Principles

Back in 2017, Ray Dalio’s book Principles shaped my approach to making decisions more than almost anything else. In it, a “principle” is defined as a tested hypothesis — a basis for acting in similar situations, a way to avoid repeating mistakes and to spare the brain’s resources. When a principle stops working, it doesn’t become an excuse for chaotic decisions; it just needs to be revisited and refined. Principles are guides, not absolutes.

For several years I kept a journal, and over that time I wrote down the following principles:

— Evolve every single day!

— Decisions that serve a group are preferable to decisions that benefit only one person.

— Better to grow the whole pie than to fight over your slice of the existing one.

— Buy cheap, pay twice.

— Work with people you’ve already tested (don’t trade reliable partners for unknown ones, even when the terms are a little sweeter).

— If the start goes badly, it only gets worse from there. Better to end that kind of partnership quickly and avoid heavier losses.

— Better to climb uphill over obstacles than to wade through a swamp.

— Often the strongest resentment comes from those who once saw themselves as your equal — and then watched how far ahead you’d gone.

— Ego is my main enemy.

— You can’t learn what you think you already know (or already know how to do).

— Prefer decisions whose execution doesn’t demand a rush.

— Make decisions as late as you can, once more information is in.

— If a favor costs little and the client is someone important (especially with a big ego), it’s worth doing it for free.

— Don’t start negotiations or moves that could damage the relationship with the other side unless you’re confident of a meaningful result either way. Spoiling a relationship for doubtful gains is unwise.

— Don’t quarrel over trifles; better to meet someone halfway for the sake of future cooperation. You never know what it might grow into.

— When everyone agrees on a decision unanimously, it’s better to postpone it until alternative points of view have been found and weighed.

— You can’t please everyone — not the wider public, not your partners — and there’s no point trying. What matters is that our interests are respected, and that we, in turn, respect and value the interests of others.

May we all find our own principles — the ones that become real guides! 😎