Speaker 1: You're listening to Bloomberg Business Week with Carol Messer and
Speaker 1: Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Earlier this week,
Speaker 1: US stocks posted their biggest drop in two years. Uh.
Speaker 1: This was after the latest CPI report was surprised to
Speaker 1: the upside the silver lining. Maybe it's a good time
Speaker 1: for savvy investors to buy the dip. At least that's
Speaker 1: what David Rubinstein told our Bloomberg TV colleagues the day
Speaker 1: after that massive sell off. His comments, I've got a
Speaker 1: lot of play online because who doesn't want investing tips
Speaker 1: from the best in the business. And luckily for us,
Speaker 1: he's back with some more tips. David Rubinstein is founder
Speaker 1: and co executive chairman of Carlisle Croup. He's also the
Speaker 1: host of Bloomberg Wealth on a Bloomberg Television He joins
Speaker 1: us to be a zoom from Washington, d C. David,
Speaker 1: good to have you back with us this afternoon. How
Speaker 1: are you I'm doing fine. Thank you for having me. Yeah,
Speaker 1: thanks so much for joining us. I want to start
Speaker 1: with the markets because I think a lot of people
Speaker 1: are spooked right now. I'm just give us your interpretation
Speaker 1: of what you're seeing when you look at the equity
Speaker 1: markets right now, clearly the markets are not happy with
Speaker 1: the higher inflation numbers, and I think that's a big factor.
Speaker 1: When you have higher inflation, you can expect higher interest rates,
Speaker 1: and the Fed is next week like the increase interest
Speaker 1: rates by seventy five basis points. There's some who think
Speaker 1: it could be a hundred basis points, but I doubt
Speaker 1: that that that that would happen. That would probably really
Speaker 1: hurt the markets much more because that would show the
Speaker 1: Fed is much more nervous about inflation than it has
Speaker 1: said it is, although it has said it's it's worried,
Speaker 1: But I think a hundred basis points would be much
Speaker 1: more than their guidance has been. So if they were
Speaker 1: to do a hundred basis points and market will really
Speaker 1: sell off. In my view, seventy five basis points and
Speaker 1: markets already assuming that's going to happen, so probably not
Speaker 1: a big surprise of the markets. I think the news
Speaker 1: from fed X that you were just talking about probably
Speaker 1: is going to scare people early tomorrow because someone fed
Speaker 1: X is canceling its guidance. That might mean that other
Speaker 1: companies are gonna follow suit, and that might mean earnings
Speaker 1: are gonna be less than people expect. So I think
Speaker 1: markets are gonna be choppy for a while, there's no
Speaker 1: doubt about it. Well and FedEx here is right now
Speaker 1: down about shoppy. But you still think there are opportunities,
Speaker 1: especially when we see the equity side of the markets.
Speaker 1: David a lot that that is a time to enter
Speaker 1: you You stand by that the greatest more fortunes in
Speaker 1: the stock market are generally not made when people see
Speaker 1: a top of the market and they say, now I'm
Speaker 1: going to get in. Generally markets are down and then
Speaker 1: what happens is people say, I think it could go
Speaker 1: down further, and they try to look for the bottom
Speaker 1: of the market. Anybody that's looking for the top of
Speaker 1: the market or the bottom of the market generally is
Speaker 1: on a fool's Errand so markets are shares her off
Speaker 1: now what more than from the peak, and that's a
Speaker 1: pretty good downside. It could go down a little bit more,
Speaker 1: but I don't see another twenty percent down. The markets
Speaker 1: are pretty much near the bottom. They might be five
Speaker 1: percent more to go or maybe a little bit more.
