How To Invest: David M. Rubenstein in Conversation with Ray Dalio
What this covers
What do the most successful investors have in common?
David M. Rubenstein, cofounder of one of the world’s largest investment firms, has spent years interviewing the greatest investors in the world to discover the time-tested principles, hard-earned wisdom, and indispensable tools that guide their practice. Featuring practical advice from his new book, How To Invest, join David M. Rubenstein, one of the biggest names in finance, for a master class on the art and craft of investing — from venture capital, real estate, private equity, hedge funds, to crypto, endowments, SPACs, ESG, and more.
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Rubinstein argues that wealth accumulation and philanthropic impact flow from humble origins, disciplined principles (humility, preparation, intellectual curiosity, failure resilience), independent thinking against consensus, and long-term commitment—not innate genius—and that these principles apply equally to leadership, investing, and life choices.
- Greatest achievers historically come from blue-collar or middle-class backgrounds, not inherited wealth, because adversity breeds drive
- Great investors share common traits: intellectual curiosity, willingness to fail and learn, capacity to go against consensus, and disciplined risk management
- Principles are reusable decision-making frameworks across all domains (investing, leadership, life, philanthropy) that distinguish exceptional performers
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The other speaker believes failure plus reflection equals progress, suggesting that learning from mistakes is the fundamental mechanism of improvement.
“I I would say um getting banged up a lot making mistakes is one of those things that teaches you fear that you're going to make mistakes which still can't stand in the way of your audacity to do great things and think differently so you are making we are both making decisions in ways where we know that we can fail I'm a principal pain plus reflection equals progress right”
You cannot dwell on failures because doing so prevents accomplishment; the key is to learn from failures and move forward to the next opportunity.
“in the end you can't dwell on your failures because you won't get anything accomplished you have to learn from them and get get back on your feet”
The other speaker advises young people regarding workplace success to: work hard, prepare, don't expect parents to give them money, try to be respectful of others, and try to do something useful with their lives.
“to give your uh kids regarding um their I think that says resources and how they thrive in the workplace well work hard prepare don't think your father is going to give you a lot of money try to be respectful of other people and try to do something useful with your life”
Following conventional wisdom is the path of least resistance and involves no social cost, whereas going against consensus requires courage because people will criticize and blame you if you make a mistake.
“the conventional wisdom is the the path of least resistance is always easy to take if people tell you do this and do that and you do it well nobody's going to yell at you but if he's going to do something different people are going to say well you know what you're doing and you might if you make a mistake people want to yell at you because you did something wrong that that takes a lot of courage”
For the average investor (non-professional), the key principles are: (1) do not concentrate heavily in any one asset class or investment, (2) read and understand what you're investing in, (3) know the fees and valuations, (4) don't expect to be a genius investor just because you're a genius in another field (e.g., building companies doesn't make you a great stock picker), (5) great investors take decades to develop, not years, so avoid expecting quick returns, and (6) diversify, stay informed, and don't try to build fortunes on the side through individual securities.
“I would also want to add for the average investor the average investor is not going to be Ray dalio um or some of the other people that I have in the book who are the best in the Venture world or whatever the average person should not put too much in any one asset class or one investment the average person in my view should read what they're investing in and learn about it so they know what if they're investing in a fund know what the fees are know what the valuations are know how to get access the information know how to you know ask the right questions and also don't expect to be a genius in the investor world if you're a genius in making widgets it's very unlikely you're also going to be a genius in investing sometimes people are so brilliant they think I've built a great new company I can do anything but it's not that easy to do and the people who are in this book are people been for their whole career there's very few people who are making a staggering Fortunes in the first five years of their investment career rarely happens it takes a long time to do it”
The 2008 crisis was caused (in Rubinstein's specific case) by excessive leverage: his firm borrowed 98 cents per dollar against Fannie Mae, Freddie Mac, and Ginnie Mae securities through repo financing, amplifying returns when stable but leaving no cash cushion when crisis hit; when suddenly these securities were repriced from 98 cents to 90 cents per dollar, banks demanded additional collateral that the fund couldn't meet, causing the loss.
“in that particular case we we overlovered we basically what we were doing was we were barring against an effect Ginnie Mays and Fanny and and Freddie Mac Securities which as to which you could borrow 98 cents on a dollar in a repo financing so when you can borrow 98 cents a dollar you can lever up quite nicely and enhance the returns when they when their crisis happened all of a sudden JP Morgan and other Banks said no these Securities are only worth 90 cents in a dollar so you have to put up a lot more money and we didn't have the cash in that facility to put it up so we lost the Lawson as other people did during that time”
Rubinstein was inspired by Bill Simon, Secretary of Treasury in the Ford Administration, who executed the Gibson Greeting Cards leveraged buyout, investing roughly $1 million of his own money and returning roughly $80 million in roughly 18 months, which motivated Rubinstein to learn about leveraged buyouts and build a firm in Washington rather than New York.
“I was inspired by Bill Simon who was the Secretary of Treasury in the Ford Administration who we had replaced and he had done a famous deal you're probably familiar with Gibson greeting cards where he put in roughly a million of his home money and made roughly 80 million dollars in roughly 18 months and I read about that I said that's better than practicing law I don't know what a leveraged buyout is but I'm going to learn and I'll figure out if I could build a leveraged buyout firm in Washington not in New York”
America's founding democracy was not designed by the founders to be permanent; Thomas Jefferson believed it would last no more than 20 years; the fact that the document has survived 200+ years with 27 amendments is remarkable, though the country still struggles with imperfection and is not currently in crisis on the scale of the Civil War (which killed ~3% of the population, equivalent to ~10 million people today).
“Democracy that our founding fathers created was not something they honestly thought would last Thomas Jefferson didn't think it would last more than 20 years so the fact that you've got a document that's lasted more than 200 years with 27 Amendments is amazing”
History should teach both the good and bad about historical figures; Rubinstein believes in pointing out mistakes that previous generations made so society can learn how to do things better, which is why he supports tours that acknowledge slavery at Monticello and Montpelier.
“I think in history you should learn the good and the bad and and point it out to people so I don't hide behind what Monticello is doing or Montpelier is doing but I think it's you know it's important that we learn you know from the past and that's one of the reasons I'm caring about history is teaching people the mistakes we made in the past hopefully so we can learn how to do things better”
Living through a significant historical event creates deeper learning than reading about it; you really remember something when you've lived through it, which is why historical knowledge is important—it helps people anticipate risks that might recur.
“you can't remind people of things as much as have them live through it when you live through it then you really remember it and that's also one of the reasons that when things happen in history before our times they are risks that might reoccur”
The combination of large wealth gaps, large value gaps, bad economic conditions, high debt, money printing, and stress-test events (droughts, floods, etc.) historically precedes social and political instability; the question is whether the US can withstand such stress tests.
