Ray Dalio

Raymond Thomas Dalio (born August 8, 1949) is an American billionaire hedge fund manager and philanthropist who has served as co-chief investment officer of Bridgewater Associates since 1985. He founded Bridgewater in 1975 in New York. Within ten years, it was infused with a US$5 million investment from the World Bank's retirement fund.[3]

Ray Dalio
Born
Raymond Thomas Dalio

(1949-08-08) August 8, 1949[1]
New York City, New York, U.S.
NationalityAmerican
EducationLong Island University
Harvard Business School
OccupationHedge fund manager
Known forFounder of Bridgewater Associates
Net worthUS$18.7 billion (February 2020)[2]
Spouse(s)Barbara Dalio
Children4 sons, including Paul Dalio

Dalio was born in New York City, and attended C.W. Post College of Long Island University before receiving an M.B.A. from Harvard Business School in 1973. Two years later, in his apartment, Dalio launched Bridgewater. In 2013, it was listed as the largest hedge fund in the world.[4][5] In 2020 Bloomberg ranked him the world's 79th-wealthiest person.[6]

Dalio is the author of the 2017 book Principles: Life & Work, about corporate management and investment philosophy. It was featured on The New York Times best seller list, where it was called a "gospel of radical transparency."[7][8]

Early life and education

Dalio was born in the Jackson Heights neighborhood of New York City's Queens borough.[9] He is the son of a jazz musician, Marino Dallolio (1911–2002), who "played the clarinet and saxophone at Manhattan jazz clubs such as the Copacabana," and Ann, a homemaker.[9][10][11] He is of Italian descent.

Dalio began investing at age 12 when he bought shares of Northeast Airlines for $300 and tripled his investment after the airline merged with another company.[12] He received a bachelor's degree in finance from Long Island University (C.W. Post College) and an M.B.A. from Harvard Business School in 1973.[12][13]

Investment career

After completing his education, Dalio worked on the floor of the New York Stock Exchange and traded commodity futures.[12] He later worked as the Director of Commodities at Dominick & Dominick LLC.[14] In 1974 he became a futures trader and broker at Shearson Hayden Stone.[12] In 1975 he founded investment management firm Bridgewater Associates out of his apartment.[15] The firm opened an office in Westport, Connecticut in 1981 and became the world's largest hedge fund in 2005.[15] As of October 2017 it had $160 billion in assets under management.[16] In 2007, Bridgewater suggested there might be a global financial crisis,[17] and in 2008 Dalio published "How the Economic Machine Works: A Template for Understanding What is Happening Now", an essay assessing the potential of various economies by various criteria.[18]

In 2011, he self-published a 123-page volume, "Principles", that outlines his philosophy of investment and corporate management based on a lifetime of observation, analysis and practical application through his hedge fund.[19][20]

In 2012, Dalio appeared on the annual Time 100 list of the 100 most influential people in the world.[21] In 2011 and 2012 Bloomberg Markets listed him as one of the 50 Most Influential people. Institutional Investor's Alpha ranked him No. 2 on their 2012 Rich List.[22][23]

In 2017, Simon & Schuster published Principles: Life & Work. The book was a New York Times #1 bestseller and Amazon's #1 business book of 2017.[24] Dalio discusses his background as a backdrop for his takeaways about life and work. He has announced that he will write a second volume, Principles: Economics & Investing.[25]

Dalio has said that he could continue improving his returns by solidifying recurring lessons into "principles."[15]

Dalio was co-CEO of Bridgewater for 10 months before announcing in March 2017 that he would step down as part of a company-wide shake-up by April 15.[26] The company had been in a seven-year management and equity transition to find a replacement.[27] Jon Rubinstein, co-CEO of the fund, was announced to step down with Dalio, but would retain an advisory role.[26] On April 7, 2019, Dalio said on 60 Minutes that income inequality in the United States was a national emergency requiring reform.[28][29]

