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    • The risks of pushing human limitsBreaking records comes with unknown risks, requiring courage, skill, and quick thinking to survive.

      Pushing the limits of human achievement comes with great risk. As depicted in the harrowing account from General Chuck Yeager's autobiography, Yeager, the experience of breaking the sound barrier was both thrilling and terrifying. Reaching such heights and speeds required immense courage and skill, but also put Yeager in a dangerous situation where he lost control of his aircraft and nearly met his end. This incident underscores the importance of being prepared for the unknown consequences of innovation and the vital role of instinct and quick thinking in survival. Additionally, the author's personal anecdote serves as a reminder of the complexity that can arise when trying to balance multiple projects and priorities, and the importance of focusing on the core mission.

    • Simplifying access for allStudying the experiences of remarkable figures, like Chuck Yeager, offers valuable insights and practical lessons.

      Simplicity is key, even when considering ways to incentivize upgrades or add value for supporters. The speaker shares his decision to make a new podcast feed accessible to all, regardless of payment plan, as the simplest solution. He also emphasizes the value of studying the experiences and lessons of remarkable figures, like Chuck Yeager, whose autobiography he highly recommends. Chuck Yeager, a remarkable figure in history, grew up facing challenges due to his background and accent. His early life was filled with hardships, including a tragic accident that took the life of his younger sister. Despite these challenges, Yeager became an ace pilot in a single day during World War 2, breaking sound barriers and achieving great accomplishments. His autobiography, published in 1986, offers valuable insights from his long career, making it a worthwhile read for anyone seeking inspiration and practical lessons.

    • The power of determination and understanding the basicsDetermination and a deep understanding of fundamentals can lead to great success. Start early, appreciate hard work, and be passionate about your field.

      Determination and a deep understanding of the fundamentals can lead to great success. The author's mother taught him self-sufficiency through their simple yet resourceful lifestyle. By the age of six, he was hunting for food and learned to appreciate the value of hard work. This mindset carried over into his passion for flying, as he flew more than anyone else and took an interest in every aspect of the aircraft. This relentless dedication and deep understanding of the subject matter allowed him to excel and save lives as a pilot. This is reminiscent of other successful founders, such as Arnold Schwarzenegger and Samuel Zemurray, who emphasized the importance of putting in the time and gaining a comprehensive understanding of their respective fields.

    • Unexpected opportunities from passion and determinationPassionately seizing new experiences can lead to extraordinary achievements, despite initial setbacks.

      Passion and determination can lead to unexpected and fulfilling opportunities. Chuck Yeager, a stubborn and strong-willed individual, never planned to become a fighter pilot. Before joining the military, he was a pool hustler with an unremarkable life. However, when he took a ride in an airplane, he knew he wanted more. Despite initial sickness and setbacks, Yeager persisted, eventually becoming the first person to break the sound barrier. His journey shows that seizing the moment and embracing new experiences can lead to extraordinary achievements. Additionally, the challenging training and high stakes of becoming a fighter pilot demonstrate the importance of dedication and hard work.

    • Avoiding mistakes leads to success and survivalStaying aware of potential mistakes and their consequences can lead to personal and professional success, as well as the avoidance of harm to oneself and others.

      Avoiding stupidity is a valuable skill that can lead to success and even survival, as discussed by both Chuck Yeager and Charlie Munger. Yeager emphasized the importance of this skill in the high-stakes world of aviation, where mistakes can result in fatal consequences for oneself and others. Munger, on the other hand, highlighted the significance of avoiding stupidity in business and life more broadly, viewing it as a way for mediocre individuals to outperform more talented ones. Additionally, Yeager's experiences showed that humans are capable of dark psychological states, where making mistakes can lead to not only personal harm but also the harm of others. Both men's perspectives underscore the importance of being aware of and avoiding potential mistakes, and the potential consequences of not doing so.

    • Fighter pilot's joy and sense of purposeFighter pilots find immense joy and a sense of purpose from their dangerous career, despite hardships and danger. Their youth and intense experiences add to the appeal.

      The author's experience as a fighter pilot brought him immense joy and a sense of purpose that he couldn't imagine living without. He describes his time in the squadron as the happiest of his life, despite the danger and hardships. The young age of fighter pilots and the intensity of their experiences made the job all the more appealing. The author's anger and defiance towards the enemy were a defense mechanism, and his passion for flying made him feel alive. The risk and excitement of the job were worth it to him, and he couldn't imagine doing anything else. Even when they caused trouble off duty, they returned with their planes to show their dominance. The author's near-death experiences only added to the thrill of the job. Overall, the author's account highlights the intense passion and sense of purpose that can come from pursuing a challenging and dangerous career.

    • The Power of Determination and ResilienceEven in the face of great adversity, determination and resilience can help individuals overcome challenges and achieve their goals.

      Determination and resilience can help individuals overcome even the most challenging circumstances. The story of Chuck, a wounded World War 2 fighter pilot, illustrates this idea beautifully. After being shot down and on the run in occupied territory, Chuck made the brave decision to escape to Spain rather than risk revealing the French resistance networks that had helped him. His strong will and determination allowed him to survive against all odds, despite the danger and hardships he faced. Throughout his life, Chuck demonstrated this same strength, from his early days as a poor boy determined to prove himself, to his service in the war and beyond. This story serves as a reminder that no matter what obstacles we face, we have the power to push through and achieve our goals.

    • The Power of Human Connection and ResilienceDetermination, trust, and resilience can lead to unexpected help and survival, even in the face of great danger and adversity.

