WEBVTT - Nir Bar Dea Talks the Future of AI 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio News. 0:00:07.840 --> 0:00:11.400 Let's go back to Bloomberg Investo conference for a conversation 0:00:11.520 --> 0:00:15.200 here with the CEO of Bridgewater Associates, Near Bardea, speaking 0:00:15.280 --> 0:00:16.880 with Bloomberg's Shanali Bassic. 0:00:17.000 --> 0:00:20.040 I have to embrace that change in the macro paradigm 0:00:20.079 --> 0:00:22.280 and prep yourself for a different reality. I saw other 0:00:22.560 --> 0:00:24.159 two quick things and then kind of touch on how 0:00:24.200 --> 0:00:27.160 Bridgewaters align itself for it. The second thing that has 0:00:27.200 --> 0:00:30.480 happened during that time is that while wealth got distributed, 0:00:31.040 --> 0:00:34.920 I talked about Asia and China, the Middle East, profess 0:00:35.040 --> 0:00:36.839 actually got a lot more concentrated. If you look at 0:00:36.880 --> 0:00:39.680 our institutional investors, they have more than doubles their allocations 0:00:39.680 --> 0:00:43.520 to private assets, even if you look at their liquid 0:00:43.560 --> 0:00:45.919 part of the portfolio, unbelievably concentrated. 0:00:45.920 --> 0:00:46.360 In the US. 0:00:46.360 --> 0:00:47.600 I heard the questions kind of in the end of 0:00:47.600 --> 0:00:50.480 the last interview of is US still a great place 0:00:50.479 --> 0:00:52.280 to invest? Well, a lot of the investments has gone 0:00:52.320 --> 0:00:55.400 to US equities. Seventy cents of every dollar inequities has 0:00:55.400 --> 0:00:57.280 gone to USE equities, and. 0:00:57.200 --> 0:00:59.800 That means that they are incredibly. 0:00:59.040 --> 0:01:01.960 Vulnerable into this new economic shariatim. And the third thing, 0:01:02.000 --> 0:01:06.360 which I want to talk about more a little bit later. 0:01:06.440 --> 0:01:09.000 Is all this is happening when we are facing a 0:01:09.040 --> 0:01:12.319 once in a generation technological disruption. We've been talking about 0:01:12.360 --> 0:01:15.840 AI for a long time, but here the intelligence is 0:01:15.959 --> 0:01:20.240 here and the macroeconomic impacts of that are just trickling in. 0:01:20.640 --> 0:01:22.920 So capicks this year will double last year, and it 0:01:22.959 --> 0:01:25.320 starts to move the needle. But the questions around productivity 0:01:25.880 --> 0:01:30.280 and they're for employment and social implications is still outstanding. 0:01:30.959 --> 0:01:33.720 Bridgewater's playbook has been looking at this for a long 0:01:33.760 --> 0:01:36.800 time and saying, how do we position ourselves across these 0:01:36.840 --> 0:01:39.679 three things in order to be there for our clients 0:01:39.680 --> 0:01:40.440 when they need us most. 0:01:40.480 --> 0:01:41.720 And having talked about that more. 0:01:41.680 --> 0:01:44.560 Yeah, let's start with the last piece of that because 0:01:44.959 --> 0:01:47.960 on a daylight today, maybe everyone's thinking about the short term, 0:01:48.000 --> 0:01:50.560 but the long term trend has been thinking about what 0:01:50.640 --> 0:01:51.360 AI would do. 0:01:51.840 --> 0:01:54.080 What is the good, the bad, and the ugly of 0:01:54.160 --> 0:01:55.280 it all. 0:01:55.440 --> 0:01:59.680 So, man, there's so much words that are being said 0:01:59.680 --> 0:02:03.200 about topic, and I'm going to add some words on 0:02:03.200 --> 0:02:04.600 top of that, but I'll kind of. 0:02:04.560 --> 0:02:06.600 Give you our frame or to think care about it. 0:02:06.760 --> 0:02:10.600 We've been forever thinking about the best combinations of humans 0:02:10.600 --> 0:02:12.480 and technology because if you think about our mission, our 0:02:12.520 --> 0:02:14.920 mission is to understand how the world works through combining 0:02:15.000 --> 0:02:18.080 humans and technology, because no one human mind can