“in history in the arcs combination of large wealth gaps large values gaps bad economic conditions and a lot of debt a lot of printing and money and then in history um even acts of nature droughts floods and so on when there's stress it's a real stress test do you do you think that it's an environment that we can hold up under those stress tests well or are you concerned”
Financial crises are inevitable and recurring; they have always occurred throughout history and always will, and it is a mistake to assume that another severe crisis cannot happen; while firms try to protect against crises, nobody is perfect, and unforeseen events involving currency or other factors could trigger unexpected problems.
“it's always a mistake to say that nothing can happen again that was bad so there will be crises in the future there's always been panics crises Financial calamities that always happens that's that's the way the investment world is uh in our case we've tried to protect against it I think other firms are too but nobody is is perfect and you know if uh certain things happen to our currency or there were things we can't anticipate there could always be problems”
Key lessons from the 2008 crisis for investors: (1) don't put too many eggs in one basket (diversification), and (2) don't do things that are too risky; while no one anticipated the 2007-2008 crisis perfectly, it was clearly a terrible time for markets.
“so what we learned is you know in the lesson of investing is don't put too many eggs in one basket and don't do things that are that are too risky now nobody anticipated the 0708 crisis that well but clearly it was you know it was a terrible time for the market it's the worst time I've ever seen probably for you too”
In investing, you must recognize you will be wrong frequently, so you use your best judgment, gut instincts (which are a set of accumulated experiences), and intuition to make decisions rather than relying solely on analysis.
“you recognize in life you're going to be wrong you know a lot and so you have to use your best judgment and use your gut and your instincts so Warren Buffett for example has been in his the book points out that he's compounded his investment success roughly at 20 a year for for 60 years which is pretty good and so he's made mistakes but he uses what other people use now is your gut your intuition which is basically the set of experiences you have that lead you to make decisions”
Young people's investment trends should be watched carefully because they tend to set trends for the broader market; if young people are investing in crypto and it works reasonably well, older investors should not ignore crypto just because they don't understand it.
“look to what young people are investing in because young people and what they're doing with their lives they tend to be much more likely to set the trends for people like you and me so if if younger people are investing in crypto for example it's not something you should ignore because in the end younger people are going to keep doing it if it works reasonably well”
Approximately 30% of Americans are functionally illiterate, meaning they cannot read past the fourth grade level; functional illiteracy is a major barrier to upward mobility and economic advancement.
“we have a problem in this country for take Literacy for example about a third about 30 percent of Americans are functionally illiterate which means they can't read past the fourth grade level and and you can't read very well or you're unable to read it all you're not likely to rise up”
Historically, the money class has disproportionate influence in most societies, except when revolutions occur (French Revolution, etc.) where people at the bottom rise up to overthrow the system; there hasn't been enough significant reaction against wealth concentration in the US to trigger major uprising.
“the money class throughout history has more influence than the non-money class historically except when it gets to a revolution then you tend to have people at the bottom of society rising up and saying we're going to overthrow the system the French Revolution or other things like that but or that's what I mean right well the money class has a disproportionate amount of influence in most Societies in any society there's a lot in this in this country for sure a lot of influence and and I've been surprised that it there hasn't been more I would say reaction against it more significant reaction against it”
The money class has disproportionately more influence in most societies historically, though the extent is particularly notable in contemporary America.
“the money class throughout history has more influence than the non-money class historically except when it gets to a revolution then you tend to have people at the bottom of society rising up”
Rubinstein lost approximately $1 billion in a private credit fund during the 2008 financial crisis; he and his partners (who were the largest investors alongside external investors) lost hundreds of millions of dollars in personal wealth, a failure he had to 'live through' and manage while dealing with investor relations.
“it was uh it was a terrible year for us we had a bond fund uh we we were not we were private Equity Fund but we had built a uh a private credit fund and uh it it went it broke it lost let's see a billion dollars of money so if you lose a billion dollars that's not good and we have a lot of investors and my partners and I were the biggest investors in it we lost hundreds of millions of dollars of our own money and so it was not pleasant and so we had to live through it and deal with the investors”
Duke University was segregated until 1963, as were other Southern universities like Rice, Lane, Emory, and Vanderbilt; Ivy League schools in the 1960s were predominantly male-oriented, with Harvard, Yale, and Princeton being all-male.
“the school that I went to Duke University was was segregated up until 1963 as were other Southern schools like rice to Lane Emory Vanderbilt so we've made a lot of progress in that at the Ivy League schools when I was going to college were by and large male oriented not all of them but up Harvard Yale Princeton were all male”
Prior preparation prevents poor performance—preparation is essential for success and reducing the probability of failure.
“secondly you have to be prepared Jim Baker famously said that his father taught on the aphorism which is a prior preparation prevents poor performance prior preparation prevents poor performance here's a principle”
The most important skill for investors is the ability to dramatically reduce risk without reducing returns through effective diversification and balanced risk management across investments.
“I think the most important thing that you could learn is how you can dramatically reduce your risk without reducing your return by knowing how to balance risk well in terms of the different kinds of Investments that you make”
The United States has a serious problem with unequal opportunity: 22% of high school students in Connecticut are disconnected or disengaged due to poverty (having absentee rates greater than 25% or having dropped out of school), representing a failure of equal opportunity that is worse than historical patterns.
“there's never been equal opportunity I'm not talking about exactly equal opportunity I'm talking about the fact when we grew up I could go to a public high school that was good I was lucky enough to have parents who took care of me and so on and that's basically all that I needed all that you needed probably but we have situations on a state of Connecticut my wife works in their 22 percent of the high school students in Connecticut are disengaged or disconnected in poverty in their environment disconnect disengage means that their absentee rate is greater than 25 present their failing classes disconnected means they don't know where they are because they've dropped out of school”
Rubinstein has funded restorations of historic American sites including the Washington Monument, Lincoln Memorial, Jefferson Memorial, and Monticello; he purchased and donated copies of the Magna Carta, Declaration of Independence, and other foundational documents; he also supports the Smithsonian Library of Congress and the National Museum of African American History and Culture, exemplifying patriotic philanthropy that aims to make the country 'somewhat better.'
“you're a leader in patriotic philanthropy you've made um changing big changing impact on the Washington Monument the Lincoln Memorial Jefferson Memorial Monticello you um the Kennedy Senator Smithsonian Library of Congress national museum of African American history and culture you've bought copies and shared copies of the Magna Carta the Declaration of Independence and so on”
Morgan Stanley came close to requiring a government takeover during the 2008 crisis, as described in a book by John Mack, the CEO of Morgan Stanley.
“there's a new excellent book that's coming out in October by John Mack who was the CEO of Morgan Stanley and I just interviewed him and it's about his book and and he points out they came this close to having to take the firm”
Bipartisanship in Congress was once valued as a mark of effective legislation, but today being bipartisan risks expulsion or marginalization from one's own party; simultaneously, the incentive structure has fundamentally shifted—members now spend 40% of their time raising money and are compelled to appeal to far-left or far-right donors rather than working across the aisle.
