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    • The Wright Brothers vs Glenn Curtiss: A bitter feud in early aviationThe relentless focus on lawsuits by the Wright Brothers led to a decline in product quality and business success, allowing competitors to surpass them. However, collaboration during World War 1 helped reverse the damage.

      The early days of aviation were filled with fierce competition between innovators, most notably the Wright Brothers and Glenn Curtiss. Their bitter feud, which pitted two brilliant minds against each other, shaped the course of American aviation. Wilbur Wright, with his exceptional engineering skills, initially took the lead in the field, but his relentless focus on lawsuits in the later years of his life caused the quality of his product and business to suffer. This allowed other companies to surpass America's lead in aviation. However, the destructive conflict between these rivals was eventually put aside during World War 1, when they were called upon to work together to build superior air power for the war effort. This collaboration helped reverse the damage caused by their long-standing feud. Overall, the book "Birdmen" highlights the importance of focusing on improving products and businesses rather than getting bogged down in distractions and conflicts.

    • The Lives of Wilbur Wright and Glenn Curtis: Pioneers in AviationTwo pioneers, Wilbur Wright and Glenn Curtis, defined early aviation through relentless perseverance and obsession with innovation, but their rivalry and patent disputes had detrimental consequences.

      The lives of Wilbur Wright and Glenn Curtis, two pioneers in the early days of aviation, were defined by their relentless perseverance and obsession with innovation. Both men came from humble backgrounds and shared a passion for racing, repairing, and building bicycles. Wilbur Wright is considered one of the greatest intuitive scientists in American history, making groundbreaking intellectual leaps to solve complex problems. Curtis, on the other hand, was a brilliant craftsman and applied scientist, excelling in design and engineering. Their paths in aviation began with motorized bicycles and led them to build the most efficient motors for early airplanes. However, their rivalry and a series of patent infringement lawsuits took a toll on Wilbur's health and energy, potentially costing us the contributions of one of history's most important minds. The Wright-Curtis feud serves as a cautionary tale about the unique strengths and flaws of brilliant minds and the potential consequences of relentless competition.

    • Early pioneers of aviation driven by human nature and desire for discoveryUnderstanding the history of early aviation reveals human nature's role in driving innovation and progress, despite risks and challenges.

      The pioneers of aviation, like Glenn Curtis and Wilbur Wright, were driven by the same human nature that motivated explorers and pioneers in other industries throughout history. They were drawn to the unknown, the potential for riches and fame, and the thrill of discovery, despite their limitations and blunders. The early aviation industry was marked by outsized personalities, brutal competition, and staggering bravery, as documented in the book "Bird Men." The parallels between the early pioneers of aviation and other industries, such as automotive and railroads, provide valuable insights into human nature and the drive for innovation and progress. Understanding this history can give us an advantage in recognizing and capitalizing on new industries and discoveries as they emerge. The book highlights figures such as Louis b, Thomas Scott Baldwin, John Moisant, Harriet Quimby, and Lincoln Beachy, among others, and the high mortality rate among early pilots illustrates the risks and challenges they faced.

    • The Lives of Otto Lowenthal and Wilbur Wright: Dedication, Perseverance, and the Pursuit of InnovationDedicate yourself to your passion, take calculated risks, and learn from those you admire for personal and professional growth.

      The pursuit of innovation and discovery, as demonstrated by the lives of figures like Otto Lowenthal and Wilbur Wright, requires dedication, perseverance, and a willingness to take risks. Lowenthal, a pioneering aerodynamicist, dedicated his life to understanding the mechanics of flight, inspiring Wilbur Wright and becoming a pivotal figure in the history of aviation. Despite his world-renowned status, he remained focused on his research and experiments, understanding that luck and success are not guaranteed. Wilbur Wright's admiration for Lowenthal serves as a reminder that learning from those we admire is crucial for personal and professional growth. Additionally, the importance of taking calculated risks and staying dedicated to one's passion, even in the face of potential danger, is a valuable lesson that can be applied to various fields and industries.

    • The pursuit of solving ancient problems requires collective efforts and optimismThrough history, great achievements have come from persistent efforts to solve complex problems, the power of collaboration and knowledge exchange, and maintaining a mindset of optimism.

      The pursuit of solving ancient and seemingly insurmountable problems, such as human flight, has been a long-term endeavor that required the collective efforts of brilliant minds throughout history. Problems like energy, housing, and aging, which we continue to grapple with today, can be seen as similar puzzles that, while challenging, have the potential to bring significant benefits to mankind if solved. The Wright Brothers' achievement of powered flight, which came after centuries of attempts, serves as a reminder that every problem, no matter how daunting, has a solution. By learning from the past and maintaining a mindset of optimism and persistence, we can continue to make progress towards solving these complex issues. Octavia Shneuder's role in facilitating the sharing of information among inventors accelerated progress in the field of flight, demonstrating the importance of collaboration and knowledge exchange in overcoming obstacles.

