What Ray Dalio Learned After A Huge Investment Went So Sour That He Had To Borrow $4,000 From His Father To Stay Afloat

Core Insights - Billionaire investor Ray Dalio reflects on a significant investment loss from over 40 years ago that taught him valuable lessons in investment strategy [1][2][4] - The experience of borrowing $4,000 from his father due to this loss shaped Dalio's approach to investment decision-making [4][5] Investment Strategy - Dalio's early investment strategy was based on the belief that the U.S. had lent more money to foreign nations than they could repay, leading him to predict a debt crisis [3] - The unexpected market surge following the Federal Reserve's easing of lending standards resulted in severe losses for Dalio [4] Lessons Learned - The first critical lesson learned was the importance of humility and self-doubt in decision-making [6] - Dalio implemented a systematic approach by documenting factors influencing his investment decisions, which has become a guiding principle at Bridgewater Associates [6]