Bridgewater's key advantage is its disciplined process of writing down every belief and translating it into an algorithm. This dual format allows knowledge to be compounded across the organization, as it can be understood by new employees and simultaneously executed and analyzed by computers and AI.
Bridgewater's Co-CIO has learned to "treasure" the feeling of anger or defensiveness when receiving criticism, especially from junior colleagues. He sees this emotional reaction not as a reason to dismiss the feedback, but as a powerful signal that it's touching on a real blind spot he is subconsciously trying to ignore.
The key to long-term wealth isn't picking the single best investment, but building a portfolio that can survive a wide range of possible futures. Avoiding catastrophic losses is the most critical element for allowing wealth to compound over time, making risk management paramount.
Bridgewater's Co-CIO argues the winning formula of the last 15 years—concentrating capital in US equities and illiquid assets—is now a dangerous trap. He believes most investors have abandoned diversification because it hasn't worked recently, creating a risky setup that calls for a globally diversified portfolio.