What if you knew how the largest Hedge Fund manager in the World thinks and what they were really like starting from zero? Ray Dalio makes the business case for his '3 secrets' building Bridgewater Associate to the largest hedge fund in the world with a net worth of $18.7Bn. by Forbes in 2019.
And the difference between education how the Chinese "top down" approach to raising a child and the American "bottoms up" way of raising a child.
Now let get into a controversial topic, diversification when it comes to investing, is Ray Dalio more diversified, when we look at how Ray Dalio set up his portfolio , its not as niche as other players. In 1986, the Chinese has increased their income by 26 times. They gone from 2% GDP to 22% GDP. Poverty rate in China when from 88% to 1% in 2019 and increased life expectancy by 10 years.
Reduce risk without reducing reward. There is a common misconception in investing that, if you are reducing the risk , you are also potentially reducing the returns . And the secret is , this is the most high paying skillset to have on Wall Street.
Say if we use Dalios formula , Bridgewater has like 1,500 employees . Say if the average listener to this podcast has a formula that Dalio has, what edge do Bridgewater has that somebody else has whether they are an individual investor or a hedge fund manager, is it discipline? Is It patience?
Ray Dalio's ''3 secrets'' of Building the Largest Hedge Fund in the World- Bridgewater Associates