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Ray Dalio Reveals How He Made Bank On A 'Lucky' Trade At Age 12

Ray Dalio Reveals How He Made Bank On A 'Lucky' Trade At Age 12

Sometimes the best stock tips comes from unexpected sources at unexpected times and still require a good amount of luck. Just ask multibillionaire hedge fund manager Ray Dalio.

What Happened

Dalio, co-founder of Bridgewater and author of "Principles," explained to the Reddit community how he made a good amount of money in the stock market at age 12. During a Reddit AMA, Dalio said he worked as a caddy at a golf course, where naturally people talk about the stock market. He overheard golfers discuss Northeast Airlines and proceeded to buy "a little bit" of the stock.

Dalio says his purchase was "stupid" because Northeast Airlines was "about to go bankrupt," but it also happened to be the only stock he could afford at below $5 per share. Luck kicked in, as the airline was bailed out and acquired by another company, which netted Dalio a profit.

Why It's Important

Dalio says he became "hooked" on playing the market after his "lucky" trade. The event may have triggered a series of lifelong lessons that still apply, he said. 

"Dive into the markets, have the s--- kicked out of you and learn how to do things differently," Dalio said.

"One of my most basic formulas for life is pain + reflection = progress. And by the way, when you create reflections that give you principles for how to do things better in the future, be sure to write them down."

Related Links:

Ray Dalio Converts Hedge Fund Bible 'Principles' Into Animated Series

Ray Dalio: Recession Risk Rising In The Next 18-24 Months

Photo by Jon Proctor via Wikimedia. 

Posted-In: AMA hedge fund Ray Dalio RedditHedge Funds Psychology Media General Best of Benzinga


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