    • Octave Chanute's role in early aviationOctave Chanute's compilation of information on historical experiments on flight catalyzed the progress towards aviation as a rigorous science, but beware of scammers and liars in the industry.

      Data and organization played a crucial role in the early development of aviation. Octave Chanute, who was not a designer himself, collected and shared valuable information about historical experiments on flight. He acted as a catalyst, connecting various researchers and accelerating the progress towards finding a solution to the "flying problem." Chanute's compilation of information into a book, "The Progress in Flying Machines," was instrumental in marking the beginning of aviation as a rigorous science. However, the industry also attracted scammers and liars, such as Augustus Moore Herring, who tried to take advantage of others. The Wright Brothers, despite their skepticism and reluctance to collaborate, missed out on some innovations happening after their successful flights, which eventually led them to lose their lead in the aviation race. Therefore, it's essential to be open to new ideas and knowledge while also being cautious to avoid being taken advantage of. Wilbur Wright's self-education, theoretical knowledge, and innovative thinking ultimately led to groundbreaking insights and the creation of the Wright Flyer.

    • Think counterintuitively and do the opposite of competitorsStudy industry, identify common methods, seek uncharted territory, and discover unique methods for a competitive edge

      Finding a breakthrough often involves thinking counterintuitively and doing the opposite of what competitors are doing. Wilbur Wright, for example, observed that birds maintain stability in flight by making their wings unstable, which led him to the revolutionary idea of designing an aircraft with inherently unstable wings. Similarly, William Randolph Hearst built his media empire by focusing on small towns instead of competing in crowded cities, and by covering news events instead of relying on underage newsies. By looking at what competitors are doing and then doing the opposite, individuals can discover unique methods and gain a competitive edge. To apply this principle, one can study their industry, identify common customer acquisition methods, and then seek out uncharted territory by finding and exploiting white spaces where no one else is. This approach may be more challenging, but it also offers the potential for significant rewards, as the Wright Brothers and William Randolph Hearst demonstrate.

    • The early days of aviation saw intense competition and shifting focusEarly aviation pioneers experimented with various technologies, but those invested in dying ones eventually adapted to airplanes, as seen in Baldwin's shift from parachutes to airships.

      The early days of new industries often involve intense competition and a lack of clarity regarding which technology will ultimately prevail. This is exemplified in the aviation industry's infancy, where various innovators, such as Haring and Baldwin, pursued different approaches, including gliders and gas bags. However, as the industry evolved, those invested in dying technologies, like gas bags, shifted their focus to airplanes. Baldwin, a tightrope walker and parachute inventor, serves as an example of this trend. He experimented with parachutes and, after gaining confidence in their safety, performed public jumps for prize money. Despite inventing the flexible parachute, Baldwin did not patent it due to his disdain for patents. Instead, he collaborated with Glenn Curtis, a younger innovator, to explore the potential of motorized gas bags, leading to the birth of the airship industry. Ultimately, the interconnectedness of these pioneers in their respective fields highlights the dynamic and collaborative nature of technological advancement.

    • From 8th grade dropout to aviation pioneer: Glenn Curtis' storyDetermination and innovation, even with limited resources and education, can lead to extraordinary success. Focus on product improvement and take calculated risks to achieve remarkable outcomes.

      Determination and a relentless drive for innovation, even with limited resources and education, can lead to extraordinary success. Glenn Curtis, a 26-year-old mechanical whiz who only completed the 8th grade, revolutionized the aviation industry by inventing the first waterplane, the throttle for motorcycles, and holding the fastest land and air speed records. His passion for speed and endurance, coupled with his sharp wit and tinkering nature, led him to build a successful business despite being constantly distracted by lawsuits from competitors. Meanwhile, Lincoln Beachy, a young daredevil, gained fame for his daring feats in gas bags and eventually became a pilot, captivating millions of Americans. Both Curtis and Beachy demonstrate the importance of focusing on product improvement and taking risks to achieve remarkable outcomes.

    • The importance of product demonstrationsFear of having designs stolen can hinder success, while demonstrations can lead to partnerships and sales in the aviation industry

      The power of demonstrating your product cannot be replaced by words alone, as demonstrated by the Wright Brothers' initial reluctance to let others see their flying machine. Their fear of having their design stolen led them to miss out on potential sales and partnerships. Contrarily, allowing demonstrations eventually led to tremendous success. Additionally, the interconnectedness of key figures in the aviation industry, such as the Wright Brothers, Glenn Curtis, and Alexander Graham Bell, highlights the importance of collaboration and the potential benefits that can come from working with outsiders.

