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    • Claude Shannon: The Creative Generalist Who Revolutionized Information AgeClaude Shannon, a creative generalist with wide-ranging interests, made groundbreaking contributions to various fields, anticipating the information revolution's impact on our world. His curiosity and exploratory nature led to intuitive connections between disparate areas.

      Claude Shannon, the father of the information age, was a creative generalist with a wide range of interests and an indifference to apparent contradictions. He made groundbreaking contributions to various fields, from mathematics and engineering to juggling and gambling, and resisted easy categorization. Shannon's curiosity and exploratory nature led him to make intuitive connections between seemingly disparate areas, anticipating how the information revolution would fundamentally change our world. His life was marked by a balance of productivity and laziness, fame and anonymity, and a passion for both deep theory and playful pursuits. As Ed Thorpe, a colleague and friend, noted, Shannon was to information and communication what Newton was to physics. This book, "A Mind at Play," by Jimmy Soni and Rob Goodman, brings Shannon's life and work to life, offering valuable insights for entrepreneurs and anyone interested in the history of technology and innovation.

    • A life of solitude and curiosity led to Shannon's groundbreaking workShannon's focus on doing what he loved, eliminating distractions, and trusting his own reasoning led to his groundbreaking work in technology and mathematics.

      Claude Shannon was a unique and fascinating individual whose personality and approach to life greatly influenced his groundbreaking work in technology and mathematics. Despite his immense success and fame, he preferred solitude and avoided distractions, choosing instead to spend his time on curious and serious pursuits for their own sake. Shannon was immune to scientific fashion and uninterested in the opinions of others, preferring to trust his own reasoning and ideas. He was a man of closed doors and long silences, and his legendary work was done mostly alone. Even after achieving great success, he continued to tinker and explore new projects, from electronic mazes to wearable computers. The authors of the book "A Mind at Play" argue that Shannon's life serves as a reminder that a well-lived life is one spent doing what one loves, with a balance of levity and gravity. Shannon's ability to eliminate distractions and trust his own reasoning, even in the face of criticism or opposition, is a valuable lesson for us all.

    • Claude Shannon: The Father of Information TheoryClaude Shannon revolutionized information understanding, storage, and communication through information theory, impacting fields like statistics, computer science, physics, neurobiology, and cryptography.

      Claude Shannon, the father of information theory, revolutionized the way we understand, store, and communicate information. Information theory, a complex field at the intersection of mathematics, statistics, computer science, physics, neurobiology, information engineering, and electrical engineering, is crucial for advanced single signal processing and high-speed data transmission. Shannon's work on information theory is also applied in various fields, including statistical inference, natural language processing, cryptography, neurobiology, human vision, and molecular codes. His belief in simplifying complex issues and resourcefulness, evident in his childhood, played a significant role in his groundbreaking discoveries. Shannon's natural affinity for mathematics and his interest in easy tasks echoes Charlie Munger's belief in following your natural drift. Despite an apparently ordinary childhood without overbearing parental pressure, Shannon's early life showcased his resourcefulness and curiosity, which paved the way for his extraordinary achievements.

    • Learning from Principles and Staying True to OurselvesCharlie Munger and Claude Shannon, despite their differences, valued principles over facts, sought knowledge from diverse fields, and remained true to themselves. Shannon's indecisiveness led him to study both mathematics and engineering, which proved crucial for his success in information theory.

      Both Charlie Munger and Claude Shannon, despite their different personalities, shared a common approach to learning and life. They valued principles over facts, sought to learn from various fields, and were not afraid to be true to themselves. Shannon, in particular, disliked fields with too many facts and preferred those with general principles. He was indecisive and ended up studying both mathematics and engineering in college, which proved essential for his later success. A pivotal moment in his life came when he received an invitation to come east and help build a mechanical brain, leading him to a groundbreaking career in information theory. Ultimately, their stories remind us of the importance of staying true to our nature, seeking principles, and being open to new experiences.

    • Vannevar Bush's influence on Shannon's life and information theoryVannevar Bush's mentorship and the differential analyzer experience shaped Claude Shannon's future, leading to the foundation of information theory and the concept of digital computation.

