Principles: Life and Work

by Ray Dalio

Nobel Prize–winning economist Harry Markowitz

The good thinking comes from exploring the reasoning behind the principles.

Learning must come before deciding. As explained in Chapter One, your brain stores different types of learning in your subconscious, your rote memory bank,

Synthesis

by-and-large

Remember the 80/20 Rule and know what the key 20 percent

Use the terms “above the line” and “below the line”

there are two broad approaches to decision making: evidence/logic-based (which comes from the higher- level brain) and subconscious/emotion-based (which comes from the lower-level animal brain).

evidence-based decision

Raising the probability of being right is valuable no matter what your probability of being right

Slow down your thinking so you can note the criteria you are using to make your decision. 2. Write the criteria down as a principle. 3. Think about those criteria when you

Coach,

valuing your own believability more than is logical and 2) not distinguishing between who is more or less credible.