Principles by Ray Dalio

Reviewed Date: November 1st, 2021

Truth must be told. When I picked up the book, I wasn’t expecting it to be good. As I read several reviews, I convinced myself they are just boasting this up too high. But I was surprised to see what it has to offer.

As it is a thick book, I can’t summarize everything. I want to limit this review by discussing two important concepts I liked: radically open-mindedness and the 5-step process.

🌟 Radically Open-mindedness:

Being radically open means seeing reality in its true nature rather than seeing through our assumptions. You put away your ego, you accept harsh events as they happen, and you don’t take anything personally.

You wouldn’t complain, but you try to comprehend what’s working and what is not. In this way, you create a feedback loop that helps you understand the cause-and-effect relationships of events. You experience pain and reflect on it to move further.

🌟 5-Step Process: Goals ➡ Problems ➡ Diagnosis ➡ Design ➡ Doing

To achieve what you want in your life, you need to have realistic and clear goals. You make a plan and start to implement it. But you encounter problems in a way that would halt the progress.

Rather than giving up immediately, you analyze the problems, what went wrong, and what the root cause is. In other words, you diagnose.

When it’s done, you redesign your plan according to the outputs of the diagnosing process, and you again implement the plan. Doing. This is a continual process, as no plan is ever so perfect.

I highly recommend this book. I love it. You can skip the author’s biography part and dive into Principles.


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