We Study Billionaires - The Investor’s Podcast Network

RWH038: The $2.6 Trillion Man w/ Rick Rieder

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Dec 24, 2023

Rick Rieder, Chief Investment Officer at BlackRock, oversees a staggering $2.6 trillion in global assets. In an insightful discussion, he shares lessons learned from a disastrous investment early on and reveals the critical importance of leverage, liquidity, and cash flow. He distinguishes between meaningful and meaningless news, appreciates the challenges of bull markets, and talks about the current economic outlook. Rieder also explores ways to capitalize on high bond yields while maintaining a work-life balance, showcasing his remarkable dedication and resilience.

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ANECDOTE

Early Loss and Lessons

Rick Rieder lost big on a Hydro-Quebec bond early in his career.
This taught him about risk management and the importance of sizing positions.

INSIGHT

Beyond Intellect

Geniuses don't necessarily make the best investors.
Savvy, communication, and teamwork are also crucial, as seen with Bart McDade.

ANECDOTE

Casino Wisdom

A casino CEO taught Rieder that people leave when they lose a certain amount, regardless of the odds.
This highlighted the importance of avoiding ruin in investing.

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In this rare, in-depth interview, William Green chats with super investor Rick Rieder, who oversees about $2.6 trillion at BlackRock, the world’s largest asset manager. Rick, who probably manages more money than any other investor on Earth, has an enormous range of responsibilities: he’s BlackRock’s chief investment officer of Global Fixed Income, head of the firm’s Global Allocation Investment Team, and chairman of the firm-wide BlackRock investment council. A true titan of the investing world, he recently won Morningstar’s 2023 award for Outstanding Portfolio Manager.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

05:57 - What Rick Rieder learned from a disastrous early investment.

24:43 - Why he focuses relentlessly on leverage, liquidity, & cashflow.

40:13 - How access to vast amounts of data gives him an edge.

43:27 - How he distinguishes meaningful news from meaningless noise.

49:13 - Why he gets grumpy in bull markets & relishes periods of dislocation.

55:49 - What great investors like Ray Dalio & David Tepper have in common.

57:46 - How Rick views the current economic outlook.

1:03:16 - How to take advantage of the “incredible blessing” of high bond yields.

1:13:31 - How he operates on 4 ½ hours of sleep.

1:16:00 - Why he loves to trade in the middle of the night.

1:19:34 - How he handles extreme levels of stress & responsibility.

1:24:40 - How he’s maintained a happy family life, despite a fanatical work ethic.

1:30:36 - Why his hero is Cal Ripken, the Iron Man of baseball.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Rick Rieder’s article on “The Fixed Income Opportunity for 2024”.
Rick Rieder’s Strategic Income Opportunities Fund.
Rick Rieder’s Total Return Fund.
Follow Rick Rieder on X (AKA Twitter).
William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
William Green’s podcast interview with Ray Dalio | YouTube video.
Follow William Green on X (AKA Twitter).
Check out all the books mentioned and discussed in our podcast episodes here.

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RWH038: The $2.6 Trillion Man w/ Rick Rieder

Early Loss and Lessons

Beyond Intellect

Casino Wisdom

NEW TO THE SHOW?

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