"Principles" book summary

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Summary of the book "Principles" by Ray Dalio.

The author, Ray Dalio, converts his life decisions into algorithms and wants to live in a computer program-like style. He judges the basis of his decisions and tells us the methods.


(Note: Soon, I will give examples of principles from my life.)


The first thing is to slow down your thinking while making a decision, then write the rule, explaining why you are making this decision happen in this way. He writes that assessment rule and calls it a principle, and then checks the effect on other activities and refines it further by applying it to more activities.


For example, I give you an idea from my life:


Activity 1:


I can only think smartly or work properly on my blog if I am laying down with a soft couch below my head. So this is the rule of my maximum performance. Now I check it further.


Activity 2:


I teach kids (tuition) while sitting on a sofa or chair. I applied the rule of my activity 1. Now I teach them by laying down, couch below my head. My teaching ability has increased, and now I judge 200% more quickly why my children are not making progress in studies, and a lot of ideas come to my mind to help them accelerate. So, this is my rule (aka principle) slowly converted into a life-long algorithm ☺️💆. Activity 3 is waiting for you and me🧐. Tell me in comments what principles you have set.


(Note: The author has made a habit of doing this trick for his investment and all other decisions. So start now by writing the rule for every interaction you make or will make, i.e., shopping or human interaction, etc., and update your rules to make life-long principles. Each new rule is a treasure for your life and will help you solve your life problems in the future. Just note down the rule and the reason why you made that decision.)


Rules will be updated automatically, and making algorithm-like principles will be your next addiction. We must note down principles in our painful moments because then these principles stay longer in our memory. One more thing: After some time, all the rules will be similar... Your life-long algorithm is ready! Searching for principles is like searching for the pattern of things which you do unconsciously.


Ray Dalio says the one and only method for becoming successful is to seek out the most intelligent people who disagree with your thoughts and learn from their logic.Don't judge things from your perspective of how you want things to be; you will not be able to learn how things are in reality. You can take help from the smartest people.


Always take 100% responsibility for your deeds when bad happens to you.


Learn to understand your imperfections and excellence; both are of equal importance. Take help from the smartest people around you because the best solutions always come from collaboration. Don't focus on only one person for a problem,or for running your company; there should always be another one (tension-free life). Take help from machines (A.I.).


Now it's time for coding. Make a software that works with you and your principles and also has the principles of millions (now the world is really fantastic)💚☺️. Don't do it alone but with someone who is your friend, smarter, and sincere.


Convert your principles into algorithms and let the computer make decisions alongside you. Make your passion and your work one and the same and do it with people you want to be with. Now make your passion and work the same thing with the help of these principles.


He was one of the first to apply computers to investing. He also, along the way, invented what we call a "hedge fund", which is only possible to do well if you highly leverage computers. He leveraged computers heavily, turning all investment decision-making he could into algorithms. He found this worked so well that he attempted to turn ALL decision-making into algorithms - this book has information about his personal (life) and management (work) algorithms (aka principles).

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