Ray Dalio breaks down his Holy Grail of Investing

(Last Updated On: November 21, 2019)
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This is an important element to investing from Ray Dalio. He is rated one of the best hedge fund managers out there with this Bridgewater Associates. Here are some links with video .

If you like these sort of topics in investing, check out my set of books

Billionaire hedge fund manager Ray Dalio has two pieces of advice for the average investor.

The key to diversification is using more assets. The less correlated those assets, the better. While I wish I had come up with the title of this article, it is attributed to Ray Dalio, of Bridgewater Associates a successful hedge fund. He referred to diversification as the “Holy Grail of Investing” in his book, Principles. Traditional diversification involves adding more assets at relatively high correlations. Wiser diversification is adding uncorrelated and low-correlation assets. Adding one uncorrelated asset (two assets in the portfolio) can reduce risk by 29 percent. Utilizing six uncorrelated assets reduces risks by nearly 60 percent.

Ray Dalio



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