Page 333 - Ray Dalio - Principles

eyes) and to flexibly process this information to create learning
and adaptation.

I have found that most people have problems being assertive
and open-minded at the same time. Typically they are more
inclined to be assertive than open-minded (because it’s easier to

convey how they see things than to understand how others do,
and also because people tend to have ego attachments to being
right) though some people are too willing to accept others’
views at the expense of their own. It’s important to remind
people that they have to do both—and to remember that
decision making is a two-step process in which one has to take

in information as well as decide. It also helps to remind people
that those who change their minds are the biggest winners
because they learned something, whereas those who stubbornly
refuse to see the truth are losers. With practice, training, and
constant reinforcement, anyone can get good at this.

a. Distinguish open-minded people from closed-minded people. Open-
minded people seek to learn by asking questions; they realize
how little they know in relation to what there is to know and

recognize that they might be wrong; they are thrilled to be
around people who know more than they do because it
represents an opportunity to learn something. Closed-minded
people always tell you what they know, even if they know
hardly anything. They are typically uncomfortable being
around those who know a lot more than they do.

b. Don’t have anything to do with closed-minded people. Being open-
minded is much more important than being bright or smart. No

matter how much they know, closed-minded people will waste
your time. If you must deal with them, recognize that there can
be no helping them until they open their minds.

c. Watch out for people who think it’s embarrassing not to know. They’re
likely to be more concerned with appearances than actually
achieving the goal; this can lead to ruin over time.

d. Make sure that those in charge are open-minded about the questions and
comments of others. The person responsible for a decision must be
able to explain the thinking behind it openly and transparently
so that everyone can understand and assess it. In the event of

disagreement, an appeal should be made to either the decision