Quote · My First Million
Ray Dalio: The principles that made me a billionaire
Where this was said
The gap between the best and everyone else
At 58:10 · chapter starts 55:40
Shaan asks the direct question: did Bridgewater become the biggest hedge fund because of performance, marketing, or charm? Dalio's answer is unambiguous: performance. The fund generated approximately 11.8% annually for about 31 years, losing money in only 3 of those years, with a worst drawdown of roughly 13% during COVID [1] — Ray Dalio "Bridgewater became the world's biggest hedge fund through consistent, uncorrelated returns — 11.8% annually for 31 years, with only 3 losin…" 54:00 . Crucially, those returns were uncorrelated with the stock market or any other market — in a world where most funds move together, Bridgewater zigged when others zagged. Dalio insists Bridgewater became the largest fund before anyone outside finance had heard of him; he was actively trying to stay below the radar. The two things that changed that: hitting number one, and the culture becoming so distinctive it was called a cult. Posting his Principles online — downloaded 3 million times — was partly a defensive move to help prospective hires understand what they were getting into. The principles themselves described a radical meritocracy: radical truthfulness, radical transparency, and ideas winning on merit rather than hierarchy.
Dalio's Principles document was downloaded 3 million times after he posted it online, spreading organically before Bridgewater was widely known.
