Ray Dalio

Principles

[The Algorithmic Life]

"Principles are ways of successfully dealing with reality to get what you want out of life."

Initialize Machine

The Operating System for Life

Decode Your Reality

Most people go through life reacting emotionally to events. Principles offers a different way: viewing your life as a machine. By systematizing your decision-making with 'algorithms', you can convert painful problems into puzzles to be solved.

Reality HitsPainEmotional ReactionRecurring ProblemsReflectionEvolution
EGO SHIELD ACTIVE
RADICAL TRUTH
DEFENSIVE
50%
RADICAL

The Biological Battle

Understand Your Two Minds

There are two 'yous' inside your head fighting for control. To make good decisions, the 'Higher-Level You' must manage the 'Lower-Level You'.

The Animal You

Reacts to perceived threats

The Logical You

Seeks truth and evolution

The 5-Step Process

Use the 5-Step Process to Get What You Want Out of Life

01

Goals

Have clear goals.

02

Problems

Identify and don't tolerate problems.

03

Diagnosis

Diagnose problems to get at their root causes.

04

Design

Design a plan.

05

Doing

Push through to completion.

Build the Right Machine

ARCHETYPE
SCANNER

Creativity95
Reliability40
Openness90
CHAOS ENGINE

The Creator

Generates new ideas and original concepts.

SYS.ID8X-294
STATUSONLINE

Believability Weighted Decisions

Idea Meritocracy

Don't treat all opinions equally. Weight them by the person's track record and reasoning ability.

15
65
95
90
40
YES WEIGHT
3
NO WEIGHT
2
Final Decision
APPROVED
Junior Analyst
Project Lead
Domain Expert
Senior Partner
Consultant

Outcome: APPROVED (3 vs 2). Majority wins, but experts were ignored.

The
Matrix

01DATA_POINT

Radical Truth

Embrace reality and deal with it. Truth is the essential foundation for any good outcome.

02DATA_POINT

Radical Transparency

Be extremely open. Transparency builds trust and helps you learn faster.

03DATA_POINT

Idea Meritocracy

The best ideas win, regardless of who they come from. Believability-weighted decision making.

04DATA_POINT

Pain + Reflection

Pain indicates something is wrong. Reflecting on it leads to progress.

05DATA_POINT

Be a Hyper-Realist

Dreams + Reality + Determination = A Successful Life.

06DATA_POINT

Own Your Outcomes

You are responsible for your life. Don't blame others or circumstances.

RAY DALIO
PRINCIPLES
LIFE & WORKVOL.1

The Original Manuscript

Acquire the Source Code

This book is not a theory; it is a compilation of algorithms that have been stress-tested in the markets and life. It contains the complete set of rules for dealing with reality.

Access Full DatabaseEXTERNAL LINK_AMAZON

Further Data Inputs

The Black Swan

Nassim Nicholas Taleb

Understanding the limits of prediction and the impact of the highly improbable.

Superintelligence

Nick Bostrom

Exploring the ultimate optimization of intelligence and systems.

Thinking in Systems

Donella Meadows

A primer on how systems work, essential for building your own machine.

Principles: Life and Work | Vibary