Ray Dalio is famous for his ‘Principles’ in investments and life.
One of his principles is ‘Believability weight your decision making.’
According to him, this is the key to Bridgewater’s success and the most important thing he learned from his past failure.
What is believability-weighted decision-making?
In this video, Dalio explains the idea and shows how he uses it in decision-making.
“The best decisions are made by an idea meritocracy with believability-weighted decision making, in which the most capable people work through their disagreements with other capable people who have thought independently about what is true and what to do about it.
It is far better to weight the opinions of more capable decision makers more heavily than those of less capable decision makers. This is what we mean by ‘believability weighting.’”
— Ray Dalio
Source: Finance Jane
