Ray Dalio: Develop a systematic approach to decision-making

In this interview with Columbia University, Ray Dalio recommends taking a thoughtful and systematic approach to decision-making. He stresses the importance of identifying and writing down the criteria used to make decisions, suggesting that this allows for a methodical evaluation and improvement of decision-making processes.

He explains that by systematizing these criteria, it is possible to back-test decisions to understand their effectiveness and see the underlying mechanics, akin to a machine.

I found that I could systemize them [decision criteria] and I could back-test them and I could see, oh.. if I made these decisions this way I know how it would have worked.

And I could see how the machine works. Because everything works like a machine. And so by doing that we built game plans together.

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