Marshmallows and Dalio's
|Adam Draper||Jul 18, 2019|
Best thing I read in a while on macro-economics.
Have you heard of the marshmallow experiment (this is a funny version). I hadn’t actually heard of it until this year. Where a child is asked to pick between a smaller treat and a larger treat, but they have to earn the larger treat by staring at the smaller treat for some amount of time, and if they last the time, they get 2 times the smaller treat. It’s a test on delayed gratification, and with the belief that if you can delay gratification, you will be successful.
I have a feeling that Ray Dalio was good at the marshmallow test. He probably would have taken the 2 marshmallows he successfully got after the ten minutes, traded his marshmallows for a jar of honey, traded the jar of honey for a tennis racket, and then a tennis racket for a brick of gold. He would have taken that brick of gold. He would take that one brick of gold, leverage it 2-1, and then raise capital from outside investors. He would then diversify into a well balanced portfolio of Equity, Debt and Real Estate.
Ray Dalio is the founder of Bridgewater, a hedge fund that has continued to generate returns for decades.
I like people who think macro. Macro thinking takes a longer time frame into account. Ray Dalio has proven his macro thinking on a scale that is rare to find.
I enjoyed reading this post a lot, and I believe it could be one of the most valuable posts you can read on economics this year.
By Adam Draper
I ponder as a VC.
It's a quick one minute read to make you think, smile, or laugh.
If you don't want these updates anymore, please unsubscribe here
If you were forwarded this newsletter and you like it, you can subscribe here
Powered by Revue