Sunday, April 8, 2018

How to build a company where the best ideas win

We've been experimenting with using algorithms to do predictive trading as well as incorporating machine learning to improve the success probability of the predictions. In this regard, a few weeks ago, a friend asked me to evaluate if we could evaluate building a model based on the Ray Dalio asset allocation methodology.


While I had heard of Bridgewater as a super successful fund, I didn't know much about either the company or its iconic founder Ray Dalio. Except that Ray Dalio was a Wiltonite and the company was run from Wilton for a very long time, the same town where we had our office. As part of knowing more about the methodology, I tried to find more on the subject. And what I found was incredible.


I came across a recent book written by him, "Principles: Life and Work." I purchased an audible version of the book, since my reading ability is virtually non-existent. It was brilliant. While the trading philosophy and methodology was super interesting, the principles used by Ray Dalio and his company were phenomenal.


I bought several copies and presented them to my colleagues. While I'm not sure whether we have the maturity level needed to implement the principles, I did feel that knowing the principles would allow us to at least start down the path, even if it is on an individual basis.


I strongly recommend you get the book and read it.

And in the meanwhile, view this TED talk, which will give an idea of what awaits you. And if you are not impressed, think of this as a mediocre trailer of an awesome movie.


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