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    #157 The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution

    en-usDecember 07, 2020

    Podcast Summary

    • The Digital Age: A Collaborative Effort of Many InnovatorsFrom Ada Lovelace to Walter Isaacson, the digital age was shaped by a diverse group of innovators who combined arts and sciences, pushing boundaries and inspiring future generations.

      That the digital age was not the result of solo inventors but rather a collaborative effort between many fascinating people, some of whom were geniuses. These pioneers, hackers, inventors, and entrepreneurs worked across generations and at the intersection of arts and sciences to create the human machine symbiosis that defines the digital revolution. Ada Lovelace, for instance, is an example of a historical figure who embodied this combination of the arts and sciences, being known as the first computer programmer for her work on Charles Babbage's proposed mechanical general-purpose computer. The story of these innovators, their creative processes, and their connections to each other is explored in Walter Isaacson's book "The Innovators." This book was brought to the speaker's attention through Walter Isaacson's introduction in Jeff Bezos' book "Invent and Wander."

    • Ada Lovelace's fascination with technology despite her mother's effortsAda Lovelace's unconventional personality and fascination with technology led her to become a pioneer in computing, despite her mother's attempts to steer her away from it.

      Ada Lovelace, despite her mother's efforts to prevent it, developed a strong interest in technology and mathematics, just like her poet father Lord Byron, who was a Luddite and opposed technology. Ada's unconventional personality, marked by self-confidence and a desire to challenge authority, led her to become fascinated with the automated weaving loom and its use of punch cards. This encounter sparked her imagination and set her on a path to become a pioneer in computing, long before it was a recognized field. Her story serves as a reminder that even those with seemingly disparate interests can make significant contributions to the world.

    • Ada Lovelace: Defying Societal Norms with Imagination and TechnologyAda Lovelace, an aristocratic woman, challenged societal norms with her self-confidence and groundbreaking ideas about technology. She foresaw the modern computer's ability to perform various tasks and introduced the concept of artificial intelligence.

      Ada Lovelace, an aristocratic woman in the early Victorian age, defied societal norms with her self-confidence and groundbreaking ideas about technology. She was fascinated by the concept of imagination and believed she possessed unique abilities. Her notes on Babbage's analytical engine, later referred to as "Lady Lovelace's notes," envisioned the modern computer, including its ability to perform a limitless array of tasks and manipulate various forms of content. She also introduced the concept of artificial intelligence, asking if machines could think. Despite her significant contributions, she never published another scientific paper and her work went largely unrecognized during her lifetime. However, her insights laid the foundation for the digital age.

    • The Lives and Impacts of Pioneering Tech FiguresAda Lovelace, Vannevar Bush, and Alan Turing, among others, revolutionized technology through their visionary ideas and groundbreaking work, shaping the digital age.

      The lives and works of key figures in the history of technology, such as Ada Lovelace, Vannevar Bush, and Alan Turing, have had profound impacts on the development of the digital age. Ada Lovelace, despite her tragic personal struggles, was a visionary who saw the potential of machines as partners of the human imagination and helped lay the groundwork for digital computing. Vannevar Bush built the world's first analog electrical mechanical computer, and later hired Claude Shannon to run it, marking the beginning of a fruitful collaboration between the two innovators. Alan Turing, with his introverted nature and brilliant mind, made seminal theoretical breakthroughs in information theory, which is considered the Magna Carta of the Information Age. These individuals, and many others, have built on each other's ideas, constantly pushing the boundaries of what is possible in technology. Understanding their stories and contributions is essential for appreciating the technological advances that have shaped our world.

    • Intersection of different fields led to computing advancementsClaude Shannon applied logic to electrical circuits, John von Neumann combined math, physics, and computer science, and their diverse knowledge drove technological innovation

      The intersection of different fields of knowledge led to significant advancements in technology, particularly in the development of digital computers. This is exemplified by the work of Claude Shannon, who applied Boole's logical operations to electrical circuits, and John von Neumann, who brought together mathematics, physics, and computer science to create new ideas. Von Neumann's broad knowledge and ability to assimilate ideas from various sources made him a pivotal figure in the history of computing. Despite his charismatic personality and tendency to share ideas freely, he was also known for his humility and modesty. The ability to draw inspiration from diverse fields and build upon existing knowledge continues to be a driving force in technological innovation.

    • The Importance of Balancing Intelligence, Ambition, and People SkillsIntellectual brilliance and intensity aren't enough for successful innovation and entrepreneurship. Balancing intelligence, ambition, and people skills is essential.

      While intellectual brilliance and intensity can drive innovation, they don't guarantee success in leading a team or a company. The story of William Shockley, a brilliant but difficult and egotistical inventor, serves as a cautionary tale. His inability to collaborate, his insistence on having all the credit, and his lack of empathy for his team members ultimately led to the break-up of his team and the loss of potential greatness. Conversely, individuals like John von Neumann, who could identify the crucial aspects of a problem and work effectively with others, made significant contributions and left lasting legacies. The ability to balance intelligence, ambition, and people skills is essential for successful innovation and entrepreneurship.

    • Shockley's Misjudgment of CompetitorsShockley's inclusion of competitors on his board and his erratic behavior led to the departure of key personnel, including Noyce, who went on to co-found Fairchild Semiconductor, ultimately resulting in Shockley's downfall and the rise of his competitors.

      Shockley's decision to include his competitors on the board of his new semiconductor company proved to be a major mistake, revealing his naivety and lack of strategic thinking. This incident, along with his demanding and paranoid behavior, ultimately led to the departure of key personnel, including Robert Noyce, who went on to co-found Fairchild Semiconductor. Noyce's excitement and respect for the potential of transistors and semiconductors drove him to get involved in the industry, which he described as a jolting and transformative experience. Shockley's inability to inspire loyalty and his increasing erratic behavior turned him into a cautionary tale of bad leadership. Despite his visionary ideas, his inability to adapt and face the consequences of his decisions led to the downfall of his company and the rise of his competitors.

