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    • The Man Behind the Nobel Prize: Alfred Nobel's Contrasting Personal and Public LivesAlfred Nobel, inventor of dynamite and founder of the Nobel Prizes, led a private life filled with self-absorption, loneliness, and deep introspection, contrasting with his public image as a successful entrepreneur and inventor.

      Alfred Nobel, despite his humble self-perception and discomfort with recognition, made a significant impact on the world through his inventions, particularly dynamite, and the establishment of the Nobel Prizes. His intense work ethic, long hours, and aversion to publicity contrasted with his deep introspection and melancholy. Nobel's private letters reveal his self-absorption, loneliness, and belief in the absurdity of existence, while his actions left a lasting legacy. Inspired by the stories of famous last names, the reader discovered Nobel's biography in search of the man behind the Nobel Prize, and was struck by the contrast between his infamy as an inventor and entrepreneur and his humility and melancholy.

    • Nobel's Complex Personality: Inventor, Entrepreneur, and MisanthropeNobel, a brilliant inventor and entrepreneur, learned from his father's mistakes and built a successful business empire, while also holding a deep disdain for humanity. He established the Nobel Prizes to recognize outstanding achievements.

      Alfred Nobel, the inventor of dynamite and a key figure in the modern explosives industry, had a complex personality. He was a brilliant inventor and entrepreneur, but also described himself as a misanthrope, or someone who disliked humankind. Despite his prickly personality, Nobel could engage in thought-provoking conversations that left his audience delighted. His letters reveal a man who was capable of soaring from one subject to another with ease, yet he held a deep disdain for his fellow humans. Nobel's father was also an inventor and entrepreneur, but he was unable to maintain success over the long term. Nobel learned from his father's mistakes and became a successful chemist, inventor, and entrepreneur. His business empire made him extremely wealthy, and he also invested in and advised his brother's oil company, which was one of the largest in the world at the time. At the time of his death, a significant portion of his net worth was tied up in oil. Additionally, he took over and turned around a company that had been in business for 350 years. Nobel's legacy extends beyond his inventions, as he also established the Nobel Prizes to recognize outstanding achievements in various fields.

    • Alfred Nobel's Business Philosophy: Focus on FinancesAlfred Nobel's success stemmed from his focus on financial responsibility, learned from his father's mistakes, and his natural talents.

      Alfred Nobel, despite his constant ill health and bitter childhood memories, became a remarkably successful entrepreneur by focusing on his business, specifically his dynamite company. He was driven by a sense of financial responsibility instilled in him by his father's financial mismanagement. Nobel's personality traits of brains, discipline, and enterprise set him apart from a young age. His criticism of both his father and brother for prioritizing project execution over financial planning was a defining characteristic of his business philosophy. This emphasis on financial responsibility, combined with his natural talents, allowed him to overcome adversity and achieve great success. Nobel's story shares similarities with other entrepreneurial figures, such as Nikola Tesla and Edison, who also prioritized the financial aspects of their businesses.

    • The Importance of Education and CuriosityAlfred Nobel's father valued education and nurtured his son's curiosity, leading him to become a self-made genius in chemistry. However, his reliance on a single customer led to financial instability and bankruptcy, teaching him the importance of financial prudence.

      Knowledge and education are invaluable assets that can significantly impact one's life. Emmanuel Nobel, Alfred's father, recognized this and prioritized providing the best education for his sons. Alfred, in particular, was a voracious learner, with a strong affinity for chemistry. His teachers, like Petaroff, played a crucial role in nurturing his curiosity and identifying his genius. Despite living in a time of political turmoil and censorship in Russia, Alfred's determination to be self-reliant and master of his own situation drove him to build a successful business. However, his relentless work ethic and dependence on a single large customer, the Russian government, ultimately led to financial instability and bankruptcy for his father. This experience taught Alfred the importance of financial prudence and avoiding overreliance on external resources.

