Contemporary Investing Gurus – Ray Dalio (Video + Research Paper)

(Image Credit: www.forbes.com)

Recently I started an investing video series called, Contemporary Investing Gurus.

Over the years I’ve spent loads of time reading articles, watching videos and listening to podcasts from some of the best investing minds in the world. Names like Joel Greenblatt, Mohnish Pabrai, Warren Buffett, Charlie Munger, Meb Faber, and Guy Spier, just to name a few.

This week I’ve got a video from one of my favorite investors, Ray Dalio. His video definitely meets the criteria of making complicated things sound simple.

Dalio is the founder of the world’s biggest hedge fund firm, Bridgewater Associates, which manages around $150 billion in global investments. Back in 2008, he wrote a paper titled, “How the Economic Machine Works: Leveragings and Deleveragings.” It was his simple explanation on how he believes the economic machine works.

Over the years, the paper has been revised and expanded. It’s now called “Economic Principles.” Here’s his simple explanation on the ecomomy:

“The economy is like a machine. At the most fundamental level it is a relatively simple machine. But many people don’t understand it – or they don’t agree on how it works – and this has led to a lot of needless economic suffering.”

And, here’s his video: