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Dalio*s skewed views

edited June 2021 in Other Investing

Think he knows things we don't

If bet Against Dalio you may gain/


  • Let's say you have a money manager with a $100 million fund that goes up, say, 200% in one year. Say, $10 billion of new money pours into the fund as a result. The hedge fund manager charges a 2% expense ratio. The next year the fund is down 50%. By the end of the year say he has $3 billion as some investors have redeemed their shares. He still made well over $6 million in fees that year. The thing about funds is they're essentially toll roads and managers get paid whether they do well or poorly. Why am I posting this here? Because today's investment "genius," may be tomorrow's fool, yet he'll still be a billionaire at the end of the day. The genius is getting people to believe in his toll road, not in the accuracy of his predictions. The problem is some extremely wealthy managers start to believe their own hype. Worse, they think their narrow expertise extends beyond securities markets to other realms such as politics.
  • edited June 2021
    LB says it well. Don’t underestimate the importance of salesmanship - be it a used car or a financial asset.

    John’s video is worth watching (at only 10 minutes) IMHO. I always enjoy Dalio.

    Dalio’s not dumb. Nor is Marks, Fink, Soros or Gross. All worth listening to. In the end, each of us needs to decide how best to invest. And … Do you really think any of the above would release his “latest greatest” cool investment idea on the internet or Bubble Vision for all the world to see early in the game?
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