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How to build a company where the best ideas win | Ray Dalio

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What if you knew what your coworkers really thought about you and what they were really like? Ray Dalio makes the business case for using radical transparency and algorithmic decision-making to create an idea meritocracy where people can speak up and say what they really think -- even calling out the boss is fair game. Learn more about how these strategies helped Dalio create one of the world's most successful hedge funds and how you might harness the power of data-driven group decision-making. Check out more TED Talks: http://www.ted.com The TED Talks channel features the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes (or less). Look for talks on Technology, Entertainment and Design -- plus science, business, global issues, the arts and more. Follow TED on Twitter: http://www.twitter.com/TEDTalks Like TED on Facebook: https://www.facebook.com/TED Subscribe to our channel: https://www.youtube.com/TED
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Text Comments (360)
Eric Raynald (20 hours ago)
make sure that capitalism work for the majority of the people, to look at the bottom of sixty percent population, how you approach the wealth gap and opportunity gap? They paint the picture of the future. What I want is a meaningful work, a meaningful relationships, throught radical truthfulness, and radical transparency, because they're reinforce each other.
Aye OK (22 days ago)
Play at 2x
Wisdom Carl (26 days ago)
Expeditetools,com are my life savers. They did a hacked transfer for me and injected $67,000 safely to my account
RDRAFF1 (27 days ago)
Teaching computers how to excommunicate undesiable folks
ThreeCube (1 month ago)
Women in the workplace cannot handle any transparency. They're sensitive creatures that will complain to management if you act transparently.
Eric Walls (1 month ago)
Did everyone get the fact that he codified his investment strategy on how he views the economy and implanted AI into a computer to trade together. AWESOME
Mateusz Lis (1 month ago)
Great speech, thank you, Mr Ray :)
하하호호 (1 month ago)
I think he is a legend of suceesful person and he have shared his principle for us. Thank you ray dalio. Finally, he advice about USA economy. Be carefull after 7 inning economy status.
PETER MBWEKU (1 month ago)
People should use Pseudo names to have some degree of anonymity so as to avoid any hostility environment. After then the dot collector will be perfect.
M Goldey (2 months ago)
$16B net worth and he dresses like my uncle Marv whose only form of income are social security checks
Kitchenentrepreneur (2 months ago)
This guy has a beautiful voice. Glad he did the audio version of principle mostly himself! Great talk though. kitchenentrepreneur
Victor Rey (2 months ago)
I've had great ideas that worked and bad ideas that didn't and I had supporters and critics of both! Googling this soon!
Victor Rey (2 months ago)
Dot Collecting is one of the most incredible ways I have ever seen to get people to truly communicate and work well together! Wow!
Jim Mooney (2 months ago)
You can know what others are really thinking and what they are really like if you are truthful and honest about what you think about yourself and about others while at the same time refraining from becoming arrogant in your belief that you are right. You very well could be completely wrong and you have to be able to accept that with humility. Believing in yourself is about believing you can make mistakes and that others can too. Nobody is perfect but they are similar.
Mervin Zeng (2 months ago)
厉害了
Sustany Capital (3 months ago)
Companies are an organizing principle that assumes that the conditions for 'perfect competition' cannot be met. As new organizing principles - such as decentralized autonomous organizations - emerge, individuals can increasinly trade amongst themselves without the friction of rent-seeking companies. - https://www.forbes.com/sites/forbesfinancecouncil/2018/07/30/the-economics-of-decentralized-organizations-the-end-of-for-profit-corporations/#499b819a3966
Lance Corporal (3 months ago)
5:16 wow lighting up seems so shocking nowadays...
Apple Zheng Yang (3 months ago)
I guess that's the old version of Benedict Cumberbatch.
TheBlackMamba242424 (3 months ago)
Check out our blog! Share your thoughts on our content! Thank you! http://artisandimension.com/2018/05/31/cutting-room-floor/
kori lee (3 months ago)
haha, their bald spot is growing or their baby is ugly, that is funny..
Obuti Trankuz (3 months ago)
This is so interesting ! What is this kind of thinking and investing called and are there books about it ?
Investing Book Summaries (3 months ago)
Wow, surprised they got him to come out.
中華 (3 months ago)
不知道有沒有中國人,華人或者懂中文的外國人看得懂我下面的話,類似宗教界,無我,無名,無情,無心,空無一物,無所不容。恰恰就是我們中國道教有些精神信仰。陰陽八卦,無極太極,八字預測,六十四卦。若有興趣可以了解一下。
megakids (1 month ago)
我不认为有可比性。他都说了,有25-30%的人不认同这个做法。您说的宗教的部分更是虚无缥缈的概念。我个人无法认同。
Manveer Singh (4 months ago)
His hands and body shaking is so distracting
Koen De Vriendt (4 months ago)
and slower movements...