      Vannevar Bush, the man behind the differential analyzer at MIT, played a pivotal role in shaping Claude Shannon's life and the development of information theory. Shannon, an undergraduate considering his future, stumbled upon a job offer to become a master's student and assistant on the differential analyzer. This opportunity, tailor-made for his love of equations and construction, proved to be one of the luckiest events of his life. Bush, a renowned figure in American science, recognized Shannon's potential and became his lifelong mentor. The differential analyzer, a room-sized analog computer, was a brain that could solve complex equations through brute force. Shannon's experience working with this machine influenced his thoughts and led him to the concept of digital computation, ultimately resulting in the foundation of information theory. Logic, according to Shannon, was a tool for democratizing thought, much like a machine, and could multiply the power of both the gifted and the average minds. This idea of computation as a tool for enhancing human intellect was a precursor to the popularized concept of computers as "bicycles for the mind."

    • Pioneering Information Theory with Curiosity and Abstract ThinkingClaude Shannon's curiosity and abstract thinking led him to create information theory, showing the importance of following one's interests and reducing complex problems to their essential core.

      Claude Shannon, a pioneer in information theory, approached complex problems with a mindset of abstracting and reducing them to their essential core. He was known for his mastery of model making and his deep curiosity, which led him to publish groundbreaking theories seemingly out of nowhere. Shannon's work in his twenties, marked by deep withdrawal and shyness, resulted in the creation of information theory. His approach of not focusing on usefulness as a primary goal but rather following his curiosity resonates with entrepreneurs and those navigating complex systems. Additionally, Shannon's early interest in flying and the concern of his flight instructor showcases his unique character and determination.

    • From no knowledge to original findings in genetics: Claude Shannon's multidisciplinary journeyCuriosity and a multidisciplinary approach can lead to exceptional achievements, regardless of initial expertise or background.

      Curiosity and a multidisciplinary approach can lead to exceptional achievements, regardless of one's initial expertise or background. This is exemplified in the life of Claude Shannon, who, encouraged by his mentor Vannevar Bush, went from having no knowledge of genetics to producing original findings in the field within a year. Bush, a strong advocate against specialization, believed that being both broad and deep in knowledge was possible and desirable, as demonstrated by figures like Leonardo da Vinci and Benjamin Franklin. Shannon's success in genetics, as well as his later achievements in the stock market and computer science, illustrate the power of curiosity and a willingness to explore various domains. Bush's influence on Shannon's life highlights the importance of mentors and role models in fostering a mindset that values learning and versatility.

    • Following passions leads to success and productivityMathematician Claude Shannon's life and work in genetics and communication technology demonstrate the importance of discovery and pursuing interests, leading to great success and productivity.

      Following your interests and passions can lead to great success and productivity, as demonstrated by the life and work of Claude Shannon. Shannon, a mathematician and pioneer in information theory, made significant contributions to genetics and communication technology despite having no prior knowledge in those fields. He emphasized the importance of discovery over communication and worked on multiple ideas simultaneously, leading to a more productive method. Shannon's experience at Bell Labs, a hub for communication innovation, further highlights the value of pursuing what interests you. The freedom and control over one's work that comes with entrepreneurship or a role in a place like Bell Labs can be a powerful motivator for many people. Shannon's life serves as a reminder that enjoying your work and finding fulfillment in it is a worthwhile goal, and one that not everyone achieves.

    • Mathematician Shannon optimized life for freedom, contributed to war effort through mathIntroverted mathematician Shannon avoided social situations, made crucial war contributions through math in areas of fire control and cryptography

      Shannon, a highly introverted mathematician, optimized his life for freedom and avoided situations that required extensive social interaction, including the possibility of being drafted into the army during World War 2. Instead, he contributed to the war effort through his groundbreaking work in mathematics, specifically in the areas of fire control and cryptography. Shannon's work on fire control involved turning the challenge of hitting moving targets into a math problem, while his work on cryptography led to the first secure way to place a call across the Atlantic Ocean. Despite the immense pressure of the war and a personal crisis, Shannon continued to make significant contributions, but struggled with the obligatory teamwork and secrecy that came with it. His work in cryptography was particularly mysterious and kept classified for decades, making it one of the least understood components of the war machine.

