Allocate Assets like Ray Dalio

Ray Dalio

Allocate Assets like Ray Dalio

It's no secret we look up to Ray Dalio here at FOLIO, he is one of the most popular investors in the world. He created Bridgewater Associates and he is widely known for being a strategic, very attentive investor. It’s how he managed to accrue more than $18 billion in assets during his entire life. He managed to use a variety of strategies in order to invest and acquire amazing results. But how can you invest like Ray Dalio and make a lot of money? Diversification.

Ray Dalio’s investing methods

Ray Dalio has a very clear idea of how to invest, and his focus is on diversifying investments so you can get the best value and results, whilst reducing as much risk as possible. Ray Dalio's 'All Weather Portfolio' is his go to Asset Allocation guide, in it he suggests investing around 40% in long term bonds, 30% in stocks, 15% in some intermediate term bonds, 7.5% in gold and 7.5% in commodities. If you follow this method, you are diversifying your assets, and therefore lower the potential risks your portfolio may face in returns over a long period (think decades), as the economy around you changes and cycles come and go, your portfolio has a mix that historically performs well in a variety of situations.

You are investing in the long term game. By playing the long game and focusing on things that will give the best ROI over time, Ray has built a successful investment process. Having liquidity, found in short term investments can be very helpful for you as well, as you look to rebalance your portfolio over time. Regardless of the mix, it’s important to get your assets, be it stocks, bonds or gold at fair value (the lower the better). Overpaying can increase your risks.

Ray Dalio has been a big advocate for needing a plan. You can’t just go ahead and invest without any knowledge. Researching everything and creating the right plan will help make a huge difference. You need to know what you are getting into, what challenges appear and how you can adapt to all of that.

Preparing your investments by setting money aside is just as important, decide how much money to set aside for your immediate future, and stress test your finances to plan for worst case scenarios like loosing a job. Once you set some money aside for your security, then you can start investing.

Ray Dalio's All Weather Asset Allocation


How can FOLIO do the heavy lifting?

You can use a tool like FOLIO to help you with asset allocation and portfolio management. FOLIO saves you time, with live pricing and benchmarks to track how your asset allocation changes over time. You can easily use this reporting to then rebalance your portfolio the way you want, while also understanding the net worth and your financial situation. All of this is shown on our comprehensive dashboards.

If you’re looking to take control over your investments while also monitoring your net worth, then you need to give FOLIO a try.