    • Belief in inventions for humanity's benefit and financial disciplineAlfred Nobel, despite past poverty, believed in inventions' benefits and maintained financial discipline, leading to the creation of dynamite despite its destructive potential.

      Alfred Nobel, despite his young age and experiences of poverty, believed that inventions were for the benefit of all humanity. He held a strong belief in the intrinsic reward of work and was passionate about financial discipline. This belief stemmed from his past experiences of poverty and his father's financial mismanagement. Nobel's partnership with Andrew Carnegie, as described in "Meet You in Hell," highlights their shared focus on cost control and financial management. Nobel's disagreements with his father and later his brother over financial matters caused him significant pain. A turning point in Nobel's life came when he was introduced to nitroglycerin, an explosive invention that later led to the creation of dynamite. Despite the destructive potential of his invention, Nobel's focus on financial discipline and the belief that inventions were for the benefit of all humanity remained consistent throughout his life.

    • Alfred Nobel's Obsession with Nitroglycerin and the Discovery of DynamiteAlfred Nobel's obsession with nitroglycerin led to the discovery of dynamite, revolutionizing industries and making him a wealthy inventor. Despite family conflicts, he prioritized love and mutual consideration in his relationships.

      Alfred Nobel, despite warnings and the dangers involved, became fascinated by the mysterious and seemingly inexplicable behavior of nitroglycerin. This obsession led him to discover dynamite, which revolutionized industries such as railroad construction. However, his father attempted to claim credit for the invention, leading to conflict between them. Nobel's determination to be the master of his own inventions resulted in him taking a different path and ultimately being recognized for his groundbreaking work. The demand for controlled explosions was high due to the expansion of railroads and the military, making dynamite a valuable and in-demand product. Despite the potential for conflict, Nobel prioritized family love and mutual consideration in maintaining relationships.

    • Alfred Nobel's fear of poverty fueled his financial successAlfred Nobel's fear of poverty drove him to meticulously manage every financial transaction, fueling his success as an inventor and industrialist

      Alfred Nobel's determination to never experience poverty again drove him to meticulously manage every financial transaction, no matter how small, and fueled his success as an inventor. Despite facing financial instability in his early business ventures, Alfred's fear of poverty and sense of responsibility for his family's wellbeing pushed him to constantly innovate and avoid repeating his father's financial struggles. This intense focus on financial management, combined with his natural aptitude for numbers, helped Alfred build a successful business empire and become a global industrialist.

    • Alfred Nobel's tragic discovery of dynamiteAlfred Nobel's determination and persistence led to the invention of dynamite despite the risks and personal tragedy.

      Alfred Nobel's invention of dynamite was a groundbreaking discovery that served as the foundation for the modern application of explosives. He was a pioneering inventor who worked alone and saw himself as an explorer of scientific knowledge, but the cost of being a pioneer was tragically high. Nobel's brother Emile caused a nitroglycerin explosion that killed him and caused devastation to the surrounding area. Despite the risks, Nobel's intuition and determination led to his successful invention and the establishment of a business empire. Nobel and Edison, two of history's most renowned inventors, shared a belief in the value of persistence and experimentation, even when faced with numerous failures.

    • Alfred Nobel's Early Entrepreneurial ChallengesDespite starting with limited resources, Alfred Nobel's determination and adaptability led him to build a global explosives industry

      Alfred Nobel, the inventor of dynamite, faced numerous challenges in the early stages of his company, including regulations and financial constraints. To overcome these obstacles, Nobel proved his entrepreneurial skills by manufacturing explosives on a barge and handling various roles in his company, from managing director to publicity director. His determination and innovation allowed him to start an industry that would span the world, despite starting with less than $25,000 in working capital. This story highlights the incredible progress one can make in a single lifetime and the importance of perseverance and adaptability in overcoming challenges.

