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Uncorrelated Bets Quote by Ray Dalio

“Making a handful of good uncorrelated bets that are balanced and leveraged well is the surest way of having a lot of upside without being exposed to unacceptable downside.” quote by Ray Dalio
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““Making a handful of good uncorrelated bets that are balanced and leveraged well is the surest way of having a lot of upside without being exposed to unacceptable downside.””

Ray Dalio

About This Quote

Source Book: Principles: Life and Work by Ray Dalio, 2017

Diversify with a few well‑balanced, uncorrelated bets to capture upside while limiting risk.

In simple terms: Diversify smartly for upside, limit downside.

Key Takeaway

Make a few calculated, varied investments.

Themes

investment risk management diversification

Mood

analytical strategic

Type

financial motivational

When to use this quote

  • stock investing
  • venture capital
  • personal finance
  • business strategy

Key Concepts

portfolio theory correlation leverage

Questions to Reflect On

  • What uncorrelated opportunities do you overlook?
  • How much leverage is acceptable for you?
A Different Perspective

Over‑diversification can dilute returns; leverage adds risk.

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