Logo
    Search

    Podcast Summary

    • The Complex Partnership of Andrew Carnegie and Henry Clay FrickAndrew Carnegie and Henry Clay Frick's partnership shaped American industry, with Carnegie's benevolent public image contrasting Frick's ruthless management style. Despite their wealth and influence, their relationship was marked by past grievances and animosity, even on Carnegie's deathbed.

      Learning from the discussion about "Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Transformed America" by Les Standiford is the complex and significant partnership between two industrial giants, Andrew Carnegie and Henry Clay Frick. Despite their immense wealth and influence, their relationship was marked by past grievances and animosity. Carnegie, on his deathbed, reached out to Frick with a letter, proposing a meeting to patch up their differences. However, Frick, known for his legendary ire, showed no signs of reconciliation. Their business partnership had been marked by Carnegie's benevolent public persona and Frick's ruthless management style. The book provides valuable insights into their partnership, which was instrumental in shaping the industrial landscape of America. The writing in the book is engaging and the focus on their partnership makes it an easier and more compelling read compared to Carnegie's own autobiography.

    • The late 1800s: Steel fuels the expansion of railroads and industrial giantsSteel's importance in railroad expansion transformed the US into an economic powerhouse, with figures like Carnegie and Frick amassing fortunes through steel and railways

      During the late 1800s in America, steel was a game-changing technology that fueled the expansion of the railroad system and the rise of industrial giants. Steel was crucial for building and maintaining the vast network of tracks and bridges, making it a significant ingredient in the technological revolution of the time. This revolution transformed the United States from an agrarian and underdeveloped country into a powerful economic juggernaut. Andrew Carnegie, a penniless immigrant, became the wealthiest man in the world by harnessing the power of steel and the expansion of the railroad industry. His partnership with JPMorgan led to the creation of the world's first $1,000,000,000 corporation. Another key player, Henry Clay Frick, monopolized the coke industry and became a major shareholder in Carnegie Steel, amassing a fortune. Steel's importance as a technology and its role in the expansion of the railroad system served as dual tailwinds, driving each other's growth throughout the late 1800s.

    • Andrew Carnegie's Early Experiences and Learning OpportunitiesAndrew Carnegie's early jobs as a bobbin boy and telegraph operator gave him valuable skills and opened doors to opportunities in various industries. Exposure to the railroad industry through Thomas Scott led to successful investments in oil and the formation of Keystone Bridge Company, laying the foundation for his fortune.

      Andrew Carnegie's early experiences in America, starting as a bobbin boy in a weaving mill and eventually becoming a telegraph operator, provided him with valuable skills and opportunities that led to his success in various industries such as railroads, oil, and iron and steel. A pivotal moment in his career was when he was introduced to the larger business world by Thomas Scott, who was then assistant superintendent of the Pennsylvania Railroad. This exposure to the industry gave Carnegie a front-row seat to observe and learn from the business opportunities and investments that were shaping American history. Carnegie's ability to seize opportunities, combined with his practical business education, allowed him to make successful investments in oil and later, form the Keystone Bridge Company, which became the foundation of his vast fortune. His success was not only due to his business acumen but also to the contacts and knowledge he gained from his association with the railroad.

    • Carnegie's trip to England and meeting Bessemer leads him to the steel industryCarnegie's focus on controlling resources, being present among industry leaders, and recognizing potential of new technologies led him to immense wealth in the steel industry

      Andrew Carnegie's determination to control his business's raw materials and be in the right place at the right time led him to the steel industry and eventually to immense wealth. At age 33, Carnegie left Pittsburgh for New York City and made a trip to England where he met Henry Bessemer, the inventor of the Bessemer process for producing steel faster than before. Realizing the industry's vast potential and demand for steel, Carnegie returned to Pittsburgh and started his own steel mill in 1872, just before the Financial Panic of 1873. Despite the challenging economic conditions, Carnegie's timing and focus on steel production proved successful, and his fortune was built upon this revolutionary technology. Carnegie's strategies of controlling resources, being present among industry leaders, and recognizing the potential of new technologies were key to his success.