    • Money, fame, and inventions didn't ensure Nobel's happinessDespite wealth, genius, and accomplishments, Nobel struggled with depression and misanthropy, and his invention of dynamite didn't bring peace as hoped, but served as a cautionary tale

      Money and fame do not guarantee happiness or fulfillment in life. Alfred Nobel, despite his immense wealth, genius, and accomplishments, struggled with clinical depression and misanthropy. He believed that increasing knowledge and education could lead to peace, but his invention of dynamite, a devastating weapon, did not bring about the end of wars as he had hoped. Instead, it served as a cautionary tale about the consequences of creating powerful tools without fully understanding human nature. Despite his optimistic outlook, his letters reveal a man who was often unhappy and disconnected, making him an intriguing yet distant figure.

    • Alfred Nobel's Personal StrugglesDespite professional success, Nobel's personal relationships were marked by negativity and disappointment

      Alfred Nobel, despite his incredible intellect and business success, struggled in his personal relationships and was often consumed by negativity and complaints. His letters to his mistress, Sophie, make up the majority of this book, revealing his whiny and immature behavior. This contrasts sharply with his optimized approach to business, where he sought independence and refused to let others control his inventions or finances. Despite his eventual acceptance of business failures and setbacks, his personal life remained a source of disappointment and loneliness. It's a reminder that success in one area does not guarantee happiness in all aspects of life.

    • Prioritizing Relationships and Delegating TasksWe should prioritize relationships and delegate tasks to maintain a balanced and fulfilling life, as recognized by Alfred, a brilliant inventor who regretted neglecting friendships and tried to do everything alone, leading to exhaustion.

      Wealth and material possessions do not guarantee happiness or fulfillment. Alfred, a brilliant inventor, despite his immense fortune, experienced clinical depression and a lack of deep relationships. He regretted not prioritizing friendships and connection, a common regret among older people. Alfred's advice to his brother, Ludwig, who ran a giant oil company, was to never do what others could do better. He believed that trying to do everything alone would lead to exhaustion. Despite his own struggles with connection, Alfred recognized the importance of delegating responsibilities and making peace with those who could help his brother's company succeed. This lesson serves as a reminder for us to prioritize relationships and delegate tasks to maintain a balanced and fulfilling life.

    • Partnering with strengthsSuccessful people identify their weaknesses and collaborate with others to complement their strengths, as demonstrated by Alfred Nobel's partnerships and the creation of the Nobel Peace Prize.

      Successful people recognize their weaknesses and find partners or collaborators who complement their strengths. This was a strategy employed by Alfred Nobel, the inventor of dynamite, who formed partnerships to offset his own weaknesses in areas like sales and management. This concept is also evident in the founding of the first quantitative hedge fund and the creation of the Nobel Peace Prize, which came about as a result of Alfred's desire to improve his posthumous reputation. Additionally, Alfred's dedication to his work and sense of duty led him to continue managing his businesses until his death, despite his desire for peace and quiet. Ultimately, his legacy serves as a reminder to fully commit to one's pursuits, even when faced with challenges and adversity.

    • The Importance of Balancing Offense and DefenseProtect your wealth by investing wisely and maintaining a balance between accumulating and safeguarding assets.

      Having both good offense (the ability to make money) and good defense (protecting one's assets) is crucial. The discussion revolved around Alfred Nobel and his mistress who, after marrying someone else, demanded more money from his estate. This woman's actions served as a reminder of the importance of having a strong defense against potential threats to one's wealth. Nobel, a brilliant and hardworking man, emphasized his simplicity and downplayed his needs. He invested most of his money into his experiments and companies, living modestly. Despite his achievements, he was often perceived as just a wealthy man rather than a human being. Nobel's life was marked by loneliness and suffering, but his legacy continues through the Nobel Prizes, which are awarded annually to individuals regardless of ideology, race, sex, or nationality. The story underscores the importance of being mindful of potential threats and maintaining a balance between accumulating wealth and protecting it.