Koen De Vriendt (4 months ago)
he's trembling...Parkinson? Belgium
Giuliano Altobelli (4 months ago)
I think I found my Disneyland.
Ryan Sells Everything (4 months ago)
The dot collector is a human app in a machine
Nam Phan (4 months ago)
I ask myself "How do I know that I'm right?" all the time. But the problem is, whenever I ask myself that, I feel like I'm lack of confidence, that I can't even believe in myself.
Franco Anzures (4 months ago)
Thomas Aquinas and Aristotele were right at valuing the truth over emotions, amazing story logical thinking.
Wilhelm Otto Dusseldorf (5 months ago)
I want to fly one of those remote control drone dragonflies into Ray Dalio’s Bridgewater office and team trading room and invest alongside his investing.
Luana Vasco (5 months ago)
His expression is excellent.
QuiEstJohnGalt (5 months ago)
What is the software Ray Dalio use for his hudge fund meeting ?
Vale Ember (5 months ago)
ОН ЁБАНЫЙ ВОЛШЕБНИК!!!
Liz Crittenden (6 months ago)
This is how it should be!!!
Damien Reeka (6 months ago)
* “ How to build a company where the best ideas win” understand others perspective or have others to stress test your perspective in order to make a idea meritocracy (not autocracy which you lead and others follow nighter democracy which everyone’s point of view is equally valued) in order to do that you need radical truthfulness and radical transparency , then you can collect the right principle and embed them to algorithm , and then those algorithm provides following algorithm in parallel to your thinking. Tool required to do this is explained as following: Title of discussion RULE : Rating ability by everyone (1to10) and why (reason) A B 3(because...) As you farther scale the process you will come across such a DATA ; A C D E F B B 3 5 8 6 5 - C 9 - 6 4 0 8 D 8 7 - 6 7 6 E 4 6 8 - 2 9 F 7 5 4 0 - 2 A - 3 9 5 6 8 It helps one to see every ones opinion and let go of their opinion in order to see the bigger picture . it changes ones perspective from 1 dimension to multiple dimensions and it improves conversations with shifting from arguments to figuring out the criteria to eventually see the right pictures , after that we can apply all the best well stress tested perspectives before making any decisions in our life (business, which generally is the deep meaning and purpose of life and it earns us value/counting/money as said in ancient Hebrew and later it able us to get a great deal of happiness in the case of success). Benefits: it eliminates arrogant and naive believes from one which holding the wrong opinion and fighting for it and then he can make the right decision which as fellow human we all will effectively benefit from such a transformation. Also after analysing the results we will be able to categorise people and then putting them in the right team which they can be effective positively in all of us best interest. HAPPY ENDING * Refers to Ray Dalio’s way of running his hedge fund and being able to be better than all competitors in the last 25 years.
Letícia Teixeira (6 months ago)
I don't think I understood it all, but I like it A LOT.
Salvatore (6 months ago)
I have to work with algorithms and in transparency with my colleagues
KWAN Francis (7 months ago)
All these ideas and principles are pit together in his book " Principles". Pretty good.
Ahmed easybh (8 months ago)
Why there's no Arabic translate?
Andy Dong (8 months ago)
Bought his book and really helpful to my personal growth.
eduardo assali (8 months ago)
THIS MAN IS A FUCKING GENIUS
Old School Rider (8 months ago)
the double-slit
ayush kumar (8 months ago)
Every word you Said was so true.
TheReactor8 (8 months ago)
The best idea wins..... how do you know? who decides what is the best idea?.... Risk Parity is a flawed strategy that happened to work for years because of the rate decline (basically the only reason for his success apart from salesmanship). The last few years there was no added value for the strategy compared with a traditional balanced portfolio. The flaws of Risk Parity are: 1) Risk is not measurable it has been replaced by the rear view mirror called past volatility. 2) Leveraged returns of low risk investments do not behave the same as non leveraged returns of higher risk investments. Both assumptions are made by Dalio and he is rewarded by the markets for a long time. Where is their doubt on this?
Jamie (9 months ago)
I like the bit where he says algorithms
Ray, thank you, good job. I agree that together we are stronger!
Vincent Valentine (9 months ago)
This is an excellent summary of Ray Dalio's "Principles" http://a.co/9sT1ENk.
Thanks you Ray for sharing your wisdom. Greetings for Colombia.
