Principles by Ray Dalio
Principles by Dalio, Ray
Think for yourself to decide 1) what you want, 2) what is true, and 3) what you should do to achieve #1 in light of #2 . .
Don’t let fears of what others think of you stand in your way.
For as long as I have been practicing this, I still know I can’t see myself objectively, which is why I continue to rely so much on the input of others.
Ultimately, it comes down to the following five decisions: 1. Don’t confuse what you wish were true with what is really true. 2. Don’t worry about looking good—worry instead about achieving your goals. 3. Don’t overweight first-order consequences relative to second- and third-order ones. 4. Don’t let pain stand in the way of progress. 5. Don’t blame bad outcomes on anyone but yourself.
14 I’m sure Transcendental Meditation, which I have been practicing regularly for nearly half a century, helped provide me with the equanimity I needed to approach my challenges this way.
15 You shouldn’t assume that you are always the best person to make decisions for yourself because often you aren’t.
If you can do those five things well, you will almost certainly be successful. Here they are in a nutshell: 1. Have clear goals. 2. Identify and don’t tolerate the problems that stand in the way of your achieving those goals. 3. Accurately diagnose the problems to get at their root causes. 4. Design plans that will get you around them. 5. Do what’s necessary to push these designs through to results.
If you want to reach your goals, you must be calm and analytical
More than anything else, what differentiates people who live up to their potential from those who don’t is their willingness to look at themselves and others objectively and understand the root causes standing in their way.
Practice higher-level thinking by looking down on your machine and thinking about how it can be changed to produce better outcomes.
It’s important to remember the connections between your tasks and the goals that they are meant to achieve. When you feel yourself losing sight of that, stop and ask yourself “why?” Lose sight of the why and you will surely lose sight of your goals.
Understand your ego barrier
Understand your blind spot barrier
For example, some people naturally see big pictures and miss small details while others naturally see details and miss big pictures; some people are linear thinkers while others think laterally, and so on. Naturally,
Radical open-mindedness allows you to escape from the control of your lower-level you and ensures your upper-level you sees and considers all the good choices and makes the best possible decisions.
behind alternative points of view. To
Triangulate your view with believable people who are willing to disagree. By questioning experts individually and encouraging them to have thoughtful disagreement with each other that I can listen to and ask questions about, I both raise my probability of being right and become much better educated. """Idea for a podcast"""
Plan for the worst-case scenario to make it as good as possible.
you can significantly raise your probabilities of making the right decisions by open-mindedly triangulating with believable people.
Understand how you can become radically open-minded
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New is overvalued relative to great. For example, when choosing which movie to watch or what book to read, are you drawn to proven classics or the newest big thing? In my opinion, it is smarter to choose the great over the new.
Your evolutionary process can be described as a 5-Step Process for getting what you want. It consists of setting goals, identifying and not tolerating problems, diagnosing problems, coming up with designs to get around them, and then doing the tasks required. The important thing to remember is that no one can do all the steps well, but that it’s possible to rely on others to help. Different people with different abilities working well together create the most powerful machines to produce achievements
ISSUE LOG The Issue Log is our primary tool for recording our mistakes and learning from them.