    • Connecting seemingly unrelated ideas led to groundbreaking discoveries for Claude ShannonClaude Shannon's curiosity and passion for puzzles, combined with his ability to connect seemingly unrelated ideas, led to significant advancements in information theory and cryptography.

      Claude Shannon, a pioneer in information theory, was able to make significant contributions by connecting seemingly unrelated ideas from various fields. His work on cryptography, which involved creating an unbreakable code during World War II, was not only important for military intelligence but also laid the foundation for his revolutionary theory of information. Shannon was influenced by the work of Ralph Hartley and extended his ideas, demonstrating that innovation often builds upon the past. Shannon's life and career serve as a reminder that following one's natural instincts and interests, even if they don't lead to financial gains or public recognition, can lead to groundbreaking discoveries. Shannon's principle of indifference and his focus on his most intriguing puzzles show that staying true to one's passions can lead to significant advancements.

    • The value of curiosity and intellectual freedomCuriosity and intellectual freedom can lead to remarkable outcomes. Engage in activities that bring joy and fulfillment, regardless of practical application.

      Valuable consequences often arise from simple curiosity and the freedom to explore new ideas. This idea is exemplified in the life of Claude Shannon, a pioneering mathematician and engineer. Shannon's curiosity led him to leave Bell Labs for MIT, where he experienced greater intellectual freedom and opportunities for collaboration. The essential seclusion of Bell Labs had its advantages and disadvantages, but Shannon felt he was becoming stale and unproductive after spending over a decade there. His move to MIT stimulated his mind, leading to some of his most creative and whimsical endeavors. This concept of autotelic activities, or those that have an end or purpose of themselves, is a valuable lesson for us all. It's important to have activities and pursuits in our lives that bring us joy and fulfillment, regardless of their practical application. Shannon's story serves as a reminder that the freedom to explore and the satisfaction of pursuing our passions can lead to remarkable outcomes.

    • Claude Shannon's Playful Approach to InvestingRenowned mathematician and information theorist Claude Shannon approached life with curiosity, enjoyment, and no distinction between passions, leading to successful investments like Teledyne.

      Claude Shannon, a renowned mathematician and information theorist, approached life with a sense of curiosity and enjoyment, seeing no distinction between his various passions, be it information theory, unicycles, or investing. Shannon's daughter, Peggy, recounts how their family's interest in investing was a playful and engaging hobby, with no separation between their pursuit of financial success and their personal enjoyment. Shannon's investment in Teledyne, which grew into a multibillion-dollar conglomerate, is a testament to his successful approach. Despite his immense wealth, Shannon did not seek it for its own sake but rather saw it as a source of mathematical puzzles and problems to be solved. Shannon's approach to life, characterized by curiosity, enjoyment, and a lack of separation between personal and professional interests, serves as an inspiring reminder for us all.

    • Focus on fundamentals and essentialsShannon believed that focusing on strong companies with solid leadership and growth prospects is more important than complex formulas and market timing in investing.

      According to Shannon and as supported by the views of Buffett and Munger, the focus on complex formulas and market timing in investing is less important than the fundamentals of a strong company with solid leadership and growth prospects. Shannon approached problems with a simplistic mindset, focusing on ideas rather than formulas, and believed that choosing successful companies was easier than predicting short-term market fluctuations. Michelangelo's quote about sculpture can be applied to building a business by focusing on the essentials and removing superfluous material. Shannon was motivated by curiosity rather than financial gain, and his work overlapping with his natural inclination led him to success. The Kyoto Prize winner, Claude Shannon, is an example of a successful individual who focused on his passion and achieved recognition and financial success as a result.

    • Klaus Shannon: A Humble Innovator's LegacyKlaus Shannon, the founder of Kyocera, was a humble innovator who admired thinkers, innovators, and their positive impact on society. He envisioned a future of logic, energy conservation, and friendliness, but his life ended tragically with Alzheimer's disease. Shannon's life and work remind us of the importance of humility, dedication, and innovation.

