Please enable JavaScript.

Coggle requires JavaScript to display documents.

Principles by Ray Dalio (Embrace Reality and Deal With It (Look at the…

- - - - even the harsh ones
        
        ignore impractical idealism
    - - be more effective rather than work harder
        
        working effectively significantly increases capacity
  - - - results in continuous real-time feedback loop
        
        make decisions
        
        see outcomes
        
        improve understanding of reality as a result
    - - more likely to receive honest feedback
  - - - approach with two perspectives
        
        top down
        
        the one code/law which drives them all
        
        bottom up
        
        different/specific case and the codes/laws which are true for them
    - - miss out on knowing how they really are
      - people view things as bad
        
        if it is bad for them or for their loved ones
        
        they don't focus on whether it's better for greater good
      - when something is good
        
        must operate with the laws of reality
        
        contribute to the evolution of the whole
      - Evolution is single greatest force in the universe
        
        the process of adaptation causes progress
        
        results in adaptations/inventions
        
        can also result in death and decline
        
        can lead to new adaptations/inventions and higher levels of development
        
        Evolve or die
        
        true for people, countries, companies, economies
        
        key is to fail, learn, improve quickly
  - - - contribute to the whole and you will likely be rewarded
    - - decide which one you want to be
    - - decide whether to put others' interests above yours
        
        decide who you will do that for
  - - - strive to get better at something
      - learn rapidly about yourself and environment
        
        change to improve
      - no pain, no gain
      - have to push one's limits to gain strength
        
        painful
  - - - pain is signal for the need for solutions to make progress
      - develop reflexive action to psychic pain
        
        this leads to rapid learning/evolving
      - if you are not failing, you are not testing your limits
        
        if you are not pushing your limits, you are not maximizing your potential
    - - don't let up on yourself
      - become comfortable by always operating with a little pain
        
        evolve/learn faster
      - pleasure is the other side of pain
        
        going through pain to get to pleasure results in
        
        identifying, accepting, learning how to deal with your weakneses
        
        preferring honesty from those around you
        
        being yourself always
      - embrace tough love
        
        having difficulties is necessary to grow strong
  - - - first order consequences are less desirable
        
        they cost us what we really want
  - - - look down and be objective
    - - you can alter your machine to get better outcomes
    - - chance to modify machine
    - - be the designer/manager of your life instead of a worker in it
    - - helps to spot weaknesses easier
    - - good at managing those things to shape change
      - can see themselves and others objectively
        
        helps them to make practical decisions
    - - can get you anything you want in life
    - - dont confuse what you wish to be true with what really is true
      - dont worry about looking good, worry about achieving your goals
      - dont outweight first order consequences relative to second and third order ones
      - dont let pain stand in the way of progress
      - dont blame bad outcomes on anyone but yourself
- - - - can have anything you want
      - cant have everything you want
    - - proper goal is something you need to achieve
      - desires are wants and can prevent achieving goals
        
        usually first order consequencs
    - - dont limit goals to what you know you can achieve
    - - once you have flexibility and self-accountability
  - - - every problem is an opportunity
    - - different problems have different solutions
  - - - proximate causes are typically the actions/lack of actions which lead to problems
      - when you know what someone is like (including you), you will know what to expect from them
  - - - practice higher level thinking so you can produce better outcomes
    - - must be sketched out and refined in just hours
      - designing precedes doing
  - - - requires self discipline to follow script
      - remember connection between tasks and goals and what they are meant to achieve
    - - this should ideally be done by someone other than you
  - - - identify at which step in the 5-step process you usually fall
    - - identify it and deal with it
        
        you can either fix it
        
        or get help from others
  - - - if it helps you to get better answers than what you can come up with on your own
      - both open-mindedness and good mental maps
        
        most powerful option
- - - - subliminal defense mechanisms which make it hard for you to see your mistakes
    - - your way of thinking prevents you from seeing things accurately
        
        we have different ranges for seeing and understanding things
        
        some people are better at seeing big picture
        
        some people are better at seeing details
      - closed minded - presume too much
    - - your higher level you
        
        not aware of your lower level you
        
        logical/conscious you
      - lower level you
        
        emotional/sub-conscious
        
        act like attack dogs - want to fight even when higher level selves want to figure things out
        
        do not let the need to be right overcome need to find out what's new
  - - - state of not knowing is much greater and more exciting than anything any one of us knows
    - - recognize that your ability to deal well with "not knowing" is more important than whatever it is that you do
    - - a) take in all relevant information
      - b) decide
    - - if both parties are peers, then it may be better to argue
      - if one party is more knowledgeable, then the less knowledgeable should listen the more knowledgeable
  - - - objective is decide which view is true and decide what to do about it