In a notable shift from market advice, two of the world's most prominent investors are urging their followers to consider a different kind of gift this festive season. Billionaire Ray Dalio and 'Big Short' investor Michael Burry have separately advocated for charitable donations, framing them as a more meaningful alternative to traditional presents.
Dalio's Call to Redefine Holiday Gifting
In a video post on December 2, Ray Dalio, founder of Bridgewater Associates, made a heartfelt appeal. He suggested that people consider giving their friends and family the ability to donate to a charity of their choice. Dalio tagged his post with Giving Tuesday and Redefine Gifting, emphasising that such acts align with the true spirit of the holidays.
He shared that he began this practice about 20 years ago, replacing "junky and wasteful" gifts for friends who didn't need them. Instead, he would ask for their preferred charity and donate $20 to $100 in their name. "We felt together that we were doing something good for others," Dalio recalled, describing the experience as joyous.
To drive his point home, Dalio highlighted that the amount spent on candy during the holidays exceeds the combined annual budgets of the American Heart Association, American Cancer Society, and Habitat for Humanity. He recommended platforms like Tisbet and DonorsChoose to facilitate such targeted giving.
Burry's Year-Long Philanthropic Pledge
Meanwhile, Michael Burry, the hedge fund manager famed for predicting the 2008 financial crisis, announced a sustained charitable initiative. Through his paid blog, Cassandra Unchained, Burry pledged to donate 5% of all subscription revenue each month for 12 months to a vetted charity.
In a post on X, he stated this was an opportunity to highlight charities making a real difference. For December, he selected TogetherCalifornia, a foundation co-founded by actor Christian Bale and his wife Sibi to address foster care issues.
Musk's Candid Take on Philanthropic Challenges
This focus on charity comes days after billionaire Elon Musk shared his complex views on philanthropy. Speaking on Nikhil Kamath's WTF Podcast last week, Musk agreed on the importance of helping humanity but called the act of giving "extremely difficult."
"If you care about the reality of goodness rather than simply the perception of it, it’s extremely difficult to give away money well," Musk said. He revealed the biggest challenge for his own foundation is ensuring the money truly benefits people, not just creates an appearance of goodwill.
The contrasting messages from these financial titans highlight a growing conversation around effective altruism and conscious giving, especially during the season of goodwill.
