Ray Dalio warns of 'great disruptions,' shares top tips for new investors


Taylor Hill

Taylor Hills Ray Dalio, billionaire and founder of one of the world’s largest hedge funds, Bridgewater Associates, says that new investors need to diversify their portfolios as geopolitical and economic headwinds continue.

“I would like to have diversification, because what I don’t know is going to be much greater than what I do know,” said Dalio, founder of one of the world’s largest hedge funds, Bridgewater Associates.

“Diversification can reduce your risk without reducing them sharply, if you know how to do it well,” he said at the Milken Institute Asia Summit in Singapore last week.

“Pay attention to the implications of the great disruptions that are going to take place because the world will be radically different in five years. And it’s going to become radically different year by year,” he explained.

It’s like going through a time warp. We will be living in a new world. And the disruptors will be disrupted.

Ray Dalio

Founder, Bridgewater Associates

The artificial intelligence evolution has caught the hedge fund manager’s attention too — but Dalio said he recommends investors put money in companies that adopt this new technology, rather than those creating them. “It’s a bit like a time-warp.”

We’re moving to a new world. Dalio added that the disruptors would be disrupted. “I don’t have to choose those who create the new technologies. I have to pick the people who use the new technologies the best way possible.

Asia, an ‘exciting region’

Speaking to the audience at the summit in Singapore, Dalio said the city-state is a “very special place, in what will be a very exciting region.” “The world is changing. The world order is shifting. And Singapore, as a hub is a fantastic place to be.” Dalio, when asked about the increasing number of family offices in Singapore, shared three of the most important factors to consider before choosing a country for investment. He also said that it is important to look at the side a country takes in an international conflict. “