Early Challenges & Near Collapse - Bridgewater experienced significant ups and downs early on, nearly collapsing, which proved to be a transformative experience [1] - The 1970s were a volatile period for the market [1] Economic Prediction & Misjudgment - Bridgewater predicted a major debt crisis due to American banks lending excessively to foreign countries, a controversial view that led to attention and congressional testimony [2] - Bridgewater incorrectly predicted a reduced level of liquidity preventing a return to stagflation [3] Financial Setback & Humility - Bridgewater lost money for itself and clients due to a misunderstanding of the impact of easing, coinciding with the stock market bottom [4] - The experience of financial loss and needing to borrow $4,000 from his dad was a painful but ultimately valuable lesson in humility for the founder [4]
The Most Important Lesson: Humility
Principles by Ray Dalio·2025-12-01 21:25