“in the days when I worked on Capitol Hill briefly and when I worked in the White House bipartisanship was something that our legislator was thought to be a good one if he could get bipartisan or she could get bipartisan legislation through now if you're bipartisan you're almost written out of the party”
Immigrant populations (approximately 50 million in the U.S., more than any other country) tend to believe in the American dream and come to America specifically because of it, whereas many native-born Americans, particularly those in lower socioeconomic classes and minorities, have lost faith in the American dream because they don't see a path to upward mobility.
“we have 50 million immigrants in this country more than any other country in the world no other country's even close they're attracting that many immigrants the immigrants tend to believe in the American dream and they come for that reason many people now who were born in this country particularly those in the lower social socio-economic classes do not believe in the American dream as much as they used to and I would say particularly in often minorities they don't believe in it because they don't see that they're going to rise up”
Singapore has election campaigns that last only 4 days, compared to the lengthy campaigns in the United States, and this brevity might reduce the influence of money in politics and reduce polarization.
“you lived in Singapore for three months about a year ago or so let's do some work there in Singapore I talked to the Prime Minister I interviewed him once and he told me that he had an election campaign I said well how many months was it he said no it's four days it says four days it was only four days”
Bill Gates, Steve Jobs, and Jeff Bezos have all experienced failures, and anyone who has accomplished significant things has experienced failure.
“Bill Gates Steve Jobs Jeff Bezos they all had failures everybody's had failures if they've accomplished anything”
Warren Buffett has compounded his investment returns at roughly 20% per year for 60 years, which is 'pretty good'; he achieves this through gut instinct and intuition (which is fundamentally a distilled set of experiences) rather than through analysis of 500-page memos or committees.
“Warren Buffett for example has been in his the book points out that he's compounded his investment success roughly at 20 a year for for 60 years which is pretty good and so he's made mistakes but he uses what other people use now is your gut your intuition which is basically the set of experiences you have that lead you to make decisions”
Respecting other people's feelings and avoiding hurting or embarrassing them in harmful ways is a useful life principle and form of ethical conduct.
“respect for other people you know I think it's obviously and one of the golden rules but I think respecting other people's feelings and trying to not hurt anybody or embarrass anybody in in a way that is harmful to them is you know is a useful principle of life”
Great investors bet against the consensus because the consensus is already in the price; to make money in markets, you must be right about something the consensus is wrong about.
“you have to be an independent thinker against the consensus in order to make money in the markets you have to bet against the consensus and be right you have to bet against the consensus because the consensus is in the price so you have to bet against the consensus and you have to be right”
Congress's inability to accomplish things is largely a reflection of American people being ideologically split down the middle; in 1960, Kennedy and Nixon campaigned in ~45 and 50 states respectively with uncertainty about many states, but today only ~8-9 states are competitive, meaning the country is deeply divided into red and blue with few moderates.
“Congress really reflects the American people and the country split down the middle ideologically and it's not likely to change that much when John Kenney ran for president Richard Nixon campaigned in all 50 states and I think John Kennedy campaigned about 45 States because they didn't know how all these states were going to go today we know how every State's going to go with the exception of about eight or nine states and and so therefore the country is pretty divided red and blue and they're very few people in between the so-called purple States and it's much different than it was in 1960.”
Contemporary confirmation to high political office is now extremely difficult because: (1) individuals who have earned substantial wealth face near-insurmountable barriers, and (2) a single senator can place a hold that publicly damages a person's reputation, making them appear to have done 'something nefarious' even without confirmation.
“I couldn't be confirmed for anything today because um today if you have made a fair amount of money it's impossible to get confirmed generally and then also if you have a reasonable reputation it could easily be destroyed by one Senator putting a hold on you and people think you've done something nefarious and you could get blocked”
Cryptocurrency is not going away because: (1) the crypto industry has effectively lobbied Congress to avoid excessive regulation, (2) the confiscation of Russian oligarchs' assets by governments has made wealthy people want to hold assets in forms that are not easily traceable or devalued by governments, (3) young people are investing in crypto and will continue driving adoption, and (4) the U.S. government will eventually develop its own digital currency (not a cryptocurrency), but digital assets and currencies will persist long-term.
“I think crypto is not going away in part because they've done a very good job in the crypto industry of lobbying Congress to not have an unduly legislated and unduly regulated I also think that the Russian oligarchs confiscation of their assets by Governor governments has made people think who have money wait a second somebody could come and do something like that to me so I want to have some of my Assets in something things that nobody knows I have that are able to be transported around the world and the government can't devalue it so I think you're going to see crypto not going away now the U.S government will eventually have its own digital currency which is not a cryptocurrency but I think digital assets and digital currencies will be here for a long time”
Rubinstein's philanthropic approach is guided by four explicit principles: (1) start something that otherwise wouldn't get started, (2) finish something otherwise wouldn't get finished, (3) ensure it's something he is intellectually engaged with so he stays involved rather than just writing a check, and (4) see progress in his lifetime.
“I have four principles one start something that otherwise wouldn't get started to finish something otherwise wouldn't get finished three make sure it's something I'm intellectually engaged with so I'll stay involved not just write a check and four I'd like to see progress in my lifetime”
The US population was ~220 million when Rubinstein graduated high school (1966); it is now ~330 million (about a third larger); despite this growth, the country is wealthier but wealth is more concentrated at the top.
“when I grew up I graduated from high school in 1966 the United States population was probably 220 million people today it's 330 million so it's a third bigger today in those days Civil Rights was just beginning to come to the table”
Russia is not critical to the global economy (US gets mostly vodka from Russia), but China has become central to the US economy over 40 years; cutting off trade with China would cause massive inflation because Chinese products are cheaper and the US cannot produce them domestically.
“what now Russia we we get virtually nothing from Russia we get vodka from Russia there's some people in Europe that obviously get energy from Russia but Russia doesn't make a lot of things that we really need and and it's not a central part to the global economy not a central part to the U.S economy China has become over the last 40 years a central part of our economy so if we were to say we're not going to take any products from China the inflation will really Skyrocket because the products we're buying from China now are we're buying them because they're lower costs and the ones we can produce in this country”
Income disparity in the United States is greater than it has ever been historically; at the creation of the Forbes 400 list in 1981, the threshold for entry was approximately $125 million net worth, but today it is approximately $2-3 billion, indicating extreme wealth concentration at the top.
“when the Forbes 400 list was first put together in 1981 I think it was to be on that list you had to have a net worth of 125 million they got you in the top 400. today it's probably two or three billion I guess so the wealth now obviously is some inflation but the wealth uh aggregating at the top is just staggering when you think about it”
Despite 2008 being a terrible year for most investors, Dalio's macro strategy performed well because he shorted equities and was positioned to benefit from the market decline ('2008 turned out to be a great year for us').