Speaker 1: But I think we know a lot of what's going
Speaker 1: on in the markets now and not likely to see
Speaker 1: big changes. Now the Ukraine Russia situation has had some
Speaker 1: positive news, maybe that work could be over sooner than
Speaker 1: we once thought. And I think uh now m generally
Speaker 1: the inflation situation not under control, but the FED seems
Speaker 1: to be on top of the situation, maybe more than
Speaker 1: it was before. So I'm not expecting we're going to
Speaker 1: see another decline in stock crisis. David, and I want
Speaker 1: to get into your book in just a moment, but
Speaker 1: would you concede that it's safe to say that we
Speaker 1: really don't know kind of how things go on the
Speaker 1: other side of it, considering the pandemic that we're coming
Speaker 1: out of, the amount of stimulus that was pumped in
Speaker 1: to the global economy, that we still don't quite know
Speaker 1: and there's still the same risks, right, we could get
Speaker 1: another variant that sets things back, Um, China still struggling. Uh. Geopolitical,
Speaker 1: as you said, some good news out of Ukraine, but
Speaker 1: it's still a little bit up in the air. Do
Speaker 1: we Is it safe to say we don't quite really
Speaker 1: know how this all plays out? Um? This is what
Speaker 1: lawyers often call a case of first impression, which is
Speaker 1: to say, we have something that's relatively unique in the
Speaker 1: sense that we haven't had five trillion dollars injected into
Speaker 1: an economy quite the way the federal government did and
Speaker 1: then know what the impact is going to be an
Speaker 1: inflation in the markets a year or two later. So
Speaker 1: we had this gigantic injection and to prevent uh A
Speaker 1: set during COVID. We did prevent it recession, but we
Speaker 1: also gave us a lot of inflation. UM. If you
Speaker 1: go back at any time in the market history, you'll
Speaker 1: always fullfind that there are problems. There's never a case
Speaker 1: where people say, you know, everything is looking great and
Speaker 1: actually turns out to be great. It's rarely the case
Speaker 1: that you don't have challenges right now. We have the
Speaker 1: challenges you to discuss plus UH. You know, the challenges
Speaker 1: of getting people back to work, the challenges of awarding
Speaker 1: another UM, COVID type pandemic, the challenge of the U. S.
Speaker 1: China relationship, the challenge of the Russian situation, the energy situation,
Speaker 1: money challenges. But that's what makes great market great investors great.
Speaker 1: They can see through the challenges and get in when
Speaker 1: they going is good and other people think it's bad,
Speaker 1: but now it's probably not a bad time to begin investing.
Speaker 1: Hey David, um, is there any concern Do you have
Speaker 1: any concern that the Fed could overdo it? Because monetary
Speaker 1: policy it takes a while to take effect in the economy.
Speaker 1: We're still getting some pretty hot numbers when it comes
Speaker 1: to jobs, but an inflation still high, of course, But
Speaker 1: are you concerned that the Fed just goes too hard
Speaker 1: when it comes to interest rates? Well, of course, the
Speaker 1: Fed didn't make a mistake that it admitted it thought
Speaker 1: the inflation was was going to be transitory. Obviously was
Speaker 1: not Um J Pal who used to work at my firm,
Speaker 1: and I've known him for a long time, though I'm
Speaker 1: obviously not getting inside information from him now. Um. I
Speaker 1: think he's a very cautious person. He likes to tell
Speaker 1: you what he's going to do, and they'd like to
Speaker 1: then do it. Um, he's pretty much said, I'm gonna
Speaker 1: go the Fed's gonna FOMC is gonna go up by
Speaker 1: seventy five basis points. I think if they were gonna
Speaker 1: go a hundred basis points or more, I think they
Speaker 1: would have tipped the markets a bit, because, as I
Speaker 1: said earlier, a hundred basis points or more now would
Speaker 1: shock the markets, and I think it would be uh
Speaker 1: something that would see a big sell off in stock.
Speaker 1: So I don't see that being tipped from the FED.
Speaker 1: And obviously he doesn't control what the FMC does, but
Speaker 1: he has an enormous amount of influence, So I suspect
Speaker 1: um will be something around seventy five basis points. The
Speaker 1: real change is whether we will have another fifty basis
Speaker 1: points increase the remainder of the year, which is what
Speaker 1: the market seven have assumed, or could it be the
Speaker 1: case that we get more than fifty basis points or
Speaker 1: the remainder of the year. And then, of course, right
Speaker 1: now the markets are generally assuming probably not any real
Speaker 1: increases early next year, and who knows that could change,
Speaker 1: But right now I think we're the markets really want
Speaker 1: some good inflation numbers. The next time some inflation numbers
Speaker 1: come out, hopefully they're better than the ones we just saw.
