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    • Alexander the Great: A Giant Figure in HistoryAlexander the Great, a legendary king, expanded his empire and left an indelible mark on history through his bravery, intelligence, and insatiable thirst for glory.

      Alexander the Great was a highly accomplished and influential historical figure, known for his bravery, intelligence, and insatiable appetite for glory. He ruled for 12 years and 8 months, and during that time, he carved out a vast empire and left an indelible mark on history. Alexander was a man of formidable achievements, skilled in battle, and deeply influenced by ancient Greek literature. He believed he was descended from the gods, which gave him a sense of fatalism and a willingness to take risks. Despite his flaws, such as passion or temper, Alexander was noble enough to repent for his errors. His impact on the ancient world was immense, and his name was known throughout the civilized world. As Paul Johnson wrote in "Heroes," Alexander and Julius Caesar were "giant" figures, "selfish, cruel, without scruple, and fundamentally unlovable," yet they were admired and their names were etched into history.

    • Alexander the Great's Legendary LifeBorn into war, Alexander sought revenge against the Persians at 19, expanding his conquests to half the known world, but personal struggles and harsh conditions led to his controversial end, leaving behind a legendary life.

      Alexander the Great, who died at the age of 32 in 323 BC, continues to captivate generations due to both his historical accomplishments and the myth surrounding him. Born into a war-torn environment where his father, Philip, had built a powerful army, Alexander's thirst for glory and belief in his divine descent led him to embark on a war of retribution against the Persians at the young age of 19. His conquests expanded to half the known world, but the harsh conditions and personal struggles took a toll on him. Despite his controversial end, marked by rumors of poisoning, Alexander's legend lived on, spreading to various religious texts and inspiring numerous epics and poems. His story is a testament to an extraordinary life filled with bravery, cruelty, endurance, and excess.

    • Lessons from the extreme personalities of successful peopleUnderstanding and managing extreme personality traits can lead to great success, but also potential pitfalls. Learn from biographies and successful people to avoid making similar mistakes.

      Extreme personality traits, while they can lead to great success, can also cause downfall. This is exemplified in the legend of Alexander the Great, who, despite being highly intelligent and formidable, succumbed to excessive drinking. Charlie Munger, a successful businessman, emphasizes the importance of avoiding bad habits, such as alcoholism, to succeed in life. Biographies, like the ones about Alexander, serve as valuable learning tools to understand the mistakes and struggles of successful people, and to avoid making similar mistakes ourselves. Michael Wood, the author of one of Alexander's biographies, provides insights into Alexander's character through his relentless drive and excessive tolerance of fatigue. Another entrepreneur, Seth, whom I had a conversation with, added to this by mentioning a formidable entrepreneur in his portfolio who had an intolerance for slowness. Both traits, excessive tolerance of fatigue and intolerance for slowness, when taken to an extreme, can lead to great success, but also potential pitfalls. It's important to understand and manage these traits to channel them into something positive.

    • The power of enduring pain and discomfort for successAlexander the Great's relentless pursuit of conquests despite adversity highlights the importance of intolerance for slowness and excessive tolerance for fatigue for achieving excellence.

      Importance of combining an excessive tolerance of fatigue with an intolerance of slowness for achieving success, as exemplified by Alexander the Great. Alexander's relentless pursuit of conquests, despite facing resistance and adversity, serves as a reminder that excellence comes from the capacity to endure pain and discomfort. This theme is echoed by the founder of Four Seasons, Izzy Sharp, and is a recurring message throughout the book. Alexander's unwavering determination and self-control, evident even in his teenage years, serve as valuable lessons for those seeking to emulate his success in their own work.

    • Alexander's Unquenchable Thirst for Challenges and KnowledgeAlexander, driven by an insatiable desire for greatness, sought out challenges and knowledge, shaping him into a legendary conqueror.

      Alexander the Great, despite being the son of a powerful king, constantly sought out challenges and struggles to prove himself and achieve greatness. He was not content with inheriting a kingdom filled with wealth and luxuries, but instead desired a life of wars and unrelenting ambition. Alexander's thirst for knowledge and information, as shown in his conversation with ambassadors from Persia, contributed to his future conquests. He was also disciplined, both internally and externally, with strict teachers and pedagogues shaping him into the leader he became. A notable example of Alexander's determination and courage was his attempt to tame a wild horse in front of his father, demonstrating his potential to lead and conquer.

    • Personalized approach to leadershipEffective leaders understand team members' strengths and ambitions, employ reasoning and persuasion, invest in exceptional educators, and build mental models of great leaders.