    • Robert Noyce and the Traitorous 8's struggle to secure fundingArthur Rock's investment in Fairchild Semiconductor paved the way for the growth of the semiconductor industry and the establishment of venture capital as a viable means of funding innovative entrepreneurs.

      The success of Intel and the venture capital industry can be traced back to the right person, Robert Noyce, being at the right place and time with the right skills. Noyce's charisma and leadership led him to form Fairchild Semiconductor with the "Traitorous 8," but they faced challenges in raising funds. They eventually secured investment from Arthur Rock, a 30-year-old analyst with a history of successful risky investments. At the time, venture capital was mainly the domain of wealthy families, but Rock took the concept west and helped establish it as a viable means of funding innovative entrepreneurs. This paved the way for the growth of the semiconductor industry and the digital age. Arthur Rock's role in this history is significant, as he helped transform the way new companies were funded and set the stage for the venture capital industry as we know it today.

    • Recognizing and transferring valuable ideasSuccessful entrepreneurs and investors believe in the power of people to bring new value and prioritize investing in individuals over ideas.

      Successful entrepreneurs and investors, such as Arthur Rock and Andy Grove, have a knack for recognizing and transferring valuable ideas from one place or industry to another, and they prioritize investing in people over ideas. Rock's success story began with transporting a caramel-making idea from the west to the east coast and building Hershey Chocolate. Later, he realized the potential of the West Coast's exciting companies and moved there to bridge the gap between the two coasts and establish the Silicon Valley venture capital scene. Grove, a Holocaust survivor, had lived through unimaginable hardships, but his experiences instilled in him a blunt, no-nonsense approach and a relentless drive for excellence. Both Rock and Grove believed in the power of people to bring new value to industries and locations. As Rock put it, "I believe so strongly in people that I think talking to the individual is much more important than finding out too much about what they wanna do." This belief in people, rather than ideas, proved instrumental in their successes.

    • Engineering expertise and decisive skills of tech leadersSuccessful tech leaders combine technical skills with strategic decision-making to shape the industry. Figures like Andy Grove, Nolan Bushnell, and Vannevar Bush showcased this blend through their impact on Intel, Atari, and the foundation of the Internet.

      Successful technology leaders often possess a unique blend of engineering expertise and crisp decision-making skills. This was evident in the lives of figures like Robert Noyce and Gordon Moore of Intel, who acknowledged the crucial role of Andy Grove, despite his non-founding status. Grove's mantra, "only the paranoid survive," showcased his intense focus and ability to make decisive moves. Another notable figure was Nolan Bushnell, the founder of Atari and Chuck E. Cheese, who engineered the hit game Pong but was equally proud of his financial engineering to grow the company. The foundation for the Internet was laid by Vannevar Bush, a scientist and administrator who led the way in developing new technologies during World War 2. His advocacy for government funding of basic research led to the creation of Science, the Endless Frontier, a report that inspired future generations of scientists and engineers. These stories demonstrate the importance of both technical prowess and strategic decision-making in shaping the tech industry.

    • The power of collaboration between government, industry, and academia in driving technological innovationsGovernment, industry, and academia collaborations led to groundbreaking innovations like the Internet and personal computer revolution. Pioneers like Douglas Engelbart, Bill Gates, and Steve Jobs, who pushed boundaries and kept interfaces user-friendly, shaped the tech world with their rebellious yet innovative ideas.

      The collaboration between government, industry, and academia played a significant role in driving technological innovations and economic growth, as seen in the creation of the Internet and personal computer revolution. This triangular relationship allowed for the sharing and development of groundbreaking ideas, leading to advances such as online systems, email, and video conferencing, decades before they became commonplace. Another key figure was Douglas Engelbart, who in the late 1960s, developed many of the technologies that would later define the personal computer revolution. His innovations included the mouse, on-screen graphics, and email, among others. Engelbart's work laid the foundation for the technological advancements that would shape the world we live in today. Regarding software, Bill Gates was a rebellious innovator who, despite skipping lectures at Harvard, went on to co-found Microsoft and revolutionize the industry with his software. His innovations, such as keeping interfaces friendly and intuitive, continue to influence technology today. Steve Jobs, who started his career at Atari, learned valuable lessons about the importance of keeping interfaces simple and user-friendly, which he later applied to his work at Apple and beyond. The stories of these pioneers illustrate the importance of innovation, rebellion, and collaboration in driving technological progress.

    • Believe in yourself and push forward despite self-doubtActing with confidence and conviction, even in the face of self-doubt, can lead to great achievements. Successful entrepreneurs, like Steve Jobs, have experienced self-doubt but continued to innovate and compete.

      Acting with confidence and conviction, even if you're feeling doubt or uncertainty, can help you succeed. This idea was instilled in Steve Jobs by his mentor, Nolan Bushnell. Jobs used this mindset during his most significant business interactions, including his groundbreaking meeting with IBM. It's essential to remember that even the most successful entrepreneurs experience self-doubt, but pushing forward despite these feelings can lead to great achievements. Additionally, Jobs was inspired by competition and saw himself as a "Zen warrior" fighting against ugliness and evil in the tech industry. He often visited Xerox PARC to steal ideas that he later incorporated into Apple products. This bold approach to innovation helped shape the tech industry and solidified Apple's position as a leading company.

    • Leveraging existing ideas for innovationInnovation isn't just about having new ideas, it's also about executing and applying them effectively. Examples of this include Steve Jobs' adoption of Xerox PARC's interface ideas for the Macintosh and Steve Case's simple and unintimidating approach to Internet access with AOL.

      Innovation often comes from those who apply existing ideas in new and effective ways. Steve Jobs' visit to Xerox PARC and his obsession with incorporating their interface ideas into a personal computer led to the creation of Apple's groundbreaking Macintosh computer. Similarly, Steve Case's execution of American Online's simple and unintimidating service model revolutionized Internet access for the masses. These examples demonstrate the importance of not only having innovative ideas but also having the vision and determination to bring them to life. Additionally, the early pioneers of the Internet, such as Vannevar Bush and Doug Engelbart, envisioned the potential of this technology long before it was fully realized. Ultimately, it's the execution and application of these ideas that leads to significant advancements and progress.

