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Ray Dalio's investing mantra to build an ‘all-weather’ portfolio — Here's how he balances risks in volatile markets

Billionaire investor and founder of hedge fund Bridgewater Associates, Ray Dalio has shared his simple investing mantra to build an all-weather portfolio that can balance risk in amid a volatile equity market. Speaking to Investopedia on a range of topics, including how he ensures risk balance and steady returns, Ray Dalio noted that his mantra is “investing in 15 good uncorrelated return streams, risk-balanced”. An uncorrelated asset is an investment that has little to no correlation with the traditional asset classes such as stocks and bonds, hence stabilising your portfolio during a market downturn.

Ray Dalio's investing mantra to build an ‘all-weather’ portfolio — Here's how he balances risks in volatile markets

Credit: Livemint

Key Highlights

  • Over the years, Ray Dalio has been big on safe haven options such as gold.
  • Speaking to Caleb Silver on ‘The Investopedia Express’ on 5 December 2024, Ray Dalio shared how he evaluates his investment choices.
  • “My mantra of investing is: 15 good uncorrelated return streams, risk balanced.
  • I want to start there because I know that if I can pick good investments and they're uncorrelated investments, I won't lower my return.
  • (This is) because I'll have the average of those returns.
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Sources

  1. Ray Dalio's investing mantra to build an ‘all-weather’ portfolio — Here's how he balances risks in volatile markets

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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