wrap 0:02:18.120 --> 0:02:22.560 their head around everything in the world, and that means 0:02:22.560 --> 0:02:26.920 that we've always searched for how technologies can replace what 0:02:27.000 --> 0:02:29.040 humans are doing, so humans can do what technology can't do. 0:02:29.800 --> 0:02:31.800 And what I can tell you is that I think 0:02:31.840 --> 0:02:35.360 it's a fool's errand to try to be precise about 0:02:35.400 --> 0:02:36.919 how this is going to play out. I'll give you 0:02:36.960 --> 0:02:40.280 two examples of that. What I said technology is here. 0:02:41.440 --> 0:02:43.519 You know, one school is saying we are headed to 0:02:43.840 --> 0:02:48.360 agentic full agentic AI, which means we will sit back 0:02:48.440 --> 0:02:51.560 and everything's got to be replaced by AI. That could happen. 0:02:52.360 --> 0:02:54.880 Others are saying this is going to be a general 0:02:54.880 --> 0:02:57.800 purpose technology, which is still very impactful, but it's wildly 0:02:57.840 --> 0:03:03.120 different than fully agentic AI, and people can be very 0:03:03.120 --> 0:03:04.720 specific about where they think that's gonna land. 0:03:04.720 --> 0:03:05.800 I don't think anybody knows. 0:03:06.320 --> 0:03:08.000 And the most important thing to suffroect yourself for a 0:03:08.000 --> 0:03:08.799 wide range of ACOMA. 0:03:08.800 --> 0:03:10.160 Will give you another example, which I think is. 0:03:10.160 --> 0:03:12.280 Really important to kind of process with regards to. 0:03:12.240 --> 0:03:13.720 The macroeconomic paradigms TIF. 0:03:13.639 --> 0:03:17.120 Thing and that is that, you know, the optimists say, yes, 0:03:17.200 --> 0:03:21.480 we are in a modern mercantilist world. If the opposite 0:03:21.520 --> 0:03:24.760 of globalization, a world where we have less efficiencies because 0:03:24.800 --> 0:03:27.960 government are trying to avoid the vulnerability of globalization. 0:03:28.400 --> 0:03:31.960 The optimists say, well, we are headed to a productivity miracle. 0:03:32.760 --> 0:03:35.760 It's going to be great because these technologies are going 0:03:35.840 --> 0:03:39.600 to more than an offset whatever we lose from the 0:03:39.880 --> 0:03:40.960 less collaborative world. 0:03:41.240 --> 0:03:43.200 Okay, that could happen, It could totally happen. 0:03:44.000 --> 0:03:46.440 But the passive is say, hey, the reason we're here 0:03:46.440 --> 0:03:48.600 in the first place is because we're massive gains in 0:03:48.640 --> 0:03:52.040 this macroeconomic paradigm that were distributed very unequally. 0:03:52.040 --> 0:03:53.320 We had big winners and losers. 0:03:53.720 --> 0:03:56.440 Well, the passive is say, AI is going to exacerbate 0:03:56.520 --> 0:03:59.520 that tremendously when we have massive winners and losers. It's 0:03:59.520 --> 0:04:01.880 going to be the show up into society. How those 0:04:01.880 --> 0:04:04.920 things net out has such a wide cone. And I 0:04:04.920 --> 0:04:07.080 think again into fool's errands to kind of try to 0:04:07.080 --> 0:04:09.880 predict exactly what's going to happen. So my advice and 0:04:09.920 --> 0:04:13.000 what we do with Bridgewater, we try to be practitioners. 0:04:13.760 --> 0:04:18.240 So get your hands dirty. Understand that technology deeply and 0:04:18.279 --> 0:04:20.680 then prep yourself for wide range of outcomes of how 0:04:20.760 --> 0:04:21.479 this could play out. 0:04:22.400 --> 0:04:26.200 Speaking of getting your hands dirty, Bridgewater has been using 0:04:26.240 --> 0:04:29.520 AI for its own processes. Late last year, you launched 0:04:29.520 --> 0:04:32.279 a fund over at Bridgewater starting with two billion dollars 0:04:32.520 --> 0:04:36.640 that uses machine learning as the primary basis for decision making, 0:04:37.000 --> 0:04:38.800 is built on proprietary technology. 0:04:39.200 --> 0:04:42.240 What have you learned from this in terms. 