Speaker 1: Do you find it okay? And we promised we're gonna
Speaker 1: get to your book, But is it wacky that we
Speaker 1: have such a strong labor market and yet, David, you
Speaker 1: know that we constantly talk about about the labor market.
Speaker 1: The unemployment rate is a misleading number in many respects.
Speaker 1: It's the one we all know. And right now the
Speaker 1: number is I think three point seven percent. It went
Speaker 1: as low as three point five per cent um and
Speaker 1: that's as low as anything I can recall. Um, But
Speaker 1: that doesn't take into account how many people are looking
Speaker 1: for jobs. Uh, the amount of people in the labor
Speaker 1: force is less than it used to be. And remember,
Speaker 1: unemployment rate is the number of people in the previous
Speaker 1: month who are in the labor force and looking for
Speaker 1: jobs that can't find them. Uh, the labor force is
Speaker 1: actually smaller than it would be ideal, um. And so
Speaker 1: there probably are you know, more people who would like
Speaker 1: jobs but don't think they can find them in the
Speaker 1: at the salary they want, or they the kind of
Speaker 1: style work style they want. So I think it is
Speaker 1: hard to believe that that that the unemployment rate is
Speaker 1: so low when you know, I do know people that
Speaker 1: are still looking for jobs, and I think that you know,
Speaker 1: we should recognize it. Generally, an adult population, you have
Speaker 1: about six working population and adult population who are in
Speaker 1: the workforce. Now that number is probably closer to sixty
Speaker 1: two or six. So we have more people who could work,
Speaker 1: but they've taken themselves out of the workforce and that's
Speaker 1: why the the unemployment rate is so low. All right,
Speaker 1: so let's talk about the book How to invest Masters
Speaker 1: on the Craft, Uh, And I do wonder, you know, David,
Speaker 1: Generally successful investors, I would argue that are successful. It's
Speaker 1: because of their different says. They find opportunities where others
Speaker 1: do not. So at the same time, I wonder, is
Speaker 1: there's something that successful investors all have in common. Yes,
Speaker 1: they have these things in common. They tend to come
Speaker 1: from blue collar and uh, middle class families. They don't
Speaker 1: come from very wealthy families. They tend to be pretty
Speaker 1: good students. These are not typically college dropouts or high
Speaker 1: school dropouts. As a general will of thumb, they tend
Speaker 1: to be pretty good in math. They tend to like
Speaker 1: to make decisions. They tend not like to delegate. They
Speaker 1: tend to be people who will um defy conventional wisdom.
Speaker 1: The conventional wisdom say now is not the time to
Speaker 1: to invest. That's when they invest. They also tend to
Speaker 1: be relatively humble because they've made a lot of mistakes
Speaker 1: over the years. Every investor does. They also tend to
Speaker 1: get rid of their mistakes pretty quickly. A really good
Speaker 1: investor when they when he or she makes a mistake,
Speaker 1: they don't labor over it for months and months and
Speaker 1: months and still about it. They get out of the
Speaker 1: position and they go into the next thing. They also
Speaker 1: tend to be i'd say, relatively philanthropic. Clearly, if you're
Speaker 1: if are in the business world and you're an investor,
Speaker 1: as opposed to being in the endowment world or or
Speaker 1: or a nonprofit world, you tend to make a lot
Speaker 1: of money as investors, and they tend to give away
Speaker 1: a large percentage of it. So I generally these are
Speaker 1: people who are quite articulate, quite smart, and quite hard working.
Speaker 1: We're hard work is not a problem for them because
Speaker 1: what they do is what they love. Investing is not
Speaker 1: for them work, It's it's pleasure. And once they've made
Speaker 1: whatever they need to make a billion dollars, two billion,
Speaker 1: ten billions, twenty billion dollars, they don't stop working. They
Speaker 1: work until they you know, I just can't do it anymore. Um.
Speaker 1: They don't tend to retire at fifty five or sixty.