      Determination and persistence, even in the face of great danger and adversity, can lead to unexpected help and ultimately, survival. The story illustrates this through the experiences of a soldier named Chuck during World War II. He finds himself stranded behind enemy lines and manages to make contact with a French woodcutter, who then leads him to the French resistance. This encounter is reminiscent of Andy Grove's autobiography, "Swimming Across," where Grove also encounters random people who help him in his journey. The soldier's courage and trust in the unknown ultimately pay off, demonstrating the power of human connection and resilience in the most challenging circumstances. Moreover, the soldier's quick thinking and strategic decision-making also play a crucial role in his survival. He uses his instincts to anticipate potential dangers and outmaneuver his enemies, showing the importance of being adaptable and resourceful in unfamiliar situations. The story underscores the importance of trust, courage, and resilience in the face of adversity and highlights the power of unexpected alliances and human connections in overcoming seemingly insurmountable challenges.

    • A harrowing tale of the French resistance during WWIIThe French resistance endured extreme conditions and constant danger to fight for freedom, showcased through a man's journey to escape occupied France

      Listening to a 60-hour audiobook about Charles de Gaulle's leadership during World War II provided insights into the harsh realities of the French resistance. The story follows a man named Yeager, who is trying to escape from occupied France to neutral Spain through the treacherous Pyrenees mountains. Along the way, he encounters a group of resistance fighters, including a tough and experienced guide named Robert. The journey is grueling, with long hours of hiking through deep snow and ice, and the group is constantly on the move to avoid German patrols. Despite the danger and exhaustion, they press on, eventually finding a cabin for rest. However, their relief is short-lived when German soldiers discover their location and open fire, forcing Yeager and his companion to flee. In the end, Yeager must make a difficult decision to save his own life, leaving his injured friend behind. This harrowing tale highlights the bravery and resilience of the French resistance, as well as the extreme conditions and constant danger they faced during their fight for freedom.

    • Challenges and determination of Chuck YeagerIn the face of adversity, Yeager's determination and exceptional skills led him to become the first American pilot to be reinstated after being shot down, and he went on to have a remarkable military career.

      Despite the challenges and hardships, Chuck Yeager, a determined and skilled fighter pilot, refused to give up and became the first American pilot to be reinstated after being shot down during World War II. Faced with the task of dragging an unconscious comrade up a mountain and into enemy territory, Yeager's stubbornness and pride drove him to keep going, even when his body was pushing him to give up. His exceptional skills and ability to identify his edge allowed him to surprise his enemies and emerge victorious. Despite the loss of his roommate and the seemingly insurmountable odds against him, Yeager refused to accept defeat and instead took charge of his life, leading to a remarkable career in the military.

    • The power of determination and refusing to give upDetermination and refusing to give up can lead to remarkable outcomes, even when faced with seemingly insurmountable odds.

      Being stubborn and refusing to give up, even when faced with seemingly insurmountable odds, can lead to remarkable outcomes. Chuck Yeager's story is a prime example of this. Despite being told to go home and being a rule-breaker, Yeager's determination and skills as a pilot ultimately led him to become the first ace in a day during World War II. His tenacity and love for dogfighting paved the way for a distinguished military career. This story serves as a reminder that sometimes, holding on to the present and refusing to give up can lead to unexpected and positive results in the future.

    • Passion and expertise lead to remarkable achievementsDeveloping a deep passion for what you do and becoming an expert in your field can lead to unique opportunities and successes

      Having a deep passion for what you do and being willing to put in the work to become an expert in your field can lead to remarkable achievements and opportunities. Chuck Yeager's desire to be a dogfighter and his extensive knowledge of aircraft systems set him apart from his peers and ultimately led him to break the sound barrier, changing the course of his life. This principle applies to any challenging endeavor, as it requires the sum total of your strength and exposes your weaknesses. By focusing on what you love and becoming an expert in your field, you can prove yourself and make your own opportunities. Additionally, having a practical and simplified approach to life and work can help you navigate complex situations and succeed in the face of adversity.

    • Fear of the unknown and lack of determination vs curiosity and determinationEmbracing risk and curiosity can lead to great achievements despite potential dangers, while fear and lack of determination can hinder progress.

      Fear of the unknown and lack of determination can hinder progress, while embracing risk and curiosity can lead to great achievements. Chuck Yeager, the first person to break the sound barrier, faced opposition from a civilian pilot who demanded a large sum of money to attempt the dangerous mission. This delay led to the Air Corps taking over the project and Yeager's eventual success. However, the fear of the unknown and potential dangers at supersonic speeds made the mission extremely risky. Despite this, Yeager approached life with a "eat, drink, and be merry" attitude and enjoyed every minute of it. The contrast between Yeager's determination and the other pilot's lack of interest in understanding the technology highlights the importance of being curious and dedicated to one's goals.

    • Chuck Yeager's family struggled while he thrived as a test pilotDespite harsh living conditions for his family, Chuck Yeager's self-reliance and determination fueled his success as a test pilot. Strong bonds with fellow pilots formed through shared experiences and camaraderie.

      Self-reliance and determination were key factors in Chuck Yeager's success as a test pilot, even when faced with challenging personal circumstances. While Yeager relied on himself, his family lived in harsh conditions, barely making ends meet. Despite this, they persevered and found joy in unexpected places, like the hotel, bar, and airstrip run by the legendary Pancho Barnes. Barnes, a female pilot and businesswoman, provided a much-needed escape and camaraderie for the test pilots. Her place became a hub for unwinding and bonding over their shared experiences and love for flying. Despite the physical and mental stresses of their dangerous job, the pilots formed strong bonds with each other, often choosing to spend time with each other over their families or wives. This sense of camaraderie and shared experiences fueled their passion for flying and their willingness to take risks, even in the face of danger.