0:04:41.960 --> 0:04:46.080 Of how machine learning based investing is different from human 0:04:46.200 --> 0:04:47.120 lad investing. 0:04:48.080 --> 0:04:50.720 So I'd say I feel very lucky. 0:04:53.640 --> 0:04:56.000 Because of Bridge Orks DNA as we're coming to this 0:04:56.040 --> 0:04:59.040 inflection point I said earlier from the eighties, the idea 0:04:59.080 --> 0:05:01.600 that no human brain and can possibly get their head 0:05:01.640 --> 0:05:02.520 around everything. 0:05:02.279 --> 0:05:03.000 In the world. 0:05:03.400 --> 0:05:07.240 Men that we always try to replace humans with machines. 0:05:07.800 --> 0:05:11.000 So we are not moving from a human lead. 0:05:10.880 --> 0:05:13.680 Investment process to a machine let investment process. We are moving. 0:05:14.240 --> 0:05:17.320 We were using scientific calculators, and then we were using 0:05:17.279 --> 0:05:19.320 the seal sheets, and then we were using the most 0:05:19.320 --> 0:05:20.520 complicated expert system. 0:05:20.560 --> 0:05:22.040 This is AI before AI. 0:05:23.680 --> 0:05:27.160 To make investment decisions in a systematic, fundamental way. So 0:05:27.240 --> 0:05:30.880 for us, this is another step along in ARC and 0:05:30.920 --> 0:05:32.880 what we have learned through this process of what we 0:05:32.960 --> 0:05:35.480 call AA this is the artificial. 0:05:35.080 --> 0:05:36.840 Intelligent Investment Associate. 0:05:37.160 --> 0:05:38.880 That's the strategy that we rolled out and begin able 0:05:38.880 --> 0:05:40.280 to last year is that it does the same thing 0:05:40.360 --> 0:05:43.440 our people do by a machine learning first way. We 0:05:43.640 --> 0:05:48.200 learned through scientific breakthroughs within Bridgewater that you can reason 0:05:49.040 --> 0:05:52.240 you can generate alpha in a machine learning first way. 0:05:52.560 --> 0:05:55.640 That strategy compete with our expert system in humans. It 0:05:55.800 --> 0:05:59.599 generates unique alpha that is uncoordinated to what our humans do. 0:06:00.200 --> 0:06:01.800 That's been running out for a year and a half 0:06:01.880 --> 0:06:05.840 and it's comparable. And that's mind blowing in the space 0:06:05.880 --> 0:06:08.480 of possibility, what can happen? And so one last thing 0:06:08.920 --> 0:06:11.640 beyond the numbers that are happening this year or in 0:06:11.680 --> 0:06:14.000 any given short period of times, the most important thing 0:06:14.120 --> 0:06:18.080 is it keeps us up to date on where things 0:06:18.120 --> 0:06:21.160 are going, not only within the asset management industry, but 0:06:21.200 --> 0:06:22.960 also as you think about how this is going to 0:06:22.960 --> 0:06:24.000 impact the macroeconomy. 0:06:24.600 --> 0:06:26.920 So it's interesting. At the time of the launch, your 0:06:26.960 --> 0:06:30.040 cocio at Bridgewater, Bregg Jensen said, the fund had the 0:06:30.080 --> 0:06:34.320 potential to change the hiring and composition of staff. What 0:06:34.560 --> 0:06:37.440 skills do you think the future employees of Bridgewater are 0:06:37.440 --> 0:06:39.200 going to need? And you know, we were kind of 0:06:39.279 --> 0:06:40.200 joking a little earlier. 0:06:40.279 --> 0:06:41.320 Maybe the junior. 0:06:41.000 --> 0:06:43.600 Analysts don't go away, but boy do they have to 0:06:43.640 --> 0:06:44.599 be doing something. 