How Ray Dalio transformed a 7,500 word article on capitalism reform into a simple and compelling story

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Simple writing is a difficult job. Explaining complex topics in a simple but not simplistic way is difficult to do. That's why I'm the business leaders who think as much as I do about communication. These leaders include Warren Buffett, Bill Gates and billionaire hedge fund manager Ray Dalio.

Dalio made waves this week with a 7.500 word article on LinkedIn titled & nbsp;Why and how capitalism must be reformed. Dalio is a voracious learner who studies storytelling and communication. It should be noted that Dalio transforms an extremely complex subject into a simple and convincing narrative.

1. Start with a story

Most business leaders and economists are very good at creating pie charts and really bad at telling stories.

Dalio knows better than to start with the dry thing. In fact, his first graph does not appear for fourteen paragraphs. Instead, Dalio attracts the reader with a story. & Nbsp; & nbsp;

I was fortunate to be raised in a middle clbad family by parents who took good care of me, to go to good public schools and to enter a market. of work that offered me equal opportunities, Start Dalio. & Nbsp;

At 12, one could say that I became capitalist because it was when I won the money I won, like delivering newspapers, mowing lawns and making caddies, and placing it on the market stock market while the stock market was very active. It fascinated me for the game of economic investment that I have been playing for almost 50 years.

By giving readers a story about his background and how he gained his knowledge, Dalio strives to create a deeper connection with his readers.

Dalio is a narrative student. In 2014, he immersed himself in Joseph Campbell's book, & nbsp;The hero with a thousand faces. Dalio explains his fascination with Campbell's "Journey of the Hero" in his best-selling book, & nbsp;Principlesand in a short video that he posted on Facebook. & nbsp; "To know more about the hero's journey helped me to crystallize my own understanding of my background and what I wanted to do next," says Dalio.

Campbell was the first to identify a structure that most heroic epic tales tend to follow: a hero is called to an adventure, encounters trials and tribulations, and is transformed by the experience.

The narrative and narrative permeate Dalio's work. Sunday night & nbsp;60 minutes Dalio's profile includes an overview of an ambitious initiative – OceanX – that combines ocean research and visual storytelling. according to BarronMark, a partner of Dalio for Ocean X, says that narration can spark genuine interest in a subject. People can not be "forced" to become environmentalists, he says. They must be led there. & Nbsp;

2. Summarize your argument

In the third paragraph of Dalio's article on LinkedIn, he delivers the most quoted phrase of his article, a summary in one sentence that describes Dalio's position. Dalio writes:

I think that most capitalists do not know how to divide the economic pie well and that most socialists do not know how to cultivate it well.

This line indicates that Dalio is about to take up the difficult challenge of tackling this complex mess: the gray zone far too complex to hold a tweet. & Nbsp; In the following paragraph, Dalio summarizes the journey that he is about to train his readers. sure. & nbsp; "I believe that all the good things that go to extremes can be self-destructive and everything has to evolve or die. This is now true for capitalism. "

3) Stick to three key messages

Regular readers of my column know that I am a big supporter of the "rule of three". In simple terms, humans have the ability to memorize in the short term about three ideas. This is one of the great writing rules of all time. Do not give twenty takeaways to your readers, give them three. That's exactly what Dalio does.

In this report, I show why I believe that capitalism no longer works for the majority of Americans, I diagnose why it produces these inadequate results and I offer some suggestions on what can be done to reform it.

The structure is simple. We will first understand why capitalism does not work for everyone. Secondly, we will learn more about the factors that brought him here, and third, we will have Dalio's suggestions on how best to reform it. & Nbsp; Although Dalio's report contains 7,500 words, you will find most of it in the first four paragraphs.

Dalio knows that the rest of the report becomes dense and could intimidate some readers. He also has something to offer them. & Nbsp;

4. Highlight the important things

Dalio knows that most people have neither the time nor the desire to read an article of 7,500 words. Once again, it makes their job easier. First, he warns us that big numbers are coming. He proposes a suggestion. & Nbsp;

In this section, I will show you a lot of statistics and graphs that paint a complete picture. Maybe there is too much for your taste. If you think you have crossed the threshold of diminishing returns, I suggest you quickly scan the rest by simply reading the bold sentences or go to the next section …

5. Keep the graphics simple and uncluttered

The first graph of Dalio appears only after the fourteenth paragraph. Once she appears, she is remarkably simple and tells a complex story. & Nbsp; "I would like to show you the differences between the haves and the have-nots," writes Dalio to configure the chart.

It divides the economy into the top 40% and the bottom 60% (where most Americans live). The reader sees two cards. Both are free of clutter and simple enough to understand in seconds.

The first chart has two black arrows: one represents the income growth of the richest 40% since 1980 and the lower zone indicates the income growth of the 60% most disadvantaged of the American population. The top arrow rises rapidly, while the bottom arrow is aligned, stagnant. Dalio explains the painting in one sentence that he writes in bold type:

Real income growth for most people has been low, if any, for decades.

The second graph is even simpler. It presents a blue line that falls every year from 1970 to the present day. Once again, Dalio explains in one sentence: "The percentage of children growing up to earn more than their parents has fallen from 90% in 1970 to 50% today. & Nbsp;

Dalio follows this pattern for the rest of the article – using the tools of storytelling and simple and clear communication to explain the factors behind the problems in which capitalism finds itself. Dalio's diagrams and explanations about poverty and educational inequalities should be carefully studied by anyone who uses graphics and graphics to express their ideas. & nbsp;

In 2011, CIO Magazine called Dalio Steve Jobs of Investment. The article describes "deep similarities" in the path of the two entrepreneurs to develop their business. I would add that Steve Jobs was also one of the most effective communicators in the technology sector. Dalio is one of the most effective communications of the financial space. & Nbsp;

Dalio's message on LinkedIn is a perfect example of how he raises awareness about a difficult subject. & Nbsp;

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Simple writing is a difficult job. It is difficult to explain complex topics in a simple but not simplistic way. That's why I'm the business leaders who think as much as I do about communication. These leaders include Warren Buffett, Bill Gates and billionaire hedge fund manager Ray Dalio.

