05.27.21 — Bob Prince Interview Reflection
Reflections from a interview with Bob Prince — Co-CIO, Bridgewater Associates
Recently, I had the privilege to sit in on a presentation by Bridgewater’s Co-Chief Investment Officer, Bob Prince, at the final Titans of Investing meeting of the year. And what an opportunity that was. The following is my personal reflection over all that he spoke about:
The first thing I noticed about Bob was his contagious enthusiasm. He seemed to have a joy that could not be contained, unmatched by anyone else in the room. I caught myself at random points throughout his speech just smiling, because I could see the passion that he spoke with. Lucky for me, I knew the secret: He had a personal relationship with Jesus Christ and it was reflected in every word that he spoke. I’m not entirely sure of the beliefs and morals of everyone in that room on the evening of April 29th, but I do know that not a soul left without having some serious questions about where that joy came from.
The reason why this was so impressive to me is because 1) This was a man entering the later stages of his career in an industry that appears to be predominately secular and 2) He lives in Connecticut, which is far outside of the Bible belt (like Texas) and probably filled with many people who disagree with the way he lives his life. Yet somehow, Bob was able to rise to the top of an association such as Bridgewater while holding tightly to his faith and honoring his family. How did he do it?
“Bob’s Operating System”
Six Keys to Success
Bob looked out at the class and told us that he has an “operating system” of sorts that he lives his life by. Within it are 6 keys to success, 5 basics in 5 words, 4 postulates, and 3 scripture verses. I was getting giddy in my seat awaiting his wisdom, fully expecting to hear some ground-breaking knowledge that I had never before heard. His six keys to success are as follows:
Key:
1. Sleep
2. Water
3. Food
4. Exercise
5. Prayer
6. Ancient
Metrics:
- Wake up without alarm
- Clear urine
- Carbs/fat/sodium aware
- Break a sweat
- Yes or no
- Yes or no
The room was silent. I looked around to see the puzzled looks on my peers as we tried to see if we were missing some of the complexity in his keys to success. As if reading our minds, Bob asked the question out loud that we were all thinking: “WHY are these the keys to success?” He answered by saying that 1–4 were what we need to be physically ready to go every day and 5–6 were the wisdom, rest and clear mind that allows us to focus on what the Bible directs you to do. The question we should be asking ourself is not how to achieve success, but what we define success as. And to Bob Prince, success was “being the best YOU can be.” And to be the best version of himself today, these 6 keys were what he abided by to live the highest quality of life.
It was at that moment that it dawned on me that success does not have to be an abstract idea. Success isn’t six figures, the newest car, or the highest job title. Success occurs in the day-to-day lives of individuals. By giving ourselves the necessary things we need for life (both physically and spiritually), we can go to bed at night knowing that today was a victory. And pretty soon, these victories will string together and create a pattern that may one day result in achievement in our work.
Five Basics in Five Words
Passion. Bob posed the question for the room, “How do you decide? What do you have an enthusiasm for?” I found it surprising how difficult it was for me to come up with an answer for this. He explained to us that too much of our life is based off of externalities and what others want of us. Find what makes you tick, and invest in it. It doesn’t have to be the same thing as everyone else in the room. “Play the long-game; ask yourself: ‘How does what I’m doing today open doors tomorrow?” By allowing your knowledge and experience to compound over time, you will be a lot wiser down the line in 40+ years. “It’s a lot more enjoyable to do this if you are passionate about it,” he said.
Process. He then told us the importance of having a decision-making framework that we can use when we are encountered with tough choices. The one that he uses is: 1) Goals 2) Problems 3) Diagnosis 4) Plans 5) Execute. He asked us to assess how the organizations we will be a part of in the future collectively organize their goals.
Return Streams. “It’s not about today’s goals. Engage in expected value thinking.” This point made by Bob was to remind us to keep in mind the bigger picture of our investments. What will the things that we sink our time into today return years down the line? He told us to find 15+ good and unrelated return streams to invest in. I’d imagine that the reason he said this was because if we diversify what we put our effort into now, we will have a wide array of knowledge, skills and experience to draw from when we are older in life.
Systemize. If we can think through our criteria for decision making, we can consistently execute on this. The framework Bob laid out for us was 1) Machine (cause and effect) 2) Conditions 3) Outcomes. By constantly looping this system, we allow ourselves to adapt over the course of our lives as we gain new and better information. This allows us to have a methodical way in which we operate, while also allowing us to be incredibly versatile and develop as our circumstances change.
Four Postulates
A postulate is something that is true on its face. As Bob put it, “it’s just true.” From these postulates, he told us that we can derive theorem (“therefores”).
1. “All meaning derives from RELATIONSHIPS.” All humans are hardwired to connect in one way or another.
2. “ORDER is pervasive.” If something isn’t orderly, it’s simply not true.
3. “SYMMETRIES abound.” Just look out across God’s creation. Everything was meticulously made to compliment one other. It’s quite beautiful.
4. “TIME is a vector.” It only goes in one direction: forward.
Three Scripture Verses (“therefores”)
Since the above four postulates are absolutely true, our response should align with the following three scripture verses.
1. “Pride goes before destruction, and a haughty spirit before a fall.” — Proverbs 16:18
2. “For even the Son of Man came not to be served but to serve, and to give his life as a ransom for many.” — Mark 10:45
3. “But the wisdom from above is first pure, then peaceable, gentle, open to reason, full of mercy and good fruits, impartial and sincere.” — James 3:17
4. (Bonus verse) “Behold, what I have seen to be good and fitting is to eat and drink and find enjoyment in all the toil with which one toils under the sun the few days of his life that God has given him, for this is his lot.” — Ecclesiastes 5:18
Bob’s four postulates demand that there is an intelligent and loving Creator who allows these things to be 100% true, without fault. And if these things are true, and there is a God that exists, then these verses that he provided us are the foundation on which we should live our lives so that they are honoring to God and others. These scripture verses tell us to remain humble, serve as Christ served us, seek wisdom from God above, and enjoy the work that He has placed before us. God is a God of the details and wants His creation to be excellent at what He has gifted them with. To bring this full circle, this success that God desires for us can be found in Bob’s 6 keys to success: sleep, water, food, exercise, prayer, and an ancient text. If we start our day by going 6–0, God is glorified, and we are better equipped to take on the challenges of everyday life.