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Book summary: Principles, Ray Dalio

- Principles: fundamental truths that serve as foundations for behavior to help you get what you want out of life, reused in similar situations

open minded
- clear headed
- courage of application

- deal with only people who share same values reduce misunderstanding and conflict
- systemize decision making process

two distinct roles

see yourself as designer of machine
- see yourself as worker with your machine

- Make decisions as expected value calculation

- mediation: calm open mindedness to think more clearly and creatively

Jobs was also doing it
- two brains which fight

upper logical brain
- lower emotional brain

- Reconcile feelings with thinking

- See clearly what your priorities/goals are and act base on this

warning: money has no intrinsic value
- do not confuse desires/wants for goals/must haves

- Understand the reasoning of the smartest people who disagree with you
- Maturity: reject good opportunity to pursue even better ones
- make a handful of uncorrelated bets that are balanced and leveraged well is the surest way of having a lot of upsides without being exposed to unacceptable down-side
- Mutually exclusive: Being radically truthful with each other versus being happy and satisfied
- When faced with two choices that are seemingly at odds, go slowly to figure out how to get as much of both as possible
- Shapers

independent thinkers
- don't let anyone or anything stand in their way of achieving their goals
- strong mental maps of how things should be done
- willingness to test these mental maps - open to change
- extreme resilience
- cultivate a wider range of vision than most or get those through others
- lack of domain knowledge: start reading more books
- types: inventors or managers

- If conflicts get resolved before they become acute, there will be no need for heros

heroes: given his life to something bigger or other than himself. Along the way they suffer set backs

- Jim Collins: put a capable CEO in place, a capable governance system to replace CEO if they are not capable
- Success does not automatically transfer to new roles
- **what is Courage?**

Successful life = Dreams + **1) Reality** + Determination

evolution: life's greatest accomplishment and reward
- rapid trial and error

watch out for second and third order impact
- **3) don't overweigh** first order impact

- Progress = Pain + Reflection

**5) accept responsibility** of bad outcome
- **2) don't worry** about looking good
- **4) accept pain**

- Dealing with weakness

deny
- accept and work to compensate - build your skillset
- accept and find ways around - get others to help - **Easiest Path**
- change what you are going after
- PS: doesn't matter so long as you find solution

- Good mental maps leads to being good at what you do
- Choose habits well

cultivate good ones eradicate bad ones
- execute without needing to think

Reference Books

- *The hero with a thousand faces*, Joseph Campbell
- *The lessons of history*, Will and Ariel Durant
- *River out of Eden*, Richard Dawkins
- *On the role of individual in history*, Georgi Plekhanov
- *Subliminal*, Leonard Mlodinow
- *The meaning of human existence*, Edward O Wilson
- *Beyond Religion*, Dalai Lama
- *The Power of Habit*, Charles Duhiggs