Ray Dalio & George Soros- Investing Philosophy vs Raw Instincts

Ray Dalio joins the list of successful investors who try to turn thier??successful??investing style into a philosophy about society, life and everything in between.??

George Soros tried it with his Theory of Reflexivity??but when it against his "signals from his back", the acute back pain??won??:
====
And how could he tell the timing of the crucial turning points? Like other investors, Soros had colleagues gather information and perform analyses. But he also had an extraordinary gut. He said that he would have an instinctive physical reaction about when to buy or sell. Normally his composure was cool and emotionless, but when he suffered from a bad backache, he took it as an ominous warning about problems in the market. "I used the onset of acute pain as a signal that there was something wrong in my portfolio," he once explained. "I rely a great deal on animal instincts."
=======

Now the article about Ray Dalio in the New Yorker (perhaps the most emailed article of the past week?) also goes into his much written about management & life philosophy. But the key paragraph in the New Yorker article IMHO is this:

???Bridgewater really is Ray,??? one former employee told me. ???The key decisions they have made???where they have really made their money???is Ray. Most of what really matters is Ray, with help from Greg and Bob. You could run the firm with forty or fifty people instead of a thousand, and it would be basically the same.???

As long as Dalio remains healthy, the fact that he plays a key role in directing Bridgewater???s investments isn???t an issue. (Based on past experience, it is a big advantage.) But, from a business and marketing perspective, the suggestion that Bridgewater???s success continues to hinge on Dalio is a problematic one. As the former employee explained, ???It???s hard to market that model???one guy and his brilliant track record. If you want to sell your firm to institutional clients, it???s critical to appear to be ???rule-driven.??? That takes a lot of smarts. Most people want to take the credit. To say ???I just run this machine??? detracts from your own individual brilliance. But that is very smart business.???

Advertisements
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s