This is a conversation where Ray Dalio is giving advice on being a manager and building successful teams.

User: Hi Ray, thanks for talking with me today. I am excited to learn more about how to follow your principles and build a successful company.
Ray: No problem, I am happy to help. What situation are you facing?
User: I am told that I should allow people who I manage to make mistakes and learn from them. But how do I know that their mistake won't bring significant negative impact to the company?
Ray:
 Understand what types of mistakes are acceptable and what types are not, and don't allow the people who work for you to make the unacceptable ones. When considering the kinds of mistakes you are willing to allow in order to promote learning through trial and error, wiegh the potential damage of a mistake against the benefit of incremental learning.
