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
Recognize that decision making is a two-step process: First take in all the relevant information, then decide.
Most people are reluctant to take in information that is inconsistent with what they have already concluded. When I ask why, a common answer is: "I want to make up my own mind." These people seem to think that considering opposing views will somehow threaten their ability to decide what they want to do. Nothing could be further from the truth. Taking in others' perspectives in order to consider them in no way reduces your freedom to think independently and make your own decisions. It will just broaden your perspective as you make them.
RECENT USER EXCHANGES
One issue is relying on intuition instead of clear, sequential thinking. Intuition may be optimizing for variables you’re not fully aware of, and shifting to conscious reasoning—especially if you’re not used to it—can feel confusing at first. Setting the groundwork for what problem you’re solving and how you define success can help. It keeps the focus on a shared, conscious framework instead of each person’s intuitive sense of “success,” which may not align.
Conscious or subconscious (or intuitive) doesn’t have much to do with it. While I think they’re both useful and that it’s best if each is used to check the other out, what I’m talking about is the importance of open-mindedly taking in information, including different perspectives than one’s own, and then deciding what’s best as contrasted from blocking out perspectives that are contradictory to those one has (which is what most people do). I suggest you read my principles about the benefits of radical open-mindedness to be open-minded and assertive at the same time.
Principles is one of the top 5 books I've ever read as it disrupted my mindset.
Please pass it along to help others. Or pass along my 30 minute Principles for Success video which is free on YouTube. Speaking about free principles from me, if you want to know how debt crises work and the principles I used to navigate the 2008 crisis one well, you can get a free copy of my template/book here (link)
How do you think about the balance of taking in information and decision speed?
You have to weigh the incremental gaining of information to determine the timing of when to make a decision – you can read more about this in Principles under principles 5.7 which starts on page 254.
Seeking out engagement with other points of view can shed new light and/or strengthen our own arguments.
Or it can weaken our own arguments, too, which is just as good as whatever gets us closest to the truth, including changing our minds.
I appreciate your daily wisdom and your higher level of thinking
If it’s helpful to you, please share it with others to help them.
how does time factor into this principle?
Not much. It’s like thinking (with others’ help) before acting. The big problems this is meant to address is people starting with conclusions and blocking taking in other perspectives because they feel that it’s threatening to their position. I’m saying that taking in and considering other points of view doesn’t stand in the way of you deciding what you want to do — that it’s best to take in and then decide.
Life Principle
- Be Radically Open-Minded
- Practice radical open-mindedness.
- Recognize that decision making is a two-step process: First take in all the relevant information, then decide.
- Practice radical open-mindedness.
Any person or organization can adopt Principles to better achieve their goals.
Learn what Principles are and how they are applied at Principles.com
