Key Takeaways
- • In 2024, David Rubenstein, co-founder of Carlyle Group, led a group that acquired the Baltimore Orioles for about $1.725 billion, reflecting both the rising economic value of professional sports and a personal connection to his hometown.
- • Rubenstein identifies his two biggest investing mistakes as passing on early stakes in Amazon, where he and Carlyle partners later sold after the dot-com bust, and Facebook, where he declined an approach to invest roughly $30,000.
- • Rubenstein has acknowledged sharp price increases in sports franchises while warning that no asset rises forever.
- • Rubenstein has warned that AI valuations are extremely difficult to justify in some cases, while acknowledging the technology is generating genuine economic value.
- • His core lesson is that investors can be correct that a market is overheated and still miss its most important long-term winners.
Summary
David Rubenstein, billionaire co-founder of Carlyle Group, led a group that acquired the Baltimore Orioles in 2024 for about $1.725 billion. According to the article, the purchase reflected both the growing economic value of professional sports and Rubenstein's personal ties to Baltimore, where he grew up as an Orioles fan. He has said he had not done enough philanthropy in the city and sees sports ownership as a combination of business, community identity and cultural influence.
The article attributes the rising appeal of sports franchises to increases in team valuations driven by television rights, media distribution, sponsorships and the scarcity of major professional franchises. Rubenstein has acknowledged that prices have risen sharply, while cautioning that no asset rises forever.
Rubenstein also reflects on missed opportunities. He identifies his two largest investing mistakes as walking away from Amazon and Facebook in their early stages. He and his Carlyle partners had an opportunity to own a stake in Amazon during its early years and eventually sold after the stock collapsed during the dot-com bust; the article notes the position could have been worth billions today. He was also approached about investing roughly $30,000 when Mark Zuckerberg sought early capital for Facebook, did not take the proposal seriously, and Eduardo Saverin provided the initial funding.
Rubenstein's view of the current artificial-intelligence boom draws on the dot-com experience. According to the article, he has warned that AI valuations can be extremely difficult to justify in some cases, while recognizing that the underlying technology is creating real economic value. His lesson is that speculative cycles can produce companies that become major businesses, so recognizing overheating alone is not sufficient for investors.
The article attributes the rising appeal of sports franchises to increases in team valuations driven by television rights, media distribution, sponsorships and the scarcity of major professional franchises. Rubenstein has acknowledged that prices have risen sharply, while cautioning that no asset rises forever.
Rubenstein also reflects on missed opportunities. He identifies his two largest investing mistakes as walking away from Amazon and Facebook in their early stages. He and his Carlyle partners had an opportunity to own a stake in Amazon during its early years and eventually sold after the stock collapsed during the dot-com bust; the article notes the position could have been worth billions today. He was also approached about investing roughly $30,000 when Mark Zuckerberg sought early capital for Facebook, did not take the proposal seriously, and Eduardo Saverin provided the initial funding.
Rubenstein's view of the current artificial-intelligence boom draws on the dot-com experience. According to the article, he has warned that AI valuations can be extremely difficult to justify in some cases, while recognizing that the underlying technology is creating real economic value. His lesson is that speculative cycles can produce companies that become major businesses, so recognizing overheating alone is not sufficient for investors.
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