In July 2019, Dalio called for a reform of capitalism and described wealth inequality as a national emergency.[30] In November 2019, Dalio posted a blog entry stating that excess capital, unfunded social liabilities, and government deficits have created a recipe for disaster, in what he called a "paradigm shift".[31]

Personal life

Dalio resides with his wife Barbara, a descendant of sculptor Gertrude Vanderbilt Whitney (married in 1976/77)[9] in Greenwich, Connecticut, and is known to practice the Transcendental Meditation technique.[12][32][33] They have four sons, Devon, Paul, Matthew, and Mark.[10] Devon, their eldest son (born March 26, 1978), was named after North Devon cattle because Ray was deeply involved in cattle futures at the time.[34] Second son Paul Dalio is a film director.[35] Matthew Ace "Matt" Dalio, their third son, is founder and chairman of the China Care Foundation, a non-profit that seeks to help Chinese orphans, and co-founder and CEO of Endless Mobile, Inc., a computer operating system company.[36][37] Their youngest son, Mark Dalio, is a wildlife filmmaker. Ray has suffered from Barrett's esophagus, a form of gastroesophageal reflux disease (GERD), a pre-malignant condition that if not treated properly can lead to cancer.[38]

Wealth

In 2011, Dalio was the subject of John Cassidy's article "Mastering the Machine" in The New Yorker.[39]

According to American business magazine Forbes, Dalio has an estimated net worth of USD$18.6 billion as of July 26, 2020, making him the 69th richest person in the world [40] and 26th on the Forbes 400 list.[41] In 2014 he reportedly earned $1.1 billion, including a share of his firm's management and performance fees, cash compensation and stock and option awards.[42]

Philanthropy

In April 2011, Dalio and his wife joined Bill Gates and Warren Buffett's Giving Pledge, vowing to donate more than half his fortune to charitable causes within his lifetime.[43] Through the Dalio Foundation, he has directed millions in donations to the David Lynch Foundation, which promotes and sponsors research on Transcendental Meditation.[44] The Dalio Foundation has also contributed to the National Philanthropic Trust, to polio eradication projects, and to NewYork–Presbyterian Hospital.[45] The foundation has also supported the Fund for Teachers, an initiative that supports professional learning fellowships for teachers.[46]

The Dalio Foundation was part of a group of foundations supporting the 2018 launch of TED's Audacious Project, an initiative to fund social entrepreneurs working to solve global issues.[47] In March 2019, Dalio was named one of the highest-earning hedge fund managers and traders by Forbes.[48]

In 2018, OceanX, an initiative of the Dalio family, and Bloomberg Philanthropies[49] committed $185 million over a period of four years to protect the oceans.[50]

Published works
  • How the Economic Machine Works; A Template for Understanding What is Happening Now (2007)[51]
  • Principles (2017)[52]
  • A Template For Understanding Big Debt Crises (2018)[53]
  • Why and How Capitalism Needs to be Reformed (2019)[54]

Awards and honors

Principles was listed among the 13 Best Business Books of 2017 by CNBC.[55]

gollark: I too love overpriced phones where Apple has a monopoly on application distribution!
gollark: IRC is totally* alive. I run an IRC network with more than 0 users which may or may not just be a convoluted joke I roped some other people with servers into.
gollark: Time to upload my entire meme library. Muahahahaha.
gollark: Yes. To entirely ruin any fragment of humor it may have contained, they answered the question in a technically valid but useless way, like they said.
gollark: I can't see it because I am not a light mode heretic.