Ted Engels (9 months ago)
First rate genius. Excited to be living at a time when information like this is available everywhere.
Varun Jain (10 months ago)
Nice Culture promoting Meritocracy !
Katharina Kunze (10 months ago)
How could this be implemented in politics, e.g. in a reform of democracy?
Shiva Shrivastava (10 months ago)
Great Talk..i also just finished his book - 'Principles', and i must say that it is an eye opener, you can learn a lot from this man and his way of thinking!
slaction (10 months ago)
I don't understand why people are so eager to take the advice from investors and VCs. It seems like every single person who's ever been a VC has written a book lately, and from what I've read they're all pretty bad. Shockingly, old, rich white dudes don't really know how to build a business unless it already has $10 million in the bank. Give them a brick and mortar storefront and no money and they'll fail faster than you can imagine. This guy doesn't have anything real to offer entrepreneurs. It might sound good, but he's just making it up, he hasn't actually done anything but be rich for the last 30 years, his advice means basically nothing unless you're already rich.
Lorendrawn (9 months ago)
@slaction that's a pretty valid point actually. what resources do you recommend for people starting from 'not rich?'
Lorendrawn (10 months ago)
imagine if we had believability-weighted Presidential elections *Grabs popcorn*
ryan melikian (10 months ago)
huge fan of mr.Dalio, though his management approach is too obsequious, especially when it comes to adopting technology in a workplace. this "data-driven" dot-collector thing is not some magical formula that prevails a strong leader with clear mind. Machine may trade better than human, but certainly not manages people better than human in current stage of technological progress
Djamal Adib (10 months ago)
EXCELLENT!
Abhishek Mathew (11 months ago)
Important terms: "collective decision making, idea meritocracy, believability"
David Gamble, II (11 months ago)
A True Genius! Full Transparency with the smartest minds in the world; that's what makes the magic happen!
Pranav Patil (11 months ago)
Cool 😎
SENSE (11 months ago)
Ray is a great man. I just bought his book, Principles, and it is full of wisdom. I've worked in 12+ big organizations, including IBM (under Lou Gerstner in the 90s), American Express, etc. and his tool (Dot Collector) would have been wonderful and powerful. Today, I teach Digital Marketing at a college in Canada, and I find that his principles also apply to marketing and entrepreneurship. Because of our ego and insecurity, we often hide our thoughts from others for fear of being criticized. Even within a family and within a network of friends, we often do not, as Ray says, "put our honest thoughts on the table." Yet, no honest sharing of thoughts means no feedback, which means no progress and no personal/professional evolution. Ray intends to make a tool resembling the Dot Collector available to Silicon Valley startups because they've expressed interest in it. This is great, and I do hope more organizations adopt his principles and methods. It will not be easy for many people to suddenly become honest and transparent, but the alternative (to work in a culture of dishonesty and non-feedback) will increasingly become intolerable.
vegans are in a cult (1 month ago)
Great? He is a con man which is why he teamed up with Tony Robbins.
Blacklight Exposure (11 months ago)
Fair
CHACE (1 year ago)
Damn we could take this further than businesses. Any relationship and group of people could communicate better with algorithms.
Did Z (1 year ago)
Brilliant man!
Muchammad Fahmi (1 year ago)
I think this collective decision making methods will be very useful applied in Indonesia.
Brilliant
François Lee (1 year ago)
Imagine now if Ray Dalio was President of the United States...
Noah Jackson (1 year ago)
🔥
Paul Mamani (1 year ago)
Simply the best HF manager of last 20 y... Very captivating and inspirational... I enjoyed reading his Opus Magnum " Principles and How does Work The Economics Machine"
Sandy (1 year ago)
in a large organisation everyone will rate Ray as 30 on a scale of 1 to 10
Bereng letsie (1 year ago)
who saw richard branson amongst the crowd?
HKashaf (1 year ago)
They need this solution for Congress and Senate maybe even supreme courts
ZiemniakPospolity (1 year ago)
To work with it you need to have a group of people, that are perfectly reasonable and opened to improve themselves. I can only imagine how embarrassing or insincere or just awkward and problematic this model has to be. Everyone has the emotional side of the personality, so people in this company has to be embarrassed or to fake their behavior or to just angry with the others.
aldeend (1 year ago)
This man echoes with my thoughts and do it so eloquently. If there is ever some esoteric fundamental truths in this world, what he's talking about is certainly some of them.