    • Learning from the Stories of Successful IndividualsExplore the lives of brilliant inventors, visionary empire builders, and unbiased humanists to gain valuable insights and apply lessons to your own entrepreneurial journey.

      The subjects discussed in the podcast - a brilliant inventor, visionary empire builder, and unbiased humanist - serve as enduring monuments to their impact and legacy. The podcast also mentioned the option to buy a gift subscription for others, and encouraged listeners to check out the founder's postscript podcast feed for a bonus episode within the next 24 hours as a thank you for support. Additionally, the speaker reminded listeners to grab a copy of the 285 podcast and lectures on entrepreneurship from the Evernote notebook link in the show notes. The podcast is currently on episode 163, with 1,000 more to go. Overall, the podcast emphasizes the importance of learning from the stories of successful individuals and applying those lessons to one's own life and entrepreneurial pursuits.

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

    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.

     A few questions I've asked SAGE recently: 

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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.

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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?

    Get access to Founders Notes here

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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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    (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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    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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    Related Episodes

    #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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    #112 Frank Lloyd Wright

    #112 Frank Lloyd Wright

    What I learned from reading Plagued by Fire: The Dreams and Furies of Frank Lloyd Wright by Paul Hendrickson. 

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    [0:01] Frank Lloyd Wright suffered a personal catastrophe that would have destroyed a man of lesser will and lesser ego. 

    [7:20] Ben Franklin writing about vanity 250 years ago: Most people dislike vanity in others, whatever share they have of it themselves; but I give it fair quarter wherever I meet with it, being persuaded that it is often productive of good to the possessor. 

    [12:38] He held a press conference on Christmas Day to explain his actions. He said ordinary people can not live without rules to guide his conduct. He - Frank Lloyd Wright - is not ordinary. 

    [13:44] Frank Lloyd Wright had a single minded pursuit of his own potential

    [18:50] Nothing is at last sacred but the integrity of your own mind. 

    [19:30] Find something you love to do and don’t stop until you die

    [23:00] Everything is malleable. Including the truth. 

    [25:25] All Frank Lloyd Wright had was a complete faith in himself

    [31:57] Frank Lloyd Wright had a point of view—a conviction— and he tied his point of view to larger ideas

    [35:29] Frank Lloyd Wright was terrible with money: So long as we had the luxuries, the necessities could pretty well take care of themselves.  

    [36:20] The early career of Frank Lloyd Wright / his mentor was one of the greatest architects ever 

    [39:30] You are going to go far. You’ll have a kind of success; I believe the kind you want. Not everybody would pay the price in concentrated hard work and human sacrifice you’ll make for it. 

    [50:05] Wright turned down a fantastic opportunity. He preferred to bet on himself

    [53:28] Wright’s mid life crisis and the abandonment of his family. 

    [56:00] We’d like to be painters, we’d like to be poets. We’d like to be writers, but as everybody knows—we can’t earn any money that way. What do you want to do? When we finally got down to something which the individual says he really wants to do, I will say to him you do that—and uh—forget the money. If you say that getting the money is the most important thing, you will spend your life completely wasting your time...

    You’ll be doing things you don’t like doing in order to go on living, that is to go on doing things you don’t like doing, which is stupid! It is absolutely stupid! Better to have a short life that is full of what you like doing than a long life spent in a miserable way. And after all, if you do really like what you’re doing, it doesn’t matter what it is—somebody is interested in everything—anything you can be interested in, you will find others who are...

    But, it’s absolutely stupid to spend your time doing things you don’t like and to teach our children to follow in the same track. See, what we are doing is, is we’re bringing up children and educating them to live the same sort of lives we are living—in order that they may justify themselves and find satisfaction in life, by bringing up their children, to bring up "their" children, to do the same thing. So, it’s all retch and no vomit—it never gets there. Therefore, it’s so important to consider this question...

    "What do I desire?" —Alan Watts 

    [1:01:50] The volume of work Wright completed after the age of 60 was astonishing. A third of his total output came after the age of 80! 

