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

U.S.
billionaire

Ray
Dalio
says
new
investors
should
have
a
diversified
portfolio
as
economic
and
geopolitical
headwinds
persist.

“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.

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
like
going
through
a
time
warp.
We’re
going
to
be
in
a
different
world.
And
the
disruptors
will
be
disrupted,”
Dalio
said.
“I
don’t
need
to
pick
those
who
are
creating
the
new
technologies.
I
need
to
really
pick
those
who
are
using
the
new
technologies
in
the
best
possible
way.” 

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
landscape
is
changing,
the
world
order
is
changing
…
And
with
Singapore
as
essentially
a
hub,
it’s
a
terrific
place
to
be.” 

Asked
about
the
growing
number
of
family
offices
being
set
up
in
Singapore,
Dalio
shared
the
three
biggest
considerations
one
should
take
when
choosing
a
country
to
invest
in.

A
country
needs
to
have
a
good
income
statement
and
balance
sheet,
an
environment
of
civility
where
“people
[are]
working
together
to
make
good
things
happen,”
he
said. The
side
that
the
country
takes
when
an
international
conflict
arises
is
also
an
important
factor
to
consider,
he
added.

He
highlighted
that
the
biggest
mistake
investors
make
is
“believing
that
markets
that
performed
well,
are
good
investments,
rather
than
more
expensive.”