    • Seizing opportunities during economic downturnsEntrepreneurs can thrive during economic downturns by starting businesses at lower costs, hiring top talent, and maintaining a relentless focus on reducing costs to undercut competitors and attract more customers.

      During economic downturns, when others are hesitant to expand, savvy entrepreneurs like Andrew Carnegie can seize opportunities and build successful businesses. The 1873 financial panic, which caused widespread bankruptcies and unemployment, allowed Carnege to start his steel mill at a significantly lower cost. He also learned the importance of hiring the best talent and implementing meticulous cost accounting. Despite his success, Carnegie continued to push for improvement and had a relentless focus on lowering costs, which helped him undercut competitors and attract more customers. This cycle of cost reduction and growth repeated throughout his career and was a common theme among successful entrepreneurs like Henry Ford and John D. Rockefeller.

    • Andrew Carnegie and Henry Clay Frick: Cost Cutting PioneersAndrew Carnegie and Henry Clay Frick, through their relentless focus on cost cutting, revolutionized their industries by undercutting competitors and maximizing profits.

      Both Andrew Carnegie and Henry Clay Frick, two influential figures in the history of business, were known for their relentless focus on cost cutting. Carnegie, the principal salesman for his iron and steel companies, undercut his competitors' prices by producing rails for less than $50, while Frick discovered a way to produce high-quality coke more cheaply. Their paths intersected when Carnegie recognized the potential of buying cheaper coke from Frick, leading to a partnership that continued their quest for cost efficiency. Both men, despite being in different industries and eras, shared a common philosophy of focusing on costs to maximize profits. This approach allowed them to outcompete their rivals and dominate their respective markets.

    • Trust and Confidence in Business RelationshipsTrust and confidence between business partners can lead to mutual success. Mellon's belief in Frick's potential and Frick's relentless acquisitions set the stage for their later partnership in the steel industry.

      The relationship between Henry Clay Frick and Thomas Mellon played a pivotal role in Frick's success in the coke industry. When Frick approached Mellon for a loan to expand his coke business, Mellon made the decision to trust Frick based on his judgment and the confidence Frick showed. This trust paid off, as Frick's company soon became a major supplier of coke to the steel industry and a significant competitor. Mellon's belief in Frick's potential and his own judgment in recognizing Frick's abilities led to a successful partnership and Frick's rise to wealth and power. Additionally, Frick's relentless acquisitions and Carnegie's investment in his company set the stage for their later partnership in the steel industry. This story highlights the importance of trust, confidence, and good judgment in business relationships and the potential for mutual success when individuals with complementary skills and resources come together.

    • Henry Clay Frick's strategic partnership with Carnegie SteelFrick's coal and coke holdings led him to aspire for steel, Carnegie saw his ambition as an asset, but their partnership faced challenges due to the 'ironclad agreement' and the Homestead Strike, marking the start of a tumultuous business relationship.

      Henry Clay Frick's strategic partnership with Andrew Carnegie's Carnegie Steel Company was crucial for Frick's dream of entering the steel industry. Despite Frick's significant coal and coke holdings, he saw steel as his ultimate goal. Carnegie, initially reluctant, eventually saw Frick's ambition and determination as an asset and made him a partner. However, the partnership was not without its challenges. The death of Carnegie's brother, Thomas, paved the way for Frick's entry into the company, but also led to the creation of the "ironclad agreement." This agreement, intended to protect the company in case of a partner's death, would later become the catalyst for a bitter and long-lasting conflict between Carnegie and Frick. The Homestead Strike, a significant labor dispute, was the first major rift between the two partners, marking the beginning of a tumultuous business relationship that would last until their deaths. The constant conflict between ownership and labor was a common theme during this era, and this partnership was no exception.

    • A labor dispute led to Frick's resignation from Carnegie's companyDespite disagreements over labor issues, Carnegie recognized Frick's leadership abilities and brought him back, strengthening their partnership

      The business partnership between Andrew Carnegie and Henry Clay Frick was marked by intense disagreements over labor issues. Frick, known for his hardline stance against labor unions, clashed with Carnegie's desire for compromise. During a labor dispute, Frick resigned in protest, believing that Carnegie expected unquestioned subservience from him. However, Carnegie realized Frick was not a puppet but a principled and strong-willed leader. Despite Frick's resignation, Carnegie saw value in his managerial talents and brought him back into the company, ultimately making Frick a major shareholder with an 11% stake. This incident taught both partners important lessons about each other's strengths and weaknesses, leading to a deeper partnership.