      Effective leadership involves understanding and utilizing the unique strengths and ambitions of those being led. In the story of Alexander and Philip, Philip recognized that forceful commands were not enough to guide his son's education and ambitions. Instead, he employed reasoning and persuasion to help Alexander reach his full potential. Similarly, entrepreneur Mark Andreessen emphasizes the importance of building mental models of great leaders to inform decision-making. Both Philip and Mark demonstrate that a personalized, thoughtful approach is more effective than a one-size-fits-all solution. Additionally, they recognized the importance of investing in exceptional educators and mentors to guide and develop the next generation.

    • Accessing high-quality education through the Internet or from great mindsThe Internet provides affordable education resources, but learning from experienced individuals can offer valuable insights. Nonlinear learning makes it challenging to optimize for everyone.

      While private tutoring may be out of reach for most people, there are alternative, cost-effective ways to access high-quality education through the abundance of resources available on the Internet. However, purchasing access to the wisdom of great minds can provide valuable insights that accelerate learning. Personal anecdotes, such as learning from entrepreneur donors during a college entrepreneurship program, illustrate the power of being guided by individuals with deep understanding and experience in their respective fields. Education and learning are nonlinear, making it challenging to optimize for the masses. Mark Andreessen's thoughts on mental models and the education system, as discussed in a podcast, offer valuable insights into this topic.

    • Keeping valuable knowledge hiddenThroughout history, individuals and organizations have guarded their best ideas and strategies to maintain a competitive edge and protect intellectual property.

      Throughout history, there have been individuals who possess valuable knowledge and choose to keep it hidden, only sharing it with a select few. This was true for Aristotle and Alexander over 2,300 years ago, and it holds true for successful founders and businesses today. Aristotle, a renowned philosopher, had a public curriculum for the masses but kept his more esoteric studies a secret, only passing them down through word of mouth to a select group of students. Similarly, many entrepreneurs and companies guard their best ideas and strategies, only sharing them with their inner circle or when they reach a later stage in their careers. This behavior is driven by the desire to maintain a competitive edge and protect intellectual property. Steve Jobs, for instance, recognized this trend in the animation industry and learned from Disney's success in keeping their business model a secret. This behavior is a constant aspect of human nature, as individuals and organizations seek to maximize their influence and maintain a competitive advantage.

    • Alexander the Great's love for learningAlexander valued knowledge, carried annotated texts on campaigns, and emphasized continuous learning, inspiring us to dedicate time to reading.

      Alexander the Great, known for his military conquests, was also deeply devoted to learning and reading. He valued knowledge over power and carried annotated copies of important texts with him on his campaigns. The importance of continuous learning was emphasized, with the suggestion that one could read a thousand books over a lifetime through dedicated reading habits. Alexander's early military achievements led to his father's favor, but his involvement in his father's assassination remains a mystery. The ancient world, with its complexities and bizarre events, serves as a reminder of the vast differences between our modern world and history.

    • Alexander and Diogenes: Two Great Minds, One IdeaHistorical figures Alexander the Great and Diogenes the Cynic, as well as iconic filmmakers George Lucas, Francis Ford Coppola, Steven Spielberg, Martin Scorsese, and Brian De Palma, valued independence and self-determination, inspiring admiration through their unwavering commitment to their beliefs.

      Both historical figures, Alexander the Great and Diogenes the Cynic, valued independence and self-determination above all else. Despite their vastly different circumstances – with Alexander conquering kingdoms and Diogenes living a simple life – they both inspired admiration in those around them for their unwavering commitment to their beliefs. Alexander sought out Diogenes, intrigued by the philosopher's indifference to his royal status. Diogenes, in turn, responded with a witty and condescending remark that left a lasting impression on Alexander. This encounter, as well as Alexander's early conquests, is explored in the text. Meanwhile, in a different context, a group of individuals who would later become famous filmmakers – George Lucas, Francis Ford Coppola, Steven Spielberg, Martin Scorsese, and Brian De Palma – also valued independence in their pursuit of a different path in the movie industry during the 1960s. These stories of historical and personal figures who refused to conform to societal expectations serve as a reminder of the importance of staying true to oneself.

    • John Corte: The Unheralded Inspiration for Lucas and CoppolaIndependent filmmaker John Corte's spirit, resourcefulness, and determination to work for himself inspired George Lucas and Francis Ford Coppola, shaping their groundbreaking filmmaking styles.