      Klaus Shannon, the founder of Kyocera, was a humble, hardworking innovator with a deep reverence for excellence and a strong distaste for war. He believed that history should focus on thinkers and innovators, like Darwin, Newton, and Beethoven, whose work continues to positively influence society. Shannon admired engineers and inventors, such as Edison, Bell, and Marconi, who brought scientific discoveries to life and improved the lives of common people. He envisioned a future where humanity was more logical, energy-conserving, and friendly, and was disappointed by humanity's entropy-increasing and militant nature. Despite his achievements, Shannon's life ended tragically with Alzheimer's disease. The reading of his books provided a bittersweet experience, leaving readers with a melancholic feeling of happiness and sadness. Shannon's life and work serve as a reminder of the importance of humility, dedication, and innovation in shaping the world.

    • Claude Shannon's unique funeral processionEmbrace life's journey, find joy in temporary experiences, and don't let small annoyances ruin the fun

      The life of Claude Shannon, as depicted in the biography "A Mind at Play," leaves a profound emotional impact on the reader. Despite the sadness of his untimely death, the book offers a unique perspective on embracing life and finding joy in the temporary experiences it offers. Shannon himself imagined a humorous and delightful funeral procession as a reflection of his approach to life. This idea of enjoying the journey and not letting small annoyances ruin the experience is a powerful reminder from the book. If you're interested in learning more about Claude Shannon and his unique perspective on life, consider reading the book for yourself and supporting the author and the podcast host in the process. The Macy's-style funeral procession Shannon envisioned, complete with jazz music, unicycling pallbearers, jugglers, and a live chess match, is a fitting tribute to a man who approached life with a sense of humor and a love for the intellectual pursuits.

    • Supporting the Podcast and Next Episode PreviewEngage with the podcast by sharing it and using the provided links to support its growth. The next episode will feature a biography of an entrepreneur.

      Supporting this podcast by using one of the three links provided helps ensure its survival and growth. The host expressed his gratitude for the listeners' engagement and encouraged them to spread the word about the podcast. The topic for the next episode will be "Biography of an Entrepreneur." By engaging with the podcast, listeners can contribute to its success and learn from the inspiring stories of entrepreneurs. So, if you find value in this podcast, please consider supporting it by sharing it with your friends and using the provided links.

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    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.

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    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: 

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

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

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

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    #349 How Steve Jobs Kept Things Simple

    #349 How Steve Jobs Kept Things Simple

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

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

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

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

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

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

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

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

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

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

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

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

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

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    Michael Jordan In His Own Words

    Michael Jordan In His Own Words

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

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    Episode Outline: 

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

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

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

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

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

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

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

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

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

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

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    Founders
    en-usMay 12, 2024

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

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

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

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    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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    #346 How Walt Disney Built Himself

    #346 How Walt Disney Built Himself

    What I learned from rereading Walt Disney: The Triumph of the American Imagination by Neal Gabler. 

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    (2:00) Disney’s key traits were raw ingenuity combined with sadistic determination.

    (3:00) I had spent a lifetime with a frustrated, and often unemployed man, who hated anybody who was successful. 

    Francis Ford Coppola: A Filmmaker's Life by Michael Schumacher. (Founders #242)

    (6:00) Disney put excelence before any other consideration.

    (11:00) Maybe the most important thing anyone ever said to him: You’re crazy to be a professor she told Ted. What you really want to do is draw. Ted’s notebooks were always filled with these fabulous animals. So I set to work diverting him. Here was a man who could draw such pictures. He should earn a living doing that. 

    Becoming Dr. Seuss: Theodor Geisel and the Making of an American Imagination by Brian Jay Jones. (Founders #161)

    (14:00) A quote about Edwin Land that would apply to Walt Disney too:

    Land had learned early on that total engrossment was the best way for him to work. He strongly believed that this kind of concentrated focus could also produce extraordinary results for others. Late in his career, Land recalled that his “whole life has been spent trying to teach people that intense concentration for hour after hour can bring out in people resources they didn’t know they had.”  A Triumph of Genius: Edwin Land, Polaroid, and the Kodak Patent War by Ronald Fierstein. (Founders #134)

    (15:00) My parents objected strenuously, but I finally talked them into letting me join up as a Red Cross ambulance driver. I had to lie about my age, of course. 

    In my company was another fellow who had lied about his age to get in. He was regarded as a strange duck, because whenever we had time off and went out on the town to chase girls, he stayed in camp drawing pictures.