    • Ada Lovelace's vision of machines and humans working togetherAda Lovelace believed machines would enhance human roles instead of replacing them, demonstrating this vision with her work on the first general-purpose computer.

      Ada Lovelace, a 19th-century mathematician, envisioned a future where machines and humans would complement each other, rather than replace each other. She believed that innovation would come from individuals who could blend creativity and engineering, arts and sciences. In her view, machines would not eliminate human roles, but instead enhance them. This idea is echoed in Peter Thiel's book "0 to 1." Lovelace's work on Charles Babbage's analytical engine, considered to be the first general-purpose computer, demonstrated her forward-thinking perspective. This perspective is particularly relevant today, as technology continues to evolve and blur the lines between the arts and sciences. The key message is that humans and machines can work together to create something greater than the sum of their parts. To fully understand this concept and the rich history behind it, I highly recommend reading Walter Isaacson's book "The Innovators," which explores the lives and ideas of the pioneers of technology. It's a must-read for anyone interested in the intersection of art, science, and innovation.

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    (2:00) My father was a self-made man who had known extreme poverty in his youth and had a practically limitless capacity for hard work.

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    (20:00) Optimism is a moral duty. Pessimism aborts opportunity.

    (21:00) I studied the lives of great men and women. And I found that the men and women who got to the top were those who did the jobs they had in hand, with everything they had of energy and enthusiasm and hard work.

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    (0:01) At the age of twelve I was an orphan.

    (1:00) My uncles made me become self-reliant very early in life. Looking back, I believe that it is to this, that much of my success is due.

    (9:00) The idea of wearing a watch on one's wrist was thought to be contrary to the conception of masculinity.

    (10:00) Prior to World War 1 wristwatches for men did not exist.

    (11:00) Business is problems. The best companies are just effective problem solving machines.

    (12:00) My personal opinion is that pocket watches will almost completely disappear and that wrist watches will replace them definitively! I am not mistaken in this opinion and you will see that I am right." —Hans Wilsdorf, 1914

    (14:00) The highest order bit is belief: I had very early realized the manifold possibilities of the wristlet watch and, feeling sure that they would materialize in time, I resolutely went on my way. Rolex was thus able to get several years ahead of other watch manufacturers who persisted in clinging to the pocket watch as their chief product.

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    (20:00) Business Breakdowns #65 Rolex: Timeless Excellence

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    (35:00) On keeping the main thing the main thing for decades: In developing and extending my business, I have always had certain aims in mind, a course from which I never deviated.

    (41:00) Rolex wanted to only be associated with the best. They ran an ad with the headline: Men who guide the destinies of the world, where Rolex watches.

    (43:00) Opportunity creates more opportunites. The Oyster unlocked the opportunity for the Perpetual.

    (44:00) The easier you make something for the customer, the larger the market gets: “My vision was to create the first fully packaged computer. We were no longer aiming for the handful of hobbyists who liked to assemble their own computers, who knew how to buy transformers and keyboards. For every one of them there were a thousand people who would want the machine to be ready to run.” — Steve Jobs

    (48:00) More sources:

    Rolex Jubilee: Vade Mecum by Hans Wilsdorf

    Rolex Magazine: The Hans Wilsdorf Years

    Hodinkee: Inside the Manufacture. Going Where Few Have Gone Before -- Inside All Four Rolex Manufacturing Facilities 

    Vintage Watchstraps Blog: Hans Wilsdorf and Rolex

    Business Breakdowns #65 Rolex: Timeless Excellence

    Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands by Jean Noel Kapferer and Vincent Bastien 

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    Learning from history is a form of leverage. —Charlie Munger. Founders Notes gives you the super power to learn from history's greatest entrepreneurs on demand.

    Get access to the World’s Most Valuable Notebook for Founders

    You can search all my notes and highlights from every book I've ever read for the podcast. 

    You can also ask SAGE any question and SAGE will read all my notes, highlights, and every transcript from every episode for you.

     A few questions I've asked SAGE recently: 

    What are the most important leadership lessons from history's greatest entrepreneurs?

    Can you give me a summary of Warren Buffett's best ideas? (Substitute any founder covered on the podcast and you'll get a comprehensive and easy to read summary of their ideas) 

    How did Edwin Land find new employees to hire? Any unusual sources to find talent?

    What are some strategies that Cornelius Vanderbilt used against his competitors?

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    (1:00) You've got to start with the customer experience and work back toward the technology—not the other way around.  —Steve Jobs in 1997

    (6:00) Why should I care = What does this do for me?

    (6:00) The Match King: Ivar Kreuger, The Financial Genius Behind a Century of Wall Street Scandals by Frank Partnoy.  (Founders #348)

    (7:00) Easy to understand, easy to spread.

    (8:00) An American Saga: Juan Trippe and His Pan Am Empire by Robert Daley 

    (8:00) The Fish That Ate the Whale: The Life and Times of America's Banana King by Rich Cohen. (Founders #255)

    (9:00)  love how crystal clear this value proposition is. Instead of 3 days driving on dangerous road, it’s 1.5 hours by air. That’s a 48x improvement in time savings. This allows the company to work so much faster. The best B2B companies save businesses time.

    (10:00) Great Advertising Founders Episodes:

    Albert Lasker (Founders #206)

    Claude Hopkins (Founders #170 and #207)

    David Ogilvy (Founders #82, 89, 169, 189, 306, 343) 

    (12:00) Advertising which promises no benefit to the consumer does not sell, yet the majority of campaigns contain no promise whatever. (That is the most important sentence in this book. Read it again.) — Ogilvy on Advertising 

    (13:00) Repeat, repeat, repeat. Human nature has a flaw. We forget that we forget.