      John Corte, an independent filmmaker from Northern California, served as a major inspiration and blueprint for George Lucas and Francis Ford Coppola's approach to filmmaking. Corte's independent spirit, resourcefulness, and determination to work for himself resonated deeply with Lucas and Coppola, who were also seeking to break free from the constraints of Hollywood. Corte's barn at Stinson Beach became a symbol of a new cinematic community, and his innovative way of raising funds, shooting, and editing films influenced Lucas and Coppola's own work. Despite receiving offers from Hollywood executives, Corte remained steadfast in his independence, preferring to work for himself. His story is a reminder that sometimes the most influential figures are those who fly under the radar and inspire change through their unique perspectives and approaches.

    • The value of experience and disciplineSuccess in entrepreneurship requires both experience and discipline, not just appearances or education.

      Experience and discipline are essential for success in entrepreneurship, despite appearances. The story of the Dunkin' Donuts founder's son illustrates the dangers of arrogance and lack of experience. Meanwhile, the Macedonian army, though perceived as coarse and inelegant, was actually disciplined and skilled, with soldiers who were trained to follow orders and protect their ranks. The 50-year-old entrepreneur, with decades of experience and multiple successful businesses, was far more knowledgeable and capable than a 25-year-old with an Ivy League education and no real-world experience. Ultimately, appearances can be deceiving, and it's essential to recognize the value of experience, discipline, and hard work in achieving long-term success.

    • From hardship to greatness: Overcoming challenges and seeking truthLeaders who faced adversity and remained disciplined, like Dunkin' Donuts founders and Alexander the Great, achieved great success through relentless work ethic, ambition, and seeking valuable insights from those around them. However, success comes with responsibility and potential for excess, so be mindful of the consequences.

      Hardship and discipline, often born from humble beginnings, can lead to great success. From the disciplined work ethic of Dunkin' Donuts founders who grew up in poverty, to the extreme ambition of Alexander the Great, these leaders understood the importance of facing challenges head-on. They sought out truth and relied on those closest to their customers to provide valuable insights. Alexander's belief in the importance of overcoming difficulties led him to conquer vast territories and leave a lasting impact on history. However, it's important to remember that with great power and success comes great responsibility and potential for excess. As the ancient text warns, be careful what you wish for, as humans may not always be capable of handling the glory we seek.

    • Alexander's Respect for Enemies' ExcellenceRecognize and respect the strength and excellence in others, even in adversity, to learn and grow.

      Alexander the Great, despite his numerous injuries and exhaustion of his men, continued to push forward in his quest for conquest. His respect for genuine excellence, even in his enemies, was evident in his interactions with Porus. Porus, recognizing Alexander's strength, challenged him in battle, leading Alexander to realize that he was facing another version of himself. Porus's advice to Alexander about the transitory nature of good fortune resonated with him and strengthened his resolve. This theme of recognizing and respecting the strength and excellence in others, even in adversity, is a powerful lesson that can be applied to various aspects of life. Additionally, the idea of facing and learning from our own "other selves" can help us grow and appreciate the strength and resilience within ourselves and others.

    • Admiration for genuine excellence and brilliant achievementSuccessful individuals admire excellence and achievement, even in their competitors, inspiring respect and mercy instead of vengeance.

      Admiration for genuine excellence and brilliant achievement is a defining trait of successful individuals, whether in sports or leadership. Kobe Bryant and Michael Jordan's mutual respect for each other despite being competitors is an example of this. Alexander the Great's treatment of Porus, his defeated enemy, also illustrates this trait. Alexander recognized Porus's strength and admired his achievement, leading him to show mercy and respect instead of vengeance. This admiration for excellence is a common thread among successful people, and it separates them from those who denigrate others' achievements due to their own insecurities. In times of hardship and declining morale, recognizing that everything worth achieving is on the other side of discomfort and danger can help maintain resolve and inspire others.

    • Alexander's call to conquer the worldAlexander urged his troops to push beyond hardships for the sake of greatness and glory, leading to the expansion of one of history's largest empires

      Alexander the Great, despite facing resistance from his troops, emphasized the importance of continuing their conquests and expanding their empire. He argued that the hardships they had endured had led to significant gains, and encouraged them to keep pushing forward with the goal of conquering the entire world. Alexander believed that true men were motivated by the nobility of their actions and the achievements they gained, rather than external rewards. He emphasized that the boundaries of their campaign were only limited by the whole earth, and encouraged them to stand firm in the face of toil and danger. In essence, Alexander encouraged his troops to strive for greatness and glory, rather than seeking comfort and pleasure. This mindset allowed them to build one of the largest empires in history.

    Recent Episodes from Founders

    #355 Rare Bernard Arnault Interview

    #355 Rare Bernard Arnault Interview

    What I learned from reading The House of Arnault by Brad Stone and Angelina Rascouet. 

