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Sunday, July 3, 2016

(Life and Management) Principles by Ray Dalio

This is a great paper to understand having and applying principles to day-to-day business and personal lives.

If you do not have your own principles, you easily get distracted and/or influenced by others. Have your own princinples and get is tested by yourself and someone you believe so that you can improve it though open-minded discussions.

You should differentiate your goals and desires; focus on your goals that you want to achieve and forget your desires. (e.g., try to do everything including what you are poor at all by yourself in order to look good while sacrificing what you really want)

Be objective, neither subjective nor emotional.

make sure that his incentives are aligned with his responsibilities and that he is doing his job well

You need to build your own and/or team's machine with feedback loops:



In picking people for long-term relationships, values are most important, abilities come next, and skills are the least important.


If someone is doing their job poorly, consider whether this is due to inadequate learning (i.e., training/ experience) or inadequate ability.


 It is your job as a manager to get at truth and excellence, not to make people happy. 

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