Ray Dalio finds out what “sustainable” means and tips on how to earn a living with it
In the last few days we have talked a little about the meaning of the word “sustainable” and its derivatives. In particular, we’ve talked about how no one really agrees on the exact definition of this widely used and increasingly used term.
Well, we have good news that will overcome this fog of confusion and solve the problem once and for all. In addition to, or as part of, the 70 hours a week that Bridgewater Associates founder Ray Dalio spends (and has failed to do) mending his troubled giant hedge fund, Westport’s Svengali has put the concept of sustainability through its paces Asking what is true and what is meaningful, analyzing errors, obtaining valid opinions, making precise assessments, evaluating precisely, trying the soup, being very specific, putting things into perspective and understanding the points etc. and connecting them to the one true, immutable and fundamental definition reach.
Ray Dalio’s company, which manages $ 140 billion in assets, plans to open two sustainable funds in 2021. Bridgewater has advised clients on managing assets to achieve both social and financial goals this year. Bridgewater’s new strategy will select stocks that best align with the United Nations Sustainable Development Goals, which aim to end poverty, tackle inequalities and tackle climate change.
Oh that’s what it means However, Dalio has also considered the meaning of something else and has come to the conclusion that despite his previous skepticism, it does have meaning.
In a Reddit Ask Me Anything (AMA) on Tuesday, Dalio said he thought other cryptocurrencies had “established themselves” in the last 10 years and were interesting “gold-like asset alternatives …”.
Bitcoin “could serve as a diversifier for gold and other such reserves of assets,” said Dalio. “The main thing is to have some of these types of assets … including stocks – in your portfolio and to diversify between them …”
Dalio’s comments are a departure from a month ago when he said there are three main problems with Bitcoin and other cryptocurrencies: a lack of venues that accept digital assets as a means of payment, price volatility, and the potential for governments to “ban” them .
Dalios Bridgewater adds a fund strategy focused on sustainability [Bloomberg]
Bridgewater’s Ray Dalio softens stance on bitcoin, saying it has room in investor portfolios [Coindesk]