"How to Invest"

Table of Contents

About the Author

Who is David Rubinstein?

The book “How to Invest” was written by David Rubinstein. He is the founder of the Carlyle Group (ticker: CG).

About The Carlyle Group

The Carlyle Group is one of the world’s most prominent private equity firms, with businesses spanning private equity, alternative asset management and financial services. As of 2023, the firm has $426 billion in assets under management. The firm is organized into three business segments: Global Private Equity, Global Credit, and Global Investment Solutions.

On May 3, 2012, Carlyle completed its $700 million initial public offering and began trading on the Nasdaq Stock Exchange.

About this book

Rreason to recommend

The book “How to Invest” was written by David Rubinstein interviewed 24 famous investors. These 24 famous investors came from different investment fields. They are all top-notch business founders or investors in their respective fields and are very representative. I hope readers can gain inspiration for getting rich from the heartfelt advice given to other investors by 24 famous investors.

Main contents of the book

The following are my own excerpts from the book, which I think are worth sharing with you:

Barron Capital

The interview with the founder of Barron Capital is particularly worth reading:

How to judge whether an IPO company is worth investing in: The founder must be smart, hard-working, confident, trustworthy and visionary.
Learn and think by observing others, rather than listening to what others tell you to do.
The funds managed by Barron Capital grew to US$55.3 billion from 1982 to 2021.
Barron Capital’s stock fund has outperformed the market by 5% since 1982.
I don’t believe anyone can predict the future trend of the stock market. Greenspan called the irrational boom and said stock prices were “too high,” and the stock market rose 80% over the next three years.
The interviewees admitted that many well-known celebrities from all walks of life who attended Barron Capital’s shareholders’ meeting were invited by them at great expense!

John Paulson

Asymmetric trading refers to an investment that has a 100-fold profit potential, but only a slight loss potential.
Do not offer investment advice to others.
Only invest in areas that you are familiar with.
People who suddenly gain access to large sums of money are advised to invest in real estate, as the profits from leverage are huge.
Don’t invest in cryptocurrencies.
Risk arbitrage means that after the announcement of a merger and acquisition, the stock price and the acquisition price are only in the low single-digit percentage. If you do multiple transactions in a year, you can get a stable and substantial return.
The more you focus on areas that you know better than others, the more advantages you can gain.

Ray Dalio

You have to think independently because you can’t make money in the market by betting on the market consensus because the consensus is already reflected in the price.
In the past three decades, China has achieved an extraordinary feat that is unique in human history, increasing the per capita income of its population of over one billion by 26 times, reducing the poverty rate from 88% to less than 1%, and extending life expectancy by ten years. But to his regret, the United States and China are heading towards confrontation.

Marc Anderson

The VC industry is the most important because it is a relationship that lasts ten to twenty years.
The founder and CEO of a business are crucial to the success of a new venture.
It is difficult to win the favor of VCs if you only have a plan but no entrepreneurial experience.

Stanley Druckenmiller

After 1993, the profits were returned to investors because the large amount of capital was detrimental to performance.
Druckenmiller specifically reminded investors that Buffett, Icahn, and Soros all made their fortunes by making big bets and adopting a concentrated investment approach.

Jim Simmons

If the fund is too large and wants to trade in cash, it will have too much impact on the market. Therefore, the Grand Medal Fund cannot be too large.
He also said: The reason I am successful is because I am with smart people.

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Disclaimer

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