founder of Bridgewater Associates
the first person worked on commodity futures from HBS, so after graduation he was the top talent to hire in the industry as stock economy unraveled while commodities market is soaring.
his goal is to have meaning work and meaningful relationships.
what i want: break dependencies on money, having caring family
what is true: ?
what you should do to achieve #1 in light of #2
what r u going to do about it?
1979-1982, Bridgewater is back to square one, the company lost so much money. He identified 3 fundamental problems: 1) I was arrogant 2) history repeats and understanding events are important to predict futures 3) You can't estimate exact time to market. Also he found several principles: 1) seek the smartest person who disagree with me, try to understand their reasoning 2) develop/test/systemize timeless and universal principles 3) balance risks keep the big upside while reducing the downside
1983-1994
P44, invented a new way to show profit: core business, speculative profits and losses. This way a client can understand what a risk-neutral position is. sometimes a client can speculate more intentionally
beta: return of the market, passive,
alpha: return comes form betting against others, active
All weather Portfolio, use different strategies for 4 dimensions of growth and inflation -> risk parity investing
p75, used baseball cards to record MBTI
p82, we predicted 2008 financial crisis based on our internal model
p86, in 2010, decided to make Principle public to face misconception of a company promoted by the press. he stepped out as CEO in 2010