    • The importance of acknowledging competitors and the mediaUnderestimating opponents and dismissing media can hinder progress. Acknowledge competitors' advancements and learn from them. Media coverage can build perception and generate interest.

      Underestimating your opponents and becoming overly focused on protecting your own interests can hinder innovation and progress. As seen in the story of the Wright Brothers, their profound self-belief and stubbornness led them to believe they were the only ones capable of solving the problem of flight. However, they were wrong, and their failure to acknowledge the advancements of their competitors ultimately delayed their success. Another important lesson is the power of demonstration and the media in building perception and generating interest in your product or idea. The Wright Brothers initially disdained the media but eventually learned the value of allowing journalists to witness their flights and report on their progress. Additionally, maintaining focus and avoiding distractions is crucial for success. Wilbur Wright recognized the potential dangers of delegating tasks to others and the importance of examining every detail himself before a demonstration. Overall, these lessons remind us to stay humble, acknowledge the achievements of others, and remain focused on our goals while being open to new ideas and perspectives.

    • Underestimating competition and dishonest dealsBe aware of competition and potential threats, don't underestimate others, and conduct thorough due diligence to avoid costly mistakes.

      Underestimating the competition and making deals with dishonest people can lead to costly mistakes. The story of Glenn Curtis and Augustus Herring serves as a reminder of this lesson, as Curtis was taken advantage of by Herring's lies and false promises, resulting in a loss of $500,000 for Curtis' heirs. This cautionary tale highlights the importance of being aware of the competition and the potential for smart, dedicated individuals to emerge and challenge even those with a significant head start. The Wright Brothers' arrogance and underestimation of Louis Blériot's abilities are another example of the dangers of overconfidence and ignoring the competition. Ultimately, it's crucial to remain humble, do thorough due diligence, and not underestimate the potential of others.

    • Forming alliances to eliminate competitionHiring talented individuals can build a strong brand and help a business thrive, even in the face of competition.

      The Wright Brothers' decision to form a business partnership with powerful figures in the industry, in an attempt to eliminate competition, ultimately led to the emergence of their most formidable rival, Curtiss Wright. This decision, which was driven by the mindset of the time that viewed competition as something to be eliminated rather than embraced, left the Wright Brothers' company vulnerable and struggling to survive. Meanwhile, Curtiss, who was initially struggling, found success through hiring a charismatic pilot, Charles Hamilton, who became an audience favorite and kept Curtiss airplanes in the spotlight. This story highlights the importance of finding and hiring talented individuals who can effectively sell a product and build a strong brand. Additionally, it serves as a reminder of the complexities and uncertainties of the business world, where alliances can shift and competition can emerge from unexpected places.

    • Impact of Patent Strategies on Early Automotive IndustryPatent strategies, like George Seldon's, can impact competition and industry development. Mentors and perseverance play crucial roles in navigating these challenges.

      The history of innovation, as demonstrated by the case of George Seldon in the early automotive industry, can significantly impact the way new ideas are approached and pursued. Seldon, with no intention of building a car himself, used his patent to sue others and profit. This strategy stifled competition and led to a circuit court decision that broadened patent protection, giving greater power to patent holders. The Wright Brothers, inspired by this decision, saw it as a positive sign for their own patent case. However, it's important to note that not all industry leaders agreed with this approach. Henry Ford, a small operator at the time, openly defied Seldon and continued to produce cars without paying royalties. This bold move ultimately led to Ford's success in mass-producing affordable cars for the average consumer. The story underscores the importance of having mentors and trusted advisors who can provide valuable perspective and challenge your decisions, even when they're difficult to hear. It also highlights the importance of perseverance and not being deterred by the competition.

    • John D. Gates and John Moisant: Entrepreneurs of Diversity and AdventureTwo extraordinary entrepreneurs, John D. Gates and John Moisant, made fortunes in various industries and pursued diverse passions, from barbed wire to aviation, through determination, ambition, and adaptability.

      John D. Rockefeller's business partner, John D. Gates, was an extraordinary entrepreneur who made fortunes in various industries, including barbed wire, land speculation, oil, and horse racing, all within one lifetime. Another intriguing figure is John Moisant, a member of the Mossant family, who built a business empire in lumber, real estate, and mining in California. He was an adventurous and wealthy man with a strong desire for fame and heroism. Despite narrowly escaping execution for attempting to invade El Salvador, he turned his attention to aviation and became a renowned exhibition flyer. Despite setbacks, such as being denied entry into European races, he persisted and made a name for himself in the emerging field of aviation. Both Gates and Moisant are examples of remarkable individuals who achieved great success through their determination, ambition, and adaptability.

    • The importance of safety and trustworthy partners in high-risk professionsPrioritize safety and trustworthy partnerships to succeed in high-risk industries, as illustrated by Glenn Curtis's experiences with adversaries and lack of safety measures in early aviation.

