Ray Dalio reveals the 'most important thing you need to do' to be a successful investor

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According to Ray Dalio, “diversifying well is the most important thing you need to do in order to invest well.” (via CNBCMakeIt)

So "while you can't know which of the items you are betting on will provide better results," Dalio said, if you diversify properly, "you do know that they will behave differently, and by mixing them appropriately you can reduce risk. Diversifying well is a matter of knowing how to reduce your expected risk by more than you reduce your expected return ," Dalio wrote.gives similar advice.

. "You want to spread the risk as far as the specific companies you're in by owning a diversified group, and you diversify over time by buying this month, next month, the year after, the year after, the year after.""I know what markets are going to do over a long period of time: They're going to go up.

 

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