    His name was Walt Disney.

    Grinding It Out: The Making of McDonald's by Ray Kroc. (Founders #293)

    (20:00) Walt Disney had big dreams. He had outsized aspirations.

    (22:00) A quote from Edwin Land that would apply to Walt Disney too: 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.

    (24:00) Walt Disney seldom dabbled. Everyone who knew him remarked on his intensity; when something intrigued him, he focused himself entirely as if it were the only thing that mattered.

    (29:00) He had the drive and ambition of 10 million men.

    (29:00) I'm going to sit tight. I have the greatest opportunity I've ever had, and I'm in it for everything.

    (31:00) He seemed confident beyond any logical reason for him to be so. It appeared that nothing discouraged him.

    (31:00) You have to take the hard knocks with the good breaks in life.

    (32:00) Nothing wrong with my aim, just gotta change the target. — Jay Z

    (35:00) He sincerely wanted to be counted among the best in his craft.

    (43:00) He didn't want to just be another animation producer. He wanted to be the king of animation. Disney believed that quality was his only real advantage.

    (47:00) Walt Disney wanted domination. Domination that would make his position unassailable.

    (49:00) Disney was always trying to make something he could be proud of.

    (50:00) We have a habit of divine discontent with our performance. It is an antidote to smugness.

    Eternal Pursuit of Unhappiness: Being Very Good Is No Good,You Have to Be Very, Very, Very, Very, Very Good by David Ogilvy and Ogivly & Mather.  (Founders #343)

    (53:00) While it is easy, of course, for me to celebrate my doggedness now and say that it is all you need to succeed, the truth is that it demoralized me terribly. I would crawl into the house every night covered in dust after a long day, exhausted and depressed because that day's cyclone had not worked. There were times when I thought it would never work, that I would keep on making cyclone after cyclone, never going forwards, never going backwards, until I died.

    Against the Odds: An Autobiography by James Dyson (Founders #300)

    (56:00) He doesn't place a premium on collecting friends or socializing: "I don't believe in 50 friends. I believe in a smaller number. Nor do I care about society events. It's the most senseless use of time. When I do go out, from time to time, it's just to convince myself again that I'm not missing a lot."

    The Red Bull Story by Wolfgang Fürweger (Founders #333)

    (1:02:00) Steve was at the center of all the circles.

    He made all the important product decisions.

    From my standpoint, as an individual programmer, demoing to Steve was like visiting the Oracle of Delphi.

    The demo was my question. Steve's response was the answer.

    While the pronouncements from the Greek Oracle often came in the form of confusing riddles, that wasn't true with Steve.

    He 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.

    He was always trying to ensure the products were as intuitive and straightforward as possible, and he was willing to invest his own time, effort, and influence to see that they were.

    Through looking at demos, asking for specific changes, then reviewing the changed work again later on and giving a final approval before we could ship, Steve could make a product turn out like he wanted.

    Much like the Greek Oracle, Steve foretold the future.

    Creative Selection: Inside Apple's Design Process During the Golden Age of Steve Jobs by Ken Kocienda. (Founders #281)

    (1:07:00) He griped that when he hired veteran animators he had to “put up with their Goddamn poor working habits from doing cheap pictures.” He believed it was easier to start from scratch with young art students and indoctrinate them in the Disney system.

    (1:15:00) I don’t want to be relagated to the cartoon medium. We have worlds to conquer here.

    (1:17:00) Advice Henry Ford gave Walt Disney about selling his company: If you sell any of it you should sell all of it.

    (1:23:00) He kept a slogan pasted inside of his hat: You can’t top pigs with pigs. (A reminder that we have to keep blazing new trails.)

    (1:25:00) Disney’s Land: Walt Disney and the Invention of the Amusement Park That Changed the World by Richard Snow.

    (1:33:00) It is the detail. If we lose the detail, we lose it all.

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    Related Episodes

    #92 Ed Thorp and Claude Shannon

    #92 Ed Thorp and Claude Shannon

    What I learned from reading Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street by William Poundstone.

