Key facts
- David Rubenstein is the principal owner of the Baltimore Orioles.
- Rubenstein purchased the Baltimore Orioles for approximately $1.7 billion in 2024.
- Rubenstein and his partners at Carlyle Group sold their stake in Amazon after the dot-com bubble burst.
- Rubenstein declined to invest in Facebook when Mark Zuckerberg was seeking $30,000 in seed funding.
- Rubenstein believes AI company valuations are very high but acknowledges Nvidia's strong performance.
- Rubenstein quoted Warren Buffett, stating 'when the tide goes out, we'll see who's been swimming without a bathing suit' regarding AI investments.
Billionaire David Rubenstein, cofounder of private equity firm Carlyle Group, explained his decision to purchase the Baltimore Orioles for approximately $1.7 billion in 2024. He told Business Insider that while ultra-wealthy individuals once shied away from the scrutiny of team ownership, changing attitudes and soaring valuations now make it appealing for both fun and profit. Rubenstein stated his purchase was motivated by a desire to 'do something for the city' of Baltimore, his hometown, as he had not focused much on philanthropy there previously.
Rubenstein also shared two significant investment regrets: selling his stake in Amazon during the dot-com bubble, which he noted would have been worth billions today, and not taking Facebook seriously in its early stages when his future son-in-law introduced him to Mark Zuckerberg. Eduardo Saverin ultimately provided the initial capital for Facebook.
Regarding the current AI boom, Rubenstein described company valuations as 'really, really high' in some cases, but pointed to Nvidia's strong earnings as proof that the sector is not entirely speculative. He cautioned that, similar to the dot-com era, not all AI companies will succeed. Rubenstein acknowledged concerns about aggressive accounting and overinvestment in AI, quoting Warren Buffett's analogy about seeing who is 'swimming without a bathing suit' when the 'tide goes out.' However, he advised against panic-selling during market downturns, suggesting that holding on or buying more might be a better strategy.