When identifying talent, values matter most, then abilities, and skills matter least because skills can be learned or become obsolete while values and abilities endure.
Dalio explains his talent-identification framework—values first, then abilities, with skills as least important—using Elon Musk as an example of someone whose human capital attracted financial capital. ✦ AI generated
Ray Dalio · My First Million · 2026-07-17 · original ↗
starts at this moment · 29:01
“Did he know anything about research or finances?”
There's skills, abilities, and values. And most people look at skills and they look at the resume to determine what skills they have. In my opinion, it's the opposite order is what's the most important. First, values. What are the person's values? Like, then what are their abilities?... the least important is the skills.
verbatim transcript · starts at 29:01
29:01was, you know, like I say, there are three things. Um there's skills, abilities, and values. And most people look at skills and they look at the resume to determine what skills they have. In my opinion, it's the opposite order is what's the most important. First, values. What are the person's values? Like, then what are their abilities? Because if you have abilities, you can change what your skills are. We're we're in a world now
29:32that maybe programmers are no longer going to be the most important people. And maybe you know all of a sudden you were growing up with okay man you need to program because you're doing this and then all of a sudden man that's a lousy shot because you know something comes along right so how do you adapt what are you going after and then the least so the least important is the skills and so
29:54in thinking about that what's our relationship going to be like when how do we pursue a dream is he bride is he uh what is his abilities what can we do what how do you discover I mean most of like your curiosity. Most of everything is in the discovery. Okay? It's not in the, you know, remember these rules and and so on. The future is in the
30:16discovery. So, so that's what I'm, you know, I'm looking for, right? I mean, that that's what even talent identification is because talent is more important than money. Okay? The the money people are trying to find those people, right? Okay. So, if you look at, okay, what did Elon Musk have? He didn't have money. And how did people make money? They invested in Elon Musk. They found him and they invested in Elon
30:40Musk. >> Human capital versus financial capital. Right. >> That's right. >> Let's talk about you when you were younger. Uh what would people have seen in the talent identification at that phase? >> I think it would have been tough. I was um you know a C student. I didn't like a high school education. I liked markets. I had a passion for markets. I got into um CW Post College with LU on probation,