“it turns out not because I go lower in short 2008 was turned out to be a great year for us”
The most misunderstood aspect of the US political system is how much money drives everything: money is so significant that it should be called something other than 'campaign donations' (as other countries do), and this money drives political positions and polarization.
“what do you think is most misunderstood about our political system today particularly internally and then by those outside how how significant money is to it I mean money is so significant to this uh uh the system we have now that that campaign donations just drive it we call them campaign donations you can call them something else in other country we call them something else but it's it's uh you know it's it's driving politics so much so and it's just unfortunate that people are are willing to appeal to the base or instincts of people on the left or right and the result is you've got a divided government”
The U.S.-China relationship is at its worst point since Nixon's opening to China and official recognition during the Carter Administration; the relationship is damaged because political pressure in the U.S. against China is intense, and no U.S. politician gains political benefit from appearing soft on China, so even economically counterproductive policies (like Trump's tariffs, which would be deflationary) persist because removing them would be seen as weakness.
“the U.S China relationship is as bad as any time since uh Nixon went to China and then the Carter Administration we actually officially recognized China for the first time Nixon went and did other things there but we officially recognized them during the Carter years and I would say the relationship is terrible now in part because the political pressure in the United States would be against China is very high there is no political benefit the United States on saying I really think China is is being nice to us and we should be more accommodating there's no political benefit to it I'll take for example the tariffs that president president Trump put on that would be deflationary to take those tariffs off and the administration recognized that but they don't take them off because it will be seen as being weak on China”
Happiness is one of the most elusive goals in life; most people are not particularly happy, and paradoxically, the wealthiest people Rubinstein knows are often the most tortured souls; people tend to become happier after age 55-60, having worked through many of life's challenges, and happiness at this stage comes from doing only things one wants to do, giving away money, seeing children healthy and thriving, and performing meaningful philanthropic work.
“happiness is the most elusive thing in life for sure and very difficult to be happy and most people I know are not that happy and actually the wealthiest people I know are often the most tortured Souls”
Rubinstein was not a skilled practicing lawyer and lacked the necessary skill set for successful law practice, which motivated him to pursue leveraged buyouts instead after being inspired by Bill Simon's Gibson Greeting Cards deal.
“I wasn't really a good lawyer I didn't have the skill set so and my clients kept telling me that so I um I had to do something different and I was inspired by Bill Simon who was the Secretary of Treasury in the Ford Administration who we had replaced and he had done a famous deal you're probably familiar with Gibson greeting cards where he put in roughly a million of his home money and made roughly 80 million dollars in roughly 18 months”
Great investors share specific common traits: (1) typically from blue-collar or middle-class families, (2) strong academic skills and education, (3) good mathematical ability (not necessarily wizardry), (4) preference for making final decisions rather than delegating, (5) intellectual curiosity (like 'intellectual sponges'), (6) workaholic tendencies, (7) happiness despite mistakes, (8) quick recovery from failure without dwelling, and (9) most importantly, willingness to go against conventional wisdom and have the courage to stand apart from consensus.
“the great investors do have certain things in common these are what they have in common number one they tend to be from blue collar or middle class families as I mentioned second they tend to have pretty good skills in academic life they tend to have pretty good educations they're not people who generally dropped out of high school and just got lucky by investing well three they tend to be pretty good in math they're not necessarily math wizards but they're pretty good in math four they like to make the final decision they don't like to delegate they they say all right give me all the facts and I want to make the decision myself I'm not going to go home and you you make the decision that's not them they also are people that are intellectually curious they just don't want to they want to know everything they can about everything they they're like intellectual sponges and not just about their investment area if they're an expert in let's say quantum physics and they invest in that area they don't want to read only about that they want to bid everything because their thinking is at some point some piece of information will come into my brain and I can use it later so they're incredibly uh Curious and they read enormous amounts next they also tend to be from Workaholics I would say they also tend to be people who are happy and they make mistakes but they get over quickly I'm not probably that good at that I can remember mistakes for 30 or 40 years and I can't get over it but a lot of great investors they're on the next thing they get out of the position they go the next thing they don't think about it again they all have that in common and the most important thing they have in common I'd say is they're willing to go against conventional wisdom the conventional wisdom is by X or Y or Z they don't want to buy X Y or Z they want to buy a b and c or something different the conventional wisdom is what they generally go against and they're willing to have they have the courage to stand up to the conventional wisdom”
Great leaders and investors fail regularly because failure teaches essential lessons; many people who never fail—including those with perfect résumés (Harvard summa laude, Rhodes scholar, Yale Law, Supreme Court clerk, Law Journal editor, PhD in economics, attractive appearance)—eventually encounter a 'real hurdle' for which they lack the temperament or resilience to cope, causing them to fail catastrophically when finally challenged.
“the great leaders and the great investors have failed because you learn a lot from failure and I have failed many times we've made some Investments That backfire didn't work out I missed out in some great Investments I should have done like Facebook or Amazon Netscape I passed on them all I've made a lot of mistakes and lost money for people and myself so I've had lots of failures and you have to learn from your fathers and get back on your feet”
Rubinstein's 'Three Thirds of Life' theory: those who are superstars in the first third (like Rhodes Scholars) often plateau and fail to reach their potential, whereas those who are not exceptional early (like most US presidents) can work harder in the second and third thirds and ultimately achieve more.
“I had a theory that there are three parts to life the first third is when people are some of the superstars that road Scholars and so forth very often they Peter out and they don't live up to the potential in fact of the presence the United States probably only one in the last hundred years was somebody who could be said to be a superstar when he was young that was Bill Clinton who's a Rhodes scholar most of the people who rise up to the president United States were not Superstars or anything when they were younger and so my theory to justify my good luck is to say well if you're not so good in the first third maybe you can work hard in like a tortoise ketchup in the second and third third”
Rubinstein defines principles as the decision-making criteria and recipes one uses when in a position requiring a decision, which form the basis for successful decisions that explain why high-achieving people have track records of success.
“when you're in a position and you have to make a decision it's kind of the recipe by your decision making criteria when you're in that position to make it”
Principles for life success include: (1) have a vision of where you want to go rather than hoping good things happen, (2) prior preparation prevents poor performance (an aphorism Rubinstein attributes to Jim Baker's father), (3) cultivate humility—great leaders like Abraham Lincoln never boasted of their accomplishments, (4) respect for others and avoiding embarrassing or harming them is a core principle of life, and (5) great leaders and failures stem from humility rooted in understanding one's weaknesses and the challenges of life.
