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17/09/2013 Ray Dali o Interv iew -- Academy of Achiev ement: Print Prev iew w w w.achi ev ement. org/ autodoc/pri nt member/dal 1i nt-1 1/18 Interview: Ray Dalio Hedge Fund Master October 27, 2012 Washing ton, D.C . Back to Ray Dalio Interview You've spoken about individuals who shape the world we live in and the particular qualities they share. What is the proce ss these people, "the shapers," go through that perhaps the rest of us do not? Ray Dalio: I think for eve rybody, in order to be successful, there are five steps that you go through essentially. But everybody has their goals. What is their goal and passion? So you have goals. A nd then what happens is you're going after your goals and you encounter your problems. So encountering problems, and then t he big difference between people is how they a pproach those problems. People who get bummed out by the problems don't learn from it. Who learns from them? So those who recognized the problems are excited that t hey get into those problems or mistakes. Mist akes are learning expe riences. The pain that comes for that mi stake, ever y time you have pain it's an indicati on that something is at odds. So th e people who have the pain are the people then who will go into that and realize that if they solve that pain, solve that problem, understand what that is representative of -- not just the one problem -- but that probl em is a certain type of problem that will happen over a nd over and over again in your life, and if you can solve, "How do I dea l wit h that kind of problem?" The third t hing that everybody nee ds to do is, if they have problems on the way to their goals, that t hey diagnose those problems and they get to the root cause -- the real root cause . The rea l root is often -- is typi cally -- what eople are like . Can you go to what you're like? Can you go to your mistakes? Can you go to your weak nesses? Right . Can you go to other people's mistakes and weak ness? Some people, because of ego barrier , can't do that , so if they don't recogni ze their own mist akes, their own weaknesse s, or other's mist akes and weaknesse s -- what t he root cause may be and what they're like because of ego barr iers -- if they can't go there, they're going to repeat those mistakes. They're going to have them over and over again. So it 's the process es sentially of saying, at th at stage, "What am I like?" Everybody has strengt hs and every body has weakne sses. The weaknesse s are the other side of the strengt hs. So let 's say if you're a right brain/creative person, you ma y not 

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