Hedge fund god Ray Dalio — who is considered the world’s most successful hedge fund manager with his Bridgewater Pure Alpha fund earning investors $13.8 billion in 2011 — tends to make his fair share of bad calls.
How he handles those mistakes is why he’s so successful.
From The Economist: (emphasis added)
Mr Dalio admits to being wrong roughly a third of the time; indeed, he attributes a big part of his success to managing the risk of bad calls. And the years ahead are likely to provide a serious test of whether the economic machine is as simple as he says. For now, he is in a more optimistic mood thanks to the European Central Bank’s recent moves, in effect, to print money. Although he still expects debt restructuring in Spain, Portugal, Italy and Ireland, on top of that in Greece, he says that the “risk of chaos has been reduced and we are now calming ourselves down.”
Hopefully this falls into the 2/3rd right box.