    • Focus on cost control and innovationAndrew Carnegie and Henry Clay Frick's shared focus on cost control and innovation led to success in their businesses, but their inability to find common ground during the Homestead Strike resulted in tragic consequences.

      Both Andrew Carnegie and Henry Clay Frick shared a relentless focus on cost control and innovation in their business ventures. Frick, who rose from nothing to become a successful industrialist in the coal industry, brought the same approach when he took charge of Carnegie's steel business. They both believed that knowing costs down to the penny and investing in new technologies were essential for long-term success. Despite their shared philosophy, their business practices led to the infamous Homestead Strike, where their inability to find common ground resulted in a tragic loss of life and a significant setback for Carnegie's business. This incident highlights the importance of maintaining perspective and avoiding emotionally charged decisions that can have far-reaching consequences.

    • Labor Dispute Between Pinkertons and Strikers at Carnegie SteelLabor disputes can lead to violent confrontations and loss of life, highlighting the volatile nature of such conflicts and the need for peaceful resolution

      The labor dispute between the Pinkertons and the strikers at Carnegie Steel led to a violent and deadly confrontation. The situation escalated from a series of disagreements and tensions, resulting in a shootout and massacre. Despite the loss of life on both sides, neither the union nor the owners seemed willing to back down from their positions. The aftermath saw Frick issuing a decree against employing any man who had taken part in the violence, leading to an assassination attempt on Frick's life by a former employee. This tragic event underscores the dangerous and volatile nature of labor disputes and the potential for escalation of conflicts.

    • Henry Frick's unwavering spirit after being shotHenry Frick's determination and resilience were unyielding, as shown by his response to being shot and his continued focus on business operations, despite personal tragedy.

      Henry Clay Frick's determination and resilience were unwavering, even in the face of adversity. Despite being shot and losing several children, Frick continued to work and maintain his business operations. His statement after the assassination attempt reflected his unyielding attitude towards the union and his commitment to the Carnegie Steel Company. This incident marked the beginning of the end for the Frick-Carnegie partnership, but Frick's indomitable spirit remained unbroken. Frick's advice to his protege, Charles Schwab, to not allow anything to discourage him, further emphasizes his unwavering determination. The account of Frick's response to being shot is a testament to his extraordinary fortitude and his remarkable ability to focus on his work amidst personal tragedy.

    • Decades of disputes between Frick and CarnegieWealthy business leaders can let emotions and egos hinder business relationships, leading to costly and unnecessary conflicts.

      Even the wealthiest and most formidable individuals can let their emotions and egos get in the way of their business relationships, leading to costly and unnecessary conflicts. In the case of Henry Clay Frick and Andrew Carnegie, decades of petty disagreements and fights could have been avoided if they had approached their business dealings with a more rational and respectful attitude. One specific incident that led to Frick's resignation was their disagreement over Carnegie's plan to buy one of Frick's former competitors. Frick saw the man as dishonest and did not want to be involved. However, this was just the last straw in a long series of disputes. Despite their differences, Frick and Carnegie had previously wanted to repair their relationship and work together more closely. However, the final fallout did not come until several years later. Another significant issue was the ironclad agreement of 1887, which made it difficult for partners to retire and sell their shares. This impasse was eventually resolved in 1899, but it highlighted the inflexibility and lack of communication between the two men. In the end, Frick's resignation was a shock to many, and his resignation letter to Carnegie was described as a "jaw dropper." Despite their wealth and intelligence, Frick and Carnegie's inability to work through their differences led to a needless and costly rift.

    • Secretive sale of Carnegie SteelTransparency, trust, and mutual respect are crucial for successful business partnerships. Hidden deals and unscrupulous actions can lead to conflict and damage relationships.

