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00:00So let's talk about the best investment advice you ever received from anybody either. David Swensen or or Stan Druckenmiller anybody. What's the best investment advice you've ever received was to admit mistakes. That's one. And also to be brave I think after March 20 20 when you saw the downturn then I wanted to make sure that after that managers were putting risk back on. And I think you can't you know you have to be brave. And I think. And then from stand the risk management is something that is really key to how I think about management. Now you've seen investors who are professional and non-professional over the years. What do you think the most common mistake is that investors make. Yeah I think right now there's so much fast needs like you'd get news from all over the world some of the different and all that. And I think there needs to be patience. And also people like the mean stocks and some of those things people get caught up and on a lot of these really quick moneymaking things and all that. I think in the long run for as a person who has an investment portfolio or a retirement fund they should be thinking in the long run and they should have mutual funds mostly for you know I say don't do what we do endowments at home because you can't do some of the things that we do. Let's suppose you're at a cocktail party in New York or Maine or wherever it might be. And somebody told you manage the endowment for the Rockefeller University. They say to you well I have an extra one hundred thousand dollars. What should I do with it. What do you tell the average person who for one hundred thousand dollars might be a fair bit for average person. What do you tell them to do with their money. Well right now I would say I think you need to wait a little bit. Don't dive right there in the market. But I would say do a diversified portfolio. You need to think about what your cash flow is going to be like at Rockefeller. The first thing I do every Monday is look at our cash flow meets capital calls spending all that. I want to see what the cash is. So I would think you'd need to look at your liquidity needs and then you need to invest mostly in mutual funds for smaller investments because you can't get into some of the funds that we're in. And then also you know different sectors can be very interesting but a lot of index you know S & P 500 to make you sleep well at night.

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Rockefeller's Volent: Be a Brave, Patient Investor

Veteran investor and chief investment officer of Rockefeller University Paula Volent has advice for every day investors. She's on "Bloomberg Wealth with David Rubenstein." This was recorded May 20. (Source: Bloomberg)

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