Principles: Ray vs. Rener

"To be principled is to consistently operate with principles that can clearly be explained”

-Ray Dalio

Ray Dalio, Founder of Hedge Fund Bridgewater & Associates, and Rener Gracie, Founder of Gracie University, are masters in their craft. Ray in investing and Rener in Brazilian Jiu Jitsu. Both Ray and Rener have mastered their crafts over many decades and given each of us a view into their operating systems through their books titled Principles. Principles, by Ray Dalio (2017) and The 32 Principles, by Rener Gracie (2023).

This edition of Relentless Pursuit will highlight 3 similar principles covered in each book. To continue learning, and determine who would win, read both books; Ray vs. Rener.

PRINCIPLES (OF LIFE AND WORK) - RAY DALIO: Ray Dalio published his operating system for life and work in his 2017 book titled Principles. This book is filled with instruction to systemize & improve decision making, then enable quality decisions to create a quality life.

Principles: Criteria for decision making which can be clearly explained

3 to remember:

1. Probability vs. Possibility: Use probabilities of things happening differently than possibilities of things happening. Constantly evaluate the benefit of gathering more information (increasing probability of an outcome) against the marginal cost of waiting to decide. Prioritize by weighing the value of additional information against the cost of not deciding.

2. Machine: Think about yourself as a machine operating within a machine. You have the ability to alter your machine to produce better outcomes. Your machine is built to achieve goals, your machine generates outcomes, feed those outcomes back into your machine to create incremental progress.

3. Pain + Reflection = Progress: Develop the habit of reflecting on a situation that causes pain, so that you can learn from it, rather than avoiding pain. If you are not failing you are not pushing your limits, if you are not pushing your limits, you are not maximizing your potential.

THE 32 PRINCIPLES - RENER GRACIE: Rener Gracie published the "alphabet of Brazilian Jiu Jitsu applied to life" in his 2023 book titled The 32 Principles. Rener's book utilizes a deep knowledge of Jiu Jitsu to prove all problems are just techniques waiting to be discovered.

Principles: Techniques combined together in sequence to support eachother.

3 to remember:

1. Clock: The right move, at the wrong time, is still the wrong move. Remain acutely aware of time as it relates to your decision. Rushing into a decision which can be made later (after more information gathered) will not win, neither will waiting to make a decision which must address a problem now.

2. Ratchet: Assume more control incrementally while never releasing the superior position. Decisive victories need not be won in a single move; incremental progress over a sustained period generates wins.

3. Grandmaster: 50% of mastery is learned, 50% is discovered by testing prior knowledge and asking questions. Never stop learning.

TIP: Accelerate your skills by applying diverse expertise to your work.

Hedge fund management and Brazilian Jiu Jitsu are specific, and largely unrelated, skills but the principles of each practice are valuable when applied to your work. Consume, simplify, and apply a diverse base of information to your work in order to accelerate your path to mastery!

Lead | Produce | Pursue

Joe House