Principles (part 1 of 14)

Principles

By: Ray Dalio (2017)

[Pigeonhole] A Practical Principal Book

[Premise] This book is the ‘Operating System’ for Ray Dalio and his firm Bridgewater Capital – the most successful hedge fund in history. He gives a quick background, then details his “Life Principles” which form an operating mentality for his “Work Principles,” Which details how to apply that mentality to an organization.

Chapters

PART I – WHERE I’M COMING FROM

  1. My call to adventure: 1949 – 1967 (5 -10)
  2. Crossing the Threshold: 1967 – 1979 (11 – 26)
  3. My Abyss: 1979 – 1982 (27 – 38)
  4. My Road of Trials: 1983 – 1994 (39 – 66)
  5. The Ultimate Boon: 1995 – 2010 (67 – 90)
  6. Returning the Boon: 2011 – 2015 (91 – 116)
  7. My Last Year and My Greatest Challenge: 2016 – 2017 (117 – 120)
  8. Looking Back from a Higher Level (121 – 131)

PART II – LIFE PRINCIPLES

  1. Embrace Reality and Deal with it (132 – 167)
  2. Use the 5-Step Process to Get What You Want Out of Life (168 – 181)
  3. Be Radically Open-Minded (182 – 203)
  4. Understand That People Are Wired Very Differently (204 – 233)
  5. Learn How to Make Decisions Effectively (234 – 266)
    Life Principles: Putting It All Together (267 – 271)
    Summary and Table of Life Principles (272 – 279)

PART III – WORK PRINCIPLES

Summary and Table of Work Principles (280 – 317)
TO GET THE CULTURE RIGHT … (318 – 321)

  1. Trust in Radical Truth and Radical Transparency (322 – 337)
  2. Cultivate Meaningful Work and Meaningful Relationships (338 – 347)
  3. Create a Culture in Which It Is Okay to Make Mistakes and Unacceptable Not to Learn from Them (348 – 355)
  4. Get and Stay in Sync (356 – 369)
  5. Believability Weight Your Decision Making (370 – 383)
  6. Recognize How to Get Beyond Disagreements (384 – 393)
    TO GET THE PEOPLE RIGHT … (394 – 397)
  7. Remember That the WHO is More Important than the WHAT (398 – 403)
  8. Hire Right, Because the Penalties for Hiring Wrong Are Huge (404 – 419)
  9. Constantly Train, Test, Evaluate, and Sort People (420 – 443)
    TO BUILD AND EVOLVE YOUR MACHINE … (444 – 447)
  10. Manage as Someone Operating a Machine to Achieve a Goal (448 – 471)
  11. Perceive and Don’t Tolerate Problems (472 – 481)
  12. Diagnose Problems to Get at Their Root Causes (482 – 495)
  13. Design Improvements to Your Machine and Get Around Your Problems (496 – 517)
  14. Do What You Set Out to Do (518 – 523)
  15. Use Tools and Protocols to Shape How Work Is Done (524 – 529)
  16. And for Heaven’s Sake, Don’t Overlook Governance! (530 – 538)
    Work Principles: Putting It all Together (539 – 542)

Conclusion (543 – 544)
Appendix: Tools and Protocols for Bridgwater’s Idea Meritocracy (545 – 552)
Bibliography (553 – 554)
Index (555 – 564)
Acknowledgments (565 – 568)
About the Author (569)

[Key Points]

This book is Thick and Dense, but he summarizes his work completely. This digest is actually just a reprint of pages 267 – 317.  This center section of the book lays out a summary for both Life Principles and Work Principles, included each of the major and minor principles discussed in greater detail in the book itself.