“How To Build A Company Where The Best Ideas Win”, Ray Dalio
“How To Build A Company Where The Best Ideas Win”, Ray Dalio
In weak companies politics win. In strong companies best ideas do - Steve Jobs
Most companies do things just because it's the way they do things. No one knows why!
in my view the way to do well is to use data/information and as Isaac Asimov explains in his Foundation series.
The premise is that with the use of statistics you can gather up all prior history and use it to predict the future.
Bridgewater is not a quant shop but they definitely use data extensively.
when you use data to figure out what to do how does it work in practice?
a)you find people who were successful and see what they have done. if there is a pattern do it.... If the sample is short don't use but if you find thousands of people in history who have done something perhaps ......it works
b)you find some sign that usually precedes x if you find that sign you know x is probably coming soon again the sample is key
c)you find something that has a probability of 60% should you do it? depends if it's only one bet i wouldn't do, but if you can do thousands of small bets with a 60% probability i would win for sure. i would not play russian roulette because despite having very good odds.....
most companies just do what they do without knowing why, just try to implement the system where the best ideas win how do Bridgewater do it
one very interesting feature of his company is the weight each person opinion has.
if you have been right recentely your opinion is worth more than the next guy
One system that can work is to put a very smart guy as a CEO and he listens to lot's of people and just decides at the end trying to figure out what is the best idea. It doesn't make you the best company but you could survive
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