      In high-risk professions and industries, it's crucial to prioritize safety and make deals with trustworthy partners. The story of Glenn Curtis illustrates this, as he faced adversaries both in and out of the cockpit. While competing against the Wright brothers, Curtis also battled his unscrupulous former partner, Wilbur Curtis, who left him unable to access his own factory. Meanwhile, the lack of safety measures in early aviation resulted in fatal accidents, with even the brightest minds failing to recognize the need for seat belts or harnesses. This disregard for safety cost many lives. The story of Wilbur and Curtis's conflicts also highlights the importance of being aware of formidable adversaries and avoiding unnecessary battles. In business, as in aviation, it's essential to prioritize safety and make deals with trustworthy partners.

    • The Wright brothers' legal battle with McCormick Reaper CompanyChoosing battles wisely and considering potential costs and benefits is crucial for success.

      The Wright brothers' legal battle with the McCormick Reaper Company illustrates the risks and costs of stubbornness and litigation. The Wrights, known for their tenacity and patent protection, found themselves up against wealthy and influential opponents who were determined to invalidate their patents and ruin their business. The Wrights' decision to sue for a share of the profits, which were insignificant for the defendants, only added fuel to the fire. Wilbur Wright's unwavering commitment to defend his work, despite the personal toll it was taking on him, ultimately proved to be a liability. This story serves as a reminder that choosing battles wisely and considering the potential costs and benefits is crucial for success.

    • Obsessive pursuit of goals can lead to neglect of health and fatal consequencesOverconfidence and pushing boundaries can result in catastrophic consequences, prioritize long-term goals and well-being

      Even the smartest and most successful people can make costly mistakes that could negatively impact their health and ultimately lead to their downfall. Wilbur Wright's relentless pursuit of his nemesis Glenn Curtiss led him to neglect his health, work excessively long hours, and ignore warnings from his loved ones. This obsession resulted in his exhaustion and eventual death from typhoid fever at the age of 45. Similarly, reckless pilots like Rogers, who believed they had conquered the skies, ignored warnings and took unnecessary risks, leading to fatal accidents. The human tendency to overconfidently push boundaries can result in catastrophic consequences, both in business and in life. Therefore, it's essential to reflect on our priorities and ask ourselves if we are making decisions that align with our long-term goals and well-being.

    • Perseverance and innovation by Glenn CurtissGlenn Curtiss' relentless determination and constant improvement led him to create groundbreaking inventions and amass a great fortune during World War 1, surpassing the Wright Brothers' patent wars.

      Perseverance and innovation, embodied by Glenn Curtiss, can surpass the vision and brilliance of others, as seen in the Wright Brothers' story. Although Wilbur and Orville held the initial power with their patent wars, Curtis's relentless determination and constant improvement led him to create groundbreaking inventions and amass a great fortune during World War 1. Despite Orville's distraction and eventual departure, Curtis's unyielding spirit propelled him to leave an extraordinary legacy in aviation history. Progress necessitates both visionary architects and master builders.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (46:30) The early days of Wal-Mart were like the early days of Disneyland: "You asked the question, What was your process like?' I kind of laugh because process is an organized way of doing things. I have to remind you, during the 'Walt Period' of designing Disneyland, we didn't have processes. We just did the work. Processes came later. All of these things had never been done before. Walt had gathered up all these people who had never designed a theme park, a Disneyland.

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

    We just worked and Walt just walked around and had suggestions. — Disney's Land: Walt Disney and the Invention of the Amusement Park That Changed the World by Richard Snow. (Founders #347)

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

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

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

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    (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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    "Learning from history is a form of leverage." — Charlie Munger. 

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    Get access to Founders Notes here

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

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

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

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

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

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

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

    -They concentrated on expanding

    -They concentrated on making their companies more efficient 

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

    -Always personally involved in their business

    -They know their business down to the ground

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

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

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

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

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

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

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

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

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

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

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

    Get access to Founders Notes here

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (48:00) More sources:

    Rolex Jubilee: Vade Mecum by Hans Wilsdorf

    Rolex Magazine: The Hans Wilsdorf Years

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

    Vintage Watchstraps Blog: Hans Wilsdorf and Rolex

    Business Breakdowns #65 Rolex: Timeless Excellence

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

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    #350 How To Sell Like Steve Jobs

    #350 How To Sell Like Steve Jobs

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

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

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

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

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

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

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

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

    (10:00) Great Advertising Founders Episodes:

    Albert Lasker (Founders #206)

    Claude Hopkins (Founders #170 and #207)

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

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

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

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

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

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

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

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

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

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

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

    (29:00) Marketing is theatre.

