원문 보기
Hello profitable traders and welcome to this new episode of Trader Journeys. Here you'll find the incredible stories of traders who have left their mark on the financial markets. Discover their journeys, why and how they managed to make history. Whether you're a trader or not, immerse yourself in these success stories that have inspired generations of investors of all kinds.
Before we begin, we invite you to subscribe to the channel to receive all the upcoming videos. Let's get started right away! Many hedge fund managers have made their mark on the history of the stock market and finance, but few have done so like Red Diallo, head of Bridgewater, one of the most influential hedge funds in the world.
Simply put, this man has experienced everything in the markets, from resounding triumphs to real setbacks. But he is much more than a manager; he is a true theorist of aggressive and uninhibited management, as well as a pioneer in integrating technology into stock market companies. Very rich and influential, Ray Diallo has a perplexing personality and unique methods that have Thanks to his success, we invite you to discover his journey.
His early days in the 1960s, marked by stock market opportunities, led Raymond Thomas to emerge as a prodigy who almost saw his dreams of success nipped in the bud. Lucky but promising goals, Raymond Thomas, born in Lyon in 1949 in the Jackson Street neighborhood, in the heart of Queens, was born. His father was a jazz musician of Italian origin, a regular at the famous Copacabana club, and his mother a housewife.
At a time when the stock market was increasingly prominent in discussions and the collective imagination because it offered the possibility of quick riches, the young boy quickly demonstrated an affinity for it. His father helped him open an account to trade stocks. The young prodigy began trading at the age of 12 while working as a caddy at an upscale golf club.
With the money he earned, they bought North East Airlines shares for $3,100. He was thrilled. His investment, but it shouldn't be seen as a stroke of genius; on the contrary, it was simply the only company he had heard of, even though it was on the verge of bankruptcy. Daliot, about to make a real mess of things, was going to buy the beginner's luck, which he still acknowledges many years later.
I simply believed that making money on the stock market was easy. These studies then naturally led him towards ever more economics and finance. He frequented the website The Boy Who Posted College at Long Island University before receiving a degree from the famous Harvard Business School in 1973. The young man had talent, flair, and already perspective.
Success finally came on extraordinary scale. Two years after his last diploma in 1975, he founded Bridgewater Associates, his own hedge fund. He began his adventure in his own apartment. What followed is a true success story. The investment company currently manages $160 billion in assets and has more than 1,400 employees.
In 2013, Bridgewater was listed as the most One of the world's largest hedge funds, he also topped the list of the most profitable hedge funds in 2018. Ray Aliot was even described by Forbes as one of the highest-earning fund managers of 2019. With a fortune of $16 billion, the Italian-born investor gradually became one of the richest men on the planet.
In 2012, he appeared on Time magazine's annual list of the 100 most influential people in the world. In 2020, Bloomberg ranked him the 79th richest person in the world. His most widespread nickname is quite evocative: the Steve Jobs of investing. Obviously, with such figures, it's clear that Red Aliot has made enormous profits in the markets.
He has several achievements to his credit, but also significant setbacks, illusions, and very high and low highs. His two greatest achievements are twofold. The first occurred in 1987 during the October crash, where he gained 22%, while most of the Managers suffer serious consequences, even more so when he repeats the mistake many years later in 2008 during the subprime mortgage crisis, gaining nearly 14%, a truly rare performance in this stock market storm.
But things haven't always been this way. In 2020, from November to December, his other fund, Pure Alpha Tout Père, for example, gained 18%, nothing comparable, however, to 1982. That year, he noticed that American banks were lending more money to developing countries than they could repay. He then thought that the United States would experience a crisis, a general stock market crash, but he was wrong.
In August 1982, Mexico and other countries defaulted, but rather than falling, the stock market soared. Completely taken by surprise by the markets, he, like his clients, laid off many employees and had to start from scratch— a difficult setback to absorb. The now experienced managers, surprisingly profiting from their masters, created a unique concept.
Meritocracy: the idea of this harsh reality check. The American trader learns from this experience and decides to completely overhaul his management strategies. His goal is to recruit the brightest people possible and give them a great deal of freedom of speech. This is what he calls in his book, " The Meritocracy of Ideas." He desires an environment in which only the best ideas win, even if they are not his own.
The principle of radical transparency and the golden rule: employees make each of their actions public and can even directly criticize their superiors. According to Red Aliot, this new organizational system is at the origin of the now undeniable success of Bridgewater Associates. However, such a work environment requires a very particular strength of character and is not easy to live in.
Indeed, as he readily admits, a number of employees ( 30%) leave the company less than a year after their arrival. But the Queens native doesn't stop there. After people, technology: an algorithm as a full-fledged employee. Red Aliot aims to completely rethink his company. or at least to develop it with a novel process.
He is ready to use algorithms to their full potential. He is currently developing a technology that should be able to guide investment decisions, but also, in Bausch, layoffs, etc. Even phone calls could be sorted according to their relevance and potential interest. It is by drawing on the work of David Ferrucci, a former BM executive and artificial intelligence specialist, that he hopes that technology and automation can be applied to all levels of these companies.
Only Honda Lyon... emotions hinder the optimal functioning of the human machine. The tone is set. On the other hand, contrary to what one might think, such ambitions have surprisingly not distanced the head of Bridgewater from all compassion or generosity. A philanthropic side with his eponymous foundation.
He notably directs millions of donations to the David Lynch Foundation, which supports research on transcendental meditation. The Daliot Foundation also endows the National Philanthropic Trust or polio eradication projects. It also gives to the New York Hospital. Presbyterian, where Ray holds a seat on the board of directors, but that's not all.
He also launched the Motion X initiative in 2018 and convinced Bloomberg Philanthropies to commit $185 million to protect the oceans in April 2011. Finally, Red Daliot and his wife decided, like Bill Gates and Warren Buffett, to donate more than half of their fortune to charities during their lifetimes.
In short, gifted with an exceptional investor's flair, but never immune to setbacks, Ray Thomas Daliot is above all a whimsical business leader. While his atypical management methods have taken him to the top, they now drive him to try to redefine the very face of the stock market, which is constantly evolving with technology.
Of course, the man has nothing left to prove, as Bridgewater's success is undeniable, but his journey remains the perfect example to show that one can always get back up after stumbling, even in one's own... If you liked this video, don't hesitate to give it a thumbs up! If this story inspires you and you want to learn more about investing in the financial markets, we've prepared a free training course which is available in the top right corner of the video and in the description. See you soon for the next video!
Comments 0