In 1974, Bridgewater hedge fund manager Ray Dalio was working in the commodities futures department of Shearson Hayden Stone when he went out with his boss on New Year’s Eve, and after getting into a debate with the guy, punched him in the stomach. Soon after that night, Dalio was fired when management learned that “at the annual convention of the California Food & Grain Growers’ Association, he paid an exotic dancer to drop her cloak in front of the crowd.” Looking back, it’s clear that in both situations, Dalio was merely acting on his lifelong belief that one should relentlessly “pursue the truth at all costs,” the guiding tenet Principle found within Bridewater Associate’s employee handbook, written by Ray.

Unfortunately, in 1974, Principles was but a single-celled idea in Dalio’s mind, and the higher-ups at SHS didn’t understand that Ray didn’t pay off the dancer so he could see her tits but so conference goers could drill down to the truth underneath her robe, while punching the boss was RD’s way of trying to get the guy to open his eyes. Continue reading »