5 key principles of Rey Dalio are the reason for his success

Ray Dalio has been called "Wall Street's Oddest Duck" for his highly unusual approach to management, but no one has ever questioned his brilliance.

He turned his company Bridgewater Associates into the world's largest hedge fund, with $160 billion in assets, and amassed a personal fortune estimated at around $15.2 billion.

In the manual of 123 pages for successful leadership, written personally by the hedge fund legend, he outlines valuable principles that have made him into one of the most domineering personalities in finance.

1. Working for himself and not just doing what others wanted him to do.
Dalo said that he did not like school, mainly because he could not find a practical application of the things that they made him remember. So he concludes that to be successful, you have to be motivated and to be motivated yo have to work for yourself. From an early age he began delivering newspapers and mowing lawns and at 12 years of age he made his first investment in the stock market.

2. Coming up with the best independent opinions he could to advance his goals
When he started investing at an early age, he began to cut news and articles from the Fortune magazine , gathering as much as he could and tried alone to predict what will happen in the markets. Now he is trying to apply the same principle to its employees at Bridgewater Associates. Although many people identify its leadership as cultish and weird, many employees fit perfectly into the unique culture of the company and it works not only for their benefit but obviously also in favor of the company.

3. Surrounding himself with smart people and learning from the way they thought
As a young investor, he began his habit of asking the opinion of anyone he considered had an idea in ​​Finance - his stockbroker, the people he caddied for, and even his barber.

Dalio says has never been concerned about others conclusions — only for the reasoning that led to these conclusions.This way he improved his chances of being right, and also learned a lot from a lot of great people.

4. Being wary of overconfidence and limiting exposure to high-risk situations
The legendary hedge fund has grown Bridgewater so tremendously because he lowers his risk as much as possible before making a decision.
"I don't make an inadvertent bet. I try to limit my bets to the limited number of things I am confident in," he shares.

5. Reflecting on how he made decisions and figuring out why they led to either success or failure
I learned that each mistake was probably a reflection of something that I was (or others were) doing wrong, so if I could figure out what that was, I could learn how to be more effective. I learned that wrestling with my problems, mistakes, and weaknesses was the training that strengthened me.

Source: CNBC

Photo: Ray Dalio Twitter