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

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

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

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    #349 How Steve Jobs Kept Things Simple

    #349 How Steve Jobs Kept Things Simple

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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    Michael Jordan In His Own Words

    Michael Jordan In His Own Words

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

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    Episode Outline: 

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

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

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

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

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

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

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

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

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

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

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    Founders
    en-usMay 12, 2024

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

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

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

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    Episode Outline: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    16.  A summary of Charlie Munger on incentives:

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

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

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

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    #347 How Walt Disney Built His Greatest Creation: Disneyland

    #347 How Walt Disney Built His Greatest Creation: Disneyland

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

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

    We were quite wrong.

    He had, instead, created his masterpiece.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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    Related Episodes

    #135 Joseph Pulitzer (Politics & Media)

    #135 Joseph Pulitzer (Politics & Media)

    What I learned from reading Pulitzer: A Life in Politics, Print, and Power by James McGrath Morris.

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    [0:20]  Joseph Pulitzer was the midwife to the birth of the modern mass media. Pulitzer’s lasting achievement was to transform American journalism into a medium of mass consumption and immense influence. 

    [3:04] He was the pioneer of the modern media industry.  

    [5:06] Teddy Roosevelt tried to have Joseph Pulitzer put in jail.  

    [7:11] How one of Pulitzer’s adult sons viewed him: One of the strange differences between us two is the fact that you have never come near learning how to enjoy life. 

    [9:42] Joseph favored reading works of history and biography.  

    [10:12] Joseph understood fully the extent of the calamity [his father’s death]. He had been 9 years old when his older brother died, 10 when his younger brother and sister died, 11 when his father died, and 13 at the death of his last sister. 

    [11:50] At 17 years old Joseph escapes to America. A group of wealthy Boston businessmen recruit thousands of young Europeans to fight for the Union in the American Civil War. This scheme became Pulitzer’s escape route. 

    [13:18] Describing how he came to the United States: He was friendless, homeless, tongueless, and guideless.  

    [14:05]  One of the places he slept when he was homeless was in the lobby of a hotel. They kept kicking him out. Later in life he buys the hotel. 

    [14:44] What he said about his job of tending mules: Never in my life did I have a more trying task. The man who has not cared for 16 mules does not know what work and trouble are.  

    [15:18] Pulitzer was a voracious reader. When he was not working he spent every free minute improving his mind.  

    [17:12]  Edwin Land said, "Anything worth doing is worth doing to excess". Joseph Pulitzer would have agreed with that. 

    [19:15]He was so industrious that he became a positive annoyance to others who felt less inclined to work. Pulitzer was unwilling to put forward anything but his best effort. 

    [25:10] In only 5 years he had grown from a bounty hunting Hungarian teenager to an American lawmaker.  

    [28:54] There are only two or three human stories and they go on repeating themselves as fiercely as if they have never happened before.  

    [38:10] He is 30 years old and depressed. In the best of circumstances the loss of one’s only surviving parent inspires self-reflection, for Joseph with no specific profession or even a home, such introspection was demoralizing.  

    [40:45] It is hard to understand how much money newspapers made, especially at this time. William Randolph Hearst’s net worth would be the equivalent of $30 billion today.  

    [48:34] One did not work with Pulitzer. For him, surely. Against him, often. But not with him.  

    [51:44] Pulitzer was extremely ambitious. He was not satisfied to be the 500th best newspaper. He wanted to be number 1.  

    [1:06:20] When we think that, a hundred years hence, not one of us now living will be alive to care or to know, to enjoy or to suffer, what does it all amount to? To a puff of smoke which makes a few rings and then disappears into nothingness and yet we make tragedies of our lives, most of us not even making them serious comedies. 

    ————

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    #254 John D. Rockefeller: The Founding Father of the Rockefellers

    #254 John D. Rockefeller: The Founding Father of the Rockefellers

    What I learned from reading John D: The Founding Father of the Rockefellers by David Freeman Hawke.

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    [0:07] He transmitted messages in code and secrecy covered all of his operations.

    [0:39]  Rockefeller compared himself to Napoleon.

    [2:20] He could think quicker and along more individual and original lines than any of them.

    [2:35] It is always hard to successfully control what you don't understand.

    [3:32] Titan: The Life of John D. Rockefeller by Ron Chernow. (Founders #248)

    [7:27] By the time I was a man — long before it —I had learned the underlying principles of business and the rules of business as well as many men acquire them by the time they are 40. I needed no one to advise me about the nature of transactions with which I had been carrying on since childhood.

    [8:59] Random Reminiscences of Men and Events by John D. Rockefeller. (Founders #148)

    [10:55] You should try to expose yourself to experiences that are slightly ahead of your skillset or understanding and you should do so constantly.

