Compiled & Edited by: TechFlow

"Making money was secondary; the most important thing was being as great as you can be," Ray Dalio says.

Guest: Ray Dalio, Founder of Bridgewater Associates

Host: Jim Haskel, Head of Client Service

Podcast Source: Bridgewater Associates

Original Title: Ray Dalio Reflects on Bridgewater’s 50-Year Anniversary

Air Date: August 1, 2025

Just weeks after formally stepping down from Bridgewater Associates, Ray Dalio returned to the public sphere in late July 2025 during the firm's 50th anniversary celebration with a reflective conversation. This marked his graceful transition from a leader to a legacy-builder.

The legendary investor revisited Bridgewater's journey from its humble beginnings in a basement in 1975 to becoming the world's largest hedge fund over the past half-century. He emphasized how his philosophy—"Pain plus reflection equals progress"—shaped the firm's diversified investment strategies and unique culture.

Although Dalio has sold his remaining shares and stepped down from the board, he continues to mentor the next generation. He shared insights into early setbacks, such as lessons from the 1982 debt crisis, and pivotal moments like foreseeing the 2008 financial crisis. His reflections serve as a reminder to value meaningful relationships and humility in navigating uncertainty.

This conversation is not just a vivid annotation of Bridgewater's history but also Dalio's farewell gift to the future of investing.

Key Points Summary

In this podcast episode, Bridgewater co-founder Ray Dalio joins Jim Haskel, Head of Client Service, to reflect on the firm's past, present, and future. The discussion was part of Bridgewater's 50th anniversary celebration held at its new office in New York.

Over the past five decades, while much has changed, Bridgewater has remained steadfast in its core values: bringing together people united by a common pursuit of meaningful work and deep relationships; a team dedicated to deeply understanding the world and transforming that understanding into unique insights that create real value and impact for clients.

Highlights

• Pain plus reflection equals progress.

• Don’t wait for problems to arise before taking action.

• Avoid making large-scale moves when uncertain.

• Making money is secondary; the most important thing is being as great as you can be.

• When discussing performance and investment decisions, it’s crucial to prioritize meaningful aspects, especially relationships, which require thoughtful choices.

• The five-step cycle: Progress is achieved, but problems and mistakes arise. The key is to reflect and diagnose these issues, identify root causes, and make changes to reach new heights.

• Everyone has the opportunity to succeed if they can recognize their weaknesses and understand how reality works.

• If you’re worried, you don’t need to worry; if you’re not worried, you need to worry. Because if you’re worried, you’ll focus on your concerns and address them.

• Decision-making rules need to be systematically tested and back-tested for effectiveness. It’s essential to have clarity about what these rules are and evaluate their performance over time.

• Bridgewater’s core principles revolve around idea meritocracy, meaningful work, and relationships, achieved through radical transparency and radical truthfulness.

• Success hinges on finding exceptional talent—not only individuals who excel at their tasks but also those who amplify your leverage and outperform you in certain areas.

• Transparency helps maintain alignment and drives everyone to give their best.

• “I’ve learned humility from my experiences and the fear of making mistakes.”

• “First, I learned humility, began questioning my judgment, and recognized the possibility of errors. Second, I realized the power of diversified investments—investing in 15 uncorrelated streams of returns can significantly reduce risk without compromising returns. Lastly, I understood the importance of creating an environment centered around principles.”

Ray Dalio's Professional Journey

Jim Haskel:

Looking back 50 years ago, we were also in New York City, albeit at a different location. You’ve mentioned some key moments earlier. Now, reflecting on them, how do you feel about where we are today and the efforts you’ve put into getting here?

Ray Dalio:

These 50 years have been an incredibly meaningful life journey. When I started, my pursuit was meaningful work and meaningful relationships. I never anticipated that this journey would be so rewarding, nor did I expect the challenges I’d face.

Reflecting on these 50 years, I feel Bridgewater has been like my extended family. The transition process feels like watching your children grow up and thrive, which brings me immense satisfaction.