      The relationship between Andrew Carnegie and Henry Clay Frick took a turn for the worse when Frick and Phipps attempted to sell Carnegie Steel to speculators, Bedlamion Gates and the Moore brothers, without revealing their identities. Carnegie was outraged by the secretive dealings and the potential loss of control to unscrupulous businessmen. The situation was further complicated by Frick and Phipps' desire for a larger profit through a broker's fee and their lack of sufficient funds to complete the purchase. The disagreements between the two men escalated, leading to threats, demands for apologies, and ultimately, Carnegie's decision to remove Frick from his position as chairman of the company. The incident highlights the importance of transparency, trust, and mutual respect in business partnerships.

    • Underestimating Value and Control in BusinessEgo and emotions can cloud judgment, leading to unfair business decisions and potential consequences. Logic and fairness are crucial in maintaining healthy business relationships.

      Power and success can lead individuals to make questionable decisions based on ego and a miscalculation of value. Andrew Carnegie, in his pursuit to assert control over his business and remove Henry Clay Frick, underestimated Frick's worth and attempted to force him out with a significantly lower compensation. Frick, recognizing the flawed decision, filed a lawsuit and discovered the errors in the ironclad agreement. This incident highlights the importance of logic and fairness in business dealings and the potential consequences of letting emotions dictate decisions. Despite their partnership and the significant contributions of both men to the growth of Carnegie Steel, Carnegie's actions led to a bitter end and a lasting rift between the two.

    • Fear of Public Disclosure in Business DealingsMaintaining confidentiality in business dealings is crucial to avoid embarrassment, disadvantage, and potential harm to reputation and ability to do business.

      The public disclosure of a company's business affairs, especially when it reveals discrepancies or hidden deals, can significantly impact its reputation and ability to do business. This was a major concern for Andrew Carnegie during his dispute with Henry Frick. Frick was in possession of documents that could potentially reveal Carnegie's valuation of his business as much higher than what Frick claimed. If made public, this would hamper Carnegie's efforts to manipulate the value of his holdings and buy out partners. Carnegie's business rivals, including George Westinghouse, urged him to settle the matter to avoid the embarrassment and disadvantage of having private affairs made public. Ultimately, Carnegie reached a compromise with Frick, but the fear of public disclosure loomed large in the minds of business leaders during this time. This incident highlights the importance of maintaining confidentiality in business dealings and the potential consequences of failing to do so.

    • The Influence of Key Players After a Sale or RetirementUnderstanding the motivations and ambitions of key players is crucial even after a sale or retirement. Effective leadership and the ability to navigate power dynamics within a company are essential.

      Even after achieving great wealth and success, business leaders like Andrew Carnegie and Henry Clay Frick continued to shape their companies' futures. After selling his steel company to form US Steel, Carnegie intended to retire but was surprised by Frick's ambition to become the CEO. Carnegie opposed this and eventually Charles Schwab was elected as the president. However, Frick remained influential, and when Schwab resigned, Frick's partner, Elbert Gary, took over. For more than 15 years, Gary relied on Frick's advice. This story highlights the importance of understanding the motivations and ambitions of key players in a business, even after a sale or retirement. It also underscores the importance of effective leadership and the ability to navigate power dynamics within a company.

    Recent Episodes from Founders

    #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. 

    ----

    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

    ----

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

    ----

    (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)

    ----

    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. 

    ----

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

    ----

    "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

    ----

    (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.

    ----

    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. 

    ----

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

    ----

    "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

    ----

    (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.

    ----

    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.

    ----

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

    ----

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

    Get access to Founders Notes here

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    (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 

    ----

    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

    #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 

    ----

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

    ----

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

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    If you want me to speak at your company go here

    ----

    (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.

    ----

    If you want me to speak at your company go here

    ----

    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

    #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. 

    ----

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

    ----

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

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    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.

    ----

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

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    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

    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. 

    ----

    Relationships run the world: Build relationships at Founders events

    ----

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    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. 

    ----

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    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

    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. 

