Principles - Ray Dalio

Ray Dalio explains in this book the principles he has used to get to where he is today. It discusses not just individual principles that we live by, but also principles that which organisations can follow, establishing structures to guide their path to success. While insightful, is it worth a read?

Content: Ray starts off by explaining his background and the early stages of Bridgewater Associates, the company he founded decades ago. He described the principles which he lived by (life principles) and how he incorporated them into his company (work principles). Finally, he ended with the governance and structures in place that can help individuals and companies stick to these principles to allow for continued growth and development.

Estimated reading time needed: 10-12h, including time for reflection. 

Key takeaways: 

1)  Be radically open-minded and learn your ego and blind spot barriers: Our defence mechanisms make it hard for us to accept that we are wrong at times, but we need to put our egos down and learn. The key takeaway for me is that we should learn from whoever is the expert, even if that person is a junior. The most important thing is to get the right answer rather than to be right.

2) Creating a culture in which it is ok to make mistakes and unacceptable not to learn from them: More applicable to organisations - a culture in which it is unacceptable to make mistakes will naturally find that mistakes are swept under the rug as nobody wants to get into trouble. This means that not only are mistakes not resolved, but the same mistake may be made again if there is no education provided. I think a "fail fast, learn fast" culture may be the quickest way to develop and grow as individuals and organisations.

Recommendation: While Ray provides some useful insights, I would recommend reading this book with an open and critical mind. Firstly, the book itself could have been much shorter if not for the repetitions and unnecessary explanations/examples, which made it less enjoyable to read - filter out only the necessary stuff. Secondly, Ray's principles worked for him and are good for us to consider. However, these are meant to be a guide rather than the whole truth, as there are other principles out there that we can follow/create. Thirdly, remember that Ray is the founder of his firm and thus several of his points come from that perspective. Not all may apply to non-founders.

That being said, I also do agree with many of his points. Ray spoke about creating an open culture where mistakes are called out, individuals are educated, and people challenge each other (for the purpose of getting the right answer). As someone who also has blind spots, I always appreciate feedback, especially from my superiors at work.

Overall, the points in this book are generic and not life-changing. They are real lessons that he has learned over the years of building his company. The book is more like a reminder for me, so 10-12h is a bit too long. Not a bad book, but also not great.

The Republic - Plato

This was my first time reading a philosophical book and I did not enjoy it. The essence of what the author was trying to convey was difficult to understand. The arguments portrayed in this book were sub-par, strawman, and lengthy. However, some arguments may pique our brains slightly, as certain arguments and examples provided may lead us to ponder about the "what ifs" when applied to other scenarios.

Content: To put it simply, the book is split into 10 smaller "books" or chapters, each chapter covering a debate over a range of topics, such as justice and governance. It is written in a way which is easily understandable - Socrates going back and forth with other individuals on their arguments on the form of justice.

Estimated reading time needed: 20h+; More time required as I was not used to the style of writing used here and to understand the point they are trying to put across. 

Key takeaways: 

1) It is wise to establish the context of any discussion, which will help identify the approach to take. This is especially crucial during the start of the conversation so that the parties do not get confused over the objective of the discussion.

2) To holistically develop and grow, we should focus on a few areas to improve on, including the body, brain, and soul. In the book, they suggested individuals in society pick up gymnastics and music from a young age, but I think there are alternatives to develop ourselves as well. 

3) To grow and mature is to be aware of what is going on around us, the good and the bad. Being protective of the young may not be the best idea if they turn out to be oblivious to the bad that is happening around them.

Recommendation: Overall, the book is not for me but if you do enjoy reading abstract or philosophical books, this could be interesting to you. The arguments presented may push you to think about how they can be applied to more useful and relevant contexts. 

The Hour Between Dog and Wolf - John Coates

Reading biology has never been more thrilling. Coates expertly blended finance with biology, taking us on a journey through the trading floor and what goes on in our bodies over time. If you are interested in what happens on the trading floor and what happens to our bodies during times of stress and excitement, this is the book to read. It will give you a new perspective, helping you understand your body better through a molecular lens (literally).

Content: The book was informational and the storytelling was fantastic. Coates went from describing how our hormones rise and fall during certain times, how we can build resilience, and even the setup of an investment bank and what traders do on a day-to-day.

Estimated reading time needed: 15-20h; it is a non-fiction book with technical jargons, so more time will likely be required to fully understand and process the information.

Key takeaways: 

1) During a winning streak, we can become euphoric and our risk appetite expands (winner effect). Testosterone increases and so do confidence and risk-taking which segue into overconfidence and reckless behaviour. On a losing streak, we struggle with fear, reliving the bad moments and the stress hormones linger, which may ultimately result in high blood pressure and other infections.

2) If we want to understand how people make financial decisions, how traders and investors react to volatile markets, and how markets tend to overshoot sensible levels, we need to recognise that our bodies affect our risk-taking behaviour.

