I can be stressed, or tired, and I can go into a meditation and it all just flows off of me. I'll come out of it refreshed and centered and that's how I'll feel and it'll carry through the day.
Ray DalioRead
There are two main drivers of asset class returns - inflation and growth.
Interpretation
This quote highlights the two primary factors that influence the performance of investment assets.
Ray Dalio's quote emphasizes that the returns on various asset classes are primarily determined by two key economic factors: inflation and growth. Inflation erodes the purchasing power of money while growth indicates the overall health of an economy, influencing how investments perform over time. Understanding these drivers is crucial for investors in making informed decisions regarding asset allocation and investment strategies.
In practice
This quote could be used in a financial seminar to illustrate the importance of economic indicators in investment.
I can be stressed, or tired, and I can go into a meditation and it all just flows off of me. I'll come out of it refreshed and centered and that's how I'll feel and it'll carry through the day.
There is a strong tendency to get used to and accept very bad things that would be shocking if seen with fresh eyes.
The pain of problems is a call to find solutions rather than a reason for unhappiness and inaction, so it's silly, pointless, and harmful to be upset at the problems and choices that come at you (though it’s understandable).
Meditation more than anything in my life was the biggest ingredient of whatever success I've had.
Credit is a promise to deliver money. It will produce GDP but you'll create credit... So you reach a certain point that that you can't do that anymore... There are choices. And how do we best support, apportion the money? How much is going to be transferred?
There is nothing to fear from truth....Being truthful is essential to being an independent thinker and obtaining greater understanding of what is right.
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
All the time and effort people devote to picking the right fund, the hot hand, the great manager have, in most cases, led to no advantage.
The problem that people don't understand is that active managers, almost by definition, have to be poorly diversified. Otherwise, they're not really active. They have to make bets. What that means is there's a huge dispersion of outcomes that are totally consistent with just chance. There's no skill involved it. It's just good luck or bad luck.
Credit cards are like snakes: Handle 'em long enough, and one will bite you.
Never pay the slightest attention to what a company president ever says about his stock.
The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion.
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