Jim Haskel:

Fifty years ago, you had just graduated from Harvard Business School. At the time, the oil market was highly volatile, and you chose to enter the commodities brokerage industry—a rather unique decision at the time.

You’ve mentioned how this decision brought you opportunities that might have been difficult to access at a young age. Could you elaborate on the sense of responsibility behind this choice?

Ray Dalio:

I started investing in markets at a young age and later entered the commodity futures market because of its low margin requirements. I believed that if my judgment was correct, I could earn more with relatively low margins.

When I graduated from Harvard Business School in 1973, I was hired as a commodities director by a brokerage firm. In hindsight, this might not have been the wisest choice, but they hired me anyway. However, as the stock market declined, the firm nearly went bankrupt, while the commodities and futures markets were booming. Eventually, I was laid off in 1975.

Yes, back then, I was living in a two-bedroom apartment. My roommate moved out of one of the rooms, and I stayed on. I had a friend who played football and acted as my assistant, helping me with various tasks. There was also a woman who assisted in certain areas.

Later, I needed more space, so I moved to the basement of the brownstone building I lived in. It was a literal boiler room, complete with a boiler. We worked in that basement—that’s where Bridgewater began.

1975–1985: Bridgewater's Founding and Early Exploration

Jim Haskel:

I’d venture to say that most people might not know that Bridgewater didn’t manage any client funds during its first decade, from 1975 to 1985. What were we doing during that time?

Ray Dalio:

During that period, our primary work was providing advice to companies on hedging and helping them manage risk exposures. That’s when Bob joined the team.

At the time, global markets were highly volatile, and many companies faced various risk exposures, requiring professional guidance to navigate these challenges.

Since I had previously managed institutional hedging operations, these companies sought our services in this area. So, I traded with my own account while providing advice to them.

Back then, we communicated with clients via telegram. Even the head of the World Bank received our recommendations. Eventually, the World Bank entrusted us with our first $5 million account, marking the starting point of Bridgewater.

Later, Bob joined in 1986, and we became one of the world’s leading bond management firms. (Bob Prince is Bridgewater’s Co-Chief Investment Officer and a member of the board of directors.)

Jim Haskel:

That was a significant turning point, but I’d like to discuss the earlier stages first. You’ve mentioned that your client service model was quite unique—you would put yourself in the clients’ shoes to understand their needs, limitations, and opportunities, even thinking about how you would respond if you were them.

This approach was uncommon in the asset management industry at the time, wasn’t it?

Ray Dalio:

This approach was essentially an extension of interpersonal relationships. We constantly thought about how we would act if we were the clients. This mindset profoundly influenced our work, and you’re absolutely right.

In our relationships with clients, we focused on daily observations. For instance, clients needed our advice almost daily, wanting to understand the latest market trends.

Back then, I worked in the basement, communicating with clients via telegram. I would dictate the telegram content, then have assistants type and send it out.

Through this method, we established close connections with clients, understood their needs, and, to some extent, managed their investment accounts. This work brought me great satisfaction, and it still does when I look back.

However, it was evident that this approach couldn’t be sustained long-term, as I couldn’t personally handle everything. So, we introduced the concept of client advisors to help clients better manage their assets.

Jim Haskel:

Before Bridgewater transitioned into an asset management company, let’s talk about a period you often mention.

Between 1979 and 1982, you gained some recognition for predicting that Paul Volcker’s interest rate hikes might lead to an economic downturn. However, it turned out you were wrong. Could you talk about that period and what you learned from it?

Ray Dalio:

In 1979 and 1980, I calculated that U.S. banks were lending more to nations than they could repay, along with factors like interest rates. I realized we were heading towards debt defaults.

In August 1982, Mexico defaulted on its debt. Over the next decade, many other countries followed suit. At the time, I thought we were going to experience a debt crisis, but I was completely wrong.

In August 1982, Mexico defaulted on its debt. While my judgment about debt was correct, I was wrong about its market impact. I thought the market would decline, but it surged instead.

Consequently, I lost money for myself and my clients. I had to lay off staff, leaving only myself. At that point, I pondered, “What should I do? Should I put on a tie and take the train into the city, or should I do something else?” That was one of the most important learning experiences of my life. It taught me the principle of “Pain plus reflection equals progress.”

I learned several lessons that transformed the future. First, I learned humility, began questioning my judgment, and recognized the possibility of errors. Second, I realized the power of diversified investments—investing in 15 uncorrelated streams of returns can significantly reduce risk without compromising returns. Lastly, I understood the importance of creating an environment centered around principles.

These lessons became the foundation of Bridgewater. From that low point, we rebuilt the company’s direction. Despite some ups and downs afterward, Bridgewater’s overall performance remained very stable. These experiences deeply influenced our portfolio design and the company’s development model.

Jim Haskel:

The cycle diagram you mentioned in your book is a reflection of this philosophy, isn’t it?

Ray Dalio:

Absolutely. I believe evolution applies not only to companies but also to personal growth. It’s a five-step cycle: You make progress, encounter problems and mistakes, reflect and diagnose these issues, identify root causes, and make changes to reach new heights.

This cycle is a continuous process. For instance, by 1994, we had already developed a methodology for learning from mistakes. I even began appreciating mistakes because they are the best learning opportunities.

Jim Haskel: While people have heard these stories, they might not fully realize how the concept of “15 uncorrelated streams of returns” from the 1982 experience profoundly impacted clients.

Meanwhile, the idea of “dumb shit” became an essential foundation in Bridgewater’s internal training to help employees maintain humility. Do you think these great insights must come through experiencing setbacks?

Ray Dalio: I believe so, although there are other factors as well. Experiencing setbacks is indeed a key component. Everyone has the opportunity to succeed if they can recognize their weaknesses and understand how reality works. When you start appreciating the diversity of team members and can assemble a high-standard team to collaborate, you can create results like Bridgewater’s.

1985–1995: Transformation and the Formation of Investment Philosophy

Jim Haskel: Let’s go back to 1985. At that time, did you already know you wanted to enter the investment management industry? Or was it only after the World Bank entrusted you with funds that you realized you were an investment manager?

Ray Dalio: Actually, I’ve been fascinated by the investment markets since I was 12 years old, and I performed well in them. I always knew I wanted to work in this field. When I collaborated with the World Bank, this idea became even clearer. Later, I took advice from others and embarked on the journey of asset management.

Jim Haskel: Bridgewater's first major breakthrough in fund management occurred in 1987, the year of a severe stock market crash. You successfully seized that opportunity. Could you share your experience during that event?

Ray Dalio: I remember it very clearly. At the time, the market exhibited obvious bubbles and signs of vulnerability. I recall the morning of the crash; there was a storm in London, and various indicators suggested the market would experience drastic fluctuations. We decided to short the market, and it turned out to be the right decision.

However, the following year, the market didn’t show the expected volatility, which made me realize that we needed to test decision-making rules systematically and validate their effectiveness through backtesting. In other words, we needed to be very clear about what the decision-making rules were and evaluate their performance over time. This was immensely helpful.

Jim Haskel: The next significant event occurred in 1990 and 1991, when you introduced the concept of “Alpha and Beta Separation,” which profoundly influenced investment strategies and Bridgewater’s business strategy. Could you explain the origin and significance of this concept?

Ray Dalio: At the time, investment managers typically operated within the boundaries of stock or bond mandates and tried to add value within those confines. Traditional investment benchmarks were often equities, and people usually optimized stock performance by timing investments.

However, Alpha refers to returns that exceed the benchmark, and it can come from areas beyond just the stock market. I realized that Alpha could be sourced from different domains and “transplanted” onto benchmarks to design more efficient portfolios. This approach gave us a significant competitive advantage because we could integrate Alpha from multiple areas to create a more diversified portfolio, achieving superior excess returns.

