Ray Dalio: A Biography of the Legendary Investor by Stephen Anderson

Ray Dalio: A Biography of the Legendary Investor by Stephen Anderson

Chapter 1: Stage of Life: Birth of an
Investor (1949-1975)
August 8. Much of the first half of the 1940s was taken over by events
surrounding World War II. You can pick any “August 8” from 1940 to
1945, and chances are there were probably more tragedies and conflicts
recorded in history on those days than any hopeful or joyful events.
August 8, 1942. A group of German saboteurs had entered Washington
to wreak havoc on the city’s civil infrastructure. Thankfully, they were
caught before they could bring any of their plans to fruition.
August 8, 1945. The Soviet Union decided to declare war on Japan. To
show how serious they were about their decision, they readied over one
million soldiers to enter Manchuria, which was a Japanese-occupied
territory in China.
Looking at all of these events, it might seem that the date August 8 is
one filled with chaos, war, and misery. Before 1945, any date would line up
with some conflict, bloodshed, and strife. There was a reason it was called
World War II; it affected all corners of the globe.
But what about the August 8s that followed the end of the World War in
1945? Surely they must have shown some remarkable, hopeful, and
transformational events. That’s not true at all. Post-1945 would bring about
a few changes to the world, but most of the nations would be focused on
repairs and reconstruction. Immigration would become a problem as people
shifted away from war-torn countries and moved to places where there
would be more opportunities.
And so it was the case with New York. Not only was the city becoming
a home to European immigrants (because of which the Immigration Act of
1924 was enacted to stop the flow of immigrants into the country) because
of the war, but add to that the problems of the Great Depression that took
place from 1929 to 1939. New York (and for that matter, much of the
United States) was in an economic recovery period.
And so, August 8, 1949, was not a date that promised a lot. Immigrants
were still moving into New York from the after-effects of the war (this time,
from many of the Asian countries). The economy was slowly but steadily
trying to rebound.
It was this New York that Ray Dalio was born into. Because of that, Ray
was not born into a family that could provide him with many opportunities.
His father was a jazz musician. During the 1940s, the Jazz Age had created
a big impression. The new music form was largely credited to African-

Americans. But, eventually, one could notice a shift in the scene as the
music became popular among white, middle-class citizens.
Back in the day, with racial tensions still high in many parts of America,
accepting a form of art created by African-Americans was indeed a major
cultural shift. This was because it gave an opportunity for many young
people to challenge long-established traditions of previous generations. Of
course, white jazz players would receive more recognition and
opportunities to play on the radio. This was a huge communication medium
back in the day. (Think of radio like the Netflix of the 20s, 30s, and 40s).
But that would not stop the African-American jazz players from making the
most out of every opportunity they received. As jazz grew in popularity,
there were legends such as Louis Armstrong and Ella Fitzgerald making
their mark in the jazz industry.
Eventually, jazz began to permeate into the white culture. It wasn’t
instant, but it grew into a form of music and an area that attracted many
people. Subsequently, it blew up in the 1940s. People from all walks of life
wanted to become part of this cultural phenomenon. After all, if African-

Americans who had so few opportunities could go on to become legends,
then surely others could follow in their footsteps. Many people wanted to be
the next Miles Davis, John Coltrane, or Billie Holiday.
This is something that drew Ray’s father, Marino Dallolio, into the
world of jazz. There were opportunities, and he wanted to make use of
those opportunities. Of course, just because someone thinks there is a
chance they could make it big somewhere does not mean that they will.
And this would be the case for Ray’s father. Despite Dallolio’s best efforts,
he wouldn’t be entering into the Hall of Fame or releasing his own records.
However, he did play the saxophone and clarinet in numerous jazz clubs
around Manhattan, including the Copacabana. Today, the name Copacabana
wouldn’t even raise an eyebrow among many people. To them, it’s just a
club that has been lost to history. However, back in those days, the club was
an icon. After all, it was featured in popular movies like Raging Bull,
Carlito’s Way, Goodfellas, French Connection, and Tootsie. Dallolio did
have a bit of a reputation there.

Ray Dalio: A Biography of the Legendary Investor by Stephen Anderson