Knowing you’re right

isn’t what matters in decision-making.

Ray Dalio, the creator of the biggest hedge fund in the world, had a unique insight: he was right, but he still ended up losing millions of dollars because he didn’t know how he could know he was right.

The key question is, how do you know you’re right? For that, you need systems, rules, analysis, and data.

Only then, if you understand how you know you’re right, can you follow through and come to the right conclusions based on your knowledge.

Insights don’t matter if you can’t turn them into good actions.