0:06:44.279 --> 0:06:48.320 Different, which has always been the case truly, because when 0:06:48.320 --> 0:06:51.359 you have an expert system that does a lot of 0:06:51.360 --> 0:06:54.080 what humans do in other funds, as an example, you 0:06:54.160 --> 0:06:57.159 really start to move people to do what machines couldn't do. 0:06:57.240 --> 0:07:00.479 So we have been shifting the type of humans we 0:07:00.520 --> 0:07:03.520 bring into Bridgewater for fifty years, and that means from 0:07:03.560 --> 0:07:07.159 really looking for analytical skills and financial backgrounds to people 0:07:07.279 --> 0:07:10.239 that are conceptual and can ask philosophical question and query 0:07:10.280 --> 0:07:12.720 as an example, because they're going to be very levered 0:07:12.800 --> 0:07:16.120 with technology and how they explore their questions. That's been 0:07:16.680 --> 0:07:18.559 constantly moving and I think this is a big shift, 0:07:18.600 --> 0:07:20.840 but it's a big shift in the same direction of 0:07:20.880 --> 0:07:24.240 what can humans do the future analysts, what can they 0:07:24.280 --> 0:07:25.920 do that machines can do. I'll say the one thing 0:07:25.960 --> 0:07:28.120 that is on my mind that I'm worried about. When 0:07:28.200 --> 0:07:31.640 you think about that arc, you have to think about 0:07:31.640 --> 0:07:33.160 what trains people over time. 0:07:34.360 --> 0:07:36.360 So there are basic. 0:07:36.120 --> 0:07:39.480 Jobs that people have in many places where you sleep 0:07:39.520 --> 0:07:42.720 under your desk and you do the tough work that 0:07:42.800 --> 0:07:46.320 then leads you to be able to do the higher level, 0:07:46.600 --> 0:07:50.800 more conceptual things. One of the things we're thinking about is, hey, 0:07:51.400 --> 0:07:53.960 we are well positioned already to replace a lot of 0:07:53.960 --> 0:07:56.680 the basic tasks with machines, But what does that mean 0:07:56.760 --> 0:07:59.280 to talent development over a long period of time. You 0:07:59.280 --> 0:08:01.200 have to be conscious not only of today, but what 0:08:01.200 --> 0:08:04.120 does that mean for your talent strategy over long term? 0:08:04.760 --> 0:08:07.960 You know, how does this fit into the broader trajectory 0:08:07.960 --> 0:08:10.400 of Bridgewater. When I think about where you stand today, 0:08:10.480 --> 0:08:13.880 You've inherited this firm that's now roughly a half century old. 0:08:14.400 --> 0:08:17.560 How do you position the firm for the future. 0:08:17.640 --> 0:08:19.800 This is all in the scope of positioning for the 0:08:19.840 --> 0:08:21.040 next fifty years. 0:08:21.240 --> 0:08:23.240 What is Bridgewater two point zero? 0:08:24.280 --> 0:08:26.880 So I think the best way to hit this is 0:08:26.920 --> 0:08:28.440 to go back to the three things that I've said, 0:08:29.360 --> 0:08:31.440 because it kind of it's where our heads are und 0:08:31.880 --> 0:08:32.320 There are. 0:08:32.160 --> 0:08:34.040 Things that have been that is a bad rocker Bridgewater. 0:08:34.120 --> 0:08:36.719 Bridgewater truly, and I think I said this on the 0:08:36.800 --> 0:08:38.479 stage years ago. 0:08:39.600 --> 0:08:43.120 Just after you were yeah yeah, with Eric Shatska. 0:08:43.559 --> 0:08:45.800 Bridge was about getting an incredible group of people together 0:08:46.679 --> 0:08:49.360 and have this very very unique culture that puts in 0:08:49.400 --> 0:08:50.240 the center of everything. 0:08:51.360 --> 0:08:52.920 The desire to be excellent. 0:08:52.559 --> 0:08:55.320 And constantly learn, because that's the only way to accomplish 0:08:55.400 --> 0:08:58.160 this incredible mission of mapping the deepest precenting of how 0:08:58.160 --> 0:09:00.679 the ward works in a systematic, fundamental way through combination 0:09:00.679 --> 0:09:01.480 of fewas of technlogy. 0:09:01.559 --> 0:09:02.320 That's stay the same. 0:09:02.679 --> 0:09:04.439 If you look at the three things that I've said, 0:09:04.720 --> 0:09:08.160 I said, the microeconomic paradigm is shifting, and because of that, 0:09:08.160 --> 0:09:12.080 that means that beta, the tailwind is done. Alpha generation, 0:09:12.320 --> 0:09:17.480 the positive uncredited alpha that pure off as an example, 0:09:17.480 --> 0:09:20.079 a return for thirty three years is more important than ever. 0:09:20.120 --> 0:09:22.280 A deep understanding of cause effect languages of how the 0:09:22.280 --> 0:09:25.160 world works more important than ever. We have to hold 0:09:25.160 --> 0:09:27.080 our hand the hands of our clients in days like 0:09:27.120 --> 0:09:29.679 today and months like the last month, where they're asking, 0:09:29.760 --> 0:09:33.000 how are these new policies going to flow through the economy? 