Summary: Ray Dalio's Principles

How can I know I’m right?”

Idea meritocracy is when radical truthfulness and transparency are enabled and instilled in a family, company, or community. An idea meritocracy is a safe place where the best ideas can win. In entrepreneurship, this is an essential key. The quicker a person can separate the wheat from the chaff and effectively execute only their best suggestions, the faster they can move forward.

The first thing that should be done in order to get access to the best ideas, the environment must help these ideas to come out. For example, the leaders should give their employees a safe space to express their thoughts. Second, these ideas should be judged accurately. They should be chosen effectively to know which ones to implement.

Idea meritocracy is when radical truthfulness and transparency are enabled and instilled in a family, company, or community. An idea meritocracy is a safe place where the best ideas can win. In entrepreneurship, this is an essential key. The quicker a person can separate the wheat from the chaff and effectively execute only their best suggestions, the faster they can move forward.

He believes that great businesses use their principles to create their environments where the best ideas win.

Mr. Dalio is preaching for individuals to have a sense of humility and introspection, an ability to open themselves to appreciate pointed criticism and use it to improve.”

when you begin to think about your own personal principles and which rules in life would help you live truthfully, what you are really doing is removing the errors from your brain that result to your flawed thinking.

Dalio learned that it is not wise to be guided by emotions but by rational thinking.

Dalio says that principles are powerful weapons in the real fight against flawed thinking.

Bridgewater, Ray Dalio has created an algorithm-supported system where he records peoples’ thoughts and their opinions. This also helps them track these things over time to calculate a believability score of his people. These decisions will be based not on majority votes, but on what the most credible people would have to say about specific issues.