    [13:48] A veteran of long-distance provider MCI, Price came to Amazon in 1999. He blundered early by suggesting in a meeting that Amazon executives who traveled frequently should be permitted to fly business-class. Bezos often said he wanted his colleagues to speak their minds, but at times it seemed he did not appreciate being personally challenged. “You would have thought I was trying to stop the Earth from tilting on its axis,” Price says, recalling that moment with horror years later. “Jeff slammed his hand on the table and said, ‘That is not how an owner thinks! That’s the dumbest idea I’ve ever heard.’ — The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone (Founders #179)

    [18:42] He saw that posted rates, supposedly fixed, could also be negotiated. All was not as it seemed on the outside.

    [20:45] He was the greatest borrower I ever saw.

    [22:12] What if the president of a bank refused to make me a loan? That was nothing. That made no difference to me; simply meant that I must look elsewhere until I got what I wanted.

    [26:07] Hard Drive: Bill Gates and the Making of the Microsoft Empire by James Wallace and Jim Erickson (Founders #140)

    [26:41] Lost from view is the Rockefeller that Cleveland knew in the 1860s— a vigorous, alert gentleman with a quiet, but extraordinary personality.

    [29:10] Small egos do not build giant companies.

    [30:23] When Money Was In Fashion: Henry Goldman, Goldman Sachs, and the Founding of Wall Street by June Breton Fisher. (Founders #255)

    [33:10] The customer-experience path we've chosen requires us to have an efficient cost structure. The good news for shareowners is that we see much opportunity for improvement in that regard. Everywhere we look we find what experienced Japanese manufacturers would call muda, or waste.* I find this incredibly energizing. I see it as potential-years and years of variable and fixed productivity gains and more efficient, higher velocity, more flexible capital expenditures. — Invent and Wander: The Collected Writings of Jeff Bezos (Founders #155)

    [34:54] Other refiners groused about these restrictions, but in general they accepted them as facts to live with. Rockefeller refused to do so.

    [38:55] Last Train to Paradise: Henry Flagler and the Spectacular Rise and Fall of the Railroad that Crossed an Ocean by Les Standiford. (Founders #247)

    [40:15] You don’t want turnover on your core product team. Knowledge compounds. Don’t interrupt the compounding. — Softwar: An Intimate Portrait of Larry Ellison and Oracle by Matthew Symonds (Founders #124)

    [47:47] 1. You raise money so you can increase production. 2. Use your increased production to get better rates on transportation than other refiners. 3. Use your increased profits —because you have better transportation —to buy your competitors. 4. You continue to find secret sources of income.

    [55:23] Most simply doubted that Rockefeller's plan would work. John, it cannot be done, they said.

    [56:13] It was ruthless efficiency and hyper competence.

    [1:00:07] Rockefeller loves secret allies.

    [1:00:31] The secret ownership of other companies was so well preserved that often a refiner enraged by Standard’s ruthless tactics would refuse its offer to buy him out and sell instead to a local competitor—unaware that he had in fact sold out to Standard.

    [1:02:01] He believed that Standard Oil stock is the most valuable thing in the world to own and always bought more of it.

    [1:05:57] Check out how Rockefeller turns an expense into a profit center: Standard purchased a half interest in Chess, Carley & Company, the largest distributor of refined oil to the South and Southwest. Together they purchased a number of the newly introduced bulk tank cars. Chess-Carley shipped turpentine from southern pine forests to Cleveland, where the cars were emptied and the turpentine was sold in the local market. The tank cars were then filled with kerosene and sent back to Louisville for distribution. In a single swoop the huge expense of shipment by barrels had been eliminated.

    [1:09:22] He proceeded in the same steady, methodical way that a farmer plowed a field.

    [1:13:47] The danger Potts and the Pennsylvania railroad posed to his creation convinced Rockefeller that the time had come to pick a fight with the world's largest industrial corporation.

    [1:23:20] Rockefeller would have horse-drawn carriages drive up and down the streets and sell oil directly.

    [1:28:28] I think it is fair to say that the strong men who were competitors in the oil refining business, the aggressive men in the best financial condition, and the most intelligent, indeed the class of men who would be most likely to survive in the competitive struggle, were the men who were most likely to take up our idea of cooperation.

    [1:33:09] Dark Genius of Wall Street: The Misunderstood Life of Jay Gould, King of the Robber Barons by Edward J. Renehan Jr.

    [1:35:38] Jay Gould was the single most unsettling force ever to appear on the American industrial scene.

    [1:36:22] Among wheelers and dealers of his day Gould had no peer.

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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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    #249 Steve Jobs In His Own Words

    #249 Steve Jobs In His Own Words

    What I learned from reading I, Steve: Steve Jobs In His Own Words by George Beahm.

