Success strategies from a self-made billionaire part 2
Ray Dalio talks about investing secrets and humility
Achieving the status of billionaire while still having a giving mindset and humility is not easy, but Ray Dalio has managed to do it. In the first part of his interview with Tony, Ray talked about how meditation has helped him for over 40 years, why entering the third stage of his life has made him want to share his investment secrets and how he embraced and implemented an “idea meritocracy” strategy in his business endeavors. If you missed part 1, you can access it here.
In part 2 of their interview, Ray explains behavioral patterns of typical investors, what makes a successful businessman and how setting rules of disagreement is key in any type of professional or personal relationship.
[00:50] Crisis creates breakthroughs
[01:20] How should investors think about dealing with the current market?
[02:15] The behavioral pattern of the typical investor
[03:50] Learn how to find balance in your portfolio
[05:15] Competing in the market is incredibly difficult
[06:10] It’s impossible to time the market
[07:10] Who is buying and who is selling at any moment
[07:40] Ray’s thoughts on Bitcoin
[08:20] The two purposes of currency
[09:40] The technology underlying digital currency
[11:20] Speculation around digital currency
[11:50] Where most of Ray’s money is – a balanced portfolio
[12:20] What do the most successful business titans have in common
[13:00] Visualizing a future and seeing the gap
[13:30] No one stands in their way
[13:50] What do you do with people saying you’re wrong?
[14:20] Mistakes are part of the deal
[14:30] Example: The founder of micro-finance
[15:00] It can be very uncomfortable when going against the grain
[15:20] These people can see the big picture and the details
[15:50] Elon Musk
[16:30] Partner with those who can see what you can’t
[17:30] The best entrepreneurs have high levels of humility
[19:10] The ability to be simultaneously open-minded and assertive
[20:20] The three steps to creating a meritocratic relationship
[21:20] Decision-making is a two-step process
[22:20] Believability-weighted decision-making
[24:00] Mutually agreeing to bring a third-party into the resolution
[24:30] Looking at disagreement with curiosity and respect
[24:50] “Making sure people are great without me”
[26:00] A new phase in his life
[27:40] Do you have your own principles?
[28:00] Write down your principles and clarify them
[29:00] Principles vs. decisions
[30:00] What are the principles that bind us together?
[31:10] Creating principles facilitates decision-making
[31:40] Tony is guided by his principles
Ray Dalio is obviously an expert when it comes to investing. Like Tony, he believes in the power of diversification and seeking balance in your portfolio. However, he cautions against getting caught up in the typical behavioral pattern of selling out of fear when the market drops and trying to time the market.
Traits of successful businessmen
Ray knows a thing or two about what it takes to be successful. When he looks at others who have also achieved great success, he notes some similarities, such as the ability to visualize the future and see a need gap they can fill and having so much conviction in your own beliefs and goals that no one or nothing can get in the way.
The importance of humility
Though Ray is an overwhelming success, he has never lost his humility. He stresses the importance of assembling a team that works by hiring those who have skills you don’t as well as being curious in every conversation to take in as much information from the person you’re talking to as possible. He enjoys being proven wrong because it’s a chance to learn and he always strives to be a balanced combination of open-minded and assertive in his interactions.
The rules of a disagreement
Ray has had a lot of business partners over the years, and in this interview he explains that having rules in place about how a disagreement will be handled is one of the best pieces of advice he could give to anyone in both business and personal relationships. Just like Tony, he believes the basis of any healthy relationship is having respect for each other even when you disagree and handling conflict with the goal of learning from it rather than needing to be right.
Ready to learn about more success strategies from Ray? Listen to Tony and Ray discuss more in this bonus episode of their discussion on the Tony Robbins Podcast.