0:09:33.040 --> 0:09:33.679 What's going on? 0:09:34.240 --> 0:09:38.240 So tremendous focus on improving the quality of understanding on 0:09:38.240 --> 0:09:39.040 our in our alpha. 0:09:39.360 --> 0:09:39.680 I said. 0:09:39.679 --> 0:09:43.360 The second thing is contort portfolios. For fifty years, you've 0:09:43.360 --> 0:09:46.160 said this. We're selling our fiftieth year this year. It's 0:09:46.200 --> 0:09:49.439 always been about partnering with CIOs and CEOs of the 0:09:49.520 --> 0:09:50.959 largest pools of capital in the world. 0:09:51.320 --> 0:09:52.720 And helping them achieve their goals. 0:09:52.720 --> 0:09:57.079 These are investment goals, resiliency, diversification. We've been very, very 0:09:57.080 --> 0:09:58.719 focused over the last couple of years to make sure 0:09:58.720 --> 0:10:01.760 that we can increase the impact act across their profilo 0:10:01.760 --> 0:10:04.160 because there are allocations of pure office is going to be small. 0:10:04.360 --> 0:10:06.720 But in a trillion dollar portfolio. 0:10:06.480 --> 0:10:07.920 They're going to want to know that you have the 0:10:07.960 --> 0:10:10.080 capability to invest, not in the US as an example, 0:10:10.120 --> 0:10:11.400 if everyone's investing in the US. 0:10:11.679 --> 0:10:13.560 We've been really focused on building and capability to invest 0:10:13.600 --> 0:10:14.760 in China as an example. 0:10:14.800 --> 0:10:18.080 Are our Onshore strategy lasts and return thirty percent? And 0:10:18.120 --> 0:10:20.120 I say that not because of the number. I say 0:10:20.160 --> 0:10:21.920 it because it shows where our focus has been. And 0:10:21.920 --> 0:10:24.800 the last thing is we've talked about, which is in 0:10:24.880 --> 0:10:28.720 a world that technology technology is going to disrupt us tremendously, 0:10:29.280 --> 0:10:32.959 making sure that you have a partner in Bridgewater. 0:10:33.559 --> 0:10:36.280 That is the curve that is where. 0:10:36.040 --> 0:10:38.240 The scientific breakthroughs are happening that you can lean on 0:10:38.320 --> 0:10:40.360 to show you where things are headed. 0:10:41.760 --> 0:10:43.880 Those are the big three areas that we've been focused on. 0:10:43.880 --> 0:10:44.280 For now. 0:10:44.280 --> 0:10:45.840 We'll get back to where things are headed, but before 0:10:45.880 --> 0:10:48.280 we get there, I just want to give the audience 0:10:48.320 --> 0:10:49.840 a chance to get to know you a little bit, 0:10:49.880 --> 0:10:52.199 because the more I've learned about you, the more your 0:10:52.280 --> 0:10:55.720 story is kind of like nothing I've ever It is 0:10:55.880 --> 0:11:00.240 like nothing I've ever seen in finance. So you didn't 0:11:00.280 --> 0:11:04.480 graduate from high school initially, you eventually went to Warton 0:11:04.679 --> 0:11:07.400 and then you started at Bridgewater as a thirty. 0:11:07.120 --> 0:11:08.360 Three year old intern. 0:11:09.440 --> 0:11:13.240 How I mean, sir, my Jewish mother, for you saying 0:11:13.640 --> 0:11:16.000 that I didn't graduate high school on this stage is 0:11:16.040 --> 0:11:20.760 probably like her heart is broken right now, But it's true. 0:11:22.880 --> 0:11:25.680 And I've never shared with this. Actually, So I've said 0:11:25.720 --> 0:11:27.600 many times that I look different. I know I'm different. 0:11:27.960 --> 0:11:29.480 The amount of people that commented on the fact that 0:11:29.480 --> 0:11:32.320 I'm not wearing a tie today, I am different. I 0:11:32.320 --> 0:11:35.000 come from the outside of the world. I come from Israel. 