Finance
Billionaire Ray Dalio offers fresh tips on how to be a better investor
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If you’re following the hot stocks of the moment — such as the Magnificent Seven — it’s likely been a rush to watch them rise.
However, “I think it’s very much like the internet and the dot-com period,” cautioned Bridgewater Associates founder Ray Dalio during a conversation with Yahoo Finance Executive Editor Brian Sozzi for the Opening Bid podcast (see the video above or listen below). The pair sat down to chat at the World Economic Forum in Davos, Switzerland, and Dalio delivered insights ranging from leadership to his personal investing mantras.
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Dalio has the benefit of five decades of market hindsight. He founded Bridgewater in 1975 and grew the company from a scrappy operation that he ran out of a two-bedroom apartment into a firm that Fortune ranked as the fifth-most-important private company in the US.
Known in the industry for sticking to a bespoke set of principles and sharing them widely, Dalio is the author of several books on the subject. His latest book, “How Countries Go Broke: Principles for Navigating the Big Debt Cycle, Where We Are Headed, and What We Should Do,” is expected in September.
Rather than piling everything into the hot stock of the day, Dalio advised investors to consider more diversification by investing in 10 to 15 “good, uncorrelated return streams that are risk balanced.” Calling this strategy his “holy grail and … mantra in investing,” he told Sozzi, “If you achieve this mantra, you will make a fortune.”
“Everybody’s thinking about what is the best debt,” he continued. “They don’t realize that with diversification, the first three diversified, relatively uncorrelated assets will reduce the risk almost in half. That means you double your return-to-risk ratio.”
Dalio also advised that this type of strategy often requires patience upon deployment, which can prove difficult in a buzz-generation environment. “The game is played on not getting out,” he said. “The nature of loss [is], you lose 50%, you have to make 100% to get it back.”
For the evergreen investor with $1,000 to invest, Dalio advised reflecting on the difference between alpha and beta.
“Alpha is a zero-sum game,” he said. “To get alpha, you have to take it away from somebody else. Beta means there’s an asset class.”
But even before diversification, his first tip for investors is to be humble.
“Be humble, like in any game [where] you’re competing,” he said.
His final tip is to evaluate the headline- and buzz-generating investments. “Get away from the notion that investments which have done well recently are better investments, rather than more expensive. You have to know the difference between an investment that has gone up a lot and [that’s] done well.”
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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