Ray Dalio Succinctly Explained His Investment Thesis—And It's Deep

ray dalio

Photo: YouTube screengrab

Every investor has a philosophy — a lens through which they see the market and the world.And just as no two investors are created equal, no two investment philosophies are created equal either. 

Ultimately, the proof is in the returns, and as one of the most successful hedge fund managers in the world, Ray Dalio has proven that his philosophy can stand up to even the most volatile market conditions.

This morning on Squawk Box we got a quick bit of serious wisdom as Dalio laid down his investment thesis pretty succinctly: 

“I don’t get caught up in the moment. I think so many people are reactive… they see things in a short term way they’re right up against it. If it didn’t happen in your life before, then you’re not paying attention you don’t think it’s possible. But almost all important events never happen in your life before…Monetary system break down… the oil shock… didn’t happen before… when I’m looking at it I think these things that kind of keep happening over and over again…and then I have this template…and these rules if this happens then that’s going to happen because it has all happened before.”

In case you didn’t notice from what he said, Dalio is a little obsessed with history. He has said that he even goes through old newspapers to form his trading ideas — which just goes to show that you can learn about the market in places you would never expect.

Check out more about Dalio’s management principles here or check out the liveblog from his interview on Squawk Box here.

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