Speaker 1: Some of the names on here, I mean, this is
Speaker 1: a who's who of of the Wall Street world and
Speaker 1: also Silicon value when it comes to alternatives. I mean
Speaker 1: we're talking people like Larry Fink, John Gray, Sam Zell
Speaker 1: are featured in here, Rate Dahio. When it comes to
Speaker 1: hedge funds, we got John Paulson on hedge funds, Mark Injuries,
Speaker 1: And when it comes to venture capital. I want to
Speaker 1: go back to what you said about mistakes though, because
Speaker 1: I think this is something that doesn't get enough attention,
Speaker 1: because a lot of people look at these folks as
Speaker 1: people who have just been so successful, and you know,
Speaker 1: the mistakes aren't really what what's written about. What are
Speaker 1: some prominent mistakes that you learned about when you were
Speaker 1: doing reporting for this book. Well, of course, um, every
Speaker 1: investor has his or her stories of their mistakes, and
Speaker 1: I wouldn't put myself in the great investor category. But
Speaker 1: I turned down Facebook when Mark Zuckerberg was in college. Um,
Speaker 1: I basically didn't. I told Jeff Bezos his company wasn't
Speaker 1: gonna get anywhere, and I sold his stock relatively early,
Speaker 1: right at the I p o UM. When Mark Andreeson
Speaker 1: came to my firm to try to raise money at
Speaker 1: the beginning for a net escape, I told him it
Speaker 1: would never get anywhere. So I've you know, made a
Speaker 1: lot of mistakes myself. I think every investor, UM makes mistakes,
Speaker 1: and that's what life is all about. So every one
Speaker 1: of these investors will tell you about one mistake they've
Speaker 1: made or another. And I could go through each of
Speaker 1: those investors and tell some of the mistakes that they
Speaker 1: told me they make. But you know, in the end, uh,
Speaker 1: they get over it quickly. UM. I I tend to
Speaker 1: be a person who likes to talk about my mistakes
Speaker 1: thirty years later. Um. They don't do that. They tend
Speaker 1: to go on to the next thing. And that's one
Speaker 1: of the reasons the great investors they can clear their
Speaker 1: mind of their mistakes. Well, you know one thing I
Speaker 1: found among the investors that you talked to. I always
Speaker 1: think about Sam's l a lot, uh in terms of
Speaker 1: when he sold his read at the height, um, and
Speaker 1: just before everything came undone from the great financial crisis
Speaker 1: in the housing mailtown. And I do wonder, is there
Speaker 1: is there a lesson there in terms of who were
Speaker 1: you know, was he just super smart lucky timing? Like
Speaker 1: what is it? Um? You know, really smart people tend
Speaker 1: to have better luck than not people who are people
Speaker 1: are not so smart. So it's Sam's LL's case. He's
Speaker 1: really smart. He wasn't really looking to sell his company.
Speaker 1: He got an offer, and then he was willing accept
Speaker 1: that offer, and another offer came at a higher price.
Speaker 1: He kind of ran an auction, and he wasn't intending to.
Speaker 1: But it shows you he makes mistakes too, because he
Speaker 1: got a higher price than he ever expected in a
Speaker 1: higher price, and he would have had had he not
Speaker 1: run a little auction. The profits that are above the
Speaker 1: price he initially accepted was a large sum of money
Speaker 1: he made. He took that money and brought the Chicago
Speaker 1: Tribune and it went bankrupt. So he quickly learned that
Speaker 1: running a newspaper not as easy as running an office building.
Speaker 1: I'm trying to think of, um, you know, the the
Speaker 1: average investor out there, people who are listening to our show,
Speaker 1: people who have Bloomberg terminals, who are you know, making
Speaker 1: their own personal investments, and even beyond those people, David,
Speaker 1: and I'm wondering what lessons they can take away from
Speaker 1: listening to the pros. The most common mistake that investors make.
