Look at the machine from the higher level.
1. Think of yourself as a machine operating within a machine and know that you have the ability to alter your machines to produce better outcomes. 2. By comparing your outcomes with your goals, you can determine how to modify
Own your outcomes.
Source: Ray Dalio's Book Principles
Weigh second- and third-order consequences.
Source: Ray Dalio's Book Principles
Pain + Reflection = Progress.
1. Go to the pain rather than avoid it. 2. Embrace tough love. Source: Ray Dalio's Book Principles
Evolving is life’s greatest accomplishment and its greatest reward.
1. The individual’s incentives must be aligned with the group’s goals. 2. Reality is optimizing for the whole—not for you. 3. Adaptation through rapid trial and error is invaluable. 4. Realize that you are simultaneously everything and nothing—and decide what
Understand nature’s practical lessons.
1. Maximize your evolution. 2. Remember “no pain, no gain.” 3. It is a fundamental law of nature that in order to gain strength one has to push one’s limits, which is painful. Source: Ray Dalio's Book Principles
Look to nature to learn how reality works.
1. Don’t get hung up on your views of how things “should” be because you will miss out on learning how they really are. 2. To be “good,” something must operate consistently with the laws of reality and contribute to
Be radically open-minded and radically transparent.
1. Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change. 2. Don’t let fears of what others think of you stand in your way. 3. Embracing radical truth and radical transparency will bring more meaningful work
Truth—or, more precisely, an accurate understanding of reality—is the essential foundation for any good outcome.
Source: Ray Dalio's Book Principles
Be a hyperrealist.
Dreams + Reality + Determination = A Successful Life. Source: Ray Dalio's Book Principles