    (19:00) Start with the problem. Do not start talking about your product before you describe the problem your product solves.

    (23:00) The Invisible Billionaire: Daniel Ludwig by Jerry Shields. (Founders #292)

    (27:00) Being so well known has advantages of scale—what you might call an informational advantage.

    Psychologists use the term social proof. We are all influenced-subconsciously and, to some extent, consciously-by what we see others do and approve.

    Therefore, if everybody's buying something, we think it's better.

    We don't like to be the one guy who's out of step.

    The social proof phenomenon, which comes right out of psychology, gives huge advantages to scale.

    —  the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger (Founders #329)

    (29:00) Marketing is theatre.

    (32:00) Belief is irresistible. — Shoe Dog: A Memoir by the Creator of Nike by Phil Knight.  (Founders #186)

    (35:00) I think one of the things that really separates us from the high primates is that we’re tool builders. I read a study that measured the efficiency of locomotion for various species on the planet. The condor used the least energy to move a kilometer. And, humans came in with a rather unimpressive showing, about a third of the way down the list. It was not too proud a showing for the crown of creation. So, that didn’t look so good. But, then somebody at Scientific American had the insight to test the efficiency of locomotion for a man on a bicycle. And, a man on a bicycle, a human on a bicycle, blew the condor away, completely off the top of the charts.

    And that’s what a computer is to me. What a computer is to me is it’s the most remarkable tool that we’ve ever come up with, it’s the equivalent of a bicycle for our minds.

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    I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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    #349 How Steve Jobs Kept Things Simple

    #349 How Steve Jobs Kept Things Simple

    What I learned from reading Insanely Simple: The Obsession That Drives Apple's Success by Ken Segall. 

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    What are the most important leadership lessons from history's greatest entrepreneurs?

    Can you give me a summary of Warren Buffett's best ideas? (Substitute any founder covered on the podcast and you'll get a comprehensive and easy to read summary of their ideas) 

    How did Edwin Land find new employees to hire? Any unusual sources to find talent?

    What are some strategies that Cornelius Vanderbilt used against his competitors?

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    (1:30) Steve wanted Apple to make a product that was simply amazing and amazingly simple.

    (3:00) If you don’t zero in on your bureaucracy every so often, you will naturally build in layers. You never set out to add bureaucracy. You just get it. Period. Without even knowing it. So you always have to be looking to eliminate it.  — Sam Walton: Made In America by Sam Walton. (Founders #234)

    (5:00) Steve was always easy to understand. He would either approve a demo, or he would request to see something different next time. Whenever Steve reviewed a demo, he would say, often with highly detailed specificity, what he wanted to happen next.  — Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs by Ken Kocienda. (Founders #281)

    (7:00) Watch this video. Andy Miller tells GREAT Steve Jobs stories

    (10:00) Many are familiar with the re-emergence of Apple. They may not be as familiar with the fact that it has few, if any parallels.
    When did a founder ever return to the company from which he had been rudely rejected to engineer a turnaround as complete and spectacular as Apple's? While turnarounds are difficult in any circumstances they are doubly difficult in a technology company. It is not too much of a stretch to say that Steve founded Apple not once but twice. And the second time he was alone. 

    —  Return to the Little Kingdom: Steve Jobs and the Creation of Appleby Michael Moritz.

    (15:00) If the ultimate decision maker is involved every step of the way the quality of the work increases.

    (20:00) "You asked the question, What was your process like?' I kind of laugh because process is an organized way of doing things. I have to remind you, during the 'Walt Period' of designing Disneyland, we didn't have processes. We just did the work. Processes came later. All of these things had never been done before. Walt had gathered up all these people who had never designed a theme park, a Disneyland. So we're in the same boat at one time, and we figure out what to do and how to do it on the fly as we go along with it and not even discuss plans, timing, or anything. We just worked and Walt just walked around and had suggestions." — Disney's Land: Walt Disney and the Invention of the Amusement Park That Changed the World by Richard Snow. (Founders #347)

    (23:00) The further you get away from 1 the more complexity you invite in.

    (25:00) Your goal: A single idea expressed clearly.

    (26:00) Jony Ive: Steve was the most focused person I’ve met in my life

    (28:00) Editing your thinking is an act of service.

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    What are the most important leadership lessons from history's greatest entrepreneurs?

    Can you give me a summary of Warren Buffett's best ideas? (Substitute any founder covered on the podcast and you'll get a comprehensive and easy to read summary of their ideas) 

    How did Edwin Land find new employees to hire? Any unusual sources to find talent?

    What are some strategies that Cornelius Vanderbilt used against his competitors?

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    Michael Jordan In His Own Words

    Michael Jordan In His Own Words

    What I learned from reading Driven From Within by Michael Jordan and Mark Vancil. 

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    How did Edwin Land find new employees to hire? Any unusual sources to find talent?

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    Episode Outline: 

    Players who practice hard when no one is paying attention play well when everyone is watching.

    It's hard, but it's fair. I live by those words. 

    To this day, I don't enjoy working. I enjoy playing, and figuring out how to connect playing with business. To me, that's my niche. People talk about my work ethic as a player, but they don't understand. What appeared to be hard work to others was simply playing for me.

    You have to be uncompromised in your level of commitment to whatever you are doing, or it can disappear as fast as it appeared. 

    Look around, just about any person or entity achieving at a high level has the same focus. The morning after Tiger Woods rallied to beat Phil Mickelson at the Ford Championship in 2005, he was in the gym by 6:30 to work out. No lights. No cameras. No glitz or glamour. Uncompromised. 

    I knew going against the grain was just part of the process.

    The mind will play tricks on you. The mind was telling you that you couldn't go any further. The mind was telling you how much it hurt. The mind was telling you these things to keep you from reaching your goal. But you have to see past that, turn it all off if you are going to get where you want to be.

    I would wake up in the morning thinking: How am I going to attack today?

