Ray Dalio's Investing Thoughts: 3 Things He Always Repeats | Exploring Markets

Ray Dalio's Investing Thoughts: 3 Things He Always Repeats

Every great investor has certain philosophies that guide them. Warren Buffett and Charlie Munger, for example, adhere to the Circle of Competence in almost every aspect of their life.

Ray Dalio is another great investor who has a similar set of underlying beliefs. Especially when it comes to financial markets. In his own words, he reminds himself of these 3 things before every investment:
1.) It isn't easy for me to be confident that my opinions are right. In the markets, you can do a huge amount of work and still be wrong.

2.) Bad opinions can be very costly. Most people come up with opinions and there’s no cost to them. Not so in the market. This is why I have learned to be cautious. No matter how hard I work, I really can’t be sure.

3.) The consensus is often wrong, so I have to be an independent thinker. To make any money, you have to be right when they’re wrong.
Read all of Ray Dalio's philosophies and thoughts right here