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A fireside chat with the founder of one of the most successful investment management firms in the world on how capitalism is broken, and importantly how it can be fixed.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Ray%20Dalio%22%2C%22job_role%22%3A%22Founder%20of%20Bridgewater%20(United%20States)%22%2C%22content%22%3A%22Ray%20Dalio%20is%20founder%2C%20co-chair%20and%20co-chief%20investment%20officer%20of%20Bridgewater%20Associates.%20He%20started%20Bridgewater%20out%20of%20his%20two-bedroom%20apartment%20in%20New%20York%20in%201975%20and%20under%20his%20leadership%2C%20the%20firm%20has%20grown%20into%20the%20fifth%20most%20important%20private%20company%20in%20the%20US%20according%20to%20Fortune%20Magazine.%5CnFor%20his%20and%20Bridgewater’s%20industry-changing%20innovations%20as%20well%20as%20his%20work%20advising%20policymakers%20around%20the%20world%2C%20Dalio%20has%20been%20called%20the%20%E2%80%9CSteve%20Jobs%20of%20Investing%E2%80%9D%20by%20aiCIO%20Magazine%20and%20Wired%20Magazine%2C%20and%20named%20one%20of%20the%20100%20Most%20Influential%20People%20by%20TIME%20Magazine.%5CnHe%20is%20also%20the%20author%20of%20The%20New%20York%20Times%20%231%20Bestseller%20Principles%2C%20which%20outlines%20his%20work%20and%20life%20principles%2C%20the%20foundation%20of%20Bridgewater%E2%80%99s%20distinctive%20culture%20and%20the%20cornerstone%20of%20his%20and%20Bridgewater%E2%80%99s%20success.%20Dalio%20and%20Bridgewater%20also%20recently%20published%20Principles%20for%20Navigating%20Big%20Debt%20Crises%2C%20the%20first%20public%20dissemination%20of%20their%20research%20on%20these%20economic%20events%2C%20which%20enabled%20them%20to%20anticipate%20the%202008%20Financial%20Crisis.%20He%20is%20currently%20working%20on%20his%20third%20book%2C%20which%20will%20outline%20his%20investment%20principles.%5CnDalio%20holds%20a%20Bachelor%20of%20Science%20degree%20in%20Finance%20from%20C.W.%20Post%20College%20and%20an%20MBA%20degree%20from%20Harvard%20Business%20School.%20He%20has%20been%20married%20to%20his%20wife%2C%20Barbara%2C%20for%20over%2040%20years%20and%20has%20four%20grown%20sons.%20He%20is%20an%20avid%20philanthropist%20with%20a%20special%20interest%20in%20ocean%20exploration%20and%20conservation.%5Cn%22%2C%22image%22%3A%2233586%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fraydalio%2F%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Colin%20Tate%22%2C%22job_role%22%3A%22Chief%20executive%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22Tate%20has%20been%20an%20investment%20industry%20media%20publisher%20and%20conference%20producer%20since%201996.%20In%20his%20media%20career%2C%20Tate%20has%20launched%20and%20overseen%20dozens%20of%20print%20and%5Cnelectronic%20publications.%20He%20is%20the%20chief%20executive%20and%20major%20shareholder%20of%20Conexus%20Financial%2C%20which%20was%20formed%20in%202005%2C%20and%20is%20headquartered%20in%20Sydney%2C%20Australia.%5CnThe%20company%20stages%20more%20than%2020%20conferences%20and%20events%20each%20year%20%E2%80%93%5Cnin%20cities%20which%20have%20included%20London%2C%20New%20York%2C%20San%20Francisco%2C%20Los%20Angeles%2C%20Amsterdam%2C%20Beijing%2C%20Sydney%20and%20Melbourne%20%E2%80%93%20and%20publishes%20three%20media%20brands%2C%5Cnincluding%20the%20global%20website%20and%20strategy%20newsletter%20for%20global%5Cninstitutional%20investors%20conexust1f.flywheelstaging.com.%20One%20of%20the%20company%E2%80%99s%20signature%20events%20is%20the%20bi-annual%20Fiduciary%20Investors%20Symposium.%20Conexus%20Financial%E2%80%99s%5Cnevents%20aim%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%5Cnretirement%20incomes.%20Tate%20served%20for%20seven%20years%20on%20the%20board%20of%20Australia%E2%80%99s%20most%20high%20profile%20homeless%20charity%2C%20The%20Wayside%20Chapel%3B%20and%20he%20has%20underwritten%20the%5Cnwelfare%20of%2060%2C000%20people%20in%2028%20villages%20throughout%20Uganda%20via%20The%20Hunger%20Project.%22%2C%22image%22%3A%2233547%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
‘I think sustainability is the most important word of the 21st It’s the most important force.’
For a society to be great, you need to increase productivity and then divide it well. COVID has made productivity difficult but it has also highlighted inequalities. For example, the top 40 per cent of the US population spends 5 times more on the education of their children than the bottom 60 per cent. This mismatch creates a fundamental inequality and unfairness. The US economic mechanism is not meeting its goals of fairness or equality. Inequality is not just unfair its damaging. Populism, for example, has arisen because of unfairness.
The problems of civility, poverty and guns are American problems. I’m a mechanic. I don’t approach this moralistically. I want us to consider what we want to be as a nation and how we engineer for it.
The system that we need is a bipartisan system, otherwise we will constantly be at one another’s throats battling over contradictory positions. We need to produce win-win outcomes, not lose-lose outcomes, to avoid social and political conflict. We need leaders to create harmony so we can work together to generate efficiencies.
I am a realist. The curse of every generation is to not acknowledge the lessons from prior generations.
The children of today will need skills to navigate the risks, uncertainties and opportunities of the future world.
Regardless of who wins the US election, there will be significant stimulus.
Impact investment is easier to measure than philanthropy, but it is still difficult.
Oceans are the greatest asset in the world.
Three issues currently exist that last occurred in the turbulent 1930s period:
Extreme debt levels
The values and political gap
A rising power (China) challenging a historical power (USA)
One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, says Chris Ailman, chief investment officer at the giant pension fund.
Five years on since the SDGs were launched, an increasing number of investors are putting capital to work to earn returns alongside helping solve global scourges like the climate crisis, poverty and inequality. Sarah Rundell looks at New York Common Fund and Denmark's PKA among others.
The European Union's rescue plan will give a huge boost to an already thriving market for green bonds and other instruments that promote sustainability. But investors need to be wary: green comes in many shades.
How can investors work together to combat inequality? In this podcast episode Amanda White speaks to the president of CalPERS, Henry Jones, about his own experience and the fund's journey in tackling diversity and inclusion, in particular issues of racism.
More than 70 investors have collaborated to produce a framework for an investment strategy led approach to decarbonising portfolios and maximising efforts to achieve net zero emissions globally by 2050. The IIGCC, which developed the framework, is seeking consultation.
This piece is part of Disability Demands Justice, a dynamic, ever-evolving hub by the Ford Foundation to deepen our understanding of how disability intersects with social justice.
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