“if you're going to be successful in life generally I think you've got to have a vision of where you want to go you can't just sit at home and just say I hope something good will happen you have to have some initiative and try to do something uh secondly you have to be prepared Jim Baker famously said that his father taught on the aphorism which is a prior preparation prevents poor performance prior preparation prevents poor performance here's a principle so and that's very good try to be prepared also try to have some humility if you are successful there are some great leaders that are not you know so humble and there's some not great leaders that are also not humble but their you know humility is a virtue you can't see Abraham Lincoln running around saying you know I just won the Civil War you know give me some credit for that I mean he never would say that you know great leaders are people you admire because they have some humility and they have humility because they failed and they know the challenges of life so humility and self-respect respect for other people you know I think it's obviously and one of the golden rules but I think respecting other people's feelings and trying to not hurt anybody or embarrass anybody in in a way that is harmful to them is you know is a useful principle of life”
There are two types of investor roles: (1) the generalist who picks investment managers (analogous to picking doctors), and (2) the specialist in a specific domain (e.g., Rubinstein in private equity, Ray in global macro); for average people, the skill to pick good managers is more important and different from the skill to be a professional investor.
“there are two types of being an investor there is I have your I have money that I need to invest and then there is receiving money or having money themselves and making an investment decision on the first type you're trying to pick an investor right who will invest for you in what because you know that you're not going to be the pro who's it's like you're not going to be your own doctor you're not going to be your own investor so the skill that is required to pick the right Investments but not only the right Investments but the right investment managers are a different skills they're different skills than the skill to be a professional investor it's like being a specialist if we use the medical example um there's the generalist who will pick the right doctors for you and then there's being a specialist so you're a specialist in private Equity I'm a specialist in what I do Global macro and and liquid markets so I think it depends on what you're doing”
When picking a fund manager, investors should verify: (1) a strong track record, (2) the people who produced that track record are still at the firm, (3) managers have significant personal money invested alongside investors, (4) young talent is not leaving due to inadequate incentives, (5) the organization is not being sued repeatedly for fraud, (6) information is accessible and understandable when requested, (7) fees are fair, and (8) other investors in the fund are 'smart money' that knows how to find good investments.
“if you're picking a fund look at the track record make sure the people produce a track record are still there make sure they have a lot of their own money and invest alongside you make sure that the young people are not leaving the firm because they're not being adequately incentive make sure their organization not being sued for fraud all the time make sure that the organization is one where you can get the information you want when you want it and on an understandable basis make sure the fees are fair and make sure you know who the other investors are because smart money knows how to find good Investments and you've never heard of anybody else investing alongside you that's not a good thing”
The U.S. economy is currently not technically in recession, but is facing inflationary pressures from two sources: (1) $5 trillion injected into the economy (post-COVID stimulus), and (2) inflation from energy price increases due to the Ukraine conflict; efforts to control inflation through higher interest rates risk triggering a 'hard landing,' a euphemism for recession.
“like the U.S economy in right now is not technically in recession uh Europe is more likely to be in a recession in my view than we are I think the Asians and Chinese economy that you know are slowing down they're not I guess all China is not in a technical recession now but the U.S economy is trying to deal with the problem we injected five trillion dollars into the economy obviously has an inflationary impact and what happens in Ukraine is having inflation impact as well and trying to absorb the 5 trillion and the energy price increases has given us very high inflation and now we're trying to deal with it with higher interest rates which generally throughout the course of history when you have rise interest rates enough you as you know better than anybody it tends to produce a so-called hard Landing which is a euphemism for recession so I don't know that we're going into one but but I think right now we're we're tiptoeing around”
Rubinstein's fulfillment comes from feeling he is giving back to the country, particularly because the US—as a nation with less prejudice than many others—allowed him to achieve despite his Jewish heritage and family's immigrant status.
“what I like is feeling I'm giving back to the country it's a country because of my last name I'm not sure that I could have achieved this in some other countries there was a show last night on on PBS about the Holocaust and how the United States didn't do as much to prevent the Holocaust as it could I was a Ken Burns documentary that was well done I thought and the Jews came to this country but in my parents and I mean my great-grandparents came here grandparents came here but they came here at the bottom of the economic totem pole and there was a lot of prejudice then today I I think the country is much less prejudiced against people like me obviously people are Jewish is less Prejudice than it was but I I want to give back to the country”
Rubinstein employs specific strategies to maximize his learning and reading: (1) he doesn't play golf (time savings), (2) he doesn't drink alcohol (time savings), (3) he force-feeds himself to read books by interviewing authors and feeling obligated to read their work before interviewing them, (4) he reads books on subjects he already knows reasonably well (history, biography, business) so he can read more quickly, and (5) he prepares interviews by writing outlines of questions but frames everything as intrinsically motivated rather than as chore.
“I have some tricks one I don't play golf that saves a lot of time two I don't drink alcohol that saves a lot of time too but also I interview a lot of authors and when I interview authors I feel it's a courtesy to read the book so I I'm Force feeding myself to read a lot of books so that's how I do it and I read the books pretty carefully but I but I'm reading books on subjects I know something about if I had to read a science textbook I probably couldn't get through it but I'm reading biographies business books history books I know the subject matter reasonably well so I can read it pretty quickly and then what I do is when I'm preparing an interview I then write down the outline of what I want to ask people but I I just I'm doing things I really want to do I want to interview people I want to read the book so it's not a chore and I'm not doing anything it's a chore at this point in my life everything I want to do I'm doing I'm not I'm not punishing Myself by doing things I hate to do”
Government service provides meaning and impact but lower compensation and long hours, while private equity improves companies and the broader economy, creates jobs, and when coupled with philanthropy (e.g., the Giving Pledge), allows investors to both create wealth and give it away—making successful investing not inherently nefarious but a legitimate path to public benefit.
“in government it's great to say I want to serve my country and be in government and you a lot of people do that and I think they deserve a lot of credit for it because the compensation is low that you're not very thankful very much it's long hours and so forth but you do get a sense you're doing something to make the country somewhat better and in certain areas but I do think that in what the business I'm now in it's a business where you're designed to improve companies make the companies better and that helps the economy and so what I say in the book is that it's not a terrible thing to be an investor who's very good because you're in a good investor you make a fair amount of money but you give away that money”
People gain greater self-appreciation and a sense of accomplishment when they achieve and complete goals; conversely, failure in all endeavors leads to diminished self-worth, making achievement and visible progress essential to psychological well-being.
“I think people have a greater self appreciation of what they've done and what they're about if they've accomplished something if you fail that everything you've ever done in life you probably wouldn't feel so good about yourself you probably feel better about accomplishing something”
Young people in investment firms today who were not alive during the 2007-2008 crisis lack the lived experience that taught the previous generation about risk; experience is harder to transmit than knowledge, because people must live through crises to truly remember and internalize the lessons, unlike historical knowledge that can be intellectually understood but not felt.