0:11:35.160 --> 0:11:38.400 I've talked historically about being a third generation to grandparents 0:11:38.400 --> 0:11:41.880 that were Jewish refugees, family that was murdered in. 0:11:41.880 --> 0:11:43.559 The Holocaust, and I talked about how the. 0:11:43.520 --> 0:11:48.840 Story of my life is connected to seeing them establish 0:11:48.840 --> 0:11:50.640 a country. And I talked about how an incredible group 0:11:50.640 --> 0:11:52.880 of people with values can do incredible things. And I 0:11:52.880 --> 0:11:54.640 always jump the story and say and then I ended 0:11:54.679 --> 0:11:57.599 up a Bridgewater. To your point, if you doubleclated on 0:11:57.679 --> 0:12:00.839 that story, and I've been reflecting this a lot lately. 0:12:01.160 --> 0:12:02.680 I was a bad student in high school. 0:12:03.320 --> 0:12:06.120 I didn't get a diploma on the other of twelve 0:12:06.200 --> 0:12:08.720 years and I was very, very lucky that in Israel 0:12:09.320 --> 0:12:12.360 there is a mandatory service that everybody. 0:12:12.040 --> 0:12:13.040 Has to do with the age of eighteen. 0:12:13.720 --> 0:12:16.080 And because people like my grandparents that come from Libya 0:12:16.160 --> 0:12:19.960 and Hungary and Poland, looking different, different backgrounds, different languages, 0:12:20.720 --> 0:12:24.319 needed to come together to accomplish this really incredible task 0:12:24.360 --> 0:12:27.000 of putting a country together. They knew they had to 0:12:27.000 --> 0:12:30.320 make the most out of the told human capability and 0:12:30.440 --> 0:12:31.000 do that. 0:12:30.960 --> 0:12:31.760 Through the service. 0:12:31.960 --> 0:12:35.319 So the service ignores everything that happens up until the 0:12:35.320 --> 0:12:38.800 age of eighteen, and based on your merit, reassesses you. 0:12:39.000 --> 0:12:39.679 I tested at. 0:12:39.640 --> 0:12:43.680 Eighteen thinking that I was incompetent and tested extremely highly, 0:12:44.720 --> 0:12:45.720 and that changed my life. 0:12:45.760 --> 0:12:47.920 It led to a very successful service. 0:12:48.120 --> 0:12:50.439 And the reason that's important is because fifteen years later, 0:12:50.880 --> 0:12:53.760 you're right, I am a thirty three year old already 0:12:53.760 --> 0:12:54.400 with gray hair. 0:12:55.720 --> 0:12:57.160 Winter intern in Bridgewater. 0:12:57.160 --> 0:13:03.120 It's me and six other hung over Dartmouth twenty year olds, 0:13:03.800 --> 0:13:07.000 and my English is not great and I'm out of 0:13:07.040 --> 0:13:09.360 context and it's pretty confusing, and to say that I 0:13:09.360 --> 0:13:12.120 feel lost is not even the beginning of it. But again, 0:13:12.160 --> 0:13:13.960 I'm at an organization that is trying to make the 0:13:14.000 --> 0:13:17.800 most in an amertocratic way out of these human capital 0:13:17.840 --> 0:13:20.720 that it has because we're trying to accomplish this incredible goal. 0:13:21.200 --> 0:13:23.840 And it leads me to kind of three big lessons. One, 0:13:24.559 --> 0:13:26.880 luck matters. Luck matters. 0:13:27.200 --> 0:13:28.880 I was lucky to be in a society where I 0:13:28.920 --> 0:13:30.400 got a second shot in the service, and I was 0:13:30.480 --> 0:13:31.720 lucky to come across a Bridgewater. 0:13:31.720 --> 0:13:33.240 I could have come across a different organization. 0:13:33.760 --> 0:13:35.240 The second thing, and I connected it back to the 0:13:35.240 --> 0:13:40.040 AI point that you talked about, differences in thinking and 0:13:40.320 --> 0:13:44.400 unique contributions are very valuable, and I think that's especially 0:13:44.440 --> 0:13:47.240 true in a world where a lot of the generic 0:13:47.320 --> 0:13:48.959 intelligence is going to be commoditized. 