Ray Dalio: The Macro-Investing Template

In his latest interview with Fortune India, Ray Dalio discusses his macro-investing template. Here’s an excerpt from the interview:

Dalio: I want a highly diversified portfolio of assets that are not cash and bonds.

I want geographic diversification as much as I want asset class diversification. Regarding my geographic diversification I want to favour countries that have three characteristics and are healthy in the ways we talked about:

First, they are financially strong, that is, their incomes are greater than their expenditures and their assets are greater than their liabilities.

Second, I want countries in which there is internal order rather than internal conflict so that then they can be productive.

Third, I don’t want to invest in countries where there are significant chances of external conflict.

I create two portfolios — first, a portfolio of assets that perform best in bad times and retain their value in the worst of times. And second, a diversified portfolio of the investments.

You can read the entire interview here:

Ray Dalio Interview – Fortune India