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Imagine embarking on a fitness journey without any principles—your workout would likely lack regularity and structure. By establishing clear principles, such as balanced workouts and progressive weight increments, you streamline your efforts and focus on higher-level objectives. It’s crucial to identify principles that diagnose problems effectively, thus allowing for efficient adjustments.
Dalio emphasizes the significance of documenting these principles to reinforce clarity and understanding. As an example, he shares famous investment principles, including the tenets of investing in one’s circle of competence and maintaining a margin of safety. These foundational rules guide behavior in various life aspects, particularly in investment strategies.