    • Chuck's humble personality and joy of flying rememberedChuck's legacy is not his world-famous accomplishments, but his humility and love for flying that brought him joy and fulfillment.

      Chuck's friend remembers him not for his world-famous accomplishments, but for his down-to-earth personality and the fun times they shared. Despite becoming a legendary figure after breaking the sound barrier, Chuck remained humble and focused on the joy of flying. He was a friend who lived life to the fullest, shared crazy experiences, and never let fame get in the way of his happiness. The good old days, as Chuck looked back on them, were the time he spent with his friends in the middle of nowhere, living a cloistered life and doing what he loved. This perspective, driven by an obsessive love for flying, gave meaning to Chuck's life.

    • The Dangers of Overconfidence and Disregard for Necessary PrecautionsOverconfidence and ignoring valuable information can lead to accidents and poor performance. Learn from everyone around you to prevent mistakes and improve overall results.

      Overconfidence and disregard for valuable information can lead to disastrous consequences, as seen in the story of Scott Crossfield. Despite being a skilled pilot, his arrogance led him to disregard necessary precautions and instructions, resulting in an incident where he flew a plane through a hangar. The opposite of this attitude is learning from everyone around you, or "going to school on everyone." This approach can help prevent accidents and improve overall performance. The story also highlights the dangers of complexity and the potential for mistakes in advanced technology, making it crucial to pay close attention to details and follow instructions carefully. Ultimately, the section serves as a reminder of the importance of humility, openness to learning, and adherence to safety protocols.

    • From Rural Florida to Aviation PioneerDespite a difficult childhood and lack of formal education, determination and resilience led Jackie Cochran to become a renowned aviatrix, businesswoman, and influential figure in aviation history.

      Determination and resilience can lead to remarkable success, even against great odds. Jackie Cochran, a woman who grew up poor and without a formal education in rural Florida, went on to become a renowned aviatrix, businesswoman, and influential figure in aviation history. Despite a difficult childhood, she persevered and eventually founded her own cosmetics company before discovering her passion for flying. Her tenacity and ambition eventually caught the attention of influential figures in the aviation industry, leading to a storied career and friendships with powerful figures like Floyd Odlum and several U.S. presidents. Her story serves as a reminder that one's background does not determine their future and that the drive to succeed can lead to incredible accomplishments.

    • The importance of being in the right place at the right timeHard work, continuous learning, seizing opportunities, experience, and a willingness to learn from fear can lead to success in any field.

      Being in the right place at the right time with the right skills is crucial for success, as illustrated by the experiences of Chuck Yeager. He emphasizes the importance of hard work, continuous learning, and seizing opportunities that only exist in certain historical moments. Additionally, experience and a willingness to learn from it are key factors in becoming the best in any field. Fear can also be used as a tool to drive improvement and push beyond limits. Ultimately, life and flying share the unpredictability that requires constant adaptation and readiness.

    • Keep enjoying life and pursuing passionsEmbrace life, find joy in activities, and never give up on passions, regardless of age or circumstances.

      No matter what age or circumstances, it's essential to keep enjoying life and pursuing passions. The speaker shares his experience as a flight surgeon who continues to fly, not out of nostalgia, but because he loves it. He encourages listeners not to erect barriers and cut themselves off from lifelong enjoyments due to age. Instead, they should find pleasure in living and keep learning new things. The speaker emphasizes that life is not an end in itself, and it's essential to enjoy the years remaining. He also recommends the book he mentioned in the podcast, which he believes will improve listeners' lives. Overall, the message is to keep living life to the fullest, finding joy in the activities we enjoy, and never giving up on our passions.

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    #354 Sam Walton: The Inside Story of America's Richest Man

    #354 Sam Walton: The Inside Story of America's Richest Man

    What I learned from reading Sam Walton: The Inside Story of America's Richest Man by Vance Trimble. 

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    (2:30) Sam Walton built his business on a very simple idea: Buy cheap. Sell low. Every day. With a smile.

    (2:30) People confuse a simple idea with an ordinary person. Sam Walton was no ordinary person.

    (4:30) Traits Sam Walton had his entire life: A sense of duty. Extreme discipline. Unbelievable levels of endurance.

    (5:30) His dad taught him the secret to life was work, work, work.

    (5:30) Sam felt the world was something he could conquer.

    (6:30) The Great Depression was a big leveler of people. Sam chose to rise above it. He was determined to be a success.

    (11:30) You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you’re too inefficient. — Sam Walton: Made In America by Sam Walton. (Founders #234)

    (15:30) He was crazy about satisfying customers.

    (17:30) The lawyer saw Sam clenching and unclenching his fists, staring at his hands. Sam straightened up. “No,” he said. “I’m not whipped. I found Newport, and I found the store. I can find another good town and another store. Just wait and see!”

    (21:30) Sometimes hardship can enlighten and inspire. This was the case for Sam Walton as he put in hours and hours of driving Ozark mountain roads in the winter of 1950. But that same boredom and frustration triggered ideas that eventually brought him billions of dollars. (This is when he learns to fly small planes. Walmart never happens otherwise)

    (33:30) At the start we were so amateurish and so far behind K Mart just ignored us. They let us stay out here, while we developed and learned our business. They gave us a 10 year period to grow.

    (37:30) And so how dedicated was Sam to keeping costs low? Walmart is called that in part because fewer letters means cheaper signs on the outside of a store.

    (42:30) Sam Walton is tough, loves a good fight, and protects his territory.

    (43:30) His tactics later prompted them to describe Sam as a modern-day combination of Vince Lombardi (insisting on solid execution of the basics) and General George S. Patton. (A good plan, violently executed now, is better than a perfect plan next week.)

