In his latest interview with Fortune India, Ray Dalio discusses his macro-investing template. Here’s an excerpt from the interview:
Dalio: I want a highly diversified portfolio of assets that are not cash and bonds.
I want geographic diversification as much as I want asset class diversification. Regarding my geographic diversification I want to favour countries that have three characteristics and are healthy in the ways we talked about:
First, they are financially strong, that is, their incomes are greater than their expenditures and their assets are greater than their liabilities.
Second, I want countries in which there is internal order rather than internal conflict so that then they can be productive.
Third, I don’t want to invest in countries where there are significant chances of external conflict.
I create two portfolios — first, a portfolio of assets that perform best in bad times and retain their value in the worst of times. And second, a diversified portfolio of the investments.
You can read the entire interview here:
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