Ray Dalio, the billionaire hedge fund manager and investor, is one of my “heroes” in business and money matters. He’s the head of one of the world’s biggest hedge funds, and has returned more money to investors than any other person in history.
So imagine my surprise last year when he dismissed cryptocurrency as a “bubble” and “too volatile.” To me, it seemed quite a short-sighted statement from one of history’s financial visionaries.
Of course, I know Ray spoke from experience. He knows what works and follows it, and has made billions from it. So why put money on an untested vehicle like cryptocurrency?
But at the same time, I know the lack of vision can be deadly. The lack of vision has been the death of many of history’s biggest businesses.
And if you’d like to survive and thrive in your own life and business, you’ll need to keep your vision clear, too.
Remember: Anything Can Happen
If you’re in business, you probably already know that up to 95% of businesses don’t last past their 10th year.
Of course, not all businesses end up unprofitable and close down. Some ARE profitable, but get bought out by bigger companies or close down as soon as its revenue starts slipping after ROI.
But at the same time, it doesn’t mean that once your business survives its 10th year, you’re in the clear. Remember Lehman Brothers? They were in service for 158 years. But 2008 happened, and now they’re gone.
Did you know the Big Recession also almost wiped out Starbucks? It had been in service for 37 years when 2008 happened. Starbucks sells $2 coffee – something Americans will NEVER stop buying – and yet it almost went under.
The lesson? Anything can happen in the future. So you can’t be too sure of anything.
Vision Is Preparation
It doesn’t help to be fixed and over-optimized. Instead, you’ll need to stay quick and flexible.
With regards to cryptocurrency – it’s understandable if you wouldn’t touch it with a 10-foot pole.
It’s still in its infancy. The crypto world resembles the wild wild west at the moment.
But to dismiss it as a “bubble” would be shortsighted, especially by the rest of us who aren’t Ray Dalio. It’s like using Dial-up Internet and monstrous candybar cellphones in 1995, and saying “this is as good as it’s gonna get.”
Keep following what works at the moment. This goes for your life and your businesses. If something is working better for you than all the other alternatives, stick to it.
At the same time, keep an eye on cryptocurrency and blockchain technology. As early as now, get familiar with the terms and how the technology works.
And lastly – don’t put all your eggs in one basket. You’ll want to structure your life in a way that can weather any storm that might come your way – even the next Big Recession.
Vision is preparation, and now’s the best time to start preparing.
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