Net Interest

Jan 17, 2025 | netinterest.co | Marc Rubinstein

“Warren twisted a lot of capital out of the textile business and invested it wisely. And that’s why we’re all here.” — Charlie MungerThis year marks the 60th anniversary of Warren Buffett’s acquisition of Berkshire Hathaway. Buffett knew the company well by the time he took control. He’d been a shareholder for over three years, buying stock at various prices along the way. An old-school textile manufacturer, Berkshire had fallen on hard times.

Nov 1, 2024 | netinterest.co | Marc Rubinstein

“If you do well enough, maybe one day you’ll take my job. But, I have to warn you, it’s a shit job.” — Brady Dougan, former CEO of Credit SuisseIn spring 1998, I was called by a headhunter and invited to dinner at the Halkin Hotel in London’s Belgravia. As a young research analyst in a sector that was booming, I was in demand. My host was John Conlin, head of European Equity Research at Credit Suisse First Boston. John had some good stories to tell.

Oct 11, 2024 | netinterest.co | Marc Rubinstein

Neither JPMorgan nor BlackRock could avoid the topic of private credit on their earnings calls this morning. Too many market participants had seen Apollo CEO Marc Rowan present at his firm’s investor day last week. “Private will win over banks,” he said. “Private will win over public.” Rowan was quick to caveat his prediction, emphasizing that he is talking about growth rates rather than outright substitution.

Jul 5, 2024 | netinterest.co | Marc Rubinstein

Almost a year after leaving office, former President Donald Trump fired off a letter bemoaning a job not done. It was about Fannie Mae and Freddie Mac, “two great American companies” that backstop the US housing system. Since 2008, the pair have operated under the conservatorship of the US government – a sort of purgatory between state and public ownership – where they remain an unresolved legacy of the global financial crisis.

May 31, 2024 | netinterest.co | Marc Rubinstein

My first job was on a trading floor. Each morning at 7am the elevator would disgorge me into a vast space and I would pick my way through the mesh chairs and banks of screens to my desk in the far corner. I was very junior—my job was to fetch cappuccinos and rearrange spreadsheets—but that wasn’t why I was in the corner. I was part of a fledgling European research department and, at the UK investment bank where I worked, Europe sat on the periphery.