Ray Dalio Shares his Principles and Investment Outlook (Rare in-Depth Interview)

From WSJ:

Ray Dalio runs the biggest hedge fund (approx. $125-billion) in the universe. And he’s making money this year. A lot of it. So how does he do it?

“If you are playing the role of the casino… that’s where you are going to make money,” Dalio told the Bloomberg Markets 50 Summit on Thursday.

Basically, the hedge fund guru was suggesting that winning portfolios in this market are ones built on all kinds of non-correlated and diversified bets. In effect, if you’ve got the whole casino, rather than just playing a few games, there’s a better chance you are going to win – and you can avoid “Russian roulette scenarios.”

It served Dalio well in early August, as equity markets were plummeting. In a one week period, Dalio’s Bridgewater Associates LP scored gains of more than $3.5 billion, or about 5%, in its flagship hedge fund in a one week period. The gains helped the fund keep its place as one of the top-performers of the year.

23 minute video - email readers will need to come to site to view

Here is the full transcript of this rare interview (use full screen to enlarge):

Ray Dalio Bloomberg 50 Sept 15 2011 Transcript

Finally, Ray Dalio's Principles if you care to learn from a real master of the universe: DOWNLOAD

Hat tip Reformed Broker.