Ray Dalio

Principles are formed in different ways. Sometimes it is influenced by acquired experience and reflection. Sometimes we inherit them from other people, such as parents, and sometimes we adopt a whole set of principles, like religious doctrines or a code of laws. The ambitions and goals of each person are unique, and they choose principles for themselves accordingly. Following the rules of others is not always necessarily bad. But if you follow them blindly and thoughtlessly, there is a risk that your behavior will be uncharacteristic for you and will prevent you from achieving what you desire. At the same time, you, like me, probably do not know everything you need, and the most sensible thing is to accept this fact. If you are capable of thinking independently and at the same time being open to everything to understand what is preferable for you, and then gather your will and do it, you will be able to realize your potential to the fullest. If you do not know how to do this, figure out the reasons, because most likely, that is the most serious obstacle to getting more out of life. These reflections led us to my first principle. Decide for yourself: 1) what you want, 2) what the objective reality is, and 3) what you need to do to achieve point 1 from the position of point 2... and then do it modestly and impartially, guided by the best knowledge available to you at that moment. Having clear principles is extremely important because they constantly influence all aspects of life. For example, when you build relationships with people, it is your principles—and others’—that will determine the nature of communication. People with shared values are more likely to get along. Meanwhile, those with different life principles are more likely to encounter misunderstandings and conflicts. Think about your closest people: how much do their values align with yours? Do you even know what their principles are? Too often, they remain unspoken. This leads to the biggest problems at work, where for the success of the company, employees must share common principles. I wanted my principles to be crystal clear, and therefore I literally labored over every sentence of this book.