“increasingly in my firm I see people who weren't in the investment World in 2007 2008 they're young I was at a meeting recently with some of our people and these people were very young and so they haven't lived through that I mean I was doing something at the Kennedy Center the other day we've we had a uh an exhibition of President Kennedy and I wanted to have that there because the Kennedy Center is a living Memorial to President Kennedy but two-thirds of Americans were not alive when President Kenny was alive including my children and so they don't really know about President Kennedy so you're dealing with young people they don't have the the background of a lot of the young people haven't been through Tucson 7 2008 so you've got to remind people this but you can't remind people of things as much as have them live through it when you live through it then you really remember it”
During the Carter Administration, inflation advisor Fred Kahn told Carter that the country was entering a recession, which upset the press and Carter because the word 'recession' had negative political connotations; Kahn then replaced the term with 'banana' as a euphemism so that reporters wouldn't write headlines about a banana, illustrating how political language shapes perceptions of economic conditions.
“when I worked in the Carter White House um uh the inflation advisor Carter said I think we're going into a recession and and the Press got all upset about it and Carter called him in and said how can you agitate the Press by saying we're going to recession don't use the r word so this man Fred Khan a former Professor Cornell said okay I won't use the r word anymore and he went out and said I think we might be heading into a banana and he used the word banana as a um as an exchange word because he knew reporters weren't going to write a headline says Carter's inflation advisor thinks we're heading into banana”
Rubinstein and Ray (as representatives of wealthy successful individuals) have observed that roughly 2-4% of young people have such exceptional intellectual curiosity, drive, and willingness to work that they are identifiable early, and within this cohort, many do not need formal credentials (like an MBA) because their talent and motivation are sufficient.
“I can tell that two or three or four percent of people have such intellectual curiosity such drive and such a willingness to kind of do what it takes to be great that they don't need to go get an MBA the opportunity cost for them is is too great but that is not the majority of people in fact a lot of people in here don't have mbas they're really talented”
Rubinstein's greatest investors book is not designed to turn readers into great investors (analogous to how reading about Tiger Woods's golf technique won't make you a great golfer), but rather to serve three audiences: (1) students interested in learning about investing, (2) average investors seeking tips for picking stocks/bonds or funds, and (3) people unable to pick individual securities who want to choose funds and let managers do the work.
“this was a book of interviewing the greatest investors in our country and it's not designed to make anybody reads it a great investor nobody is going to read a book about Tiger Woods's golf style and become a great golfer you have to live that the world of of investing for most of your life to get to this point this is a book that's designed for students who might be interested in learning about the investment world and what it takes to be really good average investors who say well maybe I'll pick some stocks myself or bonds myself and some tips for them and then people who don't have the ability to really pick stocks or bonds or other kind of instruments but want to pick funds and let the fund managers do it”
When people lack money and don't grow up with wealth, they are 'obviously not always but probably' more driven than those who grow up in wealthy families; raising children with a lot of money is harder than raising children without, because wealthy children may assume they will inherit money and thus lack the motivation to work hard.
“when you don't have money and you don't grow up with a lot of wealth you're obviously not always but you're going to be more driven probably if you grow up in a very wealthy family it's harder to have the drive and I've said before that raising children is the most difficult thing in the world and as anybody who's raised children though it's always worried whether happy healthy and safe and so forth but if you raise children you've got a lot of money and you are the same situation do you you could be careful because your kids might say well my father's going to give me money or my mother's going to give me money they don't have to work very hard so it's very difficult much harder to raise children when you have a lot of money”
The United States' constitutional system and reverence for the Constitution (rather than a leader) make it more stable and less susceptible to overthrow than many countries where citizens swear allegiance to leaders; while contemporary challenges exist (recent ones to this stability), military coups and total governmental collapse are unlikely in the U.S.
“the United States is a pretty stable country relatively speaking there are some countries where the governments are falling all the time there's military coups we're not likely to have that so I think the stability of our country is one of the things the Constitution has helped ensure and I think it's interesting that in this country we don't swear an allegiance to a leader we swear in allegiance to the Constitution that's what the oath of office is about in other countries um they don't have they don't swear in allegiance to the Constitution they swear it allegiance to the government of power typically so we have made the reverence for our our founding fathers and reverence for our constitution Paramount and I think it's difficult to have a overthrow of that so easily obviously we've been challenged recently on that but I I think it's unlikely that that we're going to have a military coup or social unrest such so that the entire government will be overthrown I think that's unlikely”
Rubinstein respects people who choose to savor life through activities like sporting events rather than pursue constant accomplishment, though he views accomplishment as his own priority and source of fulfillment.
“if people are happy going to you know sporting events and I go to sporting events too but if they're happy doing that and it gives them a greater sense of fulfillment or happiness than than doing what I'm doing that's fine I don't have any problem with it everybody can't do the same thing”
Rubinstein hosts monthly dinners for members of Congress from both parties, and participants report that these dinners are the most interesting and fulfilling aspect of their congressional work because they can relax without worrying about fundraising, media coverage, or party image.
“I hosted dinner for members of Congress once a month and I asked them to sit with people from the office of party and they love it and they say sadly or not this is the most interesting thing they're doing in Congress is going to this dinner because they can be themselves they don't have to uh you know raise money they don't have to be seen by the press”
U.S.-China policy will likely remain antagonistic until another presidential election and other changes occur, though there may be a brief meeting between Biden and Xi at the G20 Summit in Asia.
“I think it's going to have to wait to another presidential election and some other things happen now maybe when XI ji ping has officially gotten his third term and he feels less pressure maybe he'll be more accommodating the president United States historically meets the president China the first year of his administration President Biden hasn't been able to do that they're probably going to have a brief meeting in the Agee and the G20 Summit in Asia”
Great investors are able to separate emotional attachment from positions; once they exit a failing investment, they immediately move on to the next opportunity without dwelling on the loss, whereas many people ruminate on failures for years (Rubinstein admits he himself remembers mistakes for 30-40 years and struggles to move past them).
“a lot of great investors they're on the next thing they get out of the position they go the next thing they don't think about it again they all have that in common I'm not probably that good at that I can remember mistakes for 30 or 40 years and I can't get over it”
Rubinstein acknowledges that as a senior White House advisor he would have greater day-to-day influence on the country's direction than he has in private equity, though he finds happiness through his current pursuits rather than through nostalgia for political power.
“I do think that in what the business I'm now in it's a business where you're designed to improve companies make the companies better and that helps the economy and so what I say in the book is that it's not a terrible thing to be an investor who's very good because you're in a good investor you make a fair amount of money but you give away that money most of the investors are ultimately giving away the bulk of the money you are and I we both early signers original centers the giving pledge so we're basically giving away our money and you know and then you're also creating a lot of jobs you've created a lot of jobs my firm has created a lot of jobs so it's not a terrible thing to be an investor it's not like you're a nefarious person on the other hand I I recognize a day to day when I wake up I may not have the same influence that I would have if I was in the white house as a senior advisor that a president so what's the straight answer yes or no well happiness is the most elusive thing in life for sure and very difficult to be happy”
Humility comes from knowing one's weaknesses, remembering past mistakes, and understanding the challenges of life; Rubinstein explicitly contrasts himself with others—noting he is not as smart as Rhodes scholars or Nobel Prize winners, but works harder—which generates humility about his intellectual ceiling.
