Raymond Dalio is an American stock investor, a hedge fund manager, and a philanthropist. He was born on 1st August 1949, and he is the founder of Bridgewater Associates investment firm. He started the company in 1975 from his two-bedroom apartment in New York City. Since then, the firm has grown to be the world’s largest hedge fund.
Raymond Dalio’s Growth to a Successful Stock Investor
Looking at the big company, one may think that Raymond has always been a successful investor throughout his life. However, Bridgewater Associates went broke eight years after it was established, laid off workers, and almost closed down. This was after Raymond Dalio confidently and wrongly predicted that the U.S economy was headed towards a bearish direction and he traded accordingly. Unfortunately, the markets were bullish and with the least inflation in his trading history. His wrong prediction led to massive losses for the investment firm, and he relates this to his arrogance, over-confidence, and failure to do enough historical research. However, the investor states that the blow was necessary because it taught him how to be the stock investor he is today. According to Raymond, failing well is good as it provides lessons that make one a better investor.
Bridgewater Associates’ Way To Success
After the failure, Raymond Dalio learned lessons that changed his way of thinking. His principles and beliefs have significantly contributed to the successful performance of Bridgewater Associates. Firm principles guide his approaches to work, life, and investing. Raymond Dalio is widely known for his firm belief in radical truth and radical transparency. He believes that the idea of radical transparency is what helps his company beat other big firms in the world. Everyone in his company is encouraged to express themselves, and this is what brings the best ideas to the top.
Raymond’s Strategies for Successful Stock Investments
According to Bridgewater Associates website, the company currently manages about $160 billion. Raymond believes in investing in strategically diversified portfolios which are balanced and well structured to thrive in different stock market environments. Secondly, Raymond believes that investing in stock markets you understand reduces the amount of risk exposure.
Past failures and mistakes are learning opportunities for investors. Struggling with his mistakes and analyzing his failures made Raymond the good investor he is. Raymond believes that an investor should not shy away from the mistakes they make. Instead, they should learn from them and make sure they do not repeat them in future.
Raymond is not a reactive decision maker as most stock investors are. He states that when a good company’s stock is under-priced, it does not mean it is a bad investment. An investor only needs to be patient, wait for the price to rise and earn returns. Raymond avoids being overconfident, and when he is not sure which side stocks will move, he places stocks in a way that whichever way they move, they will not affect the company negatively.
Raymond Dalio, Bridgewater Associates, is a successful investor and with the responsibility to manage a huge portfolio, he is careful to ensure he does not make mistakes that would cost his company. Therefore, there is a lot everyone can learn from him to become a better investor.
You can track the Buy/Sell action of Bridgewater Associates on the US stock market at https://spiking.com/v/bridgewaterassociateslp.
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