Speaker 1: The pros would say, and I think I'm talking about
Speaker 1: average investors always. The book is not designed to make
Speaker 1: you into Sam's l or John Gray, that's unrealistic. Note
Speaker 1: book is going to do that, but it's designed for
Speaker 1: people who are average investors who um dabble in the market,
Speaker 1: or they buy funds and they have other people dabbling
Speaker 1: for them in effect. UM. I would say that the
Speaker 1: cost common mistake that people point out to me is
Speaker 1: that people when the markets are going up, they rush
Speaker 1: in and they want to catch it at the top,
Speaker 1: and then when the markets are going down they want
Speaker 1: to sell. And even a brilliant person like Sir Isaac
Speaker 1: Newton considered the time the smartest man in the world.
Speaker 1: UM that, you know, the discovery of gravity and a
Speaker 1: whole variety of other things. He um He invested in
Speaker 1: in a in a south Sea corporation publicly traded stock
Speaker 1: um uh company, and he got out and made a
Speaker 1: big profit, and he said, you know, I'm smart and
Speaker 1: other things, not just physics. But then the market kept
Speaker 1: going up and up and up. He said, maybe I
Speaker 1: missed the top. He put all of his money and
Speaker 1: borrowed money to go back in and he in the
Speaker 1: company went bankrupt, so he went bankrupt too. So here's
Speaker 1: a guy who's one of the smartest men in the world,
Speaker 1: but he got caught up in the in the temptation
Speaker 1: of seeing other people making money when he wasn't making it.
Speaker 1: So you got to be very careful and I think
Speaker 1: know what you're doing. Also, one of the advantages of
Speaker 1: of of being a value investor, in a long term
Speaker 1: investor's Warren Buffett is they tend not to sell a lot.
Speaker 1: And when you sell a lot or you buy a lot,
Speaker 1: you have a lot of transaction costs and you had
Speaker 1: to pay taxes. One of the things that Warren Buffet
Speaker 1: has done and over sixty years, he's compounded a year
Speaker 1: for sixty years. Nobody's ever done that before. UM is
Speaker 1: he doesn't sell very many things. He therefore he doesn't
Speaker 1: transaction cost fees, but he also doesn't pay taxes um
Speaker 1: in the sense that he's not having capital gains taxes,
Speaker 1: but the stocks going up and he's not selling. And
Speaker 1: that's an important thing. People should hold on the things
Speaker 1: for quite a bit longer than they they attend to well.
Speaker 1: And I think that's an interesting thing to say. And
Speaker 1: here I am watching shares of I want to go
Speaker 1: back to that headline of FedEx. It's down about twelve
Speaker 1: percent and the after hours after the company withdrew its
Speaker 1: fiscal year earnings forecast, and it's also taking down shares
Speaker 1: of Ups in the after hours, which are now down
Speaker 1: about six percent. I mean things like this, David, You know,
Speaker 1: we try to glean so much from it of what
Speaker 1: it's telling us about the economy. We start off our
Speaker 1: conversation talking about this, But I mean, how do investors,
Speaker 1: you know, have to think about things when they're seeing
Speaker 1: maybe a position that they are going down twelve percent
Speaker 1: here in the after hours? You know, how do you
Speaker 1: figure out is this still something I hold onto or
Speaker 1: is this something I sell? Let me ask you this.
Speaker 1: If Warren Buffett was a shareholder in FedEx, I don't
Speaker 1: know if he is. Do you think he's gonna wake
Speaker 1: up tomorrow morning and sell that stock? And the answer
Speaker 1: is no, because he's he likes to buy great companies
Speaker 1: and stick with them through thick and thin. They generally
Speaker 1: that will work out, as he proved in a lot
Speaker 1: of companies. As biggest holding now is Ample, which he
Speaker 1: bought was much lower price than it is today. Um,
Speaker 1: you don't know whether the FedEx a remove of guidance
Speaker 1: is because there's some exogenous thing that's unique to to
Speaker 1: FedEx or UM. It just reflects the fact that there's
Speaker 1: not much shipping going on because not much economic buying
Speaker 1: and a lone of things are being bought and shipped
Speaker 1: and so forth. You just don't know and toy to
Speaker 1: see what the what the reason is for the withdrawing
Speaker 1: to guidance. That's a big drop, that's for sure, a
Speaker 1: big drop. But I just don't know yet what the
Speaker 1: reason is. And let me be fair to you in
Speaker 1: our audience, the CEO of FedEx and global volumes declined
Speaker 1: as macroeconomic trend significantly worsened later in the quarter, both
Speaker 1: Internet actually and the US. We are swiftly addressing those headwinds,
Speaker 1: but given the speed at which conditions shifted, first quarter
Speaker 1: results are below our expectations. Um, there's a little bit
Speaker 1: of color. How does that make you think about something
Speaker 1: like this? Yeah, well, they emphasized the word global, so
Speaker 1: maybe the global um. You know, maybe the economic problem
Speaker 1: is outside the United States more than in the United States.