    [1:17:30] What the tumultuous relationship of his parents gave Frank Lloyd Wright: “A will and inner strength that seems unquantifiable.” 

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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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    #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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    #90 Charlie Munger (Poor Charlie's Almanack)

    #90 Charlie Munger (Poor Charlie's Almanack)

    What I learned from reading Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger.

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    Cicero, learned man that he was, believed in self-improvement so long as breath lasts.

    In business we often find that the winning system goes almost ridiculously far in maximizing and/or minimizing one or a few variables-like the discount warehouses of Costco.

    "Invert, always invert." It is in the nature of things, as Jacobi knew, that many hard problems are best solved only when they are addressed backward.

    It's quite interesting to think about Wal-Mart starting from a single store in Arkansas-against Sears with its name, reputation and all of its billions. How does a guy in Bentonville, Arkansas, with no money, blow right by Sears? And he does it in his own lifetime-in fact, during his own late lifetime because he was already pretty old by the time he started out with one little store. He played the chain store game harder and better than else. Walton anyone invented practically nothing. But he copied everything anybody else ever did that was smart. So he blew right by them all.

    Charlie's redundancy in expressions and examples is purposeful: for the kind of deep "fluency" he advocates, he knows that repetition is the heart of instruction.

    He enjoyed challenging the conventional wisdom of teachers and fellow students with his ever-increasing knowledge gained through voracious reading, particularly biographies.

    He never forgot the sound principles taught by his grandfather: to concentrate on the task immediately in front of him and to control spending.

    I would say everything about Charlie is unusual. I've been looking for the usual now for forty years, and I have yet to find it. Charlie marches to his own music, and it's music like virtually no one else is listening to. So, I would say that to try and typecast Charlie in terms of any other human that I can think of, no one would fit. He's got his own mold.

    Charlie Munger has spent a professional lifetime studying lives that have worked well and others that have glitches or have experienced failures.

    Despite his healthy self-image, Charlie would prefer to be anonymous.

    I am a biography nut myself. And I think when you're trying to teach the great concepts that work, it helps to tie them into the lives and personalities of the people who developed them. I think you learn economics better if you make Adam Smith your friend. That sounds funny, making friends among 'the eminent dead,' but if you go through life making friends with the eminent dead who had the right ideas, I think it will work better for you in life and work better in education. It's way better than just giving the basic concepts.

    His underlying philosophical view was one of deep and realistic cynicism about human nature, including a distaste for pure mob rule and demagogues.

    Find out what you're best at and keep pounding away at it. This has always been Charlie's basic approach to life.

    Take a simple idea and take it seriously.

    Charlie likes the analogy of looking at one's ideas and approaches as "tools." “When a better tool (idea or approach) comes along, what could be better than to swap it for your old, less useful tool?Warren and I routinely do this, but most people, cling to their old, less useful tools."

    Henry Singleton has the best operating and capital deployment record in American business...if one took the 100 top business school graduates and made a composite of their triumphs, their record would not be as good as Singleton's.

    You have to figure out what your own aptitudes are. If you play games where other people have the aptitudes and you don't, you're going to lose. And that's as close to certain as any prediction that you can make. You have to figure out where you've got an edge. And you've got to play within your own circle of competence.

    The other aspect of avoiding vicarious wisdom is the rule for not learning from the best work done before yours. . .There once was a man who assiduously mastered the work of his best predecessors, despite a poor start and very tough time. Eventually, his own work attracted wide attention, and he said of his work: “If I have seen a little farther than other men, it is because I stood on the shoulders of giants."

    In my whole life, I have known no wise people who didn't read all the time-none, zero. You'd be amazed at how much Warren reads-and at how much I read.

    There is no better teacher than history in determining the future. There are answers worth billions of dollars in a $30 history book.

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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

    Be like Gareth. Buy a book: All the books featured on Founders Podcast