Ray Dalio Exits Bridgewater Associates, Embracing New Ventures and Bitcoin Insights

Billionaire Ray Dalio has handed over the management of Bridgewater Associates, the hedge fund he founded 50 years ago.

According to the WSJ, Dalio has sold his remaining stake in the firm and stepped down from the board of directors. Subsequently, Bridgewater issued new shares for Brunei’s sovereign fund, allowing it to acquire nearly 20% of the company in a multibillion-dollar deal.

An expert highlighted that the decisions made by the organization should not impact individual investors’ strategies, given that their objectives differ from those of the funds.

Dalio’s departure marks the conclusion of a long transition process. He left his position as CEO in 2017 and relinquished his role as chairman at the end of 2021.

He expressed his satisfaction with this change and shared the principles that have contributed to the firm’s success over the past five decades.

Dalio likened the passing of responsibilities to raising the younger generation, stating that witnessing Bridgewater thrive independently of him is akin to watching strong and self-sufficient children flourish. He noted that the firm is now led by individuals who are 25 to 50 years younger than he is.

He emphasized the importance of choosing the right people and fostering a positive culture as key principles of his work. Dalio recommended creating an «ideocracy,» where significant work and relationships based on «radical honesty and transparency» are prioritized.

Another principle he outlined is the cultivation of a culture that allows for mistakes but mandates learning from them. He framed this idea as an equation: Pain + Reflection = Progress.

Dalio now plans to focus on various ventures, including sharing his principles with others, investing, his family, and exploring the ocean through the media project OceanXplorers.

The investor, renowned for his accurate prediction of the 2008 crisis, foresees more upheavals ahead. He believes a global debt crisis is on the horizon at the end of 2025, and warns the U.S. economy could face a «heart attack» if the government fails to address the budget deficit.

Amid these forecasts, Dalio has recommended that investors allocate up to 15% of their portfolios to Bitcoin and gold as a hedge against risks, an increase from his previous suggestion of 2%.

In 2021, Dalio described Bitcoin as «a damn brilliant invention.» He acknowledged owning some cryptocurrency but expressed a preference for gold.

Some of Dalio’s predictions have turned out to be incorrect. In 1982, he anticipated a global economic depression, which did not materialize, resulting in significant losses for Bridgewater. Later, he admitted that his assessment nearly led the company to bankruptcy.

It is worth mentioning that in December 2024, the financier declared his intention to invest in the first cryptocurrency in light of the impending debt crisis.