Ray Dalio Review, Why I Love The Ray Dalio Investing Style
In this blog post, I’ll talk about my Ray Dalio review and of why I love his investing style. I’ve seen tons of videos of Ray Dalio at this point and I think he is extremely intelligent when it comes to some parts of Finance, namely predicting futures markets and understanding how the fed works. I also like how Ray Dalio tends to rely on something that I like to call academia finance, which is pouring through Academic research papers and the latest academic research from top PHDs in the field about index funds and about how a proper portfolio needs to be correlated across asset classes and sectors. One of the things from Ray Dalio that I feel best illustrates this is when he talks about The Holy Grail, a self made subject in finance that effectively creates the perfect portfolio correlation. It essentially boils down to having no more than 20% of your money in any one sector, and no more than 5% in any one company, and creates a diminishing returns graph that shows the risk return correlation based on how many securities you own in how many different sectors. Subscribe for more information!
My Ray Dalio Review, Lets Talk About the Holy Grail Some More
So, and I’ll include this either in a below video or in a later blog post about Ray Dalio and how he does in the field of finance, the Holy Grail by Ray Dalio is essentially showing the risk return ratio based on how you add stocks to a portfolio and of how you reduce your risk while sometimes actually increasing your returns as you add in new stocks and new sectors. He also shows how the probability of loss starts to decline as you add more and
more securities and sectors to a portfolio, and he takes a lot from Kevin O’ Leary’s mantra, which is basically “no more than 5% in any one company, no more than 20% in any one sector.” And that’s just out of your equity portfolio, you should ALWAYS, ALWAYS, ALWAYS, be at least 20% cash, at least that’s my motto (bonds and CDs) especially at the lower levels of wealth. If you have $2,000,000.00, maybe you can have a little less in cash, but I still say keep a 12-24 month emergency fund in bonds and CDs, or to at least have stocks that pay dividends as a portion of your portfolio rather than solely indexes, just so you have some income with easy tax filing paperwork, and some additional liquidity to your investment portfolio.
My Thoughts and Prayers Are With The Ray Dalio Family After The Loss of Their Son
Completely off topic here, but I just want to say that my thoughts and prayers are with the Ray Dalio family after the loss of their son Devon Dalio, after his car crashed into a Verizon store. I can’t even imagine what having a son die younger than you is like, and this is a tragedy no matter who this person is, be it a celebrity or your typical rank and file employee. Nuff said on this.
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Final Thoughts on My Ray Dalio Review, Why I Think He is a Great Investor
I think that Ray Dalio is really a fantastic investor, and that he has less of a gritty type personality than Carl Icahn has, and less of a holier than now attitude than say someone like Bill Ackman has. Ray Dalio is about as down to earth, smart and rational as it gets in the field of finance, and even me as a heavy index fund investor would invest my money with him, should I be so lucky. What do you think of Ray Dalio, read on or subscribe and let us know.
Cheers!
*Inflation Hedging.com
Sources:
https://www.bankrate.com/banking/cds/cd-rates/
https://money.cnn.com/data/markets/
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