David Rubenstein's Latest Book Explores the Insights of Investment Masters

In his recently released book, "How To Invest: Masters On The Craft," published by Simon & Schuster in 2022, David Rubenstein opens with a candid admission: he doesn't consider himself a great investor. Rubenstein, an attorney who previously served in the Carter White House, made a career shift to start his Washington D.C.-based private equity firm in 1987, driven by the pursuit of more lucrative opportunities. Despite his modest self-assessment, Rubenstein has emerged as a titan in the field of private equity, amassing a net worth exceeding $3 billion. His buyout firm, managing a staggering $375 billion in assets, has yielded more winning investments than losses, with Carlyle's gross internal rate of return averaging 26% annually over a period of more than 30 years.

Rubenstein's book delves into conversations with 23 prominent U.S.-based investors, showcasing their diverse expertise. The roster includes luminaries like value stock expert Seth Klarman, hedge fund maven Ray Dalio, real estate luminary Jon Gray, infrastructure investor Adebayo Ogunlesi, and former macro trader turned crypto enthusiast Mike Novogratz. Impressively, 12 of these investors are billionaires according to Forbes, featuring individuals like James Simons, a mathematical genius who transitioned from leading Stony Brook University's math department to pioneering quantitative investing on Wall Street. Over the past three decades, Simons' Medallion fund and its computer models have consistently achieved net returns of 40% per annum, elevating his net worth to a staggering $28 billion.

While readers shouldn't expect specific investment strategies, Rubenstein's book offers valuable insights into the life and career journeys of these exceptional investors. It sheds light on how they perceive the world and markets in their pursuit of superior returns.

Forbes: What motivated you to write this book, considering the abundance of existing investment literature?

David Rubenstein: With 35 years in the investment world, my previous books haven't focused on investment. People suggested I should share my experiences from the last 35 years. I wouldn't claim to be a great investor, but I have substantial experience in the investment field. Additionally, a book I read when I was younger, "The Money Masters" by John Train, inspired me. While not an interview book, it provided insights into the famous investors of that era, such as Warren Buffett, Benjamin Graham, and John Templeton. I aimed to create something similar, where I could analyze the achievements of the best investors. I'm not suggesting that reading my book will turn anyone into a great investor, but it can provide ideas on what one should or shouldn't do and possibly inspire young people pursuing a career in investing. I also want to emphasize that investors play a valuable role in our society. Allocating capital, for instance, to a company like Moderna, contributes positively to society. I aim to convey that investors are not just profit-driven individuals; they perform essential services for our nation.

Forbes: Out of all the people you've interviewed and featured in your book, was there anyone whose journey particularly impressed you?

Rubenstein: Many of them had journeys that defied predictions. Take Jim Simons, for instance; he was a world-class mathematician, yet nobody viewed him as an investor. Eventually, he essentially invented quantitative investing. Stan Druckenmiller, initially on a path toward forestry, pivoted to pursue an economics Ph.D. and became one of the finest investors. It was a remarkable interview, and I deeply admire him. Another standout is Paula Volent, who now serves as the Chief Investment Officer at Rockefeller University. She began her career as an art conservator and attended business school to support her art conservation business. Surprisingly, she outperformed David Swenson of Yale, renowned for his endowment return rates. These examples illustrate that one can never predict the twists and turns of these extraordinary journeys."

[email protected]