A very short article today, as yesterday’s post took more time than expected and required some edits today.

In this video, Ray Dalio shares how Bridgewater navigated the 2008 financial crisis.

It’s a great video, and I didn’t realize the role that Bridgewater played, especially in highlighting the problem to the highest levels of government.

Some takeaways that can be applied to investing in other contexts:

• It is very difficult to see the signals when you’re in the middle of a crisis. History repeats itself, and there is a lot to learn from past financial crises that can provide the perspective necessary to make the right decision.
• A solid framework (the depression indicator, in Bridgewater’s case) and the strength to stick to the associated action plan helped Bridgewater navigate the crisis.
• There is so much irrationality and human emotion tied into investment decisions. The environment of humility and critical thinking within the investment team at Bridgewater helped to create more confidence during uncertain times.