We advised clients that if they allowed us to construct portfolios this way, they could retain the S&P 500 index or other benchmarks while also enjoying additional Alpha returns. Specifically, we would replicate or hold the client’s chosen benchmark and then overlay diversified Alpha strategies on top of it through operations separated from the Alpha.

This innovative method largely benefited from my deep understanding of futures and derivatives, which made me realize that benchmarks and Alpha could be entirely separated. This separation in design provided us with a tremendous competitive edge.

Jim Haskel: This means that while we initially focused on pure Alpha investments, by 1991, we had already built a comprehensive diversified Alpha portfolio. However, we could tailor it to clients’ needs by selecting specific parts.

For example, if a client wanted us to focus on currency overlay, we could start with currency investments and gradually expand the application of Alpha through our client service model.

Ray Dalio: Exactly. Clients could choose their Beta benchmarks, and then we would design Alpha strategies for them. Subsequently, we would combine the two to construct a more optimized portfolio. This approach provided us with significant competitive advantages.

Jim Haskel: As a result, we could enter currency overlay businesses, global bond markets, and even emerging market debt businesses. In fact, we could apply our Alpha strategies in any domain. To this day, I haven’t seen other companies achieve this, making us stand out significantly

Jim Haskel: Speaking of team building, Bob joined the company in 1986, even before these businesses were launched. Later, Giselle Wagner and Dan Bernstein also joined Bridgewater. How did you attract such outstanding talents to Bridgewater? After all, at the time, Bridgewater didn’t have the influence of a well-known brand.

Ray Dalio: Each person has their own story. Bob was working at First Oklahoma Bank, which was a very interesting experience. He wrote me a letter; at the time, I had a subscription newsletter that cost $290. Bob subscribed to this newsletter and later paid $18,000 for my consulting services. He was only 27 years old at the time but was already an exceptional talent.

We started discussing the markets and gradually deepened our exchanges, and things developed from there. At the time, we were pondering: What are your life goals? You could choose to work at an established bank like First Oklahoma Bank or join us to pursue entrepreneurial spirit. We both loved the markets, so he decided to join Bridgewater.

I want to first explain why we were able to achieve such success. These are Bridgewater’s core principles: idea meritocracy, meaningful work, and meaningful relationships achieved through radical transparency and radical truthfulness. This culture is like an intellectual “SEAL Team,” where we hold each other to high standards, pursue excellence, and maintain rigorous discipline.

Through these asset management businesses, our advantages were significant, while our risks were relatively low. Additionally, our performance was uncorrelated with other managers, and we always thought from the client’s perspective.

For instance, today, clients read our Daily Observations report, and we communicate with them in a high-quality manner. This successful model is determined by multiple factors, and I believe it will continue to drive Bridgewater’s future development.

1995–2005: Rapid Growth and Internal Debates

Jim Haskel: In 1996, Greg officially joined Bridgewater, but before that, in 1995, he was an intern. At the time, Esquire magazine contacted you, saying, “Ray, we’d love to interview you in Wilton.” You readily agreed.

However, during the interview arrangements, you were too busy with other matters to participate, so you decided to let the intern Greg Jensen take your place. As a result, the cover story of Esquire magazine in 1995 featured our intern. What was that experience like for you?

Ray Dalio: Greg was an intern at the time, but he was very smart and could grasp things well. I don’t remember how many experienced people were in the company at the time. The interview was excellent, and he shared a lot of insights.

Jim Haskel: There’s another story that dates back to the 1980s. At the time, you wrote the Bridgewater Daily Observations every day. But once, you had to go on a business trip, so you contacted Bob and said, “Bob, I have to travel and won’t be able to write the Daily Observations.” Bob had just joined Bridgewater, and you told him, “Then you’ll be responsible for writing the Daily Observations.” Bob was very nervous and said, “I usually read the Daily Observations, not write them.” But he ultimately decided to try writing them. Later, you evaluated the quality of his articles, and they turned out to be excellent.

