Ray Dalio's holy grail is to diversify, as simple as that might sound.

Dalio believes in prepping a portfolio that would succeed or survive in pessimistic realistic circumstances 🤝

The second grail is balancing your investments based on inflation risk

Yet again, focus on the harsh reality so balance your portfolio with the assumption of high inflation 💸

His next advice is to avoid having any biases! Don’t let the narrative of a bullish or bearish run influence your decision to sell/hold 🤔

On the note of buying & selling, Dalio’s 5th principle is to “sell the winners” and “buy the losers”

Instead of holding onto significant gains, Dalio sells them to reinvest the profits 🤑

And lastly, Dalio believes that “it all comes down to interest rates”

If you want to advance your investing skills, understand how and why interest rates move 📈