See also

References
  1. "Bloomberg Billionaire Index". Retrieved 18 April 2018.
  2. "Forbes profile: Ray Dalio". Forbes.com. Retrieved 2 September 2019.
  3. "The Rise of Dalio Philanthropy: A Case Study of the New Mega-Giving". Inside Philanthropy. Retrieved April 22, 2017.
  4. "Ray Dalio, Founder of World's Largest Hedge Fund: Weak Economy Makes Second Adolf Hitler More Likely". Algemeiner. Retrieved March 19, 2013.
  5. "Ray Dalio".
  6. "Bloomberg Billionaires Index - Ray Dalio". Bloomberg.com. Retrieved 2020-02-07.
  7. Stevenson, Alexandra; Goldstein, Matthew (2017-09-08). "Bridgewater's Ray Dalio Spreads His Gospel of 'Radical Transparency'". The New York Times. ISSN 0362-4331. Retrieved 2020-04-06.
  8. Sorkin, Andrew Ross (2017-09-04). "Bridgewater's Ray Dalio Dives Deeper Into the 'Principles' of Tough Love". The New York Times. ISSN 0362-4331. Retrieved 2020-04-06.
  9. Wright, Robin (September 15, 2008). "Mastering the Machine". The New Yorker. Retrieved June 8, 2017.
  10. "The Palm Beach Post from West Palm Beach, Florida on September 4, 2002 · Page 38". Newspapers.com. September 4, 2002. Retrieved June 8, 2017.
  11. Cometto, Maria Teresa. "Ray Dalio, il libretto rosso dello speculatore che attacca l'Italia". Corriere della Sera (in Italian). Retrieved 2018-04-12.
  12. "Pursuing Self-Interest in Harmony With the Laws of the Universe and Contributing to Evolution is Universally Rewarded" Kevin Roose, April 10, 2011, New York Magazine
  13. "Bridgewater's Ray Dalio on the 'Principles' of Tough Love - Alumni - Harvard Business School". www.alumni.hbs.edu. Retrieved 2019-01-30.
  14. "Radical Transparency" 2010, Leaders Magazine. Volume 33, Number 3
  15. "The head of the world's largest hedge fund explains how he learned to invest". Business Insider. Retrieved April 12, 2017.
  16. Goldstein, Matthew (16 October 2016). "Small Endowments May Get to Invest in Bridgewater Associates". The New York Times (DealBook). United States. The New York Times Company. p. B5. Retrieved 12 April 2018.
  17. Cassidy, John (July 25, 2011). "Mastering the Machine How Ray Dalio built the world's richest and strangest hedge fund". The New Yorker. Retrieved December 18, 2013.
  18. How the Economic Machine Works; A Template for Understanding What is Happening Now. Ray Dalio, October 31, 2008
  19. Ovide, Shira (October 22, 2010). "More on Bridgewater's Ray Dalio, Wall Street's Oddest Duck". The Wall Street Journal. Retrieved December 4, 2013.
  20. Rosenthal, Norman E. (2013). The Gift of Adversity. Penguin Group. pp. Chapter 41. Retrieved December 4, 2013. Dalio Principles.
  21. Volcker, Paul (April 18, 2012). "The 100 Most Influential People in the World". Time. Retrieved August 15, 2012.
  22. Taub, Steven (April 15, 2013). "The Rich List". Institutional Investor's Alpha. Retrieved April 16, 2013.
  23. Creswell, Julie (15 April 2013). "Hedge Fund Titans' Pay Stretching to 10 Figures". The New York Times (DealBook). United States. The New York Times Company. p. B1. Retrieved 2 May 2019.
  24. "Ray Dalio's Book Has Sold a Million Copies. But Who's Actually Implementing His Ideas?". Institutional Investor.
  25. https://www.bloomberg.com/news/videos/2018-11-19/ray-dalio-on-career-market-cycles-china-debt-video
  26. Cox, Jeff (2017-03-01). "Bridgewater's Ray Dalio to step down at Co-CEO on April 15". Retrieved 2017-06-23.
  27. Cox, Jeff (2017-03-01). "Bridgewater's Ray Dalio stepping down from co-CEO role in company shakeup". CNBC. Retrieved 2017-12-28.
  28. Mark Niquette (April 7, 2019). "Dalio Says Capitalism's Income Inequality Is National Emergency". Bloomberg.com. Retrieved April 9, 2019.
