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.
Work Principle
Pay attention to people's track records.
People's personalities are pretty well formed before they come to you, and they've been leaving their fingerprints all over the place since childhood; anyone is fairly knowable if you do your homework. You have to get at their values, abilities, and skills: Do they have a track record of excellence in what you're expecting them to do? Have they done the thing you want them to do successfully at least three times? If not, you're making a lower-probability bet, so you want to have really good reasons for doing so. That doesn't mean you should never allow yourself or others to do anything new; of course you should. But do it with appropriate caution and with guardrails. That is, have an experienced person oversee the inexperienced person, yourself included (if you fit that description).
Work Principle
- Hire Right, Because the Penalties for Hiring Wrong Are Huge
Pay attention to people's track records.
- Check references.
- Recognize that performance in school doesn't tell you much about whether a person has the values and abilities you are looking for.
- While it's best to have great conceptual thinkers, understand that great experience and a great track record also count for a lot.
- Beware of the impractical idealist.
- Don't assume that a person who has been successful elsewhere will be successful in the job you're giving them.
- Make sure your people have character and are capable.
Any person or organization can adopt Principles to better achieve their goals.
Learn what Principles are and how they are applied at Principles.com
