Early Life
Ray Dalio was born in New York City's Jackson Heights neighborhood on August 8, 1949. His father was a jazz musician, and his mother was a homemaker. At the age of 12, he started caddying at a golf club, which sparked his interest in the stock market. Dalio attended C.W. Post College of Long Island University before earning an MBA from Harvard Business School in 1973.
Rise to Success
Dalio's career began with a clerk position on the New York Stock Exchange. In 1975, he founded Bridgewater Associates from his New York City apartment. Bridgewater quickly grew to become the world's largest hedge fund. Dalio's investment acumen led to significant profits, including successfully navigating the 1987 stock market crash.
Key Business Strategies
Dalio is known for his unique investment approach, which emphasizes understanding cause-and-effect relationships to make optimal decisions. Bridgewater pioneered the risk parity investment approach in 1996. Key strategies include separating alpha and beta and systematic diversification. Dalio's management style at Bridgewater was characterized by radical transparency, encouraging dissent and openly airing disagreements.
Philanthropy
Dalio and his wife, Barbara, are committed to philanthropy through the Dalio Foundation (Dalio Philanthropies). They have pledged to donate more than half of their wealth to charitable causes, focusing on areas like education, healthcare, and ocean exploration. The Dalio Foundation has contributed over $1 billion to various causes since 2003.