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    (3:00) While other politicians were content to get their information from a scattering of newspapers, he devoured whole shelves.  — Young Titan: The Making of Winston Churchill by Michael Shelden. (Founders #320)

    (7:00) Arnault had understood before anyone else that it was a true industry. — The Taste of Luxury: Bernard Arnault and the Moet-Hennessy Louis Vuitton Story by Nadege Forestier and Nazanine Ravai. (Founders #296)

    (9:00) Arnault is an iron fist in an iron glove. — The Taste of Luxury: Bernard Arnault and the Moet-Hennessy Louis Vuitton Story by Nadege Forestier and Nazanine Ravai.

    The public conception of Sam as a good ol’ country boy wearing a soft velvet glove misses the fact that there’s an iron fist within. —  Sam Walton: The Inside Story of America's Richest Man by Vance Trimble.

    (12:00) People often ask me, “When are you going to retire?” And I answer, “Retire from what?” I’ve never worked a day in my life. Everything I’ve done has been because I’ve loved doing it, because it was enthralling. — Am I Being Too Subtle?: Straight Talk From a Business Rebel by Sam Zell. (Founders #269)

    (16:00) “I am not interested in managing a clothing factory. What you need, and I would like to run, is a craftsman’s workshop, in which we would recruit the very best people in the trade, to reestablish in Paris a salon for the greatest luxury and the highest standards of workmanship. It will cost a great deal of money and entail much risk.” — Christian Dior to Marcel Boussac

    (17:00) Arnault believed that luxury brands could be larger than anyone at the time imagined.

    (20:00) Arnault said this 35 years ago: “My ten-year objective is that LVMH's leading position in the world be further strengthened in the luxury goods sector. I believe that there will be fewer and fewer brand names capable of retaining a worldwide presence and that those of our group will be among them as we will provide them with the means for growth.”

    (25:00) There are huge advantages for the early birds. When you're an early bird, there's a model that I call surfing—when a surfer gets up and catches the wave and just stays there, he can go a long, long time. But if he gets off the wave, he becomes mired in shallows. But people get long runs when they're right on the edge of the wave, whether it's Microsoft or Intel or all kinds of people, including National Cash Register. Surfing is a very powerful model.”  —  the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger. (Founders #329)

    (25:00) One thing I learned from having dinner with Charlie was the importance of getting into a great business and STAYING in it. There’s a tendency in human nature to mess up a good thing because of an inability to sit still.

    (25:00) The incredible career of Les Schwab: Les Schwab Pride In Performance: Keep It Going! by Les Schwab. (Founders #330)

    (30:00) Dior in his autobiography: It is widely, and quite erroneously, believed that when the house of Christian Dior was launched, enormous sums were spent on publicity: on the contrary in our first modest budget not a single penny was allotted to it. I trusted to the quality of my dresses to get Christian Dior talked about. Moreover, the relative secrecy in which I chose to work aroused a positive whispering campaign, which was excellent (free) propaganda. Gossip, malicious rumours even, are worth more than the most expensive publicity campaign in the world.

    (31:00) Munger: “There are actually businesses that you will find a few times in a lifetime, where any manager could raise the return enormously just by raising prices-and yet they haven't done it. So they have huge untapped pricing power that they're not using. That is the ultimate no-brainer. Disney found that it could raise those prices a lot and the attendance stayed right up. So a lot of the great record of Eisner and Wells came from just raising prices at Disneyland and Disneyworld and through video cassette sales of classic animated movies. At Berkshire Hathaway, Warren and I raised the prices of See's candy a little faster than others might have. And, of course, we invested in Coca-Cola-which had some untapped pricing power.”

    Charlie Munger: The Complete Investor by Tren Griffin

    (33:00) The benefits Arnault receives from owning commercial real estate: He makes money from his own stores, from leasing space to rivals—and from the appreciation of premium real estate. When LVMH buys a building, it takes the best storefronts for its own brands and often asks rivals to move out when their leases expire.

    (35:00) Arnault is all about details. He has 200,000 employees and he’s paying attention to details about landscaping in the Miami Design District.

    (36:00) If we lose the detail, we lose everything. — Disney's Land: Walt Disney and the Invention of the Amusement Park That Changed the World by Richard Snow. (Founders #347)

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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

    #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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    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. 

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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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    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

     

    #353 How To Be Rich by J. Paul Getty

    #353 How To Be Rich by J. Paul Getty

    What I learned from reading How To Be Rich by J. Paul Getty. 