3) Ever wondered how a cricketer can catch a ball in a split second? The brain anticipates the actual location of the object and moves the visual image we end up seeing to this hypothetical new location.

4) Every millisecond matters. We hear events that happen near us before seeing them, and we see events that occur far away before hearing them. The intersection is called the "horizon of simultaneity". On the trading floor, traders see the price on the screen, but an audio feed could give traders a 40-millisecond edge in the market.

5) The four stages of competence - unconscious incompetence, conscious incompetence, conscious competence, and unconscious competence. "Thinking, one could say, is something we do only when we are no good at an activity". However, I believe this blanket statement should not be applied to every scenario. Make sure you check your work thoroughly before submitting it to your bosses!

6) Traders with a high IQ and insight into the value of stocks and bonds may be worth listening to, but if they do not have an appetite for risk, they will not act on their views. Good traders must also be able to scrutinise the screens for hours at a time, and they must move to trade before anyone else.

7) Computers may take over the job of quick trade executions, but our bodies will continue to be crucial for success in the markets because they provide us with perhaps the most important data informing our call on the market - our gut feelings. How can we train ourselves such that our gut feeling becomes more accurate?

8) Mentally toughened individuals welcome novelty as a challenge and see it as an opportunity for gain. Resilience to stress comes from experiencing stress. Toughening our minds can thus come from a process of challenge and recovery. The author also distinguished the difference between periodic stress and chronic stress. The former would give rise to toughened individuals, but the latter would cause infections and other health issues.

9) Exercise is the most important way to toughen ourselves, as it helps to inoculate us against anxiety, stress, depression and learned helplessness. Exposure to cold weather or water would also help us be more emotionally stable during prolonged stress.

Recommendation: Having studied biology and finance, it never occurred to me how one is affected by the other. I believe that understanding our physiological reactions can help us adjust and react to our environment easier, and at the same time remain calm and in control of ourselves over external events. If any of the above was interesting to you, I highly recommend reading the whole book.

The Art of Thinking Clearly - Rolf Dobelli

Learning about some biases and heuristics in business and management at university was eye-opening. It made me think about how I've been affected by them in different scenarios and what I should be wary of in the future when making decisions. Reading this book further introduced me to other fallacies and provided different interesting perspectives.

Content: This book is easy to read, with each chapter spanning 3 pages, covering the various circumstances and events that could prevent us from thinking clearly. Some examples are the sleeper effect, domain dependence, and "not-invented-here syndrome". 

Estimated reading time needed: 10h

Key takeaways: 

1) Never ask a barber if you need a haircut. Understand the "what's in it for them" to determine if they truly have your interest at heart. 

2) Regression to mean - sometimes we perform well, sometimes badly. While this may be true to a certain extent, the key question would then be how do we improve the mean? The answers are practice and familiarisation for me. 

3) Less is more - the paradox of choice is when we have too many choices and are unable to make a decision. I think it could also be that there are too many variables that we must consider when making decisions. The fix - write down non-negotiables on what exactly you want from it, then filter your choices.

4) Inductive thinking can be dangerous - the thinking that because it has always been this way in the past, it should continue in the future. It reminds me of the need to be careful when investing - stocks don't always go up, and even if they did in the past, it may not be the case in the future.

5) Alternative blindness can obscure our views on our choices. When people give us A or B, always think outside the box if there are other alternatives that we can choose.

6) Self-imposed deadlines work better if they are broken down into smaller parts.

7) How we can curb envy - stop comparing ourselves to others, find our circle of competence, create a niche and become a master in it. "It's okay to be envious, but only of the person you aspire to become". 

Recommendation: It's an average book to read in my opinion. There are lots of information consolidated in this book, teaching us about the various fallacies and biases. However, we will probably be unable to take many of these into consideration during our day-to-day lives. We can make it more actionable by writing down our thoughts and slowing down our thinking, which is not very practical for our day-to-day activities. Perhaps do this for the more important decisions instead.

Grit - Angela Duckworth

Growing up, I found myself switching from activity to activity, because my interest died out really quickly. In Chinese, my father called it 五分钟热度, which literally means "five-minute heat". Although exploration is important, I didn't stick to something long-term, and this book truly opened my eyes. 

Content: Through this book, Dr Duckworth spoke of her journey to seek answers on the importance of grit, how grit can be nurtured, and how one can develop grit from within. While hard work and intelligence are important, grit is a measure of how much discomfort or pain one can go through before choosing to give up. This measure also provides insights into our future success in our careers.

Estimated reading time needed: 12-15h but I recommend taking your time to do so. Relate the info to your experiences if you can and reflect, it will help greatly.

Key takeaways: 

1) Before hard work comes play, to gain the initial spark of interest by having fun

2) A key part of developing grit is after the initial phase of discovery - a period of proactive interest development

3) High-level goals should be written in ink once you've got that figured out, and low-level goals should be written in pencil that can be adjusted or removed

4) Simply telling others they can overcome adversity is insufficient. To grow grit, we need to experience adversity, have a growth mindset and tell ourselves we can overcome it, and persevere to overcome it

5) The people around you are important - so are their support and encouragement

6) A team's culture has an effect on the individual - becoming great may be a result of joining a great team

7) Aside from grit, there is also character. Character is plural

Recommendation: This is one of the books that reached the peak of my "Maslow's hierarchy" for reading. Not only does it have a well-thought-out structure with great arguments and evidence, it is also relatable to me as I think about my own experiences and how I've developed (and can develop) grit. If you'd like to do well in something but aren't sure how, read this.

Men are from Mars, Women are from Venus - John Gray

Boy-girl relationships (BGRs) are confusing - not taught in school, and may not even be taught by parents. Sometimes we simply emulate how our parents act, or perhaps other adults, including those in TV series. This book was able to capture many useful pointers on what to look out for, how to react, and when to do what.

Content: This book takes the viewpoints of both men and women, on how the 2 interact with each other, react to situations and express themselves - they speak 2 different languages, as Gray put it. Many conflicts arise out of miscommunication, which this book will help to reduce. Note that this book is a general guide, it is unlikely that everything will be relatable so take it with a pinch of salt and sieve out the good parts for yourself.

Estimated reading time needed: 12-15h but I recommend taking your time to do so. Relate the info to your experiences if you can, it will help greatly.

Key takeaways: 

1) Men are like rubber bands - after giving lots of love, they need space to "bounce back" and start giving lots of love again. They do this by going back to their "cave", and it is best for women to understand this and let him be alone for the time being.

2) Women are like waves - their emotions rise and fall, and are sometimes affected by things of the past, which men would think have already been resolved. During this period, it is best for men to understand her emotions and validate them, let her know she's been heard.

3) Men and women speak 2 languages, and how messages are delivered may be more important than the message itself.

4) Both sexes score points differently. Men score points based on how big the event is, and women score points based on the number of times. For example, men think that by working hard and earning a better salary, they earn 5 points. However, women would only assign 1 point. Men would then think they scored 5 points when they actually only scored 1, creating a difference in expectations/perception.

5) Women on Venus tend to help each other without asking, whereas men on Mars want to feel validated and be trusted to solve problems, so they tend to not ask for help. Men thus assume that if women want help, they'll ask for it, when in reality, women want them to help without asking.

Recommendation: This book was filled with anecdotes and interesting situations which we may relate to. If you're struggling to understand the opposite sex, or if you think you're not struggling but somehow always quarrels with the opposite sex, this book is for you. Definitely check it out to manage relationships - not just BGRs, but in general.

Getting to Yes - Roger Fisher & William Ury

This was hands down one of the best books I've read. Extremely useful in learning how to get to an agreement with others. Although theoretical, the pointers were clear with sufficient explanation and evidence, and with practice, I believe this is a skill that can be trained.

Content: The book is fairly straightforward - how do we get others to saying "yes". There are 3 main bodies for the book - the problem, the method, and other considerations we may have when negotiating. First, they look at defining what's the roadblock to the agreement, then laid key generic frameworks for standard negotiations that we can use. 

Estimated reading time needed: 12-15h depending how quickly you can internalise the info. I suggest taking it slow and absorbing as much as you can.

Key takeaways: 

1) Communication is the basis of negotiation, where negotiation is a process of communicating back and forth our interests.

2) In a difficult negotiation or with an impasse, there are 4 steps to create options we can take - same as solving any other problems in our lives - identify the problem, analyse it, identify approaches and take action steps.

3) An agreement may be based on disagreement - where one man's trash is another man's treasure. 

4) When negotiating, focus on interests and not positions. There are a few ways we can get to safeguard our interests. In principled negotiation, we can get others to come together to discuss a solution to all our problems, rather than argue about who wants what or who is right.

5) Your best alternative to a negotiated agreement (BATNA) - your next best alternative - is extremely powerful. Identify and improve it, so that you have more confidence in your negotiation and are willing to ask for more. Even if the negotiation turns sour, your alternative is still a good choice.

6) If the other party is firm on their position, look at their underlying interests, ask questions and pause. If they attack you personally, recast that attack as an attack on the problem.

7) Stick to principle when negotiating - it is difficult for others to fault your interests if you know what's important.

8) Separate the people from the problem - tackle the problem together, not tackle the other person.

9) Understanding the forest landscape is better than understanding one specific path through the woods. Know your interests, strategies, BATNA, potential rebuttals, and those of the other party.

Recommendation: There are many other interesting information and pointers in the book which I didn't cover here, such as what we can do if the other party has more "power" over us and how principled negotiation can help when encountering phony tactics. Negotiation happens in our daily lives, personal and professional. While we don't have to negotiate our way through everything, such as where to have dinner, it sure would be helpful to have such skills when needed.