Speaker 1: And there's no doubt that Europe is on the precipice
Speaker 1: of a recession because of the high energy prices, high inflation,
Speaker 1: high interest rates, and the whole war in Ukraine and
Speaker 1: the impact on the supply chain in Western Europe. So
Speaker 1: it could be that's part of the problem. And obviously
Speaker 1: Chinese economy is slowed down and that could be part
Speaker 1: of the problem as well. I'd be surprised if the
Speaker 1: problem is only because of the United States. I don't
Speaker 1: think that's probably the case. The US economy is chugging along. Okay,
Speaker 1: we're not in a recession. We may or may not
Speaker 1: go into one, but we're com clearly not in one.
Speaker 1: Right now, we're speaking with David Rubinstein, the founder and
Speaker 1: co executive chairman of Carlisle Group. He's also the host
Speaker 1: of Bloomberg Wealth on a Bloomberg television the author of
Speaker 1: the brand new book How to Invest Masters on the Craft, David,
Speaker 1: the people you spoke with, um, again, really interesting names there.
Speaker 1: I want to go to Mike Novogradha. Can I just
Speaker 1: say that there's a lot of men. There's a lot
Speaker 1: of men. Well, um, there are a lot of women too.
Speaker 1: UM I would say, obviously it's easy to do a
Speaker 1: book like that and fill up with old white men.
Speaker 1: I tried hard not to do that. UM. I have
Speaker 1: in there, for example, Kim Lou who is the woman
Speaker 1: that runs the endownment for Columbia University. Are really impressive investor.
Speaker 1: Also is in there, Paula Belan who runs the endownment
Speaker 1: for Rockefeller University. Sandra Horback, who's the most senior woman
Speaker 1: in the enthigher private equity world. She's at Carlisle. UM,
Speaker 1: so I would say, Uh, what I tried to show
Speaker 1: is that there are women and minorities who are moving
Speaker 1: up into the pantheon of great investors. But let's be honest.
Speaker 1: Today there are more white male uh people who are
Speaker 1: considered great investors than women, right the wrong, and that
Speaker 1: may change in time. And in part what I wanted
Speaker 1: to do is inspire people who are not white man
Speaker 1: else to go into this business and see that you
Speaker 1: can become Paul of Balin or Kim Liu or African
Speaker 1: American that's in there, John Rodgers, who built the largest
Speaker 1: African American investment firm in the country, Aerial Capital. Right,
Speaker 1: we've talked with John him. Can I talk about crypto? Yes?
Speaker 1: You can? Alright, I want to ask David about crypto because, um,
Speaker 1: you know in the alternative section, Mike nova Gradson, who's
Speaker 1: a name very familiar to our audience. Um, but also
Speaker 1: somebody who has you know, dabbled just in traditional finance
Speaker 1: trad FI as it's known, and also in defy with
Speaker 1: when it comes to crypto. Um, your thoughts after interviewing
Speaker 1: him for this book and about whether or not crypto
Speaker 1: actually has staying power because he did make a lot
Speaker 1: of money and also recently lost a lot of money
Speaker 1: when it comes to crypto, Yes, well overall he's ahead. Um.
Speaker 1: He bought bitcoin when it was very very very uh cheap,
Speaker 1: and now while it's below more than half below its peak,
Speaker 1: it's still well above what he paid for it. So
Speaker 1: he's still you know, as I think billions of dollars
Speaker 1: of bitcoin and um, I think he's going okay. Um. Um.
