Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s largest hedge fund, responded to a question from OpenAI’s chatbot on his Youtube channel, proving that sound investment advice is as timeless as it is basic, in terms of strategy. The chatbot asked Dalio his most important investing lesson throughout his career, and he answered with a single word – diversification.
Dalio firmly believes that the ‘holy grail’ of investment lies in diversifying one’s portfolios across a range of assets, such as commodities, bonds, equities, and real estate. He suggested that striking a balance between return and risk could be achieved by investing in 10-15 “good, uncorrelated investments.”
Billionaire investor also stressed the importance of being humble when it comes to investing, reminding viewers that one must always remain cognizant of what they don’t know – because it is often more than what they do know.
This is not the first time Dalio has shared his investing wisdom with us. Through books such as Principles: Life and Work, Principles for Dealing With the Changing World Order, and Principles: Your Guided Journal, he has documented his tips on life, investing, and more. Furthermore, he has also been known to transition his teaching skills onto his YouTube channel, where he has accumulated an impressive following of 2.2 million viewers.
The continuous rise of A.I. is noteworthy, and it has been deemed only the tip of the iceberg. Dalio has even hinted that soon, advice from A.I. powered chatbots, such as ChatGPT, may be a suitable alternative for investment advice.
Bridgewater Associates was founded in 1975 and concentrates on investing, offering retirement plans, wealth management and risk management services to investors around the world. Ray Dalio has reached the pinnacle of success through Bridgewater by applying his lessons on risk reduction, diversification, and humility. He is slowly transitioning the company to co-CEOs, Nir Bar Dea and Mark Bertolini, and moving away from a specific focus on hedge funds. Under his guidance, Bridgewater has grown into the world’s largest hedge fund, with assets totaling close to $148 billion.
