During an appearance on The Diary of a CEO podcast earlier this week, billionaire investor Ray Dalio reflected on the defining moment of his career -- being fired in 1975 -- which he says ultimately led him to build Bridgewater Associates into the world's largest hedge fund.
The Best Thing That Ever Happened
Dalio recounted how, after graduating from Harvard Business School in 1973 and landing a series of trading roles, he was dismissed from Sandy Weill's Citigroup predecessor for insubordination.
"I was rowdy," he said, adding, "I wasn’t your typical good employee. So, I got fired and that was in 1975, but clients all liked me, so they would pay me for advice and I continued to trade the markets and that’s when I formed Bridgewater."
That same year, Dalio launched Bridgewater Associates out of his Manhattan apartment.
The fund began as a small advisory practice before growing into a global giant with a macroeconomic approach rooted in Dalio's now-famous "Principles."
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Bridgewater's Rise To Power
What started with cold calls from a spare bedroom evolved into a hedge fund that, by 2025, manages about $92 billion in assets.
By the mid-1990s, Dalio had posted a 10-year average annual return of more than 13% after fees. According to research firm LCH, Bridgewater has generated more than $58 billion in profits for investors since its founding in 1975.
Dalio gave up control of the firm in September 2022 when he stepped down as co-chief investment officer, though he retains an economic interest valued at roughly $6.8 billion, based on pension fund valuations.
Billionaire Fortune And Philanthropy
According to the Bloomberg Billionaires Index, Dalio has a net worth of about $16 billion, with the bulk tied to his Bridgewater stake and decades of profit-sharing.
Bloomberg estimates he has personally earned more than $13 billion since 2002 from his share of fund profits and investments.
Dalio has also become one of America's most active philanthropists, giving over $2.1 billion through the Dalio Foundation to support education, healthcare, and ocean exploration.
From Caddie To Hedge Fund Titan
Dalio grew up in Queens and later on Long Island, where he first discovered the stock market while caddying for golfers.
His passion for investing eventually took him to CW Post College and then Harvard. From that modest start, he built Bridgewater into a $100 billion powerhouse and cemented his status as one of the most influential figures in global finance.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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