Ray Dalio, the founder of Bridgewater Associates – the biggest hedge fund in the world, appeared on the Charlie Rose Show this week. [via DealBook]
Dalio, who is usually known for being media shy, spoke candidly about his beliefs and how he runs his company, and also gave his take on recent events such as the economic downturn and Occupy Wall Street.
Here were some of his most interesting thoughts we picked out.
– On the global economy:
“I think you can break the world into two parts. There’s the debtor-developed world which has reached its debt limits and is going through a deleveraging. And there’s the creditor-emerging world, the countries like china, which are competitive, and are beginning to have those big surpluses. And they’re lending us money. And so we have this big imbalance in the world. You can break the world into two parts: debtor-developed and creditor-emerging, and they have the big imbalance which is a debt problem. That’s the nature of the beast.”
– On his firm’s alleged “cult”:
“I think a cult – when I think of a cult – it means ‘Believe this.’ And we’re the opposite. Somebody’s telling you ‘Believe this and follow it’. It’s exactly the opposite of that. The number one principle is ‘Don’t believe anything, think for yourself. And now let’s go throw a process of what is true. Together.’ It’s a belief system.”
– On the Buffett Rule:
“I think there’s not enough discussion on how do we get people to be self-sustaining…. On an ethical standard, it means that what I’m giving is equivalent to what I’m taking…. I’m going to give a lot more than half of my money. I’d be happy to give that to the government if the government put together programs that were like I’m giving away to charity to certain programs, in which I believe the money is sufficiently used to help others.”
– On Occupy Wall Street”
“I think the number one problem is that we’re not having a quality dialogue…. So for example on that particular case, i don’t’ know that I adequately know all the point of views that are behind it. I certainly understand the frustration, I understand the dilemma, I understand the discontent…. So I think we need to work ourselves through that, I would say the question really is also a question that should be designated for our government.”
You can watch the whole show here.