From then on, you told him, “Bob, from now on, you’ll be responsible for writing the Daily Observations.” This task accompanied him for the next 30 years, didn’t it?

Ray Dalio: The key to success is finding outstanding talents who can not only excel at their tasks but also amplify your leverage and outperform you in certain areas.

Jim Haskel: After this period, Bridgewater experienced a major internal debate about the company’s future development. As I mentioned, the 1990s saw incredible growth and success for Bridgewater, despite a painful drawdown between 1999 and 2001. Overall, this decade truly laid the foundation for Bridgewater.

The debate was about whether Bridgewater should maintain its current size and continue as a boutique firm or go all-in to develop Bridgewater into an institutionalized large-scale company. So, who stood on which side?

Ray Dalio: Our former CFO supported the boutique firm side, while I advocated for going all-in.

The debate primarily revolved around culture and quality. The key question was: Can we maintain quality when scaling up from the current level? I believed quality was paramount. When we examined all the needs, such as back-office requirements, legal needs, compliance needs, and financial needs, we found that these demands could be better met with greater resources. So, we chose to go all-in. I think this was also a challenge: how to achieve this goal.

This was closely tied to culture, which I linked to “radical transparency.” First, we started with investment principles that could be backtested. Then, we documented decision-making criteria during every decision and made them visible to everyone. We showed everything, including our mistakes.

This transparency helped us stay aligned and pushed us to go all-in. A shared sense of mission is an extremely important force—you either have it or you don’t. Ultimately, this approach was very successful.

Jim Haskel: During Bridgewater’s transition from a boutique firm to an institutionalized company, which aspects were more challenging than expected?

Ray Dalio: The most difficult part was the technology aspect. We faced many challenges. Initially, my view of technology was to build systems quickly, thinking they could adapt to changing needs. But this approach led to technological chaos because we lacked proper documentation support. As personnel and technology changed, we realized we were stuck in a technological dilemma. This was our biggest difficulty.

Other aspects went relatively smoothly, such as solving problems by introducing outstanding talents. This was also the process of forming the client advisory team. You might remember that when I or others couldn’t personally participate, we conducted simulations. I would play the role of the client, and you would play the role of the client advisor, and I would rigorously question you.

Jim Haskel: At the time, I was a strategist, and you were “testing” my capabilities. We also had a strategy team, and client advisors underwent similar training.

Ray Dalio: The strategist’s role was to replicate my role or Bob’s, Greg’s, and others. Through this approach, we achieved growth adjustments. In other words, I couldn’t personally handle everything, but through outstanding talents, we achieved leverage and found solutions to problems.

2005–2015: Responding to the Global Financial Crisis and Consolidating Position

Jim Haskel: Let’s fast-forward to another pivotal moment, which was a significant turning point for Bridgewater. Around 2006, the mortgage market began to show warning signs of overheating, with an increasing number of speculative housing developments emerging. These signs were reflected in the Daily Observations reports.

If you look back at those reports, you’ll see that research began pointing out the dangers and bubbles in the market.

Ray Dalio: You couldn’t understand the nature of these risks without studying the Great Depression. For example, they could mitigate risks by lowering interest rates and injecting liquidity. But what happens when interest rates hit zero? During debt crises, the last time this situation occurred was in 1933. Without studying what happened in March 1933 when rates dropped to zero, we couldn’t grasp these dynamics. The measures taken back then were quantitative easing. Without understanding this mechanism, we couldn’t predict the cyclical downturn in 2008. By 2009, we nearly shifted to neutral.

Jim Haskel: I want to explore this further. By the way, if you look back at the Daily Observations reports starting from 2001, you’ll find the concept of “pulling on a string” was present in the market. You thought there might be an environment where we couldn’t escape.

