Bridgewater Associates is an American investment management firm. It was founded by the billionaire investor Ray Dalio in 1975. The company is the biggest hedge fund in the world since 2012. You’re probably wondering what is the secret to this success. Actually, it’s all aboveboard. Indeed, Ray Dalio is completely open about the two key factors that have contributed to the success of his company; namely their investment strategy and their “behavioural edge”.
What is the “Behavioural Edge”?
Behavioural Edge is Bridgewater Associates’ secret weapon. Fund managers that work at the company learn to improve their decision-making, risk management and execution of strategy. How? Learning more about themselves. In this way, they understand how they process information, make decisions and interact with the external environment.
At the same time, this “Behavioural Approach” reduces the negative aspects of human weaknesses. Indeed, it minimizes the overconfidence effect that can influence your investment decisions and bring you to take excessive risks. Moreover, it helps you avoid cognitive biases, identified by behavioural finance, that are systematic errors in thinking that affect your decision-making.
Get your Behavioural Edge with Behavioural Alpha
The Behavioural Edge is an important factor because it influences the investment strategy making it more effective. Surely, this support tool is supplied by Ray Dalio and reserved to his employees. But how can private investors do? The solution exists and it’s called Behavioural Alpha!
Behavioural Alpha is Alpha4all’s masterclass on behavioural finance. You’ll be happy to know that it is born for those like you who want to approach independently to financial markets.
Behavioural Alpha’s 3 essential points
Learn more about yourself and train your mind. In this way, you will build a profitable financial portfolio and succeed in the investment world. You have 3 essential points to follow:
- Personality profiling: understand more about yourself, your potential and your risk tolerance.
- Behavioural finance: identify cognitive biases that prevent you from doing great job and find out how to avoid them.
- Building a portfolio: understand your approach to decision-making and build a portfolio.
The results are incredible and they will surprise you! Become a successful investor with Behavioural Alpha.