Ray Dalio (@RayDalio) “The holy grail of investing is knowing how to balance. When you can take equally” — TopicDigg

The holy grail of investing is knowing how to balance. When you can take equally good things where your expectation of return is equal, but because they are uncorrelated and move differently, they balance each other. That is how you can reduce your risk without reducing your returns. You have to understand that the market is a zero-sum game. The consensus is already reflected in the price, and trying to beat it is a difficult game. In fact, it is more difficult to compete and be successful in the markets than it is to compete in the Olympics. We must be humble about that. But achieving that balance so you can get a good return without losing a lot of money is everything. Most of my own money is invested in exactly that. #Investing# #AssetAllocation# #RiskManagement# #Principles#