0:13:50.160 --> 0:13:51.560 And the third thing is the way to. 0:13:51.480 --> 0:13:54.160 Capture unique ways of thinking is to aspire these to 0:13:54.200 --> 0:13:55.280 have a real meritocracy. 0:13:55.360 --> 0:13:57.880 That's true in Israel, it's true at Bridgewater. 0:13:57.880 --> 0:14:00.640 I think that is the key in US unlocking and 0:14:00.679 --> 0:14:03.120 facing some of the biggest challenges we have as corporations 0:14:03.200 --> 0:14:03.960 and as a society. 0:14:05.600 --> 0:14:07.960 So another major part of your background, as you've been 0:14:07.960 --> 0:14:11.559 talking about, is your Israeli heritage, and you were talking 0:14:11.559 --> 0:14:15.679 about complicated geopolitics. In the past year alone, you've been 0:14:15.760 --> 0:14:18.160 back to Israel, You've spent a lot of time in 0:14:18.200 --> 0:14:22.720 the Middle East, including Saudi Arabia, Qatar, Bahrain. All in 0:14:22.760 --> 0:14:26.840 your capacity as the CEO of Bridgewater, what can you 0:14:26.880 --> 0:14:29.720 share about the trajectory of the Middle East and do 0:14:29.760 --> 0:14:32.520 you see a path to peace when it comes to 0:14:32.560 --> 0:14:33.600 the conflict in Israel. 0:14:34.400 --> 0:14:39.800 Wow, let me start where I feel like I have to. 0:14:40.000 --> 0:14:41.359 October seventh. 0:14:43.320 --> 0:14:47.000 Is incredibly personal for me, and not just Ocstober sevens, 0:14:47.040 --> 0:14:49.800 but also what happens subsequently. There's still fifty nine hostages 0:14:49.800 --> 0:14:53.600 in Gaza. There's suffering in Gaza, They're suffering in Israel, 0:14:54.000 --> 0:14:58.160 They're suffering in the entire region. These are family members, 0:14:58.320 --> 0:15:01.360 my community. These my community at Bridgewater. Some of them 0:15:01.400 --> 0:15:04.760 are neighboring countries. These are partners of Bridgewater and neighboring countries. 0:15:05.200 --> 0:15:08.200 It's been a year and a half of trauma, truly trauma, 0:15:08.760 --> 0:15:11.760 and my heart goes to everyone on this. 0:15:11.960 --> 0:15:12.800 It is important for. 0:15:12.720 --> 0:15:16.360 Me to say that I'm proud to be Jewish. I'm 0:15:16.400 --> 0:15:19.560 proud to be Israeli. I'm proud of my country men 0:15:19.560 --> 0:15:22.280 and women, and I feel very lucky that I've had 0:15:22.320 --> 0:15:25.720 the chance in this job, to your point, to go 0:15:25.840 --> 0:15:28.200 around the world and including in the Middle East and 0:15:28.240 --> 0:15:32.280 places that matter and represent hopefully the best of Israel, 0:15:32.480 --> 0:15:35.160 and learn about the best in many of the countries 0:15:35.240 --> 0:15:39.800 that you've mentioned, forge real friendships with people and incredible, 0:15:39.840 --> 0:15:43.440 incredible leaders. And your question about where things are had 0:15:44.040 --> 0:15:47.960 I've said this before. I have a deep belief that 0:15:48.520 --> 0:15:54.920 look tragedy and trauma and suffering leads to resiliency, and 0:15:54.960 --> 0:15:58.440 resiliency leads to evolution. If you look at the Second 0:15:58.440 --> 0:16:00.720 World War and the new World order they came out of. 0:16:00.720 --> 0:16:02.480 If you look at a great depression and the new 0:16:02.800 --> 0:16:04.520 economic paradigm that came out of, if you look at 0:16:04.520 --> 0:16:08.720 the Holocaust and my grandparents rising from the ashes and 0:16:08.760 --> 0:16:12.000 building a country. If I said that a great group 0:16:12.040 --> 0:16:14.880 of people can come together and share values and force 0:16:14.920 --> 0:16:16.960 a different future, I go back to all the people 0:16:17.000 --> 0:16:18.840 that are in the Middle East, not just in Israel, 0:16:18.880 --> 0:16:22.360 but in Saudi Arabia and Bahrain, in the UA. There's 0:16:22.400 --> 0:16:26.520 an incredible resilient generation that has suffered a lot, and 0:16:26.600 --> 0:16:30.120 I am actually more hopeful than ever that that generation 0:16:30.680 --> 0:16:34.080 can create a completely different future going forward to the 0:16:34.120 --> 0:16:36.200 Middle East and one hundred year piece. 