Chapter 4 continues (MY ROAD OF TRIALS: 1983–1994)
Day 6 continues the learning from chapter four and if you have been a reader that reflects upon the words of the author then this section will engage your mind as there are many actions, decisions, events and responses that will lead you to deep thoughts and reflections.
My family, my extended family of co-workers, and my work have all been extremely important to me.
By the mid-1980s, Bridgewater had grown to about ten people, so I rented a big old farmhouse. Bridgewater occupied part of it and my family occupied the rest.
You get the idea: Bridgewater was a small community of friends who worked hard and partied hard.
All great investors and investment approaches have bad patches; losing faith in them at such times is as common a mistake as getting too enamored of them when they do well.
Despite our relatively poor investment performance, 1988 was a great year for Bridgewater, because by reflecting on and learning from our poor performance, we made systematic improvements. I have come to realize that bad times coupled with good reflections provide some of the best lessons, and not just about business but also about relationships.
One has many more supposed friends when one is up than when one is down, because most people like to be with winners and shun losers. True friends are the opposite.
From my earlier failures, I knew that no matter how confident I was in making any one bet I could still be wrong.
It was so simple but it would be such a breakthrough if the theory worked as well in practice as it did on paper.
As excited as we were about this new approach, we proceeded cautiously.