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Principles
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Principles
by Ray Dalio
What follows are three distinct parts that can be read either independently or as a connected whole. Part
1 is about the purpose and importance of having principles in general, having nothing to do with mine.
Part 2 explains my most fundamental life principles that apply to everything I do. Part 3, explains my
management principles as they are being lived out at Bridgewater. Since my management principles are
simply my most fundamental life principles applied to management, reading Part 2 will help you to better
understand Part 3, but it’s not required—you can go directly to Part 3 to see what my management
principles are and how Bridgewater has been run. One day I’d like to write a Part 4 on my investment
principles. If you are looking to get the most bang for your buck (i.e., understanding for the effort), I
suggest that you read Parts 1 and 2, and the beginning of Part 3 (through the Summary and Table of
Principles) which will give you nearly the whole picture. It’s only about 55 pages of a normal size book.
Above all else, I want you to think for yourself—to decide 1) what you want, 2) what is true and 3) what to
do about it. I want you to do that in a clear-headed thoughtful way, so that you get what you want. I wrote
this book to help you do that. I am going to ask only two things of you— 1) that you be open-minded and
2) that you honestly answer some questions about what yo u want, what is true and what you want to do
about it. If you do t
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