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
Recognize that people who make purchases on your behalf probably will not spend your money wisely.
This is because 1) it is not their money and 2) it is difficult to know what the right price should be. For example, if somebody proposes a price of $125,000 for a consulting project, it is unpleasant, difficult, and confusing to figure out what the market rate is and then negotiate a better price. But the same person who's reluctant to negotiate with the consultant will bargain furiously when he is hiring someone to paint his own house. You need to have proper controls, or better yet, a part of the organization that specializes in this kind of thing. There's retail and there's wholesale. You want to pay wholesale whenever possible.
Work Principle
- Design Improvements to Your Machine to Get Around Your Problems
- Have good controls so that you are not exposed to the dishonesty of others.
- Recognize that people who make purchases on your behalf probably will not spend your money wisely.
- Have good controls so that you are not exposed to the dishonesty of others.
Any person or organization can adopt Principles to better achieve their goals.
Learn what Principles are and how they are applied at Principles.com
