Principles are ways of successfully dealing with reality to get what you want out of life.
Ray Dalio, one of the world’s most successful investors and entrepreneurs, cites principles as his key to success.
In 1975, Ray Dalio founded Bridgewater Associates, out of his two-bedroom apartment in New York City. Over forty years later, Bridgewater has grown into the largest hedge fund in the world and the fifth most important private company in the United States (according to Fortune magazine), and Dalio himself has been named to TIME’s list of the 100 most influential people in the world. Along the way Dalio discovered unique principles that have led to his and Bridgewater’s unique success. It is these principles, and not anything special about Dalio, that he believes are the reason behind whatever success he has had. He is now at a stage in his life that he wants to pass these principles along to others for them to judge for themselves and to do whatever they want with them.
Life Principle
Don't mistake possibilities for probabilities.
Anything is possible. It’s the probabilities that matter. Everything must be weighed in terms of its likelihood and prioritized. People who can accurately sort probabilities from possibilities are generally strong at “practical thinking”; they’re the opposite of the “philosopher” types who tend to get lost in clouds of possibilities.
RECENT USER EXCHANGES
Shouldn't one consider Impact along with likelihood?
Yea, I agree. Everything is an expected value decision and value can be created by either the results it produces or the learning it produces. Most people make the mistake of thinking that getting to results is most important. However learning is typically most important because getting to the goal requires lots of learning because there isn’t adequate knowing how to achieve the goal. That learning occurs through failures and making the most of them.
Life Principle
- Learn How to Make Decisions Effectively
- Prioritize by weighing the value of additional information against the cost of not deciding.
- Don't mistake possibilities for probabilities.
- Prioritize by weighing the value of additional information against the cost of not deciding.
Any person or organization can adopt Principles to better achieve their goals.
Learn what Principles are and how they are applied at Principles.com
