This is the greatest mistake an investor can make, according to the founder of the world’s biggest hedge fund

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

 

‘The greatest mistake of all investors is to think that what has done well lately is a better investment rather than more expensive. And what has done worse lately is the worst investment — get me out of it! — rather than it’s cheap.’

That’s Ray Dalio, the billionaire behind Bridgewater Associates, talking about where investors tend to go wrong in the stock market.

“Unless you know how to deal with the differences of those, which most people don’t, they’re going to be in trouble,” he said in a Ted Talk appearance earlier this month.

In the clip, which was highlighted on the “Investor Talk” YouTube channel over the weekend, Dalio also revisited his much-covered “cash is trash” argument.

“Do not think that cash is a safe investment,” he explained in the interview. “Cash is a seductive investment because it doesn’t have as much volatility, but it taxes you in your buying power about 2% a year. So cash is almost always the worst investment.”

Instead, he said, investors should think unconventionally.

“Do you have a little bit of gold… in case this monetary system breaks down and money is redefined,” he said. “Diversify well, be humble, don’t market time and be conscious of the dangers of cash.”

Watch the full clip:

 

 Originally Published on MarketWatch
Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

The Papers: Rishi’s new age budget as Queen pulls out of COP26on October 26, 2021 at 10:11 pm

The chancellor's Budget plans and the Queen deciding not to attend a climate summit lead the papers.

Covid: Ministers watch data as studies say Omicron risk loweron December 23, 2021 at 3:48 am

Scientists say early signs are good news but a big wave of infections could still overwhelm the NHS.Image source, EPAThe UK government says it...

Tokyo Olympics: Liverpool millionaire aiding GB’s medal haulon August 4, 2021 at 3:51 pm

Barrie Wells sponsored Olympic silver medallist Keely Hodgkinson after she failed to get funding.

Peng Shuai: Video claims to show tennis player at tournamenton November 21, 2021 at 3:05 am

A social media post claims to show her as a guest at a tournament, amid concerns for her wellbeing.Chinese tennis player Peng Shuai has...

Farmers and vets facing mass cull trauma need more helpon May 18, 2023 at 12:45 am

Farmers and vets traumatised by mass culls do not get enough mental health support, a report finds.Farmers and vets traumatised by mass culls do...
Home of Science
Follow me