- Ray Dalio has fully exited Bridgewater Associates, selling his last stake and stepping off the board after 50 years.
- Bridgewater issued new shares to Brunei’s sovereign wealth fund, giving the fund nearly a 20% stake in a multibillion-dollar deal.
- Dalio warned of possible economic turmoil ahead, predicting a global debt crisis and urging deficit reductions in the U.S.
- He now suggests investors can allocate up to 15% of their portfolio to Bitcoin or Gold, up from previous lower recommendations.
- Dalio’s forecasts have attracted criticism due to past inaccuracies, with some calling attention to flaws in his economic predictions.
Ray Dalio, the billionaire investor and founder of Bridgewater Associates, has completed his exit from the company by selling his last remaining stake and stepping down from its board. Dalio’s departure marks the end of his involvement in the hedge fund he started in 1975.
After Dalio sold his shares, Bridgewater offered new shares to Brunei’s sovereign wealth fund. This transaction resulted in the Brunei fund gaining nearly a 20% ownership in the company through a deal valued in the billions of U.S. dollars.
Dalio commented on his departure in a post on X, saying he is happy to pass leadership to the next generation. “I love seeing Bridgewater alive and well without me — even better than alive and well with me,” Dalio stated.
Dalio, known for forecasting the 2008 financial crisis, has warned of more economic trouble coming. He predicts a significant global debt crisis could occur in late 2024. He also wrote that a nation overloaded with debt may lower interest rates and devalue the currency. Dalio warned that the U.S. economy faces an “economic heart attack” if the national budget deficit is not reduced to 3% of gross domestic product (GDP).
Dalio has advised investors to protect themselves from economic risk by keeping up to 15% of their portfolios in Bitcoin or gold, a notable increase from his previous advice of 2%. He described Bitcoin as a “long-duration option on a highly unknown future that I could put an amount of money in that I wouldn’t mind losing about 80% of” in his 2021 essay, “What I Think of Bitcoin.” However, Dalio has clarified that he prefers gold over Bitcoin for hedging purposes.
Dalio’s economic predictions have not always been accurate. In 1982, he wrongly predicted a global depression, almost bankrupting Bridgewater. Critics have pointed out issues such as overgeneralization and confirmation bias in some of his forecasts.
For further details on Dalio’s statements and investment advice, see his essay “What I Think of Bitcoin”. Additional references can be found in reports by The Wall Street Journal and coverage of Dalio’s history on CNBC.
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