    I’m not so dominant that I can’t listen to creative ideas coming from other people. Successful people listen. Those who don’t listen, don’t survive long.

    In all honesty, I don't know what's ahead. If you ask me what I'm going to do in five years, I can't tell you. This moment? Now that's a different story. I know what I'm doing moment to moment, but I have no idea what's ahead. I'm so connected to this moment that I don't make assumptions about what might come next, because I don't want to lose touch with the present. Once you make assumptions about something that might happen, or might not happen, you start limiting the potential outcomes. 

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    Can you give me a summary of Warren Buffett's best ideas? (Substitute any founder covered on the podcast and you'll get a comprehensive and easy to read summary of their ideas) 

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    What are some strategies that Cornelius Vanderbilt used against his competitors?

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    Founders
    en-usMay 12, 2024

    #348 The Financial Genius Behind A Century of Wall Street Scandals: Ivar Kreuger

    #348 The Financial Genius Behind A Century of Wall Street Scandals: Ivar Kreuger

    What I learned from reading The Match King: Ivar Kreuger, The Financial Genius Behind a Century of Wall Street Scandals by Frank Partnoy. 

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    Can you give me a summary of Warren Buffett's best ideas? (Substitute any founder covered on the podcast and you'll get a comprehensive and easy to read summary of their ideas) 

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    Episode Outline: 

    1. Ivar was charismatic. His charisma was not natural. Ivar spent hours every day just preparing to talk. He practiced his lines for hours like great actors do.

    2. Ivar’s first pitch was simple, easy to understand, and legitimate: By investing in Swedish Match, Americans could earn profits from a monopoly abroad.

    3. Joseph Duveen noticed that Europe had plenty of art and America had plenty of money, and his entire astonishing career was the product of that simple observation. — The Days of Duveen by S.N. Behrman.  (Founders #339 Joseph Duveen: Robber Baron Art Dealer)

    4. Ivar studied Rockefeller and Carnegie: Ivar's plan was to limit competition and increase profits by securing a monopoly on match sales throughout the world, mimicking the nineteenth century oil, sugar, and steel trusts.

    5. When investors were manic, they would purchase just about anything. But during the panic that inevitably followed mania, the opposite was true. No one would buy.

    6. The problem isn’t getting rich. The problem is staying sane. — Charlie Munger

    7. Ivar understood human psychology. If something is limited and hard to get to that increases desire. This works for both products (like a Ferrari) and people (celebrities). Ivar was becoming a business celebrity.

    8.  I’ve never believed in risking what my family and friends have and need in order to pursue what they don't have and don't need. — The Essays of Warren Buffett by Warren Buffett and Lawrence Cunningham. (Founders #227)

    9. Great ideas are simple ideas: Ivar hooked Durant with his simple, brilliant idea: government loans in exchange for match monopolies.

    10. Ivar wrote to his parents, "I cannot believe that I am intended to spend my life making money for second-rate people. I shall bring American methods back home. Wait and see - I shall do great things. I'm bursting with ideas. I am only wondering which to carry out first."

    11. Ivar’s network of companies was far too complex for anyone to understand: It was like a corporate family tree from hell, and it extended into obscurity.

    12. “Victory in our industry is spelled survival.”   —Steve Jobs

    13. Ivar's financial statements were sloppy and incomplete. Yet investors nevertheless clamored to buy his securities.

    14. As more cash flowed in the questions went away. This is why Ponzi like schemes can last so long. People don’t want to believe. They don’t want the cash to stop.

    15. A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders #222)

    16.  A summary of Charlie Munger on incentives:

    1. We all underestimate the power of incentives.
    2. Never, ever think about anything else before the power of incentives.
    3. The most important rule: get the incentives right.

    17. This is nuts! Fake phones and hired actors!

    Next to the desk was a table with three telephones. The middle phone was a dummy, a non-working phone that Ivar could cause to ring by stepping on a button under the desk. That button was a way to speed the exit of talkative visitors who were staying too long. Ivar also used the middle phone to impress his supporters. When Percy Rockefeller visited Ivar pretended to receive calls from various European government officials, including Mussolini and Stalin. That evening, Ivar threw a lavish party and introduced Rockefeller to numerous "ambassadors" from various countries, who actually were movie extras he had hired for the night.

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    #347 How Walt Disney Built His Greatest Creation: Disneyland

    #347 How Walt Disney Built His Greatest Creation: Disneyland

    What I learned from reading Disney's Land: Walt Disney and the Invention of the Amusement Park That Changed the World by Richard Snow. 

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    (8:00) When in 1955 we heard that Disney had opened an amusement park under his own name, it appeared certain that we could not look forward to anything new from Mr. Disney.

    We were quite wrong.

    He had, instead, created his masterpiece.

    (13:00) This may be the greatest product launch of all time: He had run eight months of his television program. He hadn't named his new show Walt Disney Presents or The Wonderful World of Walt Disney.

    It was called simply Disneyland, and every weekly episode was an advertisement for the still unborn park.

    (15:00) Disneyland is the extension of the powerful personality of one man.

    (15:00) The creation of Disneyland was Walt Disney’s personal taste in physical form.

    (24:00) How strange that the boss would just drop it. Walt doesn’t give up. So he must have something else in mind.

    (26:00) Their mediocrity is my opportunity. It is an opportunity because there is so much room for improvement.

    (36:00) Roy Disney never lost his calm understanding that the company's prosperity rested not on the rock of conventional business practices, but on the churning, extravagant, perfectionist imagination of his younger brother.

    (41:00) Walt Disney’s decision to not relinquish his TV rights to United Artists was made in 1936. This decision paid dividends 20 years later. Hold on. Technology -- developed by other people -- constantly benefited Disney's business. Many such cases in the history of entrepreneurship.

    (43:00) Walt Disney did not look around. He looked in. He looked in to his personal taste and built a business that was authentic to himself.

    (54:00) "You asked the question, What was your process like?' I kind of laugh because process is an organized way of doing things. I have to remind you, during the 'Walt Period' of designing Disneyland, we didn't have processes.