  29. Bill Whitaker (April 7, 2019). "Ray Dalio says wealth inequality is a national emergency; The founder of the most successful hedge fund in the world says capitalism needs to be reformed and that the American dream is lost". cbsnews.com. Retrieved April 9, 2019.
  30. "Ray Dalio says wealth inequality is a national emergency". www.cbsnews.com. Retrieved 2019-08-07.
  31. "Ray Dalio Says the 'World Has Gone Mad' With So Much Free Money". Bloomberg. Retrieved 2019-11-05.
  32. Opalesque (January 8, 2008). "Ray Dalio's winning strategy".
  33. Comstock, Courtney (October 25, 2010). "Ray Dalio Is Too Modest To Admit He Returned 38% YTD Using Transcendental Meditation". Business Insider.
  34. Ray Dalio, Principles, Simon & Schuster, 2017, pp.24-25.
  35. Finance (March 19, 2012). "Ray Dalio's Son Is An Entertainment Producer, And He's Directing A Movie About Maniac Depressives With Spike Lee's Support". Business Insider. Retrieved June 2, 2017.
  36. "Top 10 Hedge Fund Guru's children: The Privileged Lives of Hedge Fund Heirs". Alpha Banker. June 25, 2014. Retrieved June 8, 2017.
  37. "About Us | Endless Computers". Endlessos.com. Retrieved 2017-10-19.
  38. "Ray Dalio Says He's Not Sick, Just Triangulating". Bloomberg. September 14, 2019. Retrieved April 17, 2020.
  39. Cassidy, John (July 25, 2011). "Mastering the Machine: How Ray Dalio built the world's richest and strangest hedge fund". The New Yorker Magazine: 56–65.
  40. https://www.forbes.com/profile/ray-dalio/?list=rtb#4afc776f663a Retrieved July 26, 2020 Sunday
  41. "Ray Dalio". Forbes. Retrieved 2019-01-30.
  42. H. Kent Baker; Greg Filbeck (26 July 2017). Hedge Funds: Structure, Strategies, and Performance. Oxford University Press. pp. 52–. ISBN 978-0-19-060739-5.
  43. "Bridgewater's Dalio Joins Giving Pledge - NY Times". The New York Times. April 28, 2011. Retrieved April 29, 2015.
  44. "Hedge Fund Billionaire Ray Dalio Gives Big for David Lynch". www.institutionalinvestor.com. Retrieved 2017-08-23.
  45. Vardi, Nathan. "Hedge Fund Billionaire Ray Dalio Steps Up Foundation Giving". Forbes. Retrieved 2018-04-09.
  46. "9 Stamford Educators Receive Grants For U.S. & Foreign Studies". Stamford, CT Patch. 2018-04-09. Retrieved 2018-04-10.
  47. Nicosia, Mareesa. "TED Launches The Audacious Project, Awarding $250M to New Crop of Social Entrepreneurs". Retrieved 2018-04-10.
  48. Vardi, Nathan. "The Highest-Earning Hedge Fund Managers And Traders". Forbes.
  49. "Michael R. Bloomberg and Ray Dalio's OceanX Announce Over $185 Million for New Partnership to Increase Ocean Exploration and Protection". Bloomberg Philanthropies. Retrieved 2019-05-22.
  50. Chaykowski, Kathleen. "Ray Dalio and Michael Bloomberg Commit $185 Million To Protect The Oceans". Forbes. Retrieved 2019-04-02.
  51. Dalio, Ray (January 13, 2018). "A Template for Understanding What's Going On" (PDF).
  52. Goldstein, Matthew; Stevenson, Alexandra (8 September 2018). "Bridgewater's Ray Dalio Spreads His Gospel of 'Radical Transparency'". The New York Times (DealBook). United States. The New York Times Company. p. BU1. Retrieved 8 September 2017.
  53. Montag, Ali (2018-09-14). "Billionaire Ray Dalio remembers the moment he saw the financial crisis coming: 'This is the big one'". CNBC. Retrieved 2018-09-17.
  54. Dalio, Ray (April 5, 2019). "Why and How Capitalism Needs to be Reformed". linkedin.com. Retrieved November 10, 2019.
  55. Clifford, Catherine (2017-12-27). "13 of the best business books of 2017". CNBC. Retrieved 2017-12-28.
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