    (43:30) Hardly a day has passed without Sam reminding an employee: "Remember Wal-Mart's Golden Rule: Number one, the customer Is always right; number two, if the customer isn't right, refer to rule number one.”

    (46:30) The early days of Wal-Mart were like the early days of Disneyland: "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)

    (1:04:30) Sam Walton said he took more ideas from Sol Price than any other person. —Sol Price: Retail Revolutionary by Robert Price. (Founders #304)

    (1:07:30) Nothing in the world is cheaper than a good idea without any action behind it.

    (1:07:30)  Sam Walton: Made In America  (Founders #234)

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    #353 How To Be Rich by J. Paul Getty

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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.

    (6:00) I acted as my own geologist, legal advisor, drilling superintendent, explosives expert, roughneck and roustabout.

    (8:00) Michael Jordan: The Life by Roland Lazenby. (Founders #212) 

    (12:00) Control as much of your business as possible. You don’t want to have to worry about what is going on in the other guy’s shop.

    (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.

    (22:00) 98 percent of our attention was devoted to the task at hand. We are believers in Carlyle's Prescription, that the job a man is to do is the job at hand and not see what lies dimly in the distance. — Charlie Munger

    (27:00) Entrepreneurs want to create their own security.

    (34:00) Example is the best means to instruct or inspire others.

    (37:00) Long orders, which require much time to prepare, to read and to understand are the enemies of speed. Napoleon could issue orders of few sentences which clearly expressed his intentions and required little time to issue and to understand.

    (38:00) A Few Lessons for Investors and Managers From Warren Buffett by Warren Buffett and Peter Bevelin. (Founders #202) 

    (41:00) Two principles he repeats:

    Be where the work is happening.

    Get rid of bureaucracy.

    (43:00) Years ago, businessmen automatically kept administrative overhead to an absolute minimum. The present day trend is in exactly the opposite direction. The modern business mania is to build greater and ever greater paper shuffling empires.

    (44:00) Les Schwab Pride In Performance: Keep It Going!by Les Schwab (Founders #330) 

    (46:00) The primary function of management is to obtain results through people.

    (50:00) the truly great leader views reverses, calmly and coolly. He is fully aware that they are bound to occur occasionally and he refuses to be unnerved by them.

    (51:00) There is always something wrong everywhere.

    (51:00) Don't interrupt the compounding. It’s all about the long term. You should keep a fortress of cash, reinvest in your business, and use debt sparingly. Doing so will help you survive to reap the long-term benefits of your business.

    (54:00) You’ll go much farther if you stop trying to look and act and think like everyone else.

    (55:00) The line that divides majority opinion from mass hysteria is often so fine as to be virtually invisible.

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    #352 J. Paul Getty: The Richest Private Citizen in America

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    Get access to Founders Notes here

    You can also ask SAGE (the Founders Notes AI assistant) any question and SAGE will read all my notes, highlights, and every transcript from every episode for you.

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    (2:00) Vice President Nelson Rockefeller did me the honor of saying that my entrepreneurial success in the oil business put me on a par with his grandfather, John D. Rockefeller Sr. My comment was that comparing me to John D. Sr. was like comparing a sparrow to an eagle. My words were not inspired by modesty, but by facts.

    (8:00) On his dad sending him to military school: The strict, regimented environment was good for me.

    (20:00) Entrepreneurs are people whose mind and energies are constantly being used at peak capacity.

    (28:00) Advice for fellow entrepreneurs: Don’t be like William Randolph Hearst. Reinvest in your business. Keep a fortress of cash. Use debt sparingly.

    (30:00) The great entrepreneurs I know have these traits:

    -Devoted their minds and energy to building productive enterprises (over the long term)

    -They concentrated on expanding

    -They concentrated on making their companies more efficient 

    -They reinvest heavily in to their business (which can help efficiency and expansion )

    -Always personally involved in their business

    -They know their business down to the ground

    -They have an innate capacity to think on a large scale

    (34:00) Five wives can't all be wrong. As one of them told me after our divorce: "You're a great friend, Paul—but as a husband, you're impossible.”

    (36:00) My business interests created problems [in my marriages]. I was drilling several wells and it was by no means uncommon for me to stay on the sites overnight or even for two days or more.

    (38:00) A hatred of failure has always been part of my nature and one of the more pronounced motivating forces in my life.  Once I have committed myself to any undertaking, a powerful inner drive cuts in and I become intent on seeing it through to a satisfactory conclusion.

    (38:00) My own nature is such that I am able to concentrate on whatever is before me and am not easily distracted from it.

    (42:00) There are times when certain cards sit unclaimed in the common pile, when certain properties become available that will never be available again. A good businessman feels these moments like a fall in the barometric pressure. A great businessman is dumb enough to act on them even when he cannot afford to. — The Fish That Ate the Whale: The Life and Times of America's Banana King by Rich Cohen. (Founders #255)

    (47:00) [On transforming his company for the Saudi Arabia deal] The list of things to be done was awesome, but those things were done.

    (53:00) Churchill to his son: Your idle and lazy life is very offensive to me. You appear to be leading a perfectly useless existence.

    (54:00) My father's influence and example where the principle forces that formed my nature and character.

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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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    #351 The Founder of Rolex: Hans Wilsdorf

    #351 The Founder of Rolex: Hans Wilsdorf

    What I learned from reading about Hans Wilsdorf and the founding of Rolex.

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    Build relationships at the Founders Conference on July 29th-July 31st in Scotts Valley, California

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

    Get access to Founders Notes here

    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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    ----

    (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.