    We just did the work. Processes came later. All of these things had never been done before.

    Walt had gathered up all these people who had never designed a theme park, a Disneyland.

    So we're in the same boat at one time, and we figure out what to do and how to do it on the fly as we go along with it and not even discuss plans, timing, or anything.

    We just worked and Walt just walked around and had suggestions."

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    Related Episodes

    #159 Andy Grove (Intel)

    #159 Andy Grove (Intel)

    What I learned from reading Swimming Across by Andrew S. Grove. 

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    [0:01] I was born in Budapest, Hungary in 1936. By the time I was twenty, I had lived through a Hungarian Fascist dictatorship, German military occupation, the Nazis’ “Final Solution,” the siege of Budapest by the Soviet Red Army, a period of chaotic democracy in the years immediately after the war, a variety of repressive Communist regimes, and a popular uprising that was put down at gunpoint. 

    [3:02] Some 200,000 Hungarians escaped to the West. I was one of them

    [8:05] A subtle and compelling commentary on the power to endure. 

    [10:03] He dedicates this book to his mom. He says: To my mother, who gave me the gift of life more than once.  

    [13:03] People avoided looking at us. Even people whom we knew wouldn’t meet our eyes. It was as if a barrier was growing between us and everyone else. 

    [14:01] My mother returned in a couple of hours, shaken up. She told me that the man who came for her was a policeman who arrested her along with the superintendent’s wife. Feeding Jewish people was against the law. The policeman told her that she should have bid me a more proper good-bye because she probably would not see me again. 

    [18:35] There was so much pressure in my chest that I could barely breathe. After a while, my mother came back for me. She was very tense and angry. She carried me to bed and we went to sleep. Later on that night, some more Russians came into our cellar. My mother yelled at them something about how all three of the women had already done it today. 

    [23:02] An emaciated man, filthy and in a ragged soldier’s uniform, was standing at the open door. I thought: This must be my father. His arms and legs were like sticks. 

    [25:49] There was nothing to be done. The Communist government called all the shots. They increasingly interfered with our daily life. They took away my parents’ business, they uprooted me from my school. 

    [28:09] I always had a tight feeling in my chest when we went by because by now I knew my relatives had been taken from that house to be killed. 

    [33:30] Life is like a big lake. All the boys get in the water at one end and start swimming. Not all of them will swim across. But one of them, I’m sure will. That one is Grove. 

    [37:28] In the middle of one bitterly cold winter night, my father’s battalion was made to strip naked and climb trees, and the guards sprayed them with water and watched and laughed as one after another fell out of the trees frozen to death

    [43:52] I thought I had made an important discovery. I realized that it’s good to have at least two interests in your life. If you have only one interest and that goes sour, there’s nothing to act as a counterbalance to lift your mood. But if you have more than one interest, chances are something will always go okay. 

    [52:11] I wished there were no mortars falling on our house and no Russian soldiers in our apartment. I wanted the trams to run again. I wanted to go back to school. I wanted life to go back to normal. 

    [56:24] After a while, we emerged from the woods. I could see some faint lights far across an open field. The man came close to us. “Those lights are Austria’, he whispered. ‘Head towards them and don’t take your eyes off them. This is as far as I go.’ And he was gone. I didn’t take my eyes off those lights. I trudged toward them as if they were a magnet. 

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    I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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    Steve Jobs's Heroes

    Steve Jobs's Heroes

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    On Steve Jobs

    #5 Steve Jobs: The Biography

    #19 Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader

    #76 Return To The Little Kingdom: Steve Jobs and The Creation of Apple

    #77 Steve Jobs & The NeXT Big Thing

    #204 Inside Steve Jobs' Brain

    #214 Steve Jobs: The Exclusive Biography

    #235 To Pixar And Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History

    Bonus Episodes on Steve Jobs

    Insanely Simple: The Obsession That Drives Apple's Success (Between #112 and #113)

    Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs (Between #110 and #111)

    On Jony Ive and Steve Jobs

    #178 Jony Ive: The Genius Behind Apple's Greatest Products

    On Ed Catmull and Steve Jobs

    #34 Creativity Inc: Overcoming The Unseen Forces That Stand In The Way of True Inspiration

    On Steve Jobs and several other technology company founders

    #157 The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution

    #208 In the Company of Giants: Candid Conversations With the Visionaries of the Digital World

    STEVE JOBS'S INFLUENCES 

    Edwin Land

    #40 Insisting On The Impossible: The Life of Edwin Land and Instant: The Story of Polaroid

    #132 The Instant Image: Edwin Land and The Polaroid Experience

    #133 Land's Polaroid: A Company and The Man Who Invented It

    #134 A Triumph of Genius: Edwin Land, Polaroid, and the Kodak Patent War

    Bob Noyce and Andy Grove

    #8 The Intel Trinity: How Robert Noyce, Gordon Moore, and Andy Grove Built the World's Most Important Company

    #159 Swimming Across

    #166 The Man Behind the Microchip: Robert Noyce and the Invention of Silicon Valley

    Nolan Bushnell

    #36 Finding The Next Steve Jobs: How to Find, Keep, and Nurture Talent

    Akio Morita

    #102 Made in Japan: Akio Morita and Sony

    Walt Disney

    #2 Walt Disney: The Triumph of the American Imagination

    #39 Walt Disney: An American Original

    #158 Walt Disney and the Invention of the Amusement Park That Changed the World

    J. Robert Oppenheimer

    #215 The General and the Genius: Groves and Oppenheimer—The Unlikely Partnership that Built the Atom Bomb

    Henry Ford

    #9 I Invented the Modern Age: The Rise of Henry Ford

    #26 My Life and Work: The Autobiography of Henry Ford

    #80 Today and Tomorrow: Special Edition of Ford's 1926 Classic

    #118 My Forty Years With Ford

    #190 The Story of Henry Ford and Thomas Edison's Ten-Year Road Trip

    David Packard and Bill Hewlett

    #29 The HP Way: How Bill Hewlett and I Built Our Company

    Alexander Graham Bell

    #138 Reluctant Genius: The Passionate Life and Inventive Mind of Alexander Graham Bell