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    [1:05]

    On Steve Jobs

    #5 Steve Jobs: The Biography
    #19 Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader
    #76 Return To The Little Kingdom: Steve Jobs and The Creation of Apple
    #77 Steve Jobs & The NeXT Big Thing
    #204 Inside Steve Jobs' Brain
    #214 Steve Jobs: The Exclusive Biography
    #235 To Pixar And Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History

    Bonus Episodes on Steve Jobs

    Insanely Simple: The Obsession That Drives Apple's Success (Between #112 and #113)
    Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs (Between #110 and #111)

    On Jony Ive and Steve Jobs

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

    On Ed Catmull and Steve Jobs

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

    On Steve Jobs and several other technology company founders

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

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

    [3:13] We're not going to be the first to this party, but we're going to be the best.

    [4:54] Company Focus: We do no market research. We don't hire consultants. We just want to make great products.

    [5:06] The roots of Apple were to build computers for people, not for corporations. The world doesn't need another Dell or Compaq.

    [5:52] Nearly all the founders I’ve read about have a handful of ideas/principles that are important to them and they just repeat and pound away at them forever.

    [7:00] You can oftentimes arrive at some very elegant and simple solutions. Most people just don't put in the time or energy to get there.

    [8:09] I think of Founders as a tool for working professionals. And what that tool does is it gets ideas from the history of entrepreneurship into your brain so then you can use them in your work. It just so happens that a podcast is a great way to achieve that goal.

    [8:48] Tim Ferriss Podcast #596 with Ed Thorp

    [8:50] A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders 222)

    [10:43] In most people's vocabularies, design means veneer. It's interior decorating. It's the fabric of the curtains and the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service.

    [12:05] The Essential Difference: The Lisa people wanted to do something great. And the Mac people want to do something insanely great. The difference shows.

    [14:21] Sure, what we do has to make commercial sense, but it's never the starting point. We start with the product and the user experience.

    [15:57] Becoming Steve Jobs: The Evolution of a Reckless Upstart into a Visionary Leader by Brent Schlender and Rick Tetzeli. (Founders #19)

    [16:41] We had a passion to do this one simple thing.

    [16:51] And that's really important because he's saying I wasn't trying to build the biggest company. I wasn't trying to build a trillion dollar company. It wasn't doing any of that. Those things happen later as a by-product of what I was actually focused on, which is just building the best computer that I wanted to use.

    [17:14] In the Company of Giants: Candid Conversations With the Visionaries of the Digital World by Rama Dev Jager and Rafael Ortiz.  (Founders #208 )

    [17:41] It comes down to trying to expose yourself to the best things that humans have done and then try to bring those things in to what you're doing. Picasso had a saying: good artists copy, great artists steal. And we have always been shameless about stealing great ideas.

    [20:29] Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.

    [21:06]  A Mind at Play: How Claude Shannon Invented the Information Age by Jimmy Soni and Rob Goodman (Founders #95) “A very small percentage of the population produces the greatest proportion of the important ideas. There are some people if you shoot one idea into the brain, you will get half an idea out. There are other people who are beyond this point at which they produce two ideas for each idea sent in.”

    [22:29] Edwin land episodes:

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

    The Instant Image: Edwin Land and The Polaroid Experience by Mark Olshaker. (Founders #132)

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

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

    [25:01] Macintosh was basically this relatively small company in Cupertino, California, taking on the goliath, IBM, and saying "Wait a minute, your way is wrong. This is not the way we want computers to go. This is not the legacy we want to leave. This is not what we want our kids to be learning. This is wrong and we are going to show you the right way to do it and here it is and it is so much better.

    [27:47] Jony Ive: The Genius Behind Apple's Greatest Productsby Leander Kahney. (
    (Founders #178)

    [29:00] Enzo Ferrari: Power, Politics, and the Making of an Automobile Empire by Luca Dal Monte (Founders #98)

    [34:39] On meeting his wife, Laurene: I was in the parking lot, with the key in the car, and I thought to myself: If this is my last night on earth, would I rather spend it at a business meeting or with this woman? I ran across the parking lot, asked her if she'd have dinner with me. She said yes, we walked into town, and we've been together ever since.

    [37:26] It's not about pop culture, and it's not about fooling people, and it's not about convincing people that they want something they don't. We figure out what we want. And I think we're pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That's what we get paid to do.

    [41:29] Constellation Software Inc. President's Letters by Mark Leonard. (Founders #246)

    [42:30] Made in Japan: Akio Morita and Sony by Akio Morita. (Founders #102)

    [44:36] Victory in our industry is spelled survival.

    [45:21] Once you get into the problem you see that it's complicated, and you come up with all these convoluted solutions. That's where most people stop, and the solutions tend to work for a while. But the really great person will keep going, find the underlying problem, and come up with an elegant solution that works on every level.

    [48:15] Churchill by Paul Johnson (Founders #225)

    [48:25] I would trade all my technology for an afternoon with Socrates.