Speaker 1: When I interviewed him, market was a little high for
Speaker 1: for for crypto, so I uh, you know, recognized the
Speaker 1: markets to come down. But my own view on crypto
Speaker 1: and I don't own crypto currencies myself, like I have
Speaker 1: invested in companies that service the industry because think the
Speaker 1: industry is gonna be around for quite a while. The
Speaker 1: people that buy crypto tend to be younger people. You
Speaker 1: don't see a lot of seventy and eighty year old
Speaker 1: white men running out and buying cryptocurrencies. You tend to
Speaker 1: see a lot of twenty year old and thirty year
Speaker 1: old people buying it, or even teenagers buying it. I
Speaker 1: interviewed for my Bloomberg TV show the other day, Sam
Speaker 1: Bankman Free it was thirty years old worth at the
Speaker 1: peak billion. I think it's down by more than half
Speaker 1: now because cryptos come down. He built f t x,
Speaker 1: which is the big trading platform for crypto, and his
Speaker 1: view is my view as well, is that you tend
Speaker 1: to find uh investment trends started by younger people, and
Speaker 1: crypto is one that younger people have started. And I
Speaker 1: think they like it in part because they can trade
Speaker 1: it frequently, of course, but it has fluctuations which makes
Speaker 1: them think they're gonna make money and they're willing to
Speaker 1: take the risk about it going down. But also they
Speaker 1: the privacy associated with it. You don't dependent on nobody
Speaker 1: else knows what you really own. The government can't take
Speaker 1: it away from you. I think a lot of wealthy
Speaker 1: people around the world saw what happened to the Russian
Speaker 1: oligarchs and they're saying, maybe I should put some of
Speaker 1: my money and something that government doesn't know I have,
Speaker 1: can't take it away. And there's no doubt some people
Speaker 1: who are trying to maybe avoid taxes and therefore they
Speaker 1: don't report what they own. There's a lot of reasons
Speaker 1: people are gonna buy crypto, and I also think that
Speaker 1: people that are buying it to a large extent are
Speaker 1: they tend to be very libertarian in many ways. They
Speaker 1: want to be countered to the government, and they've lobbied Congress,
Speaker 1: and I've had a lot of Uh, there are a
Speaker 1: lot of members of Congress who are Republicans who are
Speaker 1: listening to what they're saying, and I think it's unlikely
Speaker 1: you're gonna see a lot of over regulation from the
Speaker 1: Congress of the United States or over legislation on the
Speaker 1: crypto industry. Do you own crypto, David, I, I, you know,
Speaker 1: I own current I own companies or investments in companies
Speaker 1: that service the industry, like Packs those brothers. But I
Speaker 1: haven't bought currencies myself, though in hindsight I wish I
Speaker 1: had in some respects. And and I tell people initially,
Speaker 1: if when you go to Las Vegas and you gamble,
Speaker 1: if you're reasonably intelligent, no, you're gonna lose money, But
Speaker 1: you say I'm having a good time. I don't mind
Speaker 1: gambling and losing money because I've allocated a small amount
Speaker 1: of money for it. And so if you can lose
Speaker 1: one or two or three percent in Las Vegas, you
Speaker 1: can allocate the same money amount of money to crypto.
Speaker 1: And if you lose it, you know you've had the
Speaker 1: pleasure of owning it and talking about it and so forth.
Speaker 1: But if you start putting fifty of your net worth
Speaker 1: in that could be more dangerous for sure. Well, David,
Speaker 1: we really do always appreciate all the time that you
Speaker 1: give us and so appreciate you. Also weighing in on
Speaker 1: some of the day's news, David Rubinstein How to Invest
Speaker 1: his latest book, Masters on the Craft David of course,
Speaker 1: foundering co executive chairman of Carlisle Group, host of Bloomberg
Speaker 1: Wealth on Bloomberg TV. Great read and as he said,
Speaker 1: there's a diversity of voices within his book talking about
Speaker 1: investment theories and ideas UH and what they have learned
Speaker 1: in terms of their craft, their investing craft,