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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: 

    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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    (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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    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

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

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

    What I learned from reading As I See it: The Autobiography of J. Paul Getty by J. Paul Getty. 

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    Build relationships with other founders, investors, and executives at a Founders Event

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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: 

    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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    (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

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

    #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. 

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

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

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

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

    Get access to Founders Notes here

    ----

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

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

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

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

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

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

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

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

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

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

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

    (10:00) Great Advertising Founders Episodes:

    Albert Lasker (Founders #206)

    Claude Hopkins (Founders #170 and #207)

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

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

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

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

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

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

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

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

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

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

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

    (29:00) Marketing is theatre.

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

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

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

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

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    #349 How Steve Jobs Kept Things Simple

    #349 How Steve Jobs Kept Things Simple

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

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     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

    ----

    (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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     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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    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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    Michael Jordan In His Own Words

    Michael Jordan In His Own Words

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

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

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    Episode Outline: 

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

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

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

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

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

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

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

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

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

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

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     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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    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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    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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    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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    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

    #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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    #252 Socrates

    #252 Socrates

    What I learned from reading Socrates: A Man for Our Times by Paul Johnson.

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    [0:54] I would trade all my technology for an afternoon with Socrates. — Steve Jobs In His Own Words by George Beahm. (Founders #249)

    [1:20] Churchill by Paul Johnson. (Founders #225)

    Heroes: From Alexander the Great and Julius Caesar to Churchill and de Gaulle by Paul Johnson. (Founders #226)

    Mozart: A Life by Paul Johnson. (Founders #240)

    [2:07] It’s fascinating how great entrepreneurs would arrive at similar conclusions even though they lived at different times in history, they lived in different parts of the world, and they worked in different industries.

    [3:43] It was Confucius's view that education was the key to everything.

    [4:57] Socrates was in no doubt that education was the surest road to happiness.

    [7:05] Alexander the Great: The Brief Life and Towering Exploits of History's Greatest Conqueror--As Told By His Original Biographers by Arrian, Plutarch, and Quintus Curtius Rufus (Founders #232)

    [8:43] It is immoral to play at earning one's living. —Coco Chanel: The Legend and the Life by Justine Picardie (Founders #199)

    [9:40] Socrates was never a bore—far from it.

    [11:12] Excellence is the capacity to take pain. —Four Seasons: The Story of a Business Philosophy by Isadore Sharp. (Founders #184)

    [11:25] No discomfort seemed to dismay him.

    [12:36] A healthy body is the greatest of blessings.

    [14:50] Let us therefore brace ourselves to our duty, and so bear ourselves that, if the British Commonwealth and its empire last for a thousand years, men will still say, This was their finest hour. —Winston Churchill

    [15:18] An incredible paragraph: It was Pericles' gift to transmute Athenian optimism into a spirit of constructive energy and practical dynamism that swept through this city like a controlled whirlwind. Pericles believed that Athenians were capable of turning their brains and hands to anything of which human ingenuity was capable-running a city and an empire, soldiering, naval warfare, founding a colony, drama, sculpture, painting, music, law, philosophy, poetry, oratory, education, science and do it better than anyone else.

    [16:26] Robber barons like Henry Flagler (Founders #247) and Rockefeller (#248) believed you could be a master of fate too.

    [18:41] Franklin & Washington: The Founding Partnership by Edward Larson. (Founders #251)

    [21:20] His deepest instinct was to interrogate. The dynamic impulse within him was to ask and then use the answer to frame another question.

    [22:27] I don’t want to skip over how important that sentence is: He made the people he questioned feel important.

    [22:39] Mary Kay would teach her salespeople that everyone goes through life with an invisible sign hanging around his or her neck reading, “make me feel important.” —Setting the Table: The Transforming Power of Hospitality in Business by Danny Meyer. (Founders #20)

    [25:18] He was extremely interested in how things were done by experts. Craftsmanship fascinated him. He accumulated a good deal of information concerning products and processes.

    [27:48] There's just a tremendous amount of craftsmanship in between a great idea and a great product. —Steve Jobs

    [28:21] He wants to show that on almost any topic the received opinion is nearly always faulty and often wholly wrong. Socrates was always suspicious of the obvious. The truth is very rarely obvious.

    [29:39] Be suspicious of the obvious.

    [29:47] What is particularly liberating about Socrates is his hostility to the very idea of there being a right answer.

    [30:21] This denial of independent thought by individuals was exactly the kind of mentality he spent his life in resisting.

    [39:10] Intense competition generated artistic and cerebral innovation on a scale never before seen in history, but also envy, spite, personal jealousies, and vendettas.

    [42:14] We have to accept that Socrates was a curious mixture of genuine humility and obstinate pride.

    [44:42] Socrates in prison, about to die for the right to express his opinions, is an image of philosophy for all time.

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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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    #245 Rick Rubin (In the Studio)

    #245 Rick Rubin (In the Studio)

    What I learned from reading Rick Rubin: In the Studio by Jake Brown.

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    Rick Rubin on Lex Fridman Podcast #275

    Rick Rubin on The Peter Attia Drive Podcast #57

    Shangri-La Documentary

    Rick’s podcast Broken Record

    [1:39] Decoded by Jay Z. (Founders #238)

    [3:19] Simplicity is the ultimate sophistication.

    [3:31] His goal is to record music in its most basic and purest form. No extra bells and whistles. All wheat, no chaff.

    [5:42] Dr. Land was saying: “I could see what the Polaroid camera should be. It was just as real to me as if it was sitting in front of me before I had ever built one.” And Steve said: “Yes, that’s exactly the way I saw the Macintosh.” He said if I asked someone who had only used a personal calculator what a Macintosh should be like they couldn’t have told me. There was no way to do consumer research on it so I had to go and create it and then show it to people and say now what do you think?” Both of them had this ability to not invent products, but discover products. Both of them said these products have always existed — it’s just that no one has ever seen them before. We were the ones who discovered them. The Polaroid camera always existed and the Macintosh always existed — it’s a matter of discovery.

    [7:31] My goal is to just get out of the way and let the people I'm working with be the best versions of themselves.

    [7:50] Berkshire Hathaway Letters to Shareholders 1965-2018 by Warren Buffett (Founders #88)

    [11:26] In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules by Stacy Perman. (Founders #244)

    [14:13] “Designing a product is keeping 5,000 things in your brain and fitting them all together in new and different ways.” —Steve Jobs

    [16:00] Less is more but you have to do more to get to less.

    [16:25] Against The Odds: An Autobiography by James Dyson and reading A History of Great Inventions by James Dyson. (Founders #200)

    [17:56] Rubin's most valuable quality is his own confidence.

    [20:57]  If we're going to do this, let's aim for greatness. You have to believe what you were doing is the most important thing in the world.

    [21:29] Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger by Janet Lowe. (Founders #221) “Everybody engaged in complicated work needs colleagues. Just the discipline of having to put your thoughts in order with somebody else is a very useful thing.”

    [24:24] On being a reducer —not a producer: Often in the studio there will be the idea to add layers to make it seem bigger. Sometimes the more things you add, the smaller it gets. A lot of it is counterintuitive. You need to discover it in practice.

    [27:10] I want to play loud. I want to be heard. And I want all to know I'm not one of the herd.

    [36:16] There were no stars in rap music. It was really just a work of passion. Everyone who was doing it was doing it because they loved it, not because anyone thought it was a career.

    [38:12] Krush Groove YouTube link

    [38:47] Russell really cared about finding new ways to expose their music to a bigger audience.

    [39:03] Bloomberg by Michael Bloomberg.  (Founders #228)

    [44:19] A handmade product at scale.

    [48:23] Rap music as recorded work was just eight years old.

    [50:06] Q: Do you have an engine of constant dissatisfaction. Self criticism that I could have done better? A: No. I’m pleased with the work that we did. Excited to keep working. It’s fun. I don’t know what else I’d do with myself. I like making things, it’s fun. I feel like it’s my reason to be on the planet so I just keep doing it. If it could be better I would have kept working on it. If it could be better it’s not done. I’ve done everything I can to make it the best it can be. I can’t do more than that so there is nothing to be critical of. It is almost like a diary entry. Everything we make is a reflection in a moment in time. Could be a day, could be a year.

    [52:54] These things that we don't understand and cannot explain happen regularly.

    [58:33] To be ignorant of what occurred before you were born is to remain always a child.

    [58:58] He's living in four different centuries at once.

    [1:01:02] I believe in you so much, I'm going to make you believe in you.

    [1:03:07] Hard Drive: Bill Gates and the Making of the Microsoft Empire by James Wallace and Jim Erickson (Founders #140)  Gates and Allen were convinced the computer industry was about to reach critical mass, and when it exploded it would usher in a technological revolution of astounding magnitude. They were on the threshold of one of those moments when history held its breath... and jumped, as it had done with the development of the car and the airplane. They could either lead the revolution or be swept along by it.

    [1:05:35] The newest sounds have a tendency to sound old when the next new sound comes along. But a grand piano sounded great 50 years ago and will sound great 50 years from now. I try to make records that have a timeless quality.