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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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    #132 Edwin Land (Steve Jobs's Hero)

    #132 Edwin Land (Steve Jobs's Hero)

    What I learned from reading The Instant Image: Edwin Land and the Polaroid Experience by Mark Olshaker. 

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    [1:42] The word “problem” had completely departed from Edwin land's vocabulary to be replaced by the word “opportunity”. 

    [2:01] What was it about this man and his company that allowed such confidence and seeming lack of concern with the traditional top priorities of American business? 

    [2:38] There is something unique about Polaroid having to do both with the human dimension of the company, and with a unity of vision of its founder and guiding genius.  

    [3:36] Perhaps the single most important aspect of Land's character is his ability to regard things around him in a new and totally different way.  

    [4:14] Right from the beginning of his career Land had paid scant attention to what experts had to say, trusting his own instincts instead.  

    [4:49] Land has always believed that for any item sufficiently ingenious and intriguing, a new market could be created. Conventional wisdom has little capacity with which to evaluate a market that did not exist prior to the product that defines it. 

    [5:21] He feels that creativity is an individual thing. Not generally applicable to group generation. 

    [5:52] Land is a man deeply caught up in the creative potential of the individual. 

    [6:33] An institution is the lengthened shadow of one man. 

    [7:43] Apple founder Steve Jobs once hailed Edwin Land, the founder of Polaroid and the father of instant photography, as "a national treasure" and once confessed to a reporter that meeting Land was "like visiting a shrine." By his own admission, Jobs modeled much of his own career after Land’s. Both Jobs and Land stand out today as unique and towering figures in the history of technology. Neither had a college degree, but both built highly successful and innovative organizations. Jobs and Land were both perfectionists with an almost fanatic attentiveness to detail, in addition to being consummate showmen and instinctive marketers. In many ways, Edwin Land was the original Steve Jobs.  

    [8:36] There's a rule that they don't teach you at the Harvard business school. It is, if anything is worth doing it's worth doing to excess

    [11:22] Steve Jobs: I always thought of myself as a humanities person as a kid, but I liked electronics. Then I read something that one of my heroes, Edwin Land of Polaroid, said about the importance of people who could stand at the intersection of humanities and sciences. And I decided that's what I wanted to do.  

    [12:51] In a world full of cooks, Edwin Land was a chef. [Link to The Cook and The Chef: Elon Musk’s Secret Sauce]  

    [19:34] Land was asked what he wanted to be when he was younger: I had two goals. To be the world's greatest scientist and to be the world's greatest novelist. 

    [21:28] Everyone acknowledged that the future of Polaroid corporation would be determined by what went on in the brain of Edwin Land. 

    [22:01] My motto is very personal and may not fit anyone else or any other company. It is: Don't do anything that someone else can do.  

    [22:54] Fortunately our company has been one which has been dedicated throughout its life to making only things which others can not make.  

    [25:06] Land had far more faith in his own potential, and that of the company he inspired, than did any of the experts looking in from the outside.  

    [27:30] Polaroid failed to build a successful company by selling to other businesses: Each [product] would have involved millions of dollars in revenue for the company, but each invention involved a certain degree of transformation of an existing industry controlled by an existing power structure. From this Land realizes he needs to control the relationship with the customer. He realizes he needs to sell directly to the end user

    [36:16] Edwin Land is inspired by, and learned from, people that came before him. One example of this is Alexander Graham Bell. Edwin Land is not worried about the marketing [of a new product] because Bell went through the same thing: Land apparently lost little sleep over the initial situation, calling to mind that the same sort of reaction had greeted the public introduction of Bell's telephone, 70 years earlier. The telephone had been a dominant symbol in Land's thinking. He began making numerous connections between his camera and the telephone.  

    [40:16] Over the years, I have learned that every significant invention has several characteristics. By definition it must be startling, unexpected, and must come into a world that is not prepared for it. If the world were prepared for it, it would not be much of an invention.  

    [40:46] It is the public's role to resist [a new invention, a new product/service]. 

    [41:29] It took us a lifetime to understand that if we're to make a new commodity —a commodity of beauty —then we must be prepared for the extensive teaching program needed to prepare society for the magnitude of our invention

    [45:12] Only the individual— and not the large group— can see a part of the world in a totally new and different way.  

    [48:08] Land's view is that a company should be scientifically daring and financially conservative. 

    [50:30] To understand more about every aspect of light, Edwin Land read every single book on light that was available in the New York City Public Library. That reminded me of one of my favorite lectures ever: Running Down A Dream: How to Succeed and Thrive in a Career You Love

    [51:59] Land on the problem with formal education: Young people for the most part —unless they are geniuses— after a very short time in college, give up any hope of being individually great. 

    [54:16] Among all the components and Land's intellectual arsenal, the chief one seems to be simple concentration.  

    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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    #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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