Ray Dalio: Investors Should Have ‘Good Times’ & ‘Bad Times’ Portfolios

In his recent interview with Jordan Harbinger, Ray Dalio explains why investors should have two portfolios, one for the good times, and one for the bad times. Here’s an excerpt from the interview:

Dalio: Some of the things we talked about and a lot of them, we didn’t that are in the book that are, you know, how does an individual, how do you store wealth? How does that work?

In other words, I think, for example, an investor should have like two portfolios. The first portfolio is the, “I will be okay portfolio.” In other words, it’s a diversified portfolio of things that if things were not good, it’s like your insurance policy, I’m covered about those things, so to know how to do that.

And then you have the what’s good, generally speaking type of portfolio. And then things to know about the measurements, like you said, when to move, when not to move, or where does that work for, to know how it works, so I think that that would be important. That’s one of the big reasons I wrote the book.

You can watch the entire discussion here: