David Rubenstein talks to Ray Dalio

Automatic TRANSCRIPT

David Rudenstine sat down with Bridgewater associates co chairman and co chief investment officer ray Dalio to discuss his early life and how we got hooked on the markets so you grew up in Long Island and where you're from a wealthy family no like that was a jazz musician very lower middle class when you were a young boy were you interested in the financial world or what were you most interested in growing up when I went I got hooked on the markets when I was twelve because I used to caddy and I would take my money and I put in the in the markets and everybody was chatting about the markets so on how did you do well the first stock I bought I book because it was the only company ever heard of that was selling for less than five dollars a share and I figured I could buy more shares of went up and make more money that was my strategy her work and it worked and I have a work because this company was about to go broke and somebody came along and acquired it and it by local it went up and I said this game is easy then decided that I would be involved in the markets in this game is anything but easy so in high school were you interested in academics or were you a good student no I had at our school I did cut classes a fair amount of classes to go surfing did you have a hard time getting into a good school calling all yeah I got into CW post college on probation probation on probation okay and what he did well there I loved college okay I love college because well besides mixing the all the fun that college gives you it also when I like this and I could pick the subjects that I was interested in and I am so I look I love college right you must have done research well because you got into Harvard Business School yeah I did I got the upgrade grades when you graduated what do you do so in my two years it's a two year school in in my summer I like to trade commodities I got in trading commodities now this is down summer of seventy two and so nobody ever for more business school wanted to commodity division but I went to Merrill Lynch's commodity division I said Hey can you give me a job the director of commodities in that summer gave me a job job to help them around nineteen seventy three we have the oil shock bear market in stocks commodities is the hottest thing was hired as director of commodities at Dominic and Dominic having never done anything and the director of commodities but as part of and that's so that's what I say let out eventually though to set up your own firm yeah the so I that was seventy three seventy four big bear market in stocks are the Dominic and Dominic essentially went broke I went to what was sandy Weill's firm CBO Leo Hayden stone at the time became Shearson Hayden stone remain above the law because of our did all those mergers I became in charge of institutional commodities in other words hedging of all different things hi and that put me with all different futures markets and then we got into the environment where seventy four seventy five you got into this environment where the interest rates targus a monetary policy all of those things were driving all the markets so that got me hooked on those markets but anyway I got fired from there because I was a bit rowdy did you find someone that can share some thoughts in the face for the appointment book that's not a good way to prepare for that was but that was it was new year's eve we got drunk on new year's eve and you punish somebody other than your boss didn't think of that anyway he but it didn't last long okay okay so you have to always started the farm because I was and because the clients who want to do business what year was at the start of the firm nineteen seventy five so it grew truth from one or two employees to how many well in nineteen eighty two it was I I think there were eight employees a in here at one point and then I had a terrible eighty two so and then it came down to one employee so nineteen eighty three or so it was just me you have to borrow money from your father yep so let me tell you about the moment so nineteen eighty nineteen seventy nine eighty eighty one I calculated that American banks had lent a lot more money to emerging countries of those countries will get paid back and I anticipate that there would be a debt crisis and with that an economic crisis so that was my thinking and August nineteen eighty to Mexico defaulted on its debt and a number of countries fallout and so because I said that I got a lot of attention about that and I thought that was going to be producing a bear market in stocks and I could not have been wrong more wrong August nineteen eighty two was exact bottom the stock market and I was wrong and as a result of that let's take my employees are lied to let them go I lost money for myself on was money for and I had to borrow four thousand dollars from my dad it was the most painful one of the most painful experiences but it was one of the best experiences that ever happened to me in my life that was Bridgewater associates co chairman and co chief investment officer ray

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