Investor and hedge fund manÂagÂer Ray Dalio has a net worth of $18.4 bilÂlion. That alone would perÂsuade a great many of us to lisÂten to any and all advice he has to offer, but unlike many mulÂti-bilÂlionÂaires, he’s also put no small amount of thought into just what advice to give and how to give it. One reaÂson is that the pieces of advice he doles out pubÂlicly began as pieces of advice for himÂself, disÂcovÂered through triÂal and error and refined into a set of prinÂciÂples. These he lays out in his book PrinÂciÂples: Life and Work, the conÂtent of which he has also disÂtilled into the aniÂmatÂed video above, “PrinÂciÂples for SucÂcess by Ray Dalio.”
Dalio breaks down his own jourÂney to sucÂcess as the conÂtinÂued repÂeÂtiÂtion of a five-step process:
- Know your goals and run after them
- Encounter the probÂlems that stand in the way of getÂting to your goals
- DiagÂnose these probÂlems to get at their root causÂes
- Design a plan to elimÂiÂnate the probÂlems
- ExeÂcute those designs
This frameÂwork already sets Dalio apart from othÂer sucÂcessÂful advice-givers, some of whom offer nothÂing more than broad platÂiÂtudes about believÂing in yourÂself and nevÂer givÂing up hope, and othÂers of whom fall back on cynÂiÂcal cracks about doing unto othÂers before they do unto you. Dalio, for his part, endorsÂes a mindÂset he calls “hyperÂreÂalÂism,” the adopÂtion of which demands putting the truth before all else. And the hyperÂreÂalÂist first examÂines the truth about himÂself, assessÂing as objecÂtiveÂly as posÂsiÂble his weakÂnessÂes as well as his strengths and regÂuÂlarÂly drawÂing upon the perÂspecÂtives of those who disÂagree with him.
UnderÂlyÂing Dalio’s ideas about hyperÂreÂalÂism and sucÂcess is a mechÂaÂnisÂtic conÂcepÂtion of humanÂiÂty, the econÂoÂmy, the world, indeed all realÂiÂty: “EveryÂthing is a machine,” as he starkÂly puts it. By this, he doesÂn’t mean we should think of ourÂselves as pre-proÂgrammed robots, but that we can approach all of our choicÂes as puzÂzles to be figÂured out. “Most everyÂthing hapÂpens over and over again in slightÂly difÂferÂent ways,” he says, but most of us, with our viewÂpoints biased toward recent hisÂtoÂry and our “ego and blind spot barÂriÂers” that keep us from seeÂing the full picÂture, misÂtakÂenÂly regard the sitÂuÂaÂtions in which we find ourÂselves as unique, thus makÂing them into more difÂfiÂcult probÂlems than they are.
Of course, even if we embrace hyperÂreÂalÂism and develÂop ever more reliÂable strateÂgies to surÂmount the obstaÂcles that crop up along our choÂsen paths, we’ll fail as often as we sucÂceed. Dalio tells of his own grand humÂbling in the earÂly 1980s when he bet everyÂthing on a depresÂsion that nevÂer came, and explains how the fallÂout taught him that “truth is the essenÂtial founÂdaÂtion for proÂducÂing good outÂcomes.” Even if we have no interÂest in doing what it takes to make $18.4 bilÂlion, we might still bear in mind the two prinÂciÂple-driÂven equaÂtions that Dalio proÂvides — “Dreams + realÂiÂty + deterÂmiÂnaÂtion = a sucÂcessÂful life” and “Pain + reflecÂtion = progress” — along with his conÂvicÂtion that sucÂcess requires not just knowÂing the truth of world, but the truth of ourÂselves as well.
RelatÂed ConÂtent:
How The EcoÂnomÂic Machine Works: A 30-Minute AniÂmatÂed Primer by Hedge Fund Investor Ray Dalio
Steve Jobs Shares a Secret for SucÂcess: Don’t Be Afraid to Ask for Help
Oprah Winfrey’s HarÂvard ComÂmenceÂment Speech: FailÂure is Just Part of MovÂing Through Life
Alain de BotÂton ProÂposÂes a Kinder, GenÂtler PhiÂlosÂoÂphy of SucÂcess
Based in Seoul, ColÂin MarÂshall writes and broadÂcasts on cities, lanÂguage, and culÂture. His projects include the book The StateÂless City: a Walk through 21st-CenÂtuÂry Los AngeÂles and the video series The City in CinÂeÂma. FolÂlow him on TwitÂter at @colinmarshall, on FaceÂbook, or on InstaÂgram.
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