The man is Ray Dalio.
The TV show is called "Bloomberg TV."
During a recent episode of the "We Study Billionaires" show, Ray Dalio warned against holding cash or bonds, trumpeted the value of a balanced and diversified portfolio, and cautioned investors against trying to time the market.
The billionaire investor suggested that governments could ban cryptocurrencies, as well as investing in rainy-day assets.
Here are the 8 key quotes from the interview.
1. "Investors make the mistake of judging their wealth by the number of dollars or pounds they're looking at." They should judge it based on the relationship to buying power. They make serious mistakes if they don't.
2. You're locking in a negative real return if you buy a bond. Cash is worse than that. "Do not look at your nominal returns and think that's safe, when that's not safe, because federalStimulus has boosted people's wealth on paper, but has also resulted in inflation, which erodes the real value of currencies."
3. The most common mistake investors make is to think the markets that went up are more expensive. Don't make that mistake.
4. If something goes up a lot, then something goes down a lot, then you need to keep your portfolio diversified. Sell more as things get more expensive and buy more as they go down.
5. You'll probably lose if you try to time the market yourself. Competing in the markets is more difficult than competing in the Olympics because there are more people trying to do it.
6. They've banned gold and silver in the past. He said he was impressed that there had been only modest competition over the past decade.
7. "Over time, inflation-hedge assets are likely to do better."
8. It's better to have two portfolios than one. People tend to focus on their best assets, but there are assets that are better to have in a worst-case scenario. "Have enough of those assets, including gold, bitcoin, inflation-indexed bonds, and overseas assets."
Business Insider has an original article.