    Robert Friedland

    #131 The Big Score: Robert Friedland and The Voisey's Bay Hustle

    Larry Ellison (Steve’s best friend)

    #124 Softwar: An Intimate Portrait of Larry Ellison and Oracle

    #126 The Billionaire and the Mechanic: How Larry Ellison and a Car Mechanic Teamed up to Win Sailing's Greatest Race, the Americas Cup, Twice

    #127 The Difference Between God and Larry Ellison: God Doesn't Think He's Larry Ellison

    #265 Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader

    #265 Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader

    What I learned from rereading Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader by Brent Schlender and Rick Tetzeli

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    [3:11] His mind was never a captive of reality.

    [5:16] A complete list of every Founders episode on Steve Jobs and the founders Steve studied: Steve Jobs’s Heroes

    [7:15] Steve Jobs and The Next Big Thing by Randall Stross (Founders #77)

    [9:05] Steve Job’s Commencement Address

    [9:40] Driven and curious, even when things were tough, he was a learning machine.

    [10:20] He learned how to manage himself.

    [12:45] Anything could be figured out and since anything could be figured out anything could be built.

    [14:10] It was a calculation based on arrogance. — The Fish That Ate the Whale: The Life and Times of America's Banana King by Rich Cohen (Founders #255)

    [18:00] We were no longer aiming for the handful of hobbyists who liked to assemble their own computers. For every one of them there were a thousand people who would want the machine to be ready to run.

    [17:40] He was a free thinker whose ideas would often run against the conventional wisdom of any community in which he operated.

    [19:55] He had no qualms about calling anyone up in search of information or help.

    [20:40] I've never found anybody who didn't want to help me when I've asked them for help.

    I've never found anyone who's said no or hung up the phone when I called. I just asked.

    Most people never pick up the phone and call. Most people never ask.

    [21:50] First you believe. Then you work on getting other people to share your belief.

    [24:55] All the podcasts on Edwin Land:

    Land's Polaroid: A Company and the Man Who Invented It by Peter C. Wensberg (Founders #263)

    A Triumph of Genius: Edwin Land, Polaroid, and the Kodak Patent War by Ronald Fierstein (Founders #134)

    Land's Polaroid: A Company and the Man Who Invented It by Peter C. Wensberg (Founders #133)

    The Instant Image: Edwin Land and the Polaroid Experienceby Mark Olshaker (Founders #132)

    Insisting On The Impossible: The Life of Edwin Land and Instant: The Story of Polaroid (Founders #40)

    [25:00] My friend Frederick’s newsletter I was interviewed for

    [30:20] He was an extraordinary speaker and he wielded that tool to great effect.

    [31:00] Never underestimate the value of an ally. — Estée Lauder: A Success Story by Estée Lauder. (Founders #217)

    [32:50] If you go to sleep on a win you’re going to wake up with a loss.

    [33:00] Hard Drive: Bill Gates and the Making of the Microsoft Empire by James Wallace and Jim Erickson (Founders #140)

    [34:20] Software development requires very little capital investment. It is basically intellectual capital. The main cost is the labor required to design and test it. There's no need for expensive factories. It can be replicated endlessly for practically nothing.

    [38:10] He cared passionately and he never dialed it in.

    [39:45] To Pixar And Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History by Lawrence Levy (Founders #235)

    [42:58] Time carries most of the weight.

    [43:30] People that are learning machines and then refuse to quit are incredibly hard to beat. Steve jobs was a learning machine who refused to quit.

    [44:17] Steve Jobs and The Next Big Thing by Randall Stross (Founders #77)

    [49:40] Creativity Inc by Ed Catmull

    [50:30] There were times when the reactions against Steve baffled Steve.

    I remember him sometimes saying to me: Why are they upset?

    What that said to me was that he didn't intend to get that outcome. It was a lack of skill as opposed to meanness. A lack of skill of dealing with other people.

    [55:50] Creative thinking, at its best, is chalk full of failures and dead ends.

    [56:40] Successful people listen. Those that don’t listen don’t last long. —Michael Jordan: The Life by Roland Lazenby. (Founders #212) 

    [58:40] You can't go to the library and find a book titled The Business Model for Animation. The reason you can't is because there's only been one company Disney that's ever done it well, and they were not interested in telling the world how lucrative it was.

    [1:01:20] The company is one of the most amazing inventions of humans.

    [1:02:25] The only purpose for me in building a company is so that the company can make products. One is a means to the other.

    [1:04:00] Personal History by Katherine Graham (Founders #152)

    [1:10:11] Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs by Ken Kocienda

    [1:11:12] What am I focusing on that sets me apart from my competitors?

    [1:13:00] The channel? We lost $2 billion last year. Who gives a fuck about the channel?

    [1:15:21] Time carries most of the weight. Stay in the game as long as possible.

    [1:16:41] The information he'd glean would go into the learning machine that was his brain. Sometimes that's where it would sit, and nothing would happen. Sometimes he'd concoct a way to combine it with something else he'd seen, or perhaps to twist it in a way to benefit an entirely different project altogether. This was one of his great talents, the ability to synthesize separate developments and technologies into something previously unimaginable.

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    I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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    #214 Steve Jobs: The Exclusive Biography

    #214 Steve Jobs: The Exclusive Biography

    What I learned from rereading Steve Jobs: The Exclusive Biography by Walter Isaacson. 

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    1. He had the attitude that he could do anything, and therefore so can you.

    2. He refused to accept automatically received truths, and he wanted to examine everything himself.

    3. Picasso had a saying—‘good artists copy, great artists steal’—and we have always been shameless about stealing great ideas.