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    Claude Shannon was as close to a sure thing as existed [2:53]

    The beginning of information theory [7:11]

    Project X [9:09]

    introduction to Ed Thorpe [15:05]

    using math and physics to beat Las Vegas [18:03]

    Ed Thorp and Claude Shannon meet [20:45]

    testing Thorpe’s Blackjack theory [26:00]

    The core of John Kelly’s philosophy of risk can be stated without math. It is that even unlikely events must come to pass eventually. Therefore, anyone who accepts small risks of losing everything will lose everything, sooner or later. The ultimate compound return rate is acutely sensitive to fat tails. [28:23]

    I’d be a bum in the street with a tin cup if the markets were efficient. —Warren Buffett [44:30]

    how Claude Shannon begins studying the stock market [46:45]

    Claude Shannon and Henry Singleton [48:16]

    why and how Ed Thorp started investing in stocks [49:49]

    Thorp starts a hedge fund and starts working remotely [52:49]

    Ed Thorp meets Warren Buffett [54:20]

    An acid test of Princeton/Newport’s market neutrality came in the Black Monday crash of October 19, 1987. The Dow Jones index lost 23 percent of its value in a single day. Princeton/Newport’s $ 600 million portfolio shed only about $ 2 million in the crash. Princeton Newport’s return for the year was an astonishing 34 percent. [59:36]

    the implosion of Long Term Capital Management [1:07:00]

    The thing you should do is the opposite of what you feel you should do. –Jim Clayton [1:09:10]

    A quote from 1738: A man who risks his entire fortune acts like a simpleton, however great may be the possible gain. — Daniel Bernoulli [1:13:00]

    Claude Shannon: A smart investor should understand where he has an edge and invest only in those opportunities. The methods Claude Shannon used to invest [1:17:10]

    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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    #329 Charlie Munger (the NEW Poor Charlie's Almanack)

    #329 Charlie Munger (the NEW Poor Charlie's Almanack)

    What I learned from reading the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger

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    (2:00) The practical wisdom of Poor Charlie's Almanack, this ode to curiosity, generosity, and virtue will similarly compound at successive generations of entrepreneurial readers extend his lessons to their own circumstances.

    (12:00) Education is the process whereby the ability to lead a good life is acquired.  — Socrates: A Man for Our Times by Paul Johnson. (Founders #252)

    (22:00) Trust is one of the greatest economic forces on earth.

    (29:00) Charlie is content to trust his own judgment when it runs counter to the wisdom of the herd.

    (31:00) Animated: Charlie Munger: The Psychology of Human Misjudgement

    (31:30) Aim for durability. Durability has always been a first rate virtue in Charlie’s eyes.

    (32:00) Charlie only focuses on great businesses and great businesses have moats.

    (33:00) Johnny Carson by Henry Bushkin. (Founders #183)

    (42:00) You can flourish in a niche: People who specialize in the business world —and get very good because they specialize— frequently find good economics that they wouldn't get any other way.

    (45:00) Being so well known has advantages of scale. This is what you might call an informational advantage. It increases social proof.

    (46:30) Business Breakdowns episode on Coca Cola 

    (49:00) Occasionally scaling down and intensifying gives you a big advantage. (You can find great profit margins this way)

    (50:00) Sam Walton: Made In America by Sam Walton. (Founders #234)

    (51:00) Scale and fanaticism combined is very powerful. (Think Sam Walton)

    (57:00) I also believed then, as I do now after more than fifty years as a money manager, that the surest way to get rich is to play only those games or make those investments where I have an edge. — A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders #222)

    (1:08:00) The best thing a human being can do is help another human being know more.

    (1:14:00) Optimism is a moral duty. — Edwin Land

    (1:17:00) You want to maximize the playing time of your top players.

    (1:17:00) The game of competitive life often requires maximizing the experience of the people who have the most aptitude and the most determination as learning machines.

    (1:22:00) The most important rule in management is get the incentives right.

    (1:25:00) Never, ever think about something else when you should be thinking about the power of incentives.