Dalio made waves this week with a 7.500 word article in LinkedIn titled, Why and how capitalism must be reformed. Dalio is a voracious learner who studies storytelling and communication. It should be noted that Dalio transforms an extremely complex subject into a simple and convincing narrative.

1. Start with a story

Most business leaders and economists are very good at creating pie charts and really bad at telling stories.

Dalio knows better than to start with the dry thing. In fact, his first graph does not appear for fourteen paragraphs. Instead, Dalio attracts the reader with a story.

I was fortunate to be raised in a middle clbad family by parents who took good care of me, to go to good public schools and to enter a market. of work that offered me equal opportunities, Dalio begins.

At 12, one could say that I became capitalist because it was when I won the money I won, like delivering newspapers, mowing lawns and making caddies, and placing it on the market stock market while the stock market was very active. It fascinated me for the game of economic investment that I have been playing for almost 50 years.

By giving readers a story about his background and how he gained his knowledge, Dalio strives to create a deeper connection with his readers.

Dalio is a narrative student. In 2014, he immersed himself in the book of Joseph Campbell, The hero with a thousand faces. Dalio explains his fascination with Campbell's "Journey of the Hero" in his bestselling book Principlesand in a short video that he posted on Facebook. "Discovering the hero's journey helped to crystallize my own understanding of my background and what I wanted to do next," says Dalio.

Campbell was the first to identify a structure that most heroic epic tales tend to follow: a hero is called to an adventure, encounters trials and tribulations, and is transformed by the experience.

The narrative and narrative permeate Dalio's work. Sunday night 60 minutes Dalio's profile includes an overview of an ambitious initiative – OceanX – that combines ocean research and visual storytelling. according to BarronMark, a partner of Dalio for Ocean X, says that narration can spark genuine interest in a subject. People can not be "forced" to become environmentalists, he says. They must be driven there.

2. Summarize your argument

In the third paragraph of Dalio's article on LinkedIn, he delivers the most quoted phrase of his article, a summary in one sentence that describes Dalio's position. Dalio writes:

I think that most capitalists do not know how to divide the economic pie well and that most socialists do not know how to cultivate it well.

This line indicates that Dalio is about to embark on the difficult challenge of attacking the messy center, the gray area far too complex to fit into a tweet. In the following paragraph, Dalio summarizes the journey he is about to embark with his readers. "I believe that all good things pushed to the extreme can be self-destructive and everything has to evolve or die. This is now true for capitalism. "

3) Stick to three key messages

Regular readers of my column know that I am a big supporter of the "rule of three". In simple terms, humans have the ability to memorize in the short term about three ideas. This is one of the great writing rules of all time. Do not give twenty takeaways to your readers, give them three. That's exactly what Dalio does.

In this report, I show why I believe that capitalism no longer works for the majority of Americans, I diagnose why it produces these inadequate results and I offer some suggestions on what can be done to reform it.

The structure is simple. We will first understand why capitalism does not work for everyone. Secondly, we will learn more about the factors that brought him here, and third, we will have Dalio's suggestions on how best to reform it. Although Dalio's report contains 7,500 words, you will find most of it in the first four paragraphs.

Dalio knows that the rest of the report becomes dense and could intimidate some readers. He also has something to offer them.

4. Highlight the important things

Dalio knows that most people have neither the time nor the desire to read an article of 7,500 words. Once again, it makes their job easier. First, he warns us that big numbers are coming. He offers a suggestion.

In this section, I will show you a lot of statistics and graphs that paint a complete picture. Maybe there is too much for your taste. If you think you have crossed the threshold of diminishing returns, I suggest you quickly scan the rest by simply reading the bold sentences or go to the next section …

5. Keep the graphics simple and uncluttered

The first graph of Dalio appears only after the fourteenth paragraph. Once appeared, it is remarkably simple and tells a complex story. "I would like to show you the differences between the haves and have-nots," writes Dalio.

It divides the economy into the top 40% and the bottom 60% (where most Americans live). The reader sees two cards. Both are free of clutter and simple enough to understand in seconds.

The first chart has two black arrows: one represents the income growth of the richest 40% since 1980 and the lower zone indicates the income growth of the 60% most disadvantaged of the American population. The top arrow rises rapidly, while the bottom arrow is aligned, stagnant. Dalio explains the painting in one sentence that he writes in bold type:

Real income growth for most people has been low, if any, for decades.

The second graph is even simpler. It shows a blue line that collapses year after year from 1970 to the present day. Once again, Dalio explains in one sentence: "The percentage of children growing up to earn more than their parents has fallen from 90% in 1970 to 50% today.

Dalio follows this pattern for the rest of the article – using the tools of storytelling and simple and clear communication to explain the factors behind the problems in which capitalism finds itself. Graphics charts and graphs to express their ideas.

In 2011, CIO Magazine called Dalio "Steve Jobs Investment". The article describes "deep similarities" in the path of the two entrepreneurs to develop their business. I would add that Steve Jobs was also one of the most effective communicators in the technology sector. Dalio is one of the most effective communications of the financial space.

Dalio's LinkedIn publication is an excellent example of how he raises awareness about a difficult subject.