“The hero comes back from this mysterious adventure with the power to bestow boons on his fellow man,” wrote Joseph Campbell, and Ray Dalio read that and was inspired. Fortunately he has been on a mysterious hedge-fund adventure for the last few decades, and he’s back with a boon for you. Several boons, actually: He’s turning the “Principles” on which he runs Bridgewater Associates into a book, but also a computer program:
Dalio says he’s thinking about open-sourcing the computer code Bridgewater has developed, an artificial intelligence program dubbed PrincipleOS that does everything from summarize meetings to analyze reasons a person might be feeling anger, confusion, or embarrassment when interacting with a colleague. The programs could automate about three-quarters of Bridgewater’s management decisions within the next five years, according to the company.
Ah. Yes. That’s from this Bloomberg Markets story about Dalio and his hedge fund, Bridgewater Associates, which is a lifelong experiment in programming Ray Dalio’s mind into a computer. First Dalio took his investment process, systematized it, and taught a computer how to do it; now he is taking his interpersonal management style, systematizing it, and teaching a computer how to do it.
There is an odd redundancy here: If the computer is doing the investing, why employ the people? Why program the computer to manage them? Why should the computer care if they are angry or embarrassed, if it is making the investment decisions based on cold logic and objective facts? There are reasonable answers to these questions: Some of Bridgewater’s humans are developing new investing theses to add to the algorithms; others are doing client relations. (“Its client services group employs 200 people—one for every 1.75 clients.”) Still it is a little odd for a firm to be so focused on developing the personalities of its human employees, and also so focused…