    (16:00) Clearly, the companies for whom the economics of twenty-four-hour news would have made the most sense were the Big Three broadcasters. They already had most of what was needed— studios, bureaus, reporters, anchors almost everything but a belief in cable.   —  Ted Turner's Autobiography (Founders #327)

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

    (27:00)   Rolex was effectively the first watch brand to have real marketing dollars put behind a watch. Rolex did this in a concentrated way and they've continued to do it in a way that is simply just unmatched by others in their industry.

    (28:00) It's tempting during recession to cut back on consumer advertising. At the start of each of the last three recessions, the growth of spending on such advertising had slowed by an average of 27 percent. But consumer studies of those recessions had showed that companies that didn't cut their ads had, in the recovery, captured the most market share. So we didn't cut our ad budget. In fact, we raised it to gain brand recognition, which continued advertising sustains. — Four Seasons: The Story of a Business Philosophy by Isadore Sharp. (Founders #184)

    (32:00) Social proof is a form of leverage. — Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger. (Founders #329)

    (34:00) What really matters is Hans understood the opportunity better than anybody else, and invested heavily in developing the technology to bring his ideas to fruition.

    (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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    #350 How To Sell Like Steve Jobs

    #350 How To Sell Like Steve Jobs

    What I learned from reading The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience by Carmine Gallo 

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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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    #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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    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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    (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) 

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    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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    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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    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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    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

    #169 David Ogilvy (The King of Madison Avenue)

    #169 David Ogilvy (The King of Madison Avenue)

    What I learned from reading The King of Madison Avenue: David Ogilvy and the Making of Modern Advertising by Kenneth Roman. 

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    One characteristic of geniuses, said Einstein, is they are passionately curious. Ogilvy’s great secret was an inquiring mind.In conversation, he never pontificated; he interrogated.

    There were piles of books all over his house, most about successful leaders in business and government. He was interested in how they used their leadership. How they made their money. He was interested in people — people who had accomplished remarkable things.

    Reading Ogilvy’s short autobiography is like having dinner with a charming raconteur.

    His Scottish grandfather is portrayed as cold — hearted, formidable, and successful — and his hero. 

    When you write a book about advertising, you’re competing with midgets. When you write an autobiography, you’re competing with giants.

    He took the occasion to remind everyone that he was not a big shot at school. I wasn’t a scholar. I detested the philistines who ruled the roost. I was an irreconcilable rebel — a misfit. In short, I was a dud. Fellow duds, take heart! There is no correlation between success at school and success in life.

    If you can’t advertise yourself, what hope do you have of being able to advertise anything else?

    Although he entered advertising to make money, Ogilvy had become interested — obsessively interested — in the business itself. He said he had read every book that had been written on the subject, and, as a young man, had reason to believe he would be good at it and would enjoy it. Since American advertising was years ahead of advertising anywhere else, he decided to study the trade where it was done best.

    Nobody, at any level, should be allowed to have anything to do with advertising until he has read this book seven times (Scientific Advertising by Claude Hopkins). Every time I see a bad advertisement, I say to myself, “The man who wrote this copy has never read Claude Hopkins.”

    In print, it should lead with a headline that offers a consumer benefit. Often it should rely on long text packed with facts. “The more you tell, the more you sell,” as he would later preach.

    David also learned something about writing from his time in the intelligence service. Stephenson was a master of the terse note. Memos to him were returned swiftly to the sender with one of three words written at the top of the page: YES, NO, or SPEAK, meaning to come see him.

    Here Ogilvy describes himself as of the day he started the agency: “He is 38 and unemployed. He dropped out of college. He has been a cook, a salesman and a diplomat. He knows nothing about marketing and has never written any copy. He professes to be interested in advertising as a career and is ready to go to work for $5,000 a year. I doubt if any American agency will hire him.

    Like De Gaulle, he felt that praise should be a rare commodity lest you devalue the currency.

    He had a near psychopathic hatred of laziness in all its forms. He was the least lazy person I have ever encountered. His advertising philosophy was shot through with intolerance of sloth. Lazy people accept mediocrity, which he hated.

    You cannot bore people into buying. Committees can criticize advertisements, but they cannot create them. Compromise has no place in advertising. Whatever you do, go the whole hog. You can’t save souls in an empty church.

    American Express built its business in part with an effective direct mail letter that started: “Quite frankly, the American Express Card is not for everyone.”

    I am a lousy copywriter. But a good editor.

    My crusade is in favor of advertising which sells. My war cry is: “We Sell. Or Else.” This has been my philosophy for 50 years, and I have never wavered from it, no matter what the temptations have been.

    Be happy while you’re living, for you’re a long time dead.

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    #106 Bill Walsh (The Score Takes Care of Itself)

    #106 Bill Walsh (The Score Takes Care of Itself)

    What I learned from reading The Score Takes Care of Itself: My Philosophy of Leadership by Bill Walsh. 

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    [0:01] I believe it’s much the same in one’s profession: Superb, reliable results take time. 

    [4:55] How Jack Dorsey describes The Score Takes Care of Itself: He took at team that was at the bottom and brought them to the top. He focused on the details. He didn’t say you need to win games. He said you need to tuck in your shirts. You need to clean your lockers. This is how we answer the phones here. He set a new standard of performance. 

    [6:53] Bill Walsh on his father / What he learned from his early life 

    [10:15] Bill Walsh on why should you care about your standard of performancePursuing your ambitions, especially those of any magnitude, can be grueling and hazardous, and produce agonizing failure along the way, but achieving those goals is among life’s most gratifying and thrilling experiences

    [14:15] A great description of the book: Bill Walsh loved to teach. This is his final lecture on leadership

    [16:20] Bill Walsh built a new culture. He calls it his Standard of Performance. 

