Admitted, I am not a big fan of the hedge fund industry and its remuneration. But what I found interesting is the way some of them work. A great article in The New Yorker about Ray Dalio’s Bridgewater Fund makes for a very interesting read – especially the part about the principle-based approach. Smarter thinking…
Some excerpts from the interview:
”Our greatest power is that we know that we don’t know and we are open to being wrong and learning.”
”I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are.”
One rule of radical transparency is that Bridgewater employees refrain from saying behind a person’s back anything that they wouldn’t say to his face.
(On Meditation) “It’s just a mental exercise in which you are clearing your mind,” he said. “Creativity comes from open-mindedness and centeredness—seeing things in a nonemotionally charged way.”
“They (Bridgewater, VL) are consistently innovating—constantly soul-searching and asking, ‘Have we got this right?’”
To guide its investments, Bridgewater has put together hundreds of “decision rules.”
“The duty of a leader, first and foremost, is to be transparent.”
“the intention is to make people better. . . . I have never seen a C.E.O. spend as much time developing his people as Ray.”
Dalio has published his principles on his company’s site, Bridgewater.
In a letter Dalio and his wife described their reasoning for their philanthropy and joining the Gates-Buffett giving pledge. Happiness does not increase after a certain level of wealth with more wealth, but through meaningful relationships and work. And by charitably giving making a positive impact on other people’s lives: