Your Survival Guy

Preparing your investments and family for when disaster strikes.

Disclosure

  • Home
  • Your Survival
    • EMP Threat
    • Tucker Explains
    • Newport Gas Outage
    • Water
      • Emergency Water Storage
      • Let There Be Water
    • Get Your Gun and Your Training Now
    • Satellite Phones
    • Navy SEAL Survival Kit
  • Your Money
    • Coronavirus Infects Stock Market
    • Looking for a Better America
    • You Invest, They Win
    • Where to Keep Your Cash
    • Paris
    • How to Buy a Boat
    • Dead or Alive? The Future of Long-Term Investing
    • Is Vanguard too Big?
    • Cryptocosm and Life After Google
    • The Last Intelligence Report
    • The Truth Behind the S&P 500
    • RAGE Gauge
    • How Many “Retirees” Will Keep Working?
    • Your Retirement Life
    • You’ll Love This if You’re Dreaming of an Active Retirement Life
  • Weapons
    • Self Defense
    • Every Family Should Own at Least One Shotgun: Here Are Three
  • About Me
    • Preparing for Times Like These
    • My Videos/Pics
    • Music
      • RIP Neil Peart: You Will Always Be Remembered as a “Modern-Day Warrior”
  • You
    • Our Cabin on Kodiak, Alaska
    • If You Are in Pain, this May Help. It Helped Me.
    • How to Save for a Grandchild
    • FIRE! Financial Independence, Retire Early
    • Compound Interest
    • Arithmetic of Portfolio Losses
    • Maximum Portfolio Withdrawal Rate
    • An Efficient Frontier
    • Retirement Compounders
    • Counterbalanced Total Returns
  • Survive & Thrive
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • Welcome

Can One Man Manage all this Money?

September 25, 2017 By E.J. Smith - Your Survival Guy

Investing legend Ray Dalio runs Bridgewater Associates. He’s been making the rounds, hawking his book, Principles, and controlling the fate of his hedge fund clients’ $160 billion. Dalio practices a form of “radical transparency” at his firm, but Andy Kessler writes that the techniques Dalio uses to enforce transparency may be backfiring on him.

The core of investing is quite simple: Determine what everyone else thinks, and then figure out in which direction they are wrong. That’s it. No one tells you what they think. You’ve got to feel it. That’s why Wall Streeters say things like, “We are lowering our above consensus expectations earnings estimates.” It’s all about figuring out what is priced into a stock right now. That’s the pulse of the market, the collective mind meld aggregated into stock prices. I know from experience this is the hardest part of running a hedge fund. You can find the greatest story ever, but if everyone already knows it, there’s no money to be made.

And the pulse changes with each government statistic, each daily ringing of cash registers and satellite images taken of parking lots. That’s why stocks trade every day. Real-world inputs and the drifting pulse drive the psychotic tick of the stock market tape. Once you feel the pulse, then and only then can you figure out how everyone’s wrong about tomorrow, next month or next year. And believe me, they’re always wrong. Stocks rarely tread water.

How do you find that pulse? It’s hard enough to invest your IRA. Can you image managing $160 billion? Wall Street analysts have earnings estimates that no one trusts. There are whisper numbers and the chaos of message boards and tweets.

It’s best to survey your own people. That’s why Bridgewater has some 1,700 employees. A friend of mine learned you have to take a Myers-Briggs personality test before Bridgewater bothers to interview you. He was told he was “not right for the job.” But it turns out that only a tiny handful of employees make any of the investment decisions anyway. Clearly Mr. Dalio doesn’t trust them, so he tries to remove their biases surgically, hence the radical transparency and the illusion of a meritocracy. Mr. Dalio doesn’t care about employees’ opinions or ideas; he just wants to take their pulse to figure out what the market already knows. Or as he puts it: “The biggest mistake most people make is to not see themselves and others objectively.”

Read more here.

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com
My Twitter profileMy Facebook profileMy Instagram profile

Latest posts by E.J. Smith - Your Survival Guy (see all)

  • RECONSTRUCTION: The Confiscation of All His Property - April 13, 2021
  • Inflation? Yes. - April 13, 2021
  • FORENSIC REPORT: Major Miscounting in Michigan. NH Next? - April 13, 2021
  • Demography Is Destiny: You Will Rise and Stand - April 12, 2021
  • Fidelity Investments #1: Hires 4,000 Focuses on YOU - April 12, 2021

If you enjoyed this post, email it to a friend:

  • Email
  • Print
  • Facebook
  • LinkedIn
  • Twitter
  • WhatsApp

Related Posts

Trending

  • Biden Tax Hikes: I’m Here to Help, But Only if You’re Serious
  • Be Dangerous: Biden’s Progressive Puppeteers’ E.O. Gun Grab
  • One Word Explains the Worth of Your Neighbors’ House
  • Constitutional Carry: Another State Chooses Second Amendment Freedom
  • April RAGE Gauge: Are Your Bond Funds Dead or Alive?
  • You Need To Be Dangerous: Democrats Want You Harmless
  • Your Survival Guy Stock: Witness This Dividend Miracle
  • It’s as Simple as 4%? No, Not Anymore
  • You're Telling Me Friends Ask You This Question
  • Why Your Life Before COVID Isn’t Coming Back

YOUR SURVIVAL GUY MUST READS

  • Are You Ready for January’s Great Reset?
  • Only You Know How Much Gold You Should Own
  • It’s Never a Bad Time to Downsize Your Home
  • Market Down 900 Points and Here’s what YOU Told Me
  • #1 Reason Why Your Survival Guy Owns an AR-10
  • Amy Coney Barrett Could End America’s Court Wars
  • Your Retirement Life: Meet Larry the Car Wash Guy
  • “I’m a Plodder,” A Prospective Client Told Me Yesterday
  • Your Personal Safety: Check Your Gun Safe Regularly
  • When Dollars are Plentiful YOU Proceed with CAUTION
Only if You’re Serious
Second Amendment
See Who's Missing the Boat
Find Freedom in America
Great Reset
Financial Independence, Retire Early
Richard  Young Reports
Why Fidelity is Number One
The Best States for Survival
Pandemic Creates Virtual Panopticon
Emergency Water Storage
You Invest, They Win
Escape the City
How You Can Save Money for Your Grandchild
Why Vanguard is Too Big for YOU
Money 101
Island Life
Smith Family Robinson

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.