    [20:30] Make a commitment to be the best version of yourself— even when your current external results may not warrant that belief 

    [26:16] The prime directive was not victory  

    [28:45] Winners act like winners before their winners  

    [32:20] Bill Walsh experiences the entrepreneurial roller coaster 

    [37:00] An incredible story about his idea of the west coast offense 

    [46:20] Be unswerving in moving towards your goal 

    [47:25] Sweat the little details but the right little details 

    [49:00] Don’t focus on your competitors —spend that time making yourself better so it is harder for them to compete against you 

    [50:00] Don’t let anybody call you a genius / If you sleep on a win you’ll wake up with a loss / Success Disease 

    [54:15] Without a healthy ego you’ve got a big problem  

    [58:05] There is no mystery to mastery  

    [1:03:05] A pretty package will not sell a crappy product  

    [1:04:16] Avoid burnout: Can you imagine how burned out you must be to wait fourteen years to return to doing something you love? 

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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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    #102 Akio Morita (Sony)

    #102 Akio Morita (Sony)

    What I learned from reading Made in Japan: Akio Morita and Sony by Akio Morita. 

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    [0:01] Forty years ago, a small group gathered in a burned-out department store building in war-devastated downtown Tokyo. Their purpose was to found a new company, their optimistic goal was to develop the technologies that would help rebuild Japan's economy.

    [5:00] I was born the first son and fifteenth-generation heir to one of Japan's finest and oldest sake-brewing families. The Morita family has been making sale for three hundred years. Unfortunately, the taste of a couple of generations of Morita family heads was so refined and their collecting skills so acute that the business suffered while they pursued their artistic interests, letting the business take care of itself, or, rather, putting it in other hands. They relied on hired managers to run the Morita company, but to these managers the business was no more than a livelihood, and if the business did not do well, that was to be regretted, but it was not crucial to their personal survival. In the end, all the managers stood to lose was a job. They did not carry the responsibility of the generations, of maintaining the continuity and prosperity of the enterprise and the financial well-being of the Morita family. 

    [8:18] Tenacity, perseverance, and optimism are traits that have been handed down to me through the family genes.

    [9:25] I was taught that scolding subordinates and looking for people to blame for problems—seeking scapegoats—is useless. These concepts have stayed with me and helped me develop the philosophy of management that served me very well.

    [10:28] I had to teach myself because the subjects I was really interested in were not taught in my school in those days.

    [14:09] The emperor, who until now had never before spoken directly to his people, told us the immediate future would be grim. He said that we could “pave the way for a grand peace for all generations to come," but we had to do it "by enduring the unendurable and suffering what is insufferable."

    [23:58] When some of my relatives came to see me, they were so shocked by the shabby conditions that they thought I had become an anarchist. They could not understand how, if I was not a radical, I could choose to work in a place like that.

    [24:28] Ibuka and I had often spoken of the concept of our new company as an innovator, a clever company that would make new high technology products in ingenious ways.

    [29:36] We were engineers and we had a big dream of success. We thought that in making a unique product, we would surely make a fortune. I then realized that having unique technology and being able to make unique products are not enough to keep a business going. You have to sell the products, and to do that you have to show the potential buyer the real value of what you are selling. 

    [32:20] There was an acute shortage of stenographers because so many people had been pushed out of school and into war work. Until that shortage could be corrected, the courts of Japan were trying to cope with a small, overworked corps of court stenographers. We were able to demonstrate our machine for the Japan Supreme Court, and we sold twenty machines almost instantly! Those people had no difficulty realizing how they could put our device to practical use; they saw the value in the tape recorder immediately.

    [38:03] Marketing is really a form of communication. We had to educate our customers to the uses of our products.

    [39:15] We would often have the market to ourselves for a year or more before the other companies would be convinced that the product would be a success. And we made a lot of money, having the market all to ourselves.

    [40:20] The public does not know what is possible, but we do. So instead of doing a lot of market research, we refine our thinking on a product and its use and try to create a market for it by educating and communicating with the public.

    [42:33] Everybody gave me a hard time. It seemed as though nobody liked the idea [the Walkman]. “It sounds like a good idea, but will people buy it if it doesn't have recording capability? I don't think so." I said, “Millions of people have bought car stereo without recording capability and I think millions will buy this machine.

    [46:38] "We definitely want some of these. We will take one hundred thousand units." One hundred thousand units! I was stunned. It was an incredible order, worth several times the total capital of our company. When he told me that there was one condition: we would have to put the Bulova name on the radios. That stopped me. We wanted to make a name for our company on the strength of our own products. We would not produce radios under another name. When I would not budge, he got short with me. "Our company name is a famous brand name that has taken over fifty years to establish," he said. "Nobody has ever heard of your brand name. Why not take advantage of ours?" I understood what he was saying, but I had my own view. “Fifty years ago," I said, “your brand name must have been just as unknown as our name is today. I am here with a new product, and I am now taking the first step for the next fifty years of my company. Fifty years from now I promise you that our name will be just as famous as your company name is, today."

    [49:04] When I attended middle school, discipline was very strict, and this included our physical as well as our mental training. Our classrooms were very cold in winter; we didn't even have a heater; and we were not allowed to wear extra clothes. In the navy,I had hard training. In boot camp every morning we had to run a long way before breakfast. In those days I did not think of myself as a physically strong person, and yet under such strict training I found I was not so weak after all, and the knowledge of my own ability gave me confidence in myself that I did not have before. It is the same with mental discipline; unless you are forced to use your mind, you become mentally lazy and you will never fulfill your potential.