David Swedlow (1 year ago)
In a competitive either/or environment, it makes perfect sense that Radical Transparency is too much vulnerability. HOWEVER, in a cooperative environment, anything less that Radical Transparency is poison to trust. As a really nice trifecta of resources to consider (in ADDITION to Ray Dalio's book!) if you want to delve deeper: 3) Read: An Everyone Culture, by Robert Kegan (Dalio is featured there) 2) Read: Throwing Rocks At the Google Bus, by Douglas Rushkoff (platform cooperatives as economic yin dancing with western capitalism's yang - both/and) 1) But first, after watching Dalio's talk, Spend 30-40 minutes grokking The Evolution of Trust: http://ncase.me/trust/ I recommend putting your attention precisely on WHY you feel hiding is the right action (it may well be!), and what feels too vulnerable to share (it may well not be!).
vivifyer (1 year ago)
I wonder what Ray Dalio would think of a business owner who sits in meetings for 5 to 8 hours a day, discussing "fourth order effects", philosophy and block chains, when they should have been getting new projects for the company. Draining the companies account to about $2k, over 8 months then telling your last remaining staff member "i give up, and sorry about your $26,600 i wasted on my parking and other useless stuff". Would Ray think this is merit based ideas powering a company that's supposed to produce digital media content for marketing and web?
Keith Wo (1 year ago)
I bet the person who laughed the hardest is Jim 8:02
Krommandant (1 year ago)
Lol, with how much time they waste on their interfaces they might not use that software that much.
knockz13 (1 year ago)
Ray Dalio is the Steve Jobs of finance
Jie Zhang (1 year ago)
Where can I find this App?
Rejin Nellolimeethal (1 year ago)
Best Ted Talk..
Art Gold (1 year ago)
This dot collection remind me Daniel Kahneman advice on how to make decision of data you collected but obviously modified. Well its a big step forward to transparency, think you work in company with your colleagues being lower middle class they not bad humans but they got here because of lack of education or even luck now they life is shaped for next x years if they wont develop new skills now if you recognize they don't want to participate to improve their life then their opinion about you worth about nothing if you have goal oriented mindset :)
By now I've listened to Ray's TED talk many times, often as I was reading the transcript. In my opinion he was right about the dept crisis in 1982 and thereby deserved a hearing by the congress.
Jack Kabibble (1 year ago)
Still seems arrogant, I don't know I'm trying but I just don't think I like this guy
That was quite amazing talk by Ray Dalio. It all seems to have developed from his evaluation of the default of Mexico in August of 1982. He deemed himself as having been too arrogant and found a way to stress test his opinions with the help of his staff, algorythms and computers.
Carol d rai (1 year ago)
Dont you love this human being
Paul Mamani (1 year ago)
The WS´s guru
FeeNeeX (1 year ago)
Man is worth $25 Billion and looks like an old grandpa that can easily pass by you and you wouldn't even know him
jorda0mega (1 year ago)
does he have Parkinson's disease? I'm curious as to why the sudden transition. From a lifestyle of personal successes to one of leaving a legacy behind...
at0m1c (25 days ago)
He looks nervous. Check his other TV appearances where he's just calm.
Imzan Akbar (1 year ago)
I think Ray has stage fear?
ncooty (1 year ago)
It not clear to me how (or if) they validate the algorithms. Moreover, it seems like a lot of navel-gazing data production with low inter-rather reliability. It all seems born of an underlying notion that data will speak for themselves, and that numbers lend objectivity--even unassailability--to decision-making or management.
Julio Velez (1 year ago)
Tony Robbins and Ray Dalio brought me here 💪🏼🙏🏼🔮
AGUSTIN ANDRADE (1 year ago)
Beautiful
Crypto Alchemy (1 year ago)
That`s why India had casts back in the day.
FirstRisingSouI (1 year ago)
We should use this in the government.
PraiseForAll (1 year ago)
YOU ARE FIRED LARRY!!
Rongli H (1 year ago)
I dont see much innovation in this algorithm. In machine learning, its just a random decision forest.
lucia lu (1 year ago)
I think this could be the next step of management in history. Imagine a country uses the same strategy to make a better decision? But it definitely requires more open minded ppl who's able to accept different opinions than viewing them as an attack, which most ppl prone to do. I must admit I'm easily to be offended, nobody likes to be criticized. But the environment building is essential here, coz if you're in an environment which everyone takes other's opinion into consideration instead of shooting them down at the first sight, I'm sure some of us would blend in, and achieve to be a better self. Same principle goes for ruling a county.
Ivo Teixeira (1 year ago)
This is not for me. First: because I am a genius. Second: I am such a genius I even know when I'm wrong even before other people do. And yes, I have detected a bit of arrogance in my own sentence. ;)
Daniel Engels (1 year ago)
RAY DALIO for President

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