“I don't have the IQ of so many people that got perfect SATs and you know one Nobel Prize I'm not at that level for sure but just by my theory has always been I'm not as smart as I would like to be or as smart as some people I know but if I work harder I can you know catch up to some extent so um that's what I've done”
The other speaker's mother kept news clippings about his philanthropic giving rather than his wealth-creating achievements, suggesting that his mother took greatest pride in his giving back.
“when my mother passed away she and I went through her possession she had all the news clips of me but not of any of the things that Carlisle had done or money I'd made was all about the gifts I had given and she had told me the one I was giving away money that she was more proud of me for that than anything else”
In one's own case, motivation to achieve often stems from wanting to create a life that parents would find useful and be proud of, rather than from pure personal ambition.
“in my case I I was trying to you know make make a life for myself that my parents would think was you know useful”
Many top-performing people in Rubinstein's firm didn't obtain MBAs, though the other speaker obtained an MBA from Harvard Business School, which provided credentialing value even if not strictly necessary for professional success.
“in fact a lot of people in here don't have mbas they're really talented you you do have an MBA but I think you wanted an MBA kind of you you didn't do you love college but you wanted”
Rubinstein's approach to being wrong involves two strategies: (1) find the smartest people who disagree with him and use them to stress-test his thinking, and (2) diversify his portfolio or bets so that being wrong in one area doesn't catastrophically damage the whole.
“I know when I think about um my worry about being wrong um I do two things I try to find the smartest people who disagree with me to try to stress test and then I try to diversify so it's K I think being in the markets has taught me some things about life and life is applied to the markets”
Competing in investment markets is harder than competing in the Olympics because more people try to do it, and it is a zero-sum game; this requires exceptional humility about the difficulty of the task.
“you have to be able to pick well that's why I think when you said fees pay attention to fees pay against attention to track records pay attention to diversification of asset classes and then because people do it pay attention to changes in the people who are going to be managing the money I would like what I say in the book is this if you're picking a fund look at the track record make sure the people produce a track record are still there make sure they have a lot of their own money and invest alongside you make sure that the young people are not leaving the firm because they're not being adequately incentive make sure their organization not being sued for fraud all the time make sure that the organization is one where you can get the information you want when you want it and on an understandable basis make sure the fees are fair and make sure you know who the other investors are because smart money knows how to find good Investments and you've never heard of anybody else investing alongside you that's not a good thing I would like what I say in the book is this if you're picking a fund look at the track record make sure the people produce a track record are still there make sure they have a lot of their own money and invest alongside you make sure that the young people are not leaving the firm because they're not being adequately incentive make sure their organization not being sued for fraud all the time make sure that the organization is one where you can get the information you want when you want it and on an understandable basis make sure the fees are fair and make sure you know who the other investors are because smart money knows how to find good Investments and you've never heard of anybody else investing alongside you that's not a good thing I would like what I say in the book is this if you're picking a fund look at the track record make sure the people produce a track record are still there make sure they have a lot of their own money and invest alongside you make sure that the young people are not leaving the firm because they're not being adequately incentive make sure their organization not being sued for fraud all the time make sure that the organization is one where you can get the information you want when you want it and on an understandable basis make sure the fees are fair and make sure you know who the other investors are because smart money knows how to find good Investments and you've never heard of anybody else investing alongside you that's not a good thing competing in the markets is more difficult than competing in the Olympics because there's more people trying to do it and it's a zero-sum game and so that kind of humility and you have to be able to pick well”
Democracy—the form of government the US uses—is the best form available despite its imperfections, as Winston Churchill famously said: 'democracy is the worst form of government except every other one', though Churchill didn't know about modern campaign fundraising.
“well it's better than the every other system I mean obviously it's it's not perfect and as Winston Churchill famously said democracy is the worst form of government except every other one uh he didn't know about fundraising though he might have uh you know not been as happy in other countries saying”
Rubinstein received criticism from the New York Post for funding restoration of Monticello and Montpelier, with critics claiming he was supporting 'woke' ideology because the tours now mention that Jefferson and Madison were slave owners, though the tours do not primarily emphasize slavery.
“people fault me all the time I was faulted recently in the New York Post saying that I had given money to Monticello and Montpelier to re restore them and then they said now that I'm too woke because the tours of Monticello Montpelier emphasize the fact that Jeff Jefferson and Madison were slave owners now that's not completely accurate in the sense that the tours don't emphasize that they do mention they were slave owners”
There is no easy answer to solving the income disparity problem and lack of equal opportunity in the United States, despite significant national resources; Rubinstein does not claim to have a solution.
“we're not going to solve that problem uh anytime soon if I knew what the solution was I'd be in Iowa New Hampshire and so forth but there's no there's no easy answer to solving that income disparity problem or the lack of equal opportunity”
Roughly two-thirds of Americans (66%) were not alive when President John F. Kennedy was president, including Rubinstein's own children; they therefore have no lived memory of Kennedy and can only understand him intellectually rather than through contemporary experience.
“two-thirds of Americans were not alive when President Kenny was alive including my children and so they don't really know about President Kennedy”
Pandas have an extremely unique and inefficient reproductive system: females go into estrus only once per year for a four-hour window, and even during this window, inexperienced pandas often fail to mate successfully because they don't know 'where the parts are supposed to go'; if natural mating fails after two hours, zoos artificially inseminate the female, sometimes successfully.
“the panda situation for those who don't know about it is that they're only about 2 500 pandas on the face of the Earth there's seven and a half billion people and why is that because pandas have the most unique reproduction system of any mammal and because also they where they historically live I've been more and more development has occurred in China so there are very few places they can live anymore but they the female goes into estrus again reproduced only for four hours a day one day a year that's you know you got to be there for that four hour period of time and so were you looking on well I'd say what happens is in the wild is you know when they get together in that four hour period of time they haven't they're inexperienced you only do it one day a year for four hours you don't know what the where the parts are supposed to go so they don't really it doesn't work so well so in captivity um they if it doesn't work the normal natural way after two hours they will artificially inseminate the uh the female and sometimes that works sometimes it doesn't”
Rubinstein worked as chief lawyer of the Senate Judiciary Committee, then served in the Carter Administration for four years before transitioning to private equity after the 1980 election loss to Ronald Reagan.
“you went to as the chief lawyer of the Senate Judiciary Committee um and then um you worked there for um in the Carter Administration for um I think the four years of the Carter Administration and then you turn to the dark side”
Rubinstein believes in the Giving Pledge, a commitment to give away the majority of his wealth; he notes that most major investors in his book are also Giving Pledge signatories and are ultimately giving away the bulk of their money.