    [52:06] Norio Ohga, who had been a vocal arts student at the Tokyo University of Arts when he saw our first audio tape recorder back in 1950. He was a great champion of the tape recorder, but he was severe with us because he didn't think our early machine was good enough.He was right, of course; our first machine was rather primitive. We invited him to be a paid critic even while he was still in school. His ideas were very challenging. He said then, "A ballet dancer needs a mirror to perfect her style, her technique."

    [54:21] Nobody can live twice, and the next twenty or thirty years is the brightest period of your life. You only get it once. When you leave the company thirty years from now or when your life is finished, I do not want you to regret that you spent all those years here. That would be a tragedy. I cannot stress the point too much that this is your responsibility to yourself. So I say to you, the most important thing in the next few months is for you to decide whether you will be happy or unhappy here.

    [59:40] My argument again and again was that by saving money instead of investing it in the business you might gain profit on a short-term basis, but in actual fact, you would be cashing in the assets that had been built up in the past.

    [1:00:00] One must prepare the groundwork among the customers before you can expect success in the marketplace. It is a time-honored Japanese gardening technique to prepare a tree for transplanting by slowly and carefully binding the roots over a period of time, bit by bit, to prepare the tree for the shock of the change it is about to experience. This process, called Nemawashi, takes time and patience, but it rewards you, if it is done properly, with a healthy transplanted tree. Advertising and promotion for a brand-new, innovative product is just as important.

    [1:01:19] If Japanese clients come into the office of a new and struggling company and see plush carpet and private offices and too much comfort, they become suspicious that this company is not serious, that it is devoting too much thought and company resources to management's comfort, and perhaps not enough to the product or to potential customers. Too often I have found in dealing with foreign companies that such superfluous things as the physical structure and office decor take up a lot more time and attention and money than they are worth.

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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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    #194 Ernest Hemingway (Writer, Sailor, Soldier, Spy)

    #194 Ernest Hemingway (Writer, Sailor, Soldier, Spy)

    What I learned from reading Writer, Sailor, Soldier, Spy: Ernest Hemingway's Secret Adventures, 1935-1961 by Nicholas Reynolds. 

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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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    #50 Marc Andreessen's Blog Archive

    #50 Marc Andreessen's Blog Archive

    What I learned from reading  The Pmarca Blog Archive Ebook by Marc Andreessen.

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    [0:01] In this series of posts I will walk through some of my accumulated knowledge and experience in building high-tech startups.  

    [3:15] Great things about doing a startups: 

    Most fundamentally, the opportunity to be in control of your own destiny — you get to succeed or fail on your own, and you don’t have some bozo telling you what to do. For a certain kind of personality, this alone is reason enough to do a startup.

    The opportunity to create something new — the proverbial blank sheet of paper. You have the ability — actually, the obligation— to imagine a product that does not yet exist and bring it into existence, without any of the constraints normally faced by larger companies.

    The opportunity to have an impact on the world — to give people a new way to communicate, a new way to share information, a new way to work  together, or anything else you can think of that would make the world a better place. 

    The ability to create your ideal culture and work with a dream team of people you get to assemble yourself. Want your culture to be based on people who have fun every day and enjoy working together? Or, are hyper-competitive both in work and play? Or, are super-focused on creating innovative new rocket science.

    And finally, money —startups done right can of course be highly lucrative. This is not just an issue of personal greed — when things go right, your team and employees will themselves do very well and will be able to support their families, send their kids to college, and realize their dreams, and that’s really cool. And if you’re really lucky, you as the entrepreneur can ultimately make profound philanthropic gifts that change society for the better.  

    [5:15] However, there are many more reasons to not do a startup. 

    [5:28] First, and most importantly, realize that a startup puts you on an emotional rollercoaster unlike anything you have ever experienced. You will flip rapidly from a day in which you are euphorically convinced you are going to own the world, to a day in which doom seems only weeks away and you feel completely ruined, and back again.Over and over and over. 

    [6:04] Some days things will go really well and some things will go really poorly. And the level of stress that you’re under generally will magnify those transient data points into incredible highs and unbelievable lows at whiplash speed and huge magnitude.  

    [6:42] The best thing about startups: you only ever experience two emotions, euphoria and terror, and I find that a lack of sleep enhances them both

    [7:09] In a startup, absolutely nothing happens unless you make it happen. 

    [8:19] As a founder of a startup trying to hire your team, you’ll run into this again and again: When Jim Clark decided to start a new company in 1994, I was one of about a dozen people at various Silicon Valley companies he was talking to about joining him in what became Netscape. I was the only one who went all the way to saying “yes” (largely because I was 22 and had no reason not to do it). The rest flinched and didn’t do it. And this was Jim Clark, a legend in the industry who was coming off of the most successful company in Silicon Valley in 1994 —Silicon Graphics Inc. How easy do you think it’s going to be for you?  

    [10:50] The fact is that startups are incredibly intense experiences and take a lot out of people in the best of circumstances. 

    [14:03]  And so you start to wonder—what correlates the most to success— team, product, or market? Or, more bluntly, what causes success? And, for those of us who are students of startup failure—what’s most dangerous: a bad team, a weak product, or a poor market?

    [15:16] If you ask entrepreneurs or VCs which of team, product, or market is most important, many will say team. This is the obvious answer, in part because in the beginning of a startup, you know a lot more about the team than you do the product, which hasn’t been built yet, or the market, which hasn’t been explored.  

    [16:32] Personally, I’ll take the third position — I’ll assert that market is the most important factor in a startup’s success or failure. Why? In a great market — a market with lots of real potential customers— the market pulls product out of the startup. The market needs to be fulfilled and the market will be fulfilled, by the first viable product that comes along.  