    ----

    Relationships run the world: Build relationships at Founders events

    ----

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    Make yourself easy to interface with: Scribe helps entrepreneurs, consultants, executives, and other professionals publish a book about their specific knowledge

    Mention you heard about Scribe on Founders and they will give you these discounts: 

    Guided Author - $1,000 off
    Scribe Professional - $1,000 off
    Scribe Elite Ghostwriting - $3,000 off

    ----

    Vesto helps you see all of your company's financial accounts in one view. Connect and control all of your business accounts from one dashboard. Tell Ben (the founder of Vesto) that David sent you and you will get $500 off

    ----

    Join my personal email list if you want me to email you my top ten highlights from every book I read

    ----

    Buy a super comfortable Founders sweatshirt (or hat) here

    ----

    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.

    ----

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

    ----

    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

     

    #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. 

    ----

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

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

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

     A few questions I've asked SAGE recently: 

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

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

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

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

    Get access to Founders Notes here

    ----

    Vesto helps you see all of your company's financial accounts in one view. Connect and control all of your business accounts from one dashboard. Tell Ben (the founder of Vesto) that David sent you and you will get $500 off

    ----

    Join this email list if you want early access to any Founders live events and conferences

    Join my personal email list if you want me to email you my top ten highlights from every book I read

    ----

    Buy a super comfortable Founders sweatshirt (or hat) here

    ----

    (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."

    ----

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

    ----

    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

     

    Related Episodes

    #73 Andrew Carnegie and Henry Clay Frick (their bitter partnership)

    #73 Andrew Carnegie and Henry Clay Frick (their bitter partnership)

    What I learned from reading Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Changed America by Les Standiford. 

    ----

    Come see a live show with me and Patrick O'Shaughnessy from Invest Like The Best on October 19th in New York City. 

    Get your tickets here

    ---

    Join Founders AMA

    Members of Founders AMA can:

    -Email me your questions directly (you get a private email address in the confirmation email) 

    -Promote your company to other members by including a link to your website with you question 

    -Unlock every Ask Me Anything (AMA) episode immediately

    -Listen to new Ask Me Anything (AMA) episodes every week 

    ---

    #283 Andrew Carnegie

    #283 Andrew Carnegie

    What I learned from rereading The Autobiography of Andrew Carnegie by Andrew Carnegie. 

    ----

    Get access to the World’s Most Valuable Notebook for Founders by investing in a subscription to Founders Notes

    ----

    Follow one of my favorite podcasts Invest Like The Best  

    ----

    (1:01) 3 part series on Andrew Carnegie and Henry Clay Frick:

    Meet You In Hell: Andrew Carnegie Henry Clay Frick, and the Bitter Partnership That Transformed America by Les Standiford. (Founders #73) 

    The Autobiography of Andrew Carnegie by Andrew Carnegie (Founders #74) 

    Henry Clay Frick: The Life of the Perfect Capitalist by Quentin Skrabec Jr. (Founders #75) 

    (2:00) What these guys all had in common is they were hell bent on knowing their business down to the last cent. They were obsessed with having the lowest cost structure in their industry.

    (2:00) Highlights from Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Changed America:

    —Cut the prices, scoop the market, watch the costs, and the profits will take care of themselves.

    —Frick knows his business down to the ground.

    —Frick’s rise from humble beginnings was obviously intriguing to him. It signaled to Carnegie that Frick was another of the fellow “fittest,” and those were the individuals with whom Carnegie sought to align himself.

    —Carnegie would repeat the mantra time and again: profits and prices were cyclical, subject to any number of transient forces of the marketplace. Costs, however, could be strictly controlled, and in Carnegie’s view, any savings achieved in the costs of goods were permanent.

    —On this issue the two men were of one mind. Frick had made his way in coke by the same reckoning that Carnegie had in rail and steel: if you knew your costs down to the penny, you were always on firm ground.

    (6:00) Benjamin Franklin: An American Life by Walter Isaacson. (Founders #115)

    (7:00) A sunny disposition is worth more than a fortune. Young people should know that it can be cultivated; that the mind like the body can be moved from the shade into sunshine.

    (7:00) The Snowball: Warren Buffett and the Business of Life by Alice Schroeder. (Founders #100)

    (8:00) The most important judge of your life story is yourself.

    (9:00) You can always understand the son by the story of his father. The story of the father is embedded in the son. —Francis Ford Coppola: A Filmmaker's Life by Michael Schumacher. (Founders #242)

    (10:00) Invest in technology, the savings compound, it gives you an advantage over slower moving competitors, and can be the difference between a profit and a loss.