“we both early signers original centers the giving pledge so we're basically giving away our money”
Real estate is the most common investment throughout history; most people's largest investment is their house; real estate does not tend to go down in value as a general rule, making it a reasonably good investment, but overleveraging or using personal guarantees on debt creates the primary risk.
“throughout the course of the the world the most common investment has been real estate that's the asset that most people have had when people get wealthier they send to buy other things they make other Investments but I think in having most for most people their biggest investment is their house for most people now that's not for everybody but for most people and I think having some real estate is probably a reasonably good investment because it tends not to go down in value as a general rule of thumb the problems that people get in real estate is when they over lever it and when they over lever it with personal guarantees”
Rubinstein built a leveraged buyout firm in Washington, D.C. rather than New York, pursuing a location strategy that distinguished his firm from the traditional financial center.
“I'll figure out if I could build a leveraged buyout firm in Washington not in New York”
Only about 2,500 pandas exist in the world out of 7.5 billion people, and few places remain where they can live as their historical habitats have been replaced by development in China.
“they're only about 2 500 pandas on the face of the Earth there's seven and a half billion people and why is that because pandas have the most unique reproduction system of any mammal and because also they where they historically live I've been more and more development has occurred in China so there are very few places they can live anymore”
A good interviewer should let the interviewee be the star of the show rather than the interviewer themselves, avoiding the trap of explaining their own views at length while giving the interviewee only brief opportunity to respond.
“a good interviewer is supposed to let the interviewee do the star of the show right so I don't want to be an interviewer who basically says here's what I think about something go through a long explanation and then give the person one sentence one second to say what they think”
Rubinstein's father was a postman who earned no more than $7,000 per year, and his mother was a homemaker; this modest background shaped his drive to achieve.
“your dad was um a um Postman right um and I as I understand it uh he really never earned more than seven thousand dollars a year basically and your mother was a homemaker”
Rubinstein became involved in panda conservation through his role as chairman of the Smithsonian Institution (which owns the National Zoo); the Smithsonian had to pay the Chinese government approximately $1 million per year for panda breeding rights, and when the sponsoring organization stopped funding this cost after 10 years, Rubinstein volunteered to cover the expense to prevent the loss of the pandas.
“it wasn't because of my interest in uh reproduction necessarily I I was the chairman of the Smithsonian the Smithsonian owns the National Zoo and the National Zoo is one of 26 zoos in the world that have pandas only three in the United States and uh what happened was they said the sponsor the people you have to pay the Chinese about a million dollars a year uh to get the pandas and this the organization that would have been paying it for 10 years decide not to do anymore so they they were afraid they were going to lose the pandas and so I said well I'll put up the money for it and so then made me an expert on Panda reproduction”
Rubinstein holds numerous leadership and trustee positions across major institutions including the John F Kennedy Center, Council of Foreign Relations, National Gallery of Art, University of Chicago, Harvard Corporation, and many others, serving in significant philanthropic and governance roles.
“David Rubenstein is chairman of the board of the John F Kennedy Center for the Performing Arts the Council of Foreign Relations the National Gallery of Art the economic Club of Washington and the University of Chicago he is also a fellow of the Harvard Corporation a trustee of the Memorial Sloan kettery Cancer Center Johns Hopkins medicine The Institute for advanced study the national Constitution Center The Brookings Institute and the world economic forum”
Carlisle has produced more profits for investors than any other hedge fund in history, making it an exceptionally successful investment vehicle.
“you built a great company it's the largest hedge fund in the world and I think if I have it right you have produced more profits for your investors than any other hedge fund history”
Rubinstein attended Duke University not only because it is a great school but also because he could secure the best scholarship deal there, reflecting his need to minimize family financial burden.
“you went to the uh to Duke not only because it's a great school but also because you could get the best scholarship deal there”
Rubinstein and Ray were born three days apart in August 1949 (Rubinstein on August 11, Ray on August 8) and share parallel backgrounds of modest means—both had fathers in humble occupations, both mothers were homemakers, and both were inspired by President John F. Kennedy at age 12.
“you were born on um August 11 1949 I was born on August 8 1949 so you were born three days later than I am and um your background was somewhat similar to mine in that um your mother you were born in modest means uh your dad was um a um Postman right um and I as I understand it uh he really never earned more than seven thousand dollars a year basically and your mother was a homemaker in my case my dad was a jazz musician and it wasn't probably the same amount of money my mom was a homemaker”
American journalism generally provides useful service to the country through mostly honest reporting, but newspapers are closing and the business model is damaged; some journalists exaggerate to make headlines or tilt slightly left or right, but most journalists in reputable publications try to present facts as they see them despite inherent human bias.
“American journalism has suffered a lot because newspapers are closing down that newspaper business is not quite what it was now obviously things are online American journalists I think do a great service for our country because they're relatively modestly paid compared to private Equity people that say and and they're trying to provide the truth but sometimes some people on the far left or the far right exaggerate things to make headlines that may be unfair but generally I'd say the state of American journalism is pretty good”
Rubinstein would not want to live his life over again, though he has had a great life, and he would only want to live longer if the additional years are fulfilling.
“I I I you know I wouldn't don't want to live my life over again everybody would like to live long what a terrific life you have had really”
Rubinstein would most recommend Ray Dalio's book 'Principles' as the best of his greatest investors interviews and books; over two million copies have sold in China, and it is very thoughtful; if limited to a single book for a desert island, Rubinstein would choose the Bible for its historical and spiritual content, followed by his 'How to Invest' book.
“which book did you learn the most of or would you most like to recommend principles by Ray Dalia that's the right answer you got the right answer that is a best-selling book so more than two million copies in China and it's a very very thoughtful book so I would highly recommend that”
Rubinstein has conducted approximately 200 interviews across his various television shows, plus additional interviews not on television, totaling over 280 interviews when combined with interviews in his three books (31 in 'How to Lead,' 27 in 'The Great American Experiment,' and 23 in his investing book).
“I've done about 200 of them so far on the various shows and uh and then I've done some that are not on TV but I've done some interviewing over the years”
Rubinstein sleeps approximately 5.5 hours per night; he notes that Jeff Bezos, whom he interviewed, claimed to require 8 hours of sleep every night and cannot function with less, which Rubinstein humorously suggests explains some of Bezos's superior success compared to Rubinstein's own.
“when do you wake up when do you go to bed I try to get about five and a half hours of sleep a night now Jeff Bezos when I interviewed him disappointed me by saying he gets eight hours every night he can't get by with less than eight hours and so I said my God how am I gonna you know no wonder I'm not doing as well as Jeff Bezos uh eight hours every night um I I get by in about five and a half hours a night and you know that seems to be okay”
Rubinstein's children are all in the private equity business, suggesting a professional path parallel to their father's career.
“my children are now happy and healthy and they're in their own business they're very they're all in the private Equity business”