David Rubenstein: Defining Great Investors, Guiding Presidents and Preserving History
Episode
52 min
Read time
2 min
Topics
Productivity, Relationships, Investing
AI-Generated Summary
Key Takeaways
- ✓Great Investor Traits: Successful investors share middle-class backgrounds, strong math skills, humility to accept losses quickly, and ability to motivate others. They exit bad positions fast rather than letting ego override market signals, recognizing when they're wrong.
- ✓Geographic Advantage Strategy: Starting Carlyle in Washington instead of New York created differentiation by focusing on aerospace and defense companies heavily affected by federal government. This unconventional location became competitive advantage when competitors lacked government expertise and relationships.
- ✓Interview Preparation Method: Prepare thirty questions in advance, memorize them without notes to maintain eye contact, read full books rather than summaries, watch YouTube interviews to understand personality, and listen actively to pivot rather than rigidly following prepared questions.
- ✓Persuasion Through Leadership: Three methods convince people: talking persuasively, writing compelling memos, and leading by example. The most effective is modeling behavior yourself—working twelve-hour days motivates others more than speeches about hard work while working three hours daily.
What It Covers
David Rubenstein, Carlyle Group founder, discusses building private equity firms from Washington, interviewing world leaders, defining characteristics of successful investors, preserving American history through philanthropy, and maintaining relevance at seventy-six while managing multiple ventures.
Key Questions Answered
- •Great Investor Traits: Successful investors share middle-class backgrounds, strong math skills, humility to accept losses quickly, and ability to motivate others. They exit bad positions fast rather than letting ego override market signals, recognizing when they're wrong.
- •Geographic Advantage Strategy: Starting Carlyle in Washington instead of New York created differentiation by focusing on aerospace and defense companies heavily affected by federal government. This unconventional location became competitive advantage when competitors lacked government expertise and relationships.
- •Interview Preparation Method: Prepare thirty questions in advance, memorize them without notes to maintain eye contact, read full books rather than summaries, watch YouTube interviews to understand personality, and listen actively to pivot rather than rigidly following prepared questions.
- •Persuasion Through Leadership: Three methods convince people: talking persuasively, writing compelling memos, and leading by example. The most effective is modeling behavior yourself—working twelve-hour days motivates others more than speeches about hard work while working three hours daily.
Notable Moment
Rubenstein reveals he passed on investing thirty thousand dollars in Facebook when his son-in-law, Mark Zuckerberg's Harvard classmate, pitched the opportunity. That stake would now be worth fifty billion dollars, held by Eduardo Saverin who never sold.
Episode Transcript
Hi, everybody, and welcome to In Good Company. And today, I'm here with David Rubinstein. David is the founder and chairman of the Carlyle Group, one of the biggest private equity firms. And he also hosts the David Rubinstein Show, where he interviews prominent leaders in business and so on. And earlier this year, I had the pleasure of being on your show. So this is like revenge time, actually, David. Well, thank you for inviting me, and, you were great on my show. And anytime you wanna come back, please let me know. You sometimes talk about people being on like brands. So what's the David Rubinstein brand like? I'm not quite sure what it is. Maybe it's just too busy to do anything very well because I'm doing so many different things that I don't really have as good a brand as I maybe would like to have. But the truth is, I spent thirty years I'm now still in private equity. I spent thirty years building a firm. It became one of the larger private equity firms. But I find that I'm better known now for the TV shows I do Yeah. Or the interviewing I do, or for my philanthropy. I have a lot of philanthropic things I've done, and people talk to me more about that than anything I've done in the investment world. So I guess my brand is that somebody that can't do anything well. I do many different things, but none of them that well as I would like to do. Well, we're going to get through it, and you for sure do a lot of things well. But you were you were an adviser in the White House at age 27, and now you are here. Just what are the what are the highlights in your life since then? I mean, briefly. Well, briefly, I came from very, modest, stock. My parents were not graduates of of college or high school. They both dropped out of high school. They were married young. I was their only child. So I grew up in a blue collar setting. And, you know, so if you grow up in that setting, you have to make it on your own. So there's a plus about that. My own children have had some advantages that I didn't have. Mhmm. Yeah. But I, was only interested in politics and government at the time when I was young. I had no interest in making money. In the days of of in the nineteen sixties or so, there were no hedge funds, private equity funds, tech startups. There was no there were no billionaires, and you didn't aspire to be a billionaire. And my family was Jewish. If you were Jewish and you wanted to go into business, you wanted your family's business, your family might have a business. If you didn't have a family business, you became a lawyer, a doctor, or a dentist, and that's what your mother …
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