0:16:36.560 --> 0:16:39.280 What role does Saudi Arabia, does Katar? 0:16:39.400 --> 0:16:43.960 Does the US play in negotiating peace here? 0:16:44.160 --> 0:16:47.000 And is there a two point zero version of the 0:16:47.000 --> 0:16:48.000 Abraham Accords? 0:16:48.600 --> 0:16:51.600 I mean, that's really not for me to answer. 0:16:51.720 --> 0:16:53.680 The thing I would say is yes, I think that 0:16:54.440 --> 0:16:58.680 Saudi Arabia, the US, the Ua baharein. When I say 0:16:58.720 --> 0:17:01.880 there's a generation, there's a generation of leaders. Then when 0:17:01.920 --> 0:17:05.800 I talk to these people, they're. 0:17:06.119 --> 0:17:09.080 Just like me. They have the same exact aspirations as 0:17:09.080 --> 0:17:09.440 I am. 0:17:10.080 --> 0:17:12.399 And I think a coalition of that group of people 0:17:12.640 --> 0:17:15.960 in Israel and in the region is the way to 0:17:16.000 --> 0:17:19.720 create what you call the second Abram Accord, and it's coming. 0:17:19.880 --> 0:17:23.880 I'm more hopeful today, Chanelli, honesty that have been five 0:17:23.960 --> 0:17:27.719 years ago, because out of this suffering there's a crystallization 0:17:27.760 --> 0:17:31.439 of the realization that creates the necessity to evolve and 0:17:31.480 --> 0:17:32.680 take the region in a different direction. 0:17:33.000 --> 0:17:35.920 And I want to get your thoughts clearly on this, 0:17:36.040 --> 0:17:39.840 because the human toll has been devastating, both in Israel 0:17:39.920 --> 0:17:45.440 and in Gaza and beyond. Really at this point how 0:17:45.480 --> 0:17:47.359 do you see the conflict playing out, given that the 0:17:47.400 --> 0:17:48.760 ceasefire talks have stalled. 0:17:49.600 --> 0:17:50.160 Well, if I. 0:17:50.080 --> 0:17:51.720 Said that, it's a fool's err and to guess where 0:17:51.720 --> 0:17:57.359 AI is going, this is truly a fool's erin to guess. 0:17:57.440 --> 0:18:03.400 But I would say this, until Bill the hostages are released, 0:18:04.720 --> 0:18:08.760 there is no solution. Also, until there is a future 0:18:08.840 --> 0:18:10.359 for the Palestinian. 0:18:09.760 --> 0:18:15.960 People, there is no solution. And there are solutions that. 0:18:16.040 --> 0:18:18.000 Can be put together, but they will be put together 0:18:18.160 --> 0:18:23.000 by a new generation taking leadership and coming together and 0:18:23.080 --> 0:18:25.080 making sacrifices the previous generations were. 0:18:24.960 --> 0:18:25.520 I'm willing to do. 0:18:25.640 --> 0:18:27.800 You know, a lot of people look around and they say, 0:18:28.320 --> 0:18:31.160 in the wake of World War Two, when you look now, 0:18:31.680 --> 0:18:33.680 there are a lot of the protections that were put 0:18:33.680 --> 0:18:36.440 in place to make sure that the world didn't fracture again, 0:18:37.160 --> 0:18:41.240 some of those protections are now under threat, particularly with 0:18:41.320 --> 0:18:43.560 the changing guards across countries. 0:18:44.040 --> 0:18:44.919 Do you worry about that? 0:18:47.240 --> 0:18:49.920 I mean, personally yes, I think that's a part of 0:18:49.920 --> 0:18:53.960 the macroeconomic paradigm that is also a geopolitical paradigm that 0:18:54.080 --> 0:18:57.040 has shifted the world post World War Two. 0:18:57.080 --> 0:19:01.240 Out of the trauma of World War Two started a. 0:19:01.400 --> 0:19:04.639 Series of events that led us to not only for 0:19:04.800 --> 0:19:09.919 protections and institutions, but increased collaboration decade after decade after decade, 0:19:10.000 --> 0:19:12.439 leading us to a long period of extreme collaboration over 0:19:12.480 --> 0:19:16.400