    (17:00) He is working from sunrise to sunset for $1.20 a week and he is ecstatic about being able to help his family avoid poverty. 

    (18:00) Andrew Carnegie had manic levels of optimism.

    (20:00) Do not delay. Do it now. It is a great mistake not to seize the opportunity. Having got myself in, I proposed to stay there if I could.

    (21:00) I felt that my foot was upon the ladder and that I was about to climb.

    (21:00) Lesson from Andrew Carnegie’s early life: Focus on whatever job is in front of you at this very moment and do the best you can. You can never know what opportunities that will unlock in the future.

    (24:00) On the miracle of reading and having free access to a 400 volume personal library: In this way the windows were opened in the walls of my dungeon through which the light of knowledge streamed in. Every day's toil and even the long hours of night service were lightened by the book which I carried about with me and read in the intervals that could be snatched from duty. And the future was made bright by the thought that when Saturday came a new volume could be obtained.

    (26:00) To Colonel James Anderson, Founder of Free Libraries in Western Pennsylvania:

    He opened his Library to working boys and upon Saturday afternoons acted as librarian, thus dedicating not only his books but himself to the noble work. This monument is erected in grateful remembrance by Andrew Carnegie, one of the "working boys" to whom were thus opened the precious treasures of knowledge and imagination through which youth may ascend.

    (28:00) Running Down A Dream: How to Succeed and Thrive in a Career You Love by Bill Gurley

    (36:00) Dark Genius of Wall Street: The Misunderstood Life of Jay Gould, King of the Robber Barons by Edward J. Renehan Jr. (Founders #258)

    (43:00) This policy is a true secret of success: Uphill work it will be.

    (46:00) Put all your eggs in one basket and watch that basket.

    (46:00) The most expensive way to pay for anything is with time.

    (48:00) The men who have succeeded are men who have chosen one line and stuck to it. It is surprising how few men appreciate the enormous dividends derivable from investment in their own business.

    (48:00) My advice to young men would be not only to concentrate their whole time and attention on the one business in life in which they engage, but to put every dollar of their capital into it.

    (51:00) The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance by Ron Chernow. (Founders #139)

    (52:00) Last Train to Paradise: Henry Flagler and the Spectacular Rise and Fall of the Railroad that Crossed an Ocean by Les Standiford. (Founders #247)

    ----

    Get access to the World’s Most Valuable Notebook for Founders by investing in a subscription to Founders Notes

    ----

    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

    #74 Andrew Carnegie

    #74 Andrew Carnegie

    What I learned from reading The Autobiography of Andrew Carnegie by Andrew Carnegie.

    ----

    Come see a live show with me and Patrick O'Shaughnessy from Invest Like The Best on October 19th in New York City. 

    Get your tickets here

    ---

    Join Founders AMA

    Members of Founders AMA can:

    -Email me your questions directly (you get a private email address in the confirmation email) 

    -Promote your company to other members by including a link to your website with you question 

    -Unlock every Ask Me Anything (AMA) episode immediately

    -Listen to new Ask Me Anything (AMA) episodes every week 

    ---

    #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. 

    ----

    Come see a live show with me and Patrick O'Shaughnessy from Invest Like The Best on October 19th in New York City. 

    Get your tickets here

    ----

    Subscribe to listen to Founders Premium — Subscribers can listen to Ask Me Anything (AMA) episodes and every bonus episode. 

    ---

    [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

    Be like Gareth. Buy a book. It's good for you. It's good for Founders. A list of all the books featured on Founders Podcast.

    #103 Hetty Green (The Richest Woman in America)

    #103 Hetty Green (The Richest Woman in America)

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

    ----

    Come see a live show with me and Patrick O'Shaughnessy from Invest Like The Best on October 19th in New York City. 

    Get your tickets here

    ----

    Subscribe to listen to Founders Premium — Subscribers can listen to Ask Me Anything (AMA) episodes and every bonus episode. 

    ---

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

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

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

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

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

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

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

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

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

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

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

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

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

    [13:28] Hetty hungered for money itself.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    ——

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

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