Billionaire investor Ray Dalio has a passion for investing since he was a child. Growing up on Long Island in the early 1960s, Dalio bought his first stock when he was 12 years old. He used the money he earned as a caddy to invest in Northeast Airlines, the only company he knew of that sold for less than $5 a share.
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Although his strategy was naive, Dalio tripled his money through a successful merger. This early success fueled his enthusiasm for investing, and he continued to build an impressive stock portfolio throughout his teenage years.
Today, he has a fortune of $19 billion and is set to be paid billions from an exit package he got when he retired from Bridgewater Associates, according to The New York Times.
Dalio built Bridgewater Associates from the ground up, starting in 1975, reaping the rewards. While the stock market can offer more secure and consistent gains, the startup world can often be a good high-risk, high-reward diversification option. After all, many billionaires make their money before their company goes public, the IPO is when people sell and cash in their billions. Platforms like StartEngine offer anyone an inclusive avenue to invest in startups and private companies, unlocking new opportunities before they hit the stock market.
Dalio credits his early investment journey to the relationships he established as a golf caddy. While working at a golf club in Long Island, New York, he had the opportunity to listen to George Leib and Donald Stott, two men with Wall Street ties, discuss their investing experiences. Inspired by their conversations, Dalio took the $300 he had earned from the shopping cart and invested it in Northeast Airlines.
This initial investment proved to be a turning point in his life, not because it taught him specific lessons in the stock market, but because it ignited his passion for learning and exploring the world. finance at a young age.
Reflecting on his early experiences, Dalio emphasizes the impact of learning before adolescence. He believes that the way children think and learn differs significantly from that of adults. The experiences and lessons absorbed during this crucial time can shape their future in profound ways. Although the exact reasons for this difference remain unclear, studies have shown that children, especially those under the age of 10, exhibit faster and smoother language acquisition and grammar fluency.
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Dalio’s path to success has not been without challenges. Less than a decade after founding Bridgewater Associates in 1975, he made a public prediction that the global stock market would crash in 1982, which turned out to be incorrect. This led to major losses, causing him to lose customers, investors, employees and most of his wealth. But Dalio considers this period of adversity one of the best things that ever happened to him. It taught him the invaluable skill of thinking after failure.
Learning from his mistakes, Dalio developed a principle that guided his subsequent actions: pain plus reflection equals progress. He acknowledged that failure provides valuable lessons and inspires people to find alternative approaches. Armed with this mindset, Dalio rebuilt his career and Bridgewater Associates became the largest hedge fund in the world, managing approximately $150 billion in assets.
Today, with over 60 years of investment experience, Dalio’s fortune has grown to around $19 billion. Despite his immense wealth, he prefers to maintain a balanced portfolio, proof of his belief in the importance of diversification and risk management.
Dalio’s journey from young investor fascinated by the stock market to billionaire investor and founder of the world’s largest hedge fund is a testament to the power of early experiences and lessons learned from both successes and failures.
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This article Billionaire Ray Dalio was 12 when he bought his first stock – now he’s worth $19 billion originally appeared on Benzinga.com
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