    [1:13:58] Mozart: A Life by Paul Johnson. (Founders #240)

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    #234 Sam Walton: Made In America

    #234 Sam Walton: Made In America

    What I learned from rereading Sam Walton: Made In America by Sam Walton.

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    [1:56] The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone. (Founders #179)

    [5:45] We just got after it and stayed after it.

    [6:06] Foxes and Hedgehogs

    [6:39] Hedgehogs may not be as clever as foxes but they obsessively measure and track everything about their business, and over time, they acquire deep, relevant knowledge and expertise. Their single minded approach may appear risky at times but they are conservative by nature. Hedgehogs don’t speculate or make foolish bets. If all their eggs are in that one proverbial basket, they follow Mark Twain’s advice – and watch that basket very carefully.

    [7:17] The thing with Hedgehogs is that they never give up. They keep at it – and they don’t ever get bored because they just love what they do – and they have a lot of fun along the way.

    [7:28] Hedgehogs are the ones who build great, lasting companies. As entrepreneurs, they are the rarest of breeds – those who can start something anew, make it work, stick with it, and build something special, and ultimately, inspire others along the way, with their determination, dedication and commitment.

    [8:49] At first, we amazed ourselves. And before too long, we amazed everybody else too.

    [9:26] Think about how crazy this is. He died weeks after that writing this. His last days were spent categorizing and organizing his knowledge so future generations can benefit.

    [12:32] Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger(Founders #90)

    [12:56] "It's quite interesting to think about Walmart starting from a single store in Arkansas – against Sears, Roebuck 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 anyone else. Walton invented practically nothing. But he copied everything anybody else ever did that was smart – and he did it with more fanaticism. So he just blew right by them all. —Charlie Munger

    [17:11] What motivates the man is the desire to absolutely be on the top of the heap.

    [17:32] Practice your craft so much that you're the best in the world at it and the money will take care of itself.

    [18:44] We exist to provide value to our customers.

    [21:18] A Conversation with Paul Graham

    [22:32] It never occurred to me that I might lose; to me, it was almost as if I had a right to win. Thinking like that often seems to turn into sort of a self-fulfilling prophecy.

    [26:42] Time to Make the Donuts: The Founder of Dunkin Donuts Shares an American Journey by William Rosenberg. (Founders #231)

    [29:35] It didn’t take me long to start experimenting—that’s just the way I am and always have been.

    [30:56] Do things that other people are not doing.

    [33:13] The Founders: The Story of Paypal and the Entrepreneurs Who Shaped Silicon Valley by Jimmy Soni. (Founders #233)

    [33:41] I think my constant fiddling and meddling with the status quo may have been one of the biggest contributions to the later success of Wal Mart.

    [34:10] Our money was made by controlling expenses. I gotta read that again because it's so important. Our money was made by controlling expenses.

    [37:49] Sam Walton: The Inside Story of America's Richest Man (Founders #150)

    [38:37] I’ve always thought of problems as challenges, and this one wasn’t any different. I didn’t dwell on my disappointment. The challenge at hand was simple enough to figure out: I had to pick myself up and get on with it, do it all over again, only even better this time.

    [42:47] Four Seasons: The Story of a Business Philosophy by Isadore Sharp. (Founders #184)

    [45:12] The Autobiography of Andrew Carnegie by Andrew Carnegie (Founders #74)

    [47:08] Sol Price: Retail Revolutionary & Social Innovator by Robert E. Price. (Founders #107)

    [49:56] Sam had a really simple hypothesis for the first Wal Mart: We were trying to find out if customers in a town of 6,000 people would come to our kind of a barn and buy the same merchandise strictly because of price. The answer was yes.

    [52:19] I have always been a Maverick who enjoys shaking things up and creating a little anarchy.

    [54:23] In business we often find that the winning system goes almost ridiculously far in maximizing and/or minimizing one or a few variables. —Charlie Munger

    [55:02] He does something really smart here. And this is something I missed the first time I read the book. He finds a way to force himself to know the numbers for every single store.

    [56:13] Distant Force: A Memoir of the Teledyne Corporation and the Man Who Created It by Dr. George Roberts. (Founders #110)

    [58:11] Driven From Within by Michael Jordan and Mark Vancil. (Founders #213)  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. —Michael Jordan

    [58:43] We paid absolutely no attention whatsoever to the way things were supposed to be done, you know, the way the rules of retail said it had to be done.

    [1:03:15] Estée: A Success Story by Estée Lauder. (Founders #217)

    [1:04:00] One thing I never did—which I’m really proud of—was to push any of my kids too hard. I knew I was a fairly overactive fellow, and I didn’t expect them to try to be just like me.

