The Holy Grail of Investments

Ray Dalio view

Today I’m going to talk about a concept that hasn’t been discussed much, and it is what Ray Dalio referred to in his book as the Holy Grail of Investments.

When we enter the financial community on Twitter, what we generally find are large, colorful graphs, and each of those colors represents a stock they are invested in.

Many times (almost always) you need to create a legend because the asset allocation of that position doesn’t fit within a single portion of the graph. In case you don’t know what I’m talking about:

It looks something like this. Scary, right? Additionally, I bet you that a portfolio with just one color that is ACWI will undoubtedly outperform this one in the long term.

Now, today I not only want it to beat in the long term but also in the short term. That’s why I bring you one of the lessons that took Ray Dalio more than 30 years to learn, and that made him immensely rich.

The Power of Applying the Holy Grail

Today I’m going to assume that we all know Ray Dalio. However, what you might not know is that in his…