(TechFlow Note: "Pulling on a string" in the market usually refers to a strategy or action aimed at influencing or driving larger changes through small, incremental efforts. This strategy can be applied in investment, marketing, or other business activities, emphasizing subtle adjustments or actions to guide market trends or consumer behavior.)

Ray Dalio: 2008 was a crash, but by 2009, I really didn’t know what would happen.

Jim Haskel: You kept emphasizing internally that the higher the debt, the more sensitive it becomes to interest rates. Therefore, rates had to be lowered further, but there was limited space to do so.

That was the problem, right? Now, let’s go back to 2007. I remember during those times, many people came to us.

Ray Dalio: Banks and brokers were in serious trouble. Yes, we went through those events, and our predictions were correct. Then we helped others, like the head of Standard & Poor’s. He needed to provide ratings, and we reviewed his ratings and pointed out issues, such as how his ratings didn’t align with market marks, etc. So, many people started seeking our help. I think that’s what you’re referring to.

Jim Haskel: Let’s go back to 2007 and early 2008. Looking back, how confident were you that we had grasped the state of the market and understood the severity of the problems? Even as others were just beginning to realize or hadn’t comprehended it yet, how confident were you in your judgment?

Ray Dalio: I learned humility from my experiences and also learned to fear being wrong. At the time, things seemed to align with our predictions, and similar situations had occurred before, so everything seemed reasonable. But the key is how much confidence and resources you invest in it.

So when you ask about my confidence level, my habit is to first create a forecast template, judge how things might unfold, and then track actual developments against this template. At the time, the situation did align with the template, but you still need to observe how the market reacts. I’d say I was about 70% confident.

Jim Haskel: When things started unfolding as you predicted, were you worried that even if your forecast was correct, the entire financial system might collapse, and Bridgewater wouldn’t be able to operate in such a scenario? How concerned were you about this?

Ray Dalio: I was indeed worried about the terrifying possibility of such extremes. But I mainly felt I was providing real value to clients because they were losing money elsewhere, while we were making money for them. It’s like being in a battle; you focus on the fight itself and think about the future only after the battle ends.

Ray Dalio: I remember a meeting where everyone wanted to celebrate our success, saying we did great. I remember saying at the time: Stop, or you’ll become complacent and risk missing something important. I have a principle: If you’re worried, you don’t need to worry; if you’re not worried, you need to worry. Because if you’re worried, you’ll focus on what you’re concerned about and address it. That way, you’ll be safe.

Jim Haskel: Next is 2013, because in 2013, Europe seemed to face the risk of collapse.

Ray Dalio: Actually, it all started in 2010. In 2009 and 2010, my view of Europe was the same as my view when I went to Washington in 2007. I went to Washington in 2007, and I remember there was an article in the Financial Times describing me bringing a pile of documents to explain the situation. But they threw the documents into the trash bin, just as they did before the European crisis erupted in 2009 and 2010.

I was fortunate because Mario Draghi was willing to sit down and discuss some issues with us, but they still didn’t believe us. They believed the market would self-adjust and correct, thinking the market was right, etc.

They didn’t understand a very important principle, which is that supply and demand issues cannot be ignored, and you shouldn’t wait until problems occur to take action. So it all actually started in 2009 and 2010, and then we gradually addressed these issues. I was fortunate to help them think about how to respond, such as how to monetize in Europe while dealing with restrictions from the German Constitutional Court, etc.

Jim Haskel: These countries, especially Spain, Italy, and Greece, had almost no fiscal freedom because all power was centralized. That’s what you mentioned. So how did you advise them to deal with this situation?

Ray Dalio: Because the German Constitutional Court obstructed this, if proportional adjustments could be made in all aspects, then you could implement quantitative easing and other measures. That’s what they later did. I want to emphasize that many Bridgewater people were involved in these discussions. It was a great team that explored these issues together.

2015–2025: Challenges and Legacy

Jim Haskel: By the mid-2010s, you were already a very well-known figure, and Bridgewater had become a very prominent company.