    [17:33] Conversely, in a terrible market, you can have the best product in the world and an absolutely killer team, and it doesn’t matter—you’re going to fail.  

    [18:53] You can obviously screw up a great market — and that has been done, and not infrequently—but assuming the team is baseline competent and the product is fundamentally acceptable, a great market will tend to equal success and a poor market will tend to equal failure. Market matters most.  

    [19:32]  Markets that don’t exist don’t care how smart you are

    [20:15] The only thing that matters is getting to product/market fit.  

    [21:00] Lots of startups fail before product/market fit ever happens. My contention, in fact, is that they fail because they never get to product/market fit. 

    [22:59] The most important thing you need to know going into any discussion or interaction with a big company is that you’re Captain Ahab, and the big company is Moby Dick. When Captain Ahab went in search of the great white whale Moby Dick, he had absolutely no idea whether he would find Moby Dick. What happened was entirely up to Moby Dick. And Captain Ahab would never be able explain to himself —or anyone else— why Moby Dick would do whatever it was he’d do. You’re Captain Ahab, and the big company is Moby Dick.  

    [29:30] A startup’s initial business plan doesn’t matter that much, because it is very hard to determine up front exactly what combination of product and market will result in success. By definition you will be doing something new, in a world that is a very uncertain place. You are simply not going to know whether your initial idea will work as a product and a business, or not. And you will probably have to rapidly evolve your plan —possibly every aspect of it — as you go.  

    [30:03] It is therefore much more important for a startup to aggressively seek out a big market, and product/market fit within that market, once the startup is up and running, than it is to try to plan out what you are going to do in great detail ahead of time. The history of successful startups is quite clear on this topic

    [38:38] The point is this: If Thomas Edison didn’t know what he had when he invented the photograph while he thought he was trying to create better industrial equipment for telegraph operators. . .what are the odds that you—or any entrepreneur— is going to have it all figured out up front?  

    [40:00] The first rule of career planning: Do not plan your career. The world is an incredibly complex place and everything is changing all the time. You can’t plan your career because you have no idea what’s going to happen in the future. Career planning = career limiting. 

    [40:46] The second rule of career planning: Instead of planning your career, focus on pursuing opportunities.  

    [41:06] Opportunities that present themselves to you are the consequence— at least partially — of being in the right place at the right time. They tend to present themselves when you’re not expecting it —and often when you are engaged in other activities that would seem to preclude you from pursuing them. And they come and go quickly — if you don’t jump all over an opportunity, someone else generally will and it will vanish.

    [42:40] I am continually amazed at the number of people who are presented with an opportunity and pass. There’s your basic dividing line between the people who shoot up in their careers like a rocket ship, and those who don’t — right there.  

    [42:58] I am also continually amazed at the number of people who coast through life and don’t go and seek out opportunities even when they know in their gut what they’d really like to do. Don’t be one of those people. Life is way too short.  

    [43:17] The world is a very malleable place. If you know what you want, and you go for it with maximum energy and drive and passion, the world will often reconfigure itself around you much more quickly and easily than you would think.  

    [50:44] There may be times when you realize that you are dissatisfied with your field — you are working in enterprise software, for example, but you’d really rather be working on green tech or in a consumer Internet company. Jumping from one field into another is always risky because your specific skills and contacts are in your old field, so you’ll have less certainty of success in the new field. This is almost always a risk worth taking– standing pat and being unhappy about it has risks of its own, particularly to your happiness. And it is awfully hard to be highly successful in a job or field in which one is unhappy.  

    [52:52] Finally, pay attention to opportunity cost at all times. Doing one thing means not doing other things. This is a form of risk that is very easy to ignore, to your detriment. 

    [53:33] Marc’s final takeaway for thinking about opportunities: If you really are high-potential, you’re naturally going to be seeking out risks in your career in order to maximize your level of achievement.  

    [55:46] Graduating with a technical degree is like heading out into the real world armed with an assault rifle instead of a dull knife.  

    [56:19] Don’t worry about being a small fish in a big pond—you want to always be in the best pond possible, because that is how you will get exposed to the best people and the best opportunities in your field

    [58:26] Capitalism rewards things that are both rare and valuable. 

    [56:52] Seek to be a double/triple/quadruple threat. . .The fact is, this is even the secret formula to becoming a CEO. All successful CEO’s are like this. They are almost never the best product visionaries, or the best salespeople, or the best marketing people, or the best finance people, or even the best managers, but they are top 25% in some set of those skills, and then all of a sudden they’re qualified to actually run something important.  

    [1:00:50] Learn how to sell. I don’t mean, learn how to sell someone a set of steak knives they don’t need — although I hear that can be quite an education by itself. I mean, learn how to convince people that something is in their best interest to do, even when they don’t realize it up front.  

    [1:06:06] In my opinion, it’s now critically important to get into the real world and really challenge yourself — expose yourself to risk— put yourself in situations where you will succeed or fail by your own decisions and actions, and where that success or failure will be highly visible. Why? If you’re going to be a high achiever, you’re going to be in lots of situations where you’re going to be quickly making decisions in the presence of incomplete or incorrect information, under intense time pressure, and often under intense political pressure. You’re going to screw up — frequently — and the screwups will have serious consequences, and you’ll feel incredibly stupid every time. It can’t faze you — you have to be able to just get right back up and keep on going. That may be the most valuable skill you can ever learn. Make sure you start learning it early.  

    [1:07:20] When picking an industry to enter, my favorite rule of thumb is this: Pick an industry where the founders of the industry—the founders of the important companies in the industry—are still alive and actively involved.  

    —-

    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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