1. Freedom: Naval places a high value on personal freedom, both in terms of time and autonomy. He believes that true wealth is about having the freedom to do what you want, when you want, without being bound by financial constraints or societal expectations. This includes freedom of thought, freedom from external pressures, and the ability to live life on your own terms.

2. Authenticity: Naval emphasizes the importance of being true to oneself. He believes that authenticity is key to living a fulfilling life and achieving long-term success. By aligning your work and actions with your true self, you can avoid the pitfalls of competition and carve out a unique path that is sustainable and rewarding.

3. Happiness: Naval values happiness as a core aspect of life, arguing that it is a skill that can be cultivated through self-awareness, acceptance, and mental discipline. He believes that external success does not guarantee happiness, and that true contentment comes from within, through mastering one’s mind and desires.

1. Truth and Transparency: Ray Dalio values radical truth and transparency, especially in organizational settings. He believes that open and honest communication is essential for making the best decisions and fostering a culture of trust. This value is central to his approach at Bridgewater Associates, where employees are encouraged to speak their minds and challenge ideas openly.

2. Continuous Learning and Improvement: Dalio values the process of constant learning and self-improvement. He believes that facing reality, reflecting on mistakes, and evolving based on those reflections are crucial for personal and professional growth. This value is encapsulated in his principle of "Pain + Reflection = Progress."

3. Principled Decision-Making: Dalio places a strong emphasis on living by principles—clear, tested guidelines that help navigate decisions in both life and business. He believes that having a set of principles allows individuals and organizations to make consistent, rational decisions that align with their long-term goals.

How did they find out?

1. Freedom: Naval's value of freedom emerged from his life experiences as an immigrant and his journey from poverty to financial success. Growing up with limited resources, Naval saw the impact that financial constraints had on his family. Over time, he realized that true wealth was not just about accumulating money but about gaining the freedom to live life on his own terms. His focus on entrepreneurship and angel investing is rooted in the desire to create systems and businesses that generate wealth passively, allowing him to have control over his time and choices.

2. Authenticity: Naval’s emphasis on authenticity developed from his understanding of the importance of being true to oneself in achieving lasting happiness and success. He recognized that many people chase external markers of success, such as wealth or status, without considering whether these pursuits align with their true nature. Through his own journey of introspection and his engagement with philosophy, Naval came to value authenticity as a way to avoid the traps of societal expectations and to build a life that is uniquely fulfilling.

3. Happiness: Naval’s value of happiness was shaped by his exploration of Eastern and Western philosophies, as well as his own personal experiences with success. Despite achieving financial success, Naval found that happiness was not a natural outcome of wealth. This realization led him to explore mindfulness, meditation, and philosophical teachings on happiness, ultimately concluding that happiness is a skill that can be cultivated independently of external circumstances.

1. Truth and Transparency: Ray Dalio’s value of truth and transparency was forged through his early experiences in the financial markets, where he learned the hard way that ignoring reality leads to failure. His near-collapse in the early 1980s, when he bet incorrectly on the economy, taught him the importance of facing the truth, no matter how uncomfortable. This experience led him to embrace radical truth and transparency as essential for making sound decisions and avoiding costly mistakes.

2. Continuous Learning and Improvement: Dalio's commitment to continuous learning and improvement developed from his relentless pursuit of success in the highly competitive world of finance. Over the years, he recognized that the key to staying ahead was to constantly learn from mistakes and adapt. His principle of "Pain + Reflection = Progress" is a direct result of his experiences in overcoming challenges and using them as opportunities for growth.

3. Principled Decision-Making: Dalio’s focus on principled decision-making came from his observation that consistent success requires a clear set of guidelines. Through decades of managing Bridgewater Associates, Dalio realized that having a set of principles allowed him to navigate complex situations effectively. He systematically documented his principles, refining them over time, and saw firsthand how they contributed to better decision-making and long-term success.