Ray Dalio: That’s the problem. I remember around a certain year, we wanted to stay low-key. But as we became the largest hedge fund, people began to think of this as a strange place, even a “cult.” Stories about the “cult” started circulating. So I found myself in a dilemma: How should I handle this? I decided to publish Principles. Initially, it wasn’t a book but a manual. I posted it online, and it got 3 million downloads.

Then people started talking about Bridgewater’s culture and this unique way of operating. As we became the largest hedge fund, this situation became more publicized. We had to face what “being publicized” meant because it was unavoidable.

Jim Haskel: Let’s fast-forward to late 2019. The COVID-19 pandemic began spreading in China and gradually expanded. The closest similar situation we had experienced was the 1918 flu pandemic, but we didn’t have many samples to manage it well.

Looking back, how did you and your team handle these issues? What reflections do you have on this?

Ray Dalio: My approach has always been: Has something similar happened in history? How did it work? But this time, there weren’t enough samples, so the pandemic’s arrival was a surprise to us.

So we decided to take some protective measures, like choosing options to protect our investments because others might suggest going long, but we realized this situation was very unique. We responded to the pandemic this way.

My principle is: If you’re unsure, don’t take large-scale actions. So we reduced positions or protected them through options.

But I also want to mention other things—culture is crucial to Bridgewater’s development.

During this process, there were decisions that were very important. I want to emphasize, for example, team members falling ill or losing family members, attending weddings and funerals, etc. As a team, we would participate in these events together. I remember many such moments within our team, like attending funerals, celebrating weddings, or welcoming newborns. These things are very important.

I hope to convey this: When pursuing meaningful work and building meaningful relationships, these actions are indispensable. I believe you are still practicing these values now. I just want to emphasize that when talking about performance and investment decisions, you shouldn’t overlook these aspects that embody true meaning, especially during difficult times when meaningful relationships become particularly important. These choices require us to make decisions with care.

Some principles need to be explicitly documented, such as when someone or their spouse is diagnosed with cancer and needs personal space, how should we respond? Documenting these principles helps us think deeply, which is also very important.

Another important matter is China. I went to China in 1984 purely out of curiosity and interest. It wasn’t just a money-making business; making money was secondary. The most important thing was to do our best.

Out of curiosity, I went to China and helped them build markets and develop relationships. These dimensions can now continue to be passed on. This situation also happened in other countries, like Indonesia, where they have a new sovereign wealth fund that needs help. We need to think about how to build these relationships. So before continuing your question, I want to emphasize this.

Looking Ahead: Intergenerational Legacy and the Continuation of Principles

Jim Haskel: One last question. Now we’re celebrating Bridgewater’s 50th anniversary, and the next 50 years will be driven by the people here and the team on screen.

I want to ask: What key principles do you think we need to internalize to increase the likelihood of short-term and long-term success and help Bridgewater continue moving forward?

Ray Dalio: All the principles are in my book, Principles: Life and Work. This book details these principles. They are very comprehensive, but I also want to emphasize that you need to practice them in your own way.

In other words, it’s like intergenerational legacy. I would look at this issue from a parental perspective; now you are the next generation, and I hope you can achieve your goals in your own way. Just like your parents want you to succeed independently while maintaining a good relationship with them. That’s my wish as well.

You need to learn through practice and experience, like facing setbacks and reflecting on these principles. How to build an ideal meritocratic environment—these are the best principles I can pass on. As for how to execute them, it’s entirely up to you.

Few companies can exist for 50 years, let alone maintain industry leadership. This proves that our principles and methods are indeed effective.

Jim Haskel: I want to tell you once again, I don’t know if I’ll ever have such an opportunity to talk to you again. This is very special for me. I hope you enjoy everything you’ve contributed and continue to stay connected with us through the Daily Observations reports, podcasts, etc. We all deeply admire you; you will always be the founder and guiding light of Bridgewater. Ray, congratulations on all your achievements.