Renowned billionaire investor and founder of Bridgewater Associates, Ray Dalio, revealed he was asked by ChatGPT about his view on the most important principle for investing.
In response, Dalio opened up about what he calls the “Holy Grail of investing,” which, according to him, is diversification, especially in managing investment risks.
He stated that by investing in 10 to 15 good, uncorrelated assets, one could reduce risk by about 80% without sacrificing returns. This allows investors to increase their return-to-risk ratio by a factor of five, a key principle in successful investing.
