This is the greatest comeback story in history: After making a...
Kintsugi Investing@kintsugiinvest
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Feb 07, 2025
~3 min read
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This is the greatest comeback story in history:
After making a critical mistake in 1982, this man lost his life savings & had to borrow $4000 to survive.
With nothing left, he had ONE final idea that turned into $150BILLION.
Here are his 3 lessons on the power of failure:🧵
After making a critical mistake in 1982, this man lost his life savings & had to borrow $4000 to survive.
With nothing left, he had ONE final idea that turned into $150BILLION.
Here are his 3 lessons on the power of failure:🧵
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Meet Ray Dalio.
In 1982, Ray was convinced that the global economy was on the brink of a depression.
He bet everything on this prediction.
He even testified before Congress, warning of the impending crash.
But guess what?
The crash didn't happen. Instead, the economy soared.
In 1982, Ray was convinced that the global economy was on the brink of a depression.
He bet everything on this prediction.
He even testified before Congress, warning of the impending crash.
But guess what?
The crash didn't happen. Instead, the economy soared.
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His bold prediction backfired terribly.
Clients withdrew their investments.
He lost his savings.
He had to lay off all his staff, leaving him alone to pick up the pieces.
Broke and humbled, he borrowed $4,000 from his father just to pay the bills.
Clients withdrew their investments.
He lost his savings.
He had to lay off all his staff, leaving him alone to pick up the pieces.
Broke and humbled, he borrowed $4,000 from his father just to pay the bills.
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Sitting in his tiny apartment, Ray faced a choice:
Give up on his dream or learn from his mistakes.
He chose the latter.
He realized that overconfidence had been his downfall.
It was time to rethink everything.
Give up on his dream or learn from his mistakes.
He chose the latter.
He realized that overconfidence had been his downfall.
It was time to rethink everything.
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Ray began to develop a new approach to investing.
He embraced radical honesty—with himself and others.
He started writing down principles to guide his decisions, focusing on reality as it is, not as he wished it to be.
He embraced radical honesty—with himself and others.
He started writing down principles to guide his decisions, focusing on reality as it is, not as he wished it to be.
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With this new mindset, he rebuilt Bridgewater Associates from scratch.
He prioritized diversity of thought, encouraging his team to challenge his ideas.
He created a culture of transparency and constant learning.
He prioritized diversity of thought, encouraging his team to challenge his ideas.
He created a culture of transparency and constant learning.
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Fast forward to today:
Bridgewater manages over $150 BILLION, making it the largest hedge fund in the world.
So, how did Bridgewater become what it is now?
Bridgewater manages over $150 BILLION, making it the largest hedge fund in the world.
So, how did Bridgewater become what it is now?
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After rebuilding, Ray structured Bridgewater with a unique culture of radical transparency and radical truth:
• Every idea was stress-tested, regardless of the source.
• Employees were encouraged to challenge each other, including Ray himself, ensuring the best ideas won.
• Every idea was stress-tested, regardless of the source.
• Employees were encouraged to challenge each other, including Ray himself, ensuring the best ideas won.
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This culture attracted top talent and fostered an environment where failure was studied to drive improvement.
Success is rooted in rigorous risk management, macroeconomic analysis, and timeless principles.
Success is rooted in rigorous risk management, macroeconomic analysis, and timeless principles.
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At the heart of Bridgewater’s success was Dalio’s creation of the All Weather Portfolio.
It is an investment strategy designed to perform well in any economic environment—growth, recession, inflation, or deflation.
It is an investment strategy designed to perform well in any economic environment—growth, recession, inflation, or deflation.
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How it works:
• It’s based on diversification across asset classes like stocks, bonds, commodities, and cash.
• The goal is to balance risks, not just returns, so no single event can derail the portfolio.
• It’s based on diversification across asset classes like stocks, bonds, commodities, and cash.
• The goal is to balance risks, not just returns, so no single event can derail the portfolio.
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The genius of the All Weather Portfolio lies in its simplicity and resilience.
• No market predictions—just being prepared for anything.
It delivered steady, reliable returns, even during crises like 2008, earning global investors’ trust.
• No market predictions—just being prepared for anything.
It delivered steady, reliable returns, even during crises like 2008, earning global investors’ trust.
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Ray’s journey from failure to massive success is legendary. Here’s what he learned about failure:
1) Failure Fuels Growth
Ray realized failure isn’t fatal—it’s educational.
His mantra?
"Pain + Reflection = Progress."
Every setback became a stepping stone forward.
1) Failure Fuels Growth
Ray realized failure isn’t fatal—it’s educational.
His mantra?
"Pain + Reflection = Progress."
Every setback became a stepping stone forward.
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2) Cultivate Radical Open-Mindedness
He understood that being open to being wrong is a strength.
By inviting criticism and diverse perspectives, he made better decisions.
Ego took a back seat to truth and excellence.
He understood that being open to being wrong is a strength.
By inviting criticism and diverse perspectives, he made better decisions.
Ego took a back seat to truth and excellence.
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3) Build Principles-Based Systems
Ray started documenting his decision-making processes.
These principles became the foundation of Bridgewater's success.
A systematic approach reduced mistakes and led to consistent results.
Ray started documenting his decision-making processes.
These principles became the foundation of Bridgewater's success.
A systematic approach reduced mistakes and led to consistent results.
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Ray Dalio’s story proves that failure isn’t the end—it’s a stepping stone to greatness.
By learning from our mistakes and staying committed, we can achieve incredible success.
By learning from our mistakes and staying committed, we can achieve incredible success.
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We're Marc & Howie:
• Financially-free investors
• Co-founders of Kintsugi Investing
• Passionate about helping others build & repair portfolios
Follow for learnings in investing
Repost to help others grow ⚡️
x.com/kintsugiinvest…
• Financially-free investors
• Co-founders of Kintsugi Investing
• Passionate about helping others build & repair portfolios
Follow for learnings in investing
Repost to help others grow ⚡️
x.com/kintsugiinvest…