and I made then this all decisionmaking systems for markets and almost everything.”

Dalio's bubble gauge places current equities at levels comparable to 2000 and 1929, suggesting the market is more dangerous than mainstream sentiment implies.

“The bubble gauge is saying it's toward where it was both in 2000 and 1929.”

Dalio predicts current equity markets will deliver poor returns over the next 3 to 10 years, counter to bullish consensus.

“It won't be good to for the next I couldn't tell you whether it's going to be 3 years or 10 years, but it won't be a good investment.”

Ray Dalio on talent vs. capital in investing.

“Talent is more important than money. Okay? The money people are trying to find those people, right?”

Ray Dalio on his frugality despite immense wealth.

“I instinctively can't waste. I'm reluctant to fly a private plane.”