    4. Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything—all external expectations, all pride, all fear of embarrassment or failure—these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

    5. The way we're running the company, the product design, the advertising, it all comes down to this: Let's make it simple. Really simple.

    6. Jobs’s intensity was also evident in his ability to focus. He would set priorities, aim his laser attention on them, and filter out distractions.

    7. The thing that struck me was his intensity. Whatever he was interested in he would generally carry to an irrational extreme.

    8. One of Jobs's talents was spotting markets that were filled with second-rate products.

    9. Here's to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They're not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can't do is ignore them. Because they change things. They push the human race forward. And while some may see them as crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.

    10. His mind was never a captive of reality. He possessed an epic sense of possibility. He looked at things from the standpoint of perfection.

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    I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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    #103 Hetty Green (The Richest Woman in America)

    #103 Hetty Green (The Richest Woman in America)

    What I learned from reading The Richest Woman in America: Hetty Green in the Gilded Age by Janet Wallach. 

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    [0:10] She was  the smartest woman on Wall Street, a financial genius, a railroad magnate, a real estate mogul, a Gilded Era renegade, a reliable source for city funds.

    [0:19] “I have had fights with some of the greatest financial men in the country. Did you ever hear of any of them getting ahead of Hetty Green?”

    [1:10] I go my own way, take no partners, risk nobody else’s fortune.

    [1:29] She was considered the single biggest individual financier in the world.

    [1:58]  A Mind at Play: How Claude Shannon Invented the Information Age by Jimmy Soni and Rob Goodman (Founders #95)

    [2:55] Watch your pennies and the dollars will take care of themselves.

    [3:31] Don’t close a bargain until you have reflected on it overnight.

    [4:00] I am always buying when everyone wants to sell, and selling when everyone wants to buy.

    [4:51] I never set out for anything that I don’t conquer.

    [5:55] To live content with small means; To seek elegance rather than luxury, And refinement rather than fashion; To be worthy, not respectable, and wealthy, not rich.

    [7:27] Her father’s advice: Never owe anyone anything.

    [9:44] By the time she is 13 she is the family bookkeeper.

    [11:53] She paid attention when he (her father) repeated again and again that property was a trust to be taken care of and enlarged for future generations. She obeyed when he insisted that she keep her own accounts in order and later praised the experience. “There is nothing better than this sort of training,” she said.

    [13:28] Hetty hungered for money itself.

    [14:08] List of financial panics discussed in the book: Panic of 1857, Panic of 1866, The Long Depression 1873-1896 which had several panics within, (Panic of 1873, 1884, 1890, 1893) Panic 1901 and Panic of 1907.

    [16:18] She was a master at studying what happened before her.

    [16:31] The First Tycoon: The Epic Life of Cornelius Vanderbilt by TJ Stiles. (Founders #54) and Tycoon's War: How Cornelius Vanderbilt Invaded a Country to Overthrow America's Most Famous Military Adventurer by Stephen Dando-Collins (Founders #55)

    [17:15] Clever men like Russell Sage, a future role model for Hetty, kept substantial amounts of cash on hand and used it to buy stocks at rock-bottom prices. John Pierpont Morgan told his son there was a good lesson to be learned from other people’s greed and good bargains to be found in the aftermath. In future times, Hetty would always keep cash available and use it to buy when everyone else was selling. Much later, Warren Buffett would do the same. But most people watched their money wash away in the flood.

    [23:57] This was the start of the contrary investing she followed for the rest of her life: buying when everyone else was selling; selling when everyone else was buying. “I buy when things are low and nobody wants them. I keep them until they go up and people are crazy to get them. That is, I believe, the secret of all successful business,” she said.

    [26:46] Hetty, like Claude Shannon, Warren Buffett, and Ed Thorp, collected a lot of information. Hetty read more and studied more than most other people.

    [28:07] The opportunities were enormous for those with the stomach to take the risks.

    [30:25] The markets may change, the methods may be revamped, but as long as human beings are propelled by greed and ego, they are doomed to repeat the mistakes of the past.

    [31:11] She had a pile of cash when others were scouring for pennies, but she also had a deft mind and the colossal courage to push against the crowd.

    [36:17] Hetty’s investments were not always known: she purchased property under fictitious names, bought stocks under other identities, and was praised by shrewd observers for how closely she held her positions.

    [37:41] Williams greeted his new customer with all the courtesy and respect due a woman of her wealth. “I have observed that many a tattered garment hides a package of bonds and that gorgeous clothing does not always cover a millionaire,” he told his colleagues.

    [44:14] The Fish That Ate the Whale: The Life and Times of America's Banana King by Rich Cohen (Founders #37)

    [45:52] Hetty didn't like the idle rich. She respected authentic achievement.

    [48:48] Companies who stocks had skyrocketed collapsed when their lack of capital was revealed.

    [49:22] The HP Way: How Bill Hewlett and I Built Our Company by David Packard. (Founders #29)

    [49:30] More companies die from indigestion than starvation. —David Packard

    [50:58] She used her intelligence to increase her wealth, her independence to live as she wished, and her strength to battle anyone who stood in her way.

    [55:24] They sought her out to sell off their possessions. As rates rose, more and more of “the solidest men in Wall Street,” she said, from “financiers to legitimate businessmen,” came to call, begging to unload everything from palatial mansions to automobiles. “They came to me in droves,” she recalled.

    [59:30] When it comes to spending your life, there have to be some things neglected. If you try to do too much, you can never get anywhere.

    [59:53] You see this advice over and over again. You just got to figure out what that thing is that you want to focus on. No one can answer that question for you.

    [1:00:14] I think the key to a happy life is getting to the end of your life with the least amount of regrets as possible.

    [1:00:24] She prized the life she led. “I enjoy being in the thick of things. I like to have a part in the great movements of the world and especially of this country. I like to deal with big things and with big men. I would rather do [this] than play bridge. Indeed, my work is my amusement, and I believe it is also my duty.”

    ——

    I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested, so my poor wallet suffers. ”— Gareth

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