    [1:06:38] I was never in anything for the short haul.

    [1:10:36] Michael Jordan: The Life by Roland Lazenby. (Founders #212) Like so many NBA players, Drexler was operating mostly off his great store of talent, absent any serious attention to the important details of the game. Jordan had been surprised to learn how lazy many of his Olympic teammates were about practice, how they were deceiving themselves about what the game required.

    [1:11:56] And you can think about Sam constantly learning from everybody else, visiting stores —that is a form of practice. Every single craft has a form of practice. It just is not as obvious as it is in sports.

    [1:13:26] He proceeds to extract every piece of information in your possession.

    [1:15:37]  He has just been a master of taking the best of everything everybody else is doing and adapting it to his own needs.

    [1:18:52] We were serious operators who were in it for the long haul, that we had a disciplined financial philosophy, and that we had growth on our minds.

    [1:19:54] Most people seem surprised to learn that I've never done much investing in anything except Walmart.

    [1:20:42] He's like I just figured out the Walmart's worked. And then all I did was focus on making more of them. You don't have to over-complicate it.

    [1:23:04] If you ask me if I'm an organized person, I would say flat out, no, not at all. Being organized would really slow me down. (Optimize for flexibility)

    [1:24:26] The Difference Between God and Larry Ellison: God Doesn't Think He's Larry Ellison by Mike Wilson (Founders #127): My view is different. My view is that there are only a handful of things that are really important, and you devote all your time to those and forget everything else. If you try to do all thousand things, answer all thousand phone calls, you will dilute your efforts in those areas that are really essential

    [1:26:15]  I think one of Sam's greatest strengths is that he is totally unpredictable. He is always his own person. He is totally independent in his thinking.

    [1:26:45] If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them. —Bruce Lee

    [1:28:40] You can’t possibly know the TAM. You are in the middle of inventing the TAM.

    [1:30:08] There is no speed limit by Derek Sivers

    [1:31:54] Built From Scratch: How A Couple of Regular Guys Grew The Home Depot from Nothing to $30 Billion (Founders #45)

    [1:41:35]  I like to keep everybody guessing. I don't want our competitors getting too comfortable with feeling that they can predict what we're going to do next.

    [1:42:25] He ties that investment int technology with the compounding savings and over the long-term, he's going to destroy his competition just off this one metric alone.

    [1:43:39] Big Brown: The Untold Story of UPS by Greg Niemann. (Founders #192)

    [1:47:56] Sam’s 10 Rules for Building A Business

    [1:48:04] One thing I don’t even have on my list is “work hard.” If you don’t know that already, or you’re not willing to do it, you probably won’t be going far enough to need my list anyway.

    [1:48:51] Commit to your business. Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work.

    [1:50:54] Control your expenses better than your competition. This is where you can always find the competitive advantage. For twenty-five years running—long before Wal-Mart was known as the nation’s largest retailer—we ranked number one in our industry for the lowest ratio of expenses to sales. 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.

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    #98 Enzo Ferrari (the making of an automobile empire)

    #98 Enzo Ferrari (the making of an automobile empire)

    What I learned from reading Enzo Ferrari: Power, Politics, and the Making of an Automobile Empire by Luca Dal Monte.

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    [0:01] Ferrari was animated by an extraordinary passion that led him to build a product with no equal

    [3:52] Lee Iacocca on why Enzo Ferrari will go as the greatest car manufacturer in history: "Ferrari spent every dollar chasing perfection." 

    [8:50] Business lessons from his father  

    [11:47] Enzo Ferrari was not interested in school. He wanted to start working immediately. 

    [16:36] The deaths of his father and brother 

    [18:20] No job. No money. No connections. A young man desperate to succeed in life. 

    [23:06] He learned something that he would never forget for the rest of his life: Not even the best driver had any chance of victory if he was not at the wheel of the best car

    [24:20] Starting his first business which ends in bankruptcy.

    [28:31] Enzo learned from those who already accomplished what he was trying to do. 

    [31:10] He does the best possible job at whatever task he is given. Even if he doesn't want to do it. Enzo focuses on being useful. 

    [33:35] A young Enzo Ferrari is plagued with doubts and close to a nervous breakdown. 

    [38:28] The large leave gaps for the small: The start of Scuderia Ferrari. 

    [49:38] Enzo Ferrari at 33 years old. 

    [51:30] For Enzo Ferrari it was always day 1.

    [52:33] Alfa Romeo pulls the plug/the end of Scuderia Ferrari, the birth of Ferrari.

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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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