We’ve talked a bit here over the last few days about the meaning of the word “sustainable” and its derivatives. More specifically, we’ve talked about how no one really agrees on the precise definition of this widely- and increasingly-used term.
Well, we’ve good news that will cut through this fog of confusion and settle the issue once and for all. For either in addition to or as part of the 70 hours a week Bridgewater Associates founder Ray Dalio is spending trying (and so far failing) to fix his ailing giant hedge fund, the Svengali of Westport has been putting the concept of sustainability through its paces, asking what’s true and what makes sense, analyzing mistakes, seeking out the valid opinions, making accurate assessments, evaluating with rigor, tasting the soup, being very specific, putting things into perspective, and understanding and connecting the dots, etc., to arrive at the one true, immutable and principled definition.
Ray Dalio’s firm, which oversees $140 billion of assets, plans to open two sustainable funds in 2021. Bridgewater started advising clients this year on how to manage assets to meet both societal and financial goals…. Bridgewater’s new strategy will pick securities that are the most aligned with the United Nations’ Sustainable Development Goals, which seek to end poverty, fight inequalities and tackle climate change.
Oh, so that’s what it means. Anyway, Dalio’s been thinking about the meaning of something else, as well, and has come to the conclusion that, despite his earlier skepticism, it does have meaning after all.
In a Reddit Ask Me Anything (AMA) on Tuesday, Dalio said he thought and other cryptocurrencies had “established themselves” over the last 10 years and were interesting “gold-like asset alternatives….”
Bitcoin “could serve as a diversifier to gold and other such storehold of wealth assets,” said Dalio. “The main thing is to have some of these type of assets … including stocks, in one’s portfolio and to diversify among them….”
Dalio comments are a deviation from a month ago when he said there are three main problems with bitcoin and other cryptocurrencies: a lack of venues accepting digital assets as payment, price volatility and the potential for governments to “outlaw” them.