Ray Dalio is an American billionaire entrepreneur, investor, and the bestselling author of Principles. During the SXSW 2018 Featured Session with CEO of Mansueto Ventures Eric Schurenberg, Dalio discussed the unique principles that helped him grow his company, Bridgewater Associates, from his two bedroom apartment to the fifth most important private company in the United States.
Early in his 40 year career, Dalio recognized that his success was correlated to making choices that were aligned with his own values. Having experienced both successes and failures, Dalio has come to the conclusion that there are five steps to success in both business and in life.
Onstage at SXSW, Schurenberg encouraged Dalio to reveal these guiding principles that helped him throughout his journey to becoming one of the 100 richest people in the world.
Ray Dalio’s 5 Steps to Success
Know what your goals are.
Encounter your problems.
Diagnose those problems to the root cause.
Design a path to get around the root cause.
Actually do these things. Push through and do what you set out to do.
According to Dalio, to successfully practice these steps it is essential to set goals that are in line with your own principles, honestly assess your strengths and weaknesses, and then work with others to offset those weaknesses.
“Clarity of what are the principles that bind you together or separate you…that sort of clarity is invaluable…You should think about your own principles and be clear. Write those principles down in a crystal clear way and communicate them with others. It is extremely, extremely powerful.” – Ray Dalio
Watch the full session to learn more about Dalio’s journey, the concept of radical transparency, and using your own principles to achieve success.
Featured Image: How to Build a Company Where the Best Ideas Win Out SXSW 2018 Session – Photo by Jon Currie