    ----

    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

    #329 Charlie Munger (the NEW Poor Charlie's Almanack)

    #329 Charlie Munger (the NEW Poor Charlie's Almanack)
    Founders ✓ Claim

    Key Takeaways

    • “Trust is one of the greatest economic forces on earth.”Charlie Munger 
    • Genius has the fewest moving parts 
    • “Good ideas are rare. Bet heavily when you find them.”Charlie Munger 
    • Understand the power of inversion; get what you want by avoiding what you do not want 
    • Wisdom is prevention: wise people don’t solve problems, they avoid them 
    • If you play games in which other people have an edge, and you do not, you are going to lose 
    • Do not silo your educational pursuits; study different disciplines and make connections between them 
    • Learn how to ignore the examples of others when they are wrong
    • Life will have terrible blows; you must not engage in self-pity and be able to pick yourself back up 
    • “The best thing a human being can do is help another human being know more.”Charlie Munger  


    Read the full notes @ podcastnotes.org




    What I learned from reading the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger

    ----

    Listen to this incredible conversation between Charlie Munger and John Collison on Invest Like The Best

    ----

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

    ----

    (2:00) The practical wisdom of Poor Charlie's Almanack, this ode to curiosity, generosity, and virtue will similarly compound at successive generations of entrepreneurial readers extend his lessons to their own circumstances.

    (12:00) Education is the process whereby the ability to lead a good life is acquired.  — Socrates: A Man for Our Times by Paul Johnson. (Founders #252)

    (22:00) Trust is one of the greatest economic forces on earth.

    (29:00) Charlie is content to trust his own judgment when it runs counter to the wisdom of the herd.

    (31:00) Animated: Charlie Munger: The Psychology of Human Misjudgement

    (31:30) Aim for durability. Durability has always been a first rate virtue in Charlie’s eyes.

    (32:00) Charlie only focuses on great businesses and great businesses have moats.

    (33:00) Johnny Carson by Henry Bushkin. (Founders #183)

    (42:00) You can flourish in a niche: People who specialize in the business world —and get very good because they specialize— frequently find good economics that they wouldn't get any other way.

    (45:00) Being so well known has advantages of scale. This is what you might call an informational advantage. It increases social proof.

    (46:30) Business Breakdowns episode on Coca Cola 

    (49:00) Occasionally scaling down and intensifying gives you a big advantage. (You can find great profit margins this way)

    (50:00) Sam Walton: Made In America by Sam Walton. (Founders #234)

    (51:00) Scale and fanaticism combined is very powerful. (Think Sam Walton)

    (57:00) I also believed then, as I do now after more than fifty years as a money manager, that the surest way to get rich is to play only those games or make those investments where I have an edge. — A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders #222)

    (1:08:00) The best thing a human being can do is help another human being know more.

    (1:14:00) Optimism is a moral duty. — Edwin Land

    (1:17:00) You want to maximize the playing time of your top players.

    (1:17:00) The game of competitive life often requires maximizing the experience of the people who have the most aptitude and the most determination as learning machines.

    (1:22:00) The most important rule in management is get the incentives right.

    (1:25:00) Never, ever think about something else when you should be thinking about the power of incentives.

    ----

    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

    #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

    #329 Charlie Munger (the NEW Poor Charlie's Almanack)

    #329 Charlie Munger (the NEW Poor Charlie's Almanack)
    Founders ✓ Claim

    Key Takeaways

    • “Trust is one of the greatest economic forces on earth.”Charlie Munger 
    • Genius has the fewest moving parts 
    • “Good ideas are rare. Bet heavily when you find them.”Charlie Munger 
    • Understand the power of inversion; get what you want by avoiding what you do not want 
    • Wisdom is prevention: wise people don’t solve problems, they avoid them 
    • If you play games in which other people have an edge, and you do not, you are going to lose 
    • Do not silo your educational pursuits; study different disciplines and make connections between them 
    • Learn how to ignore the examples of others when they are wrong
    • Life will have terrible blows; you must not engage in self-pity and be able to pick yourself back up 
    • “The best thing a human being can do is help another human being know more.”Charlie Munger  


    Read the full notes @ podcastnotes.org




    What I learned from reading the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger

    ----

    Listen to this incredible conversation between Charlie Munger and John Collison on Invest Like The Best

    ----

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

    ----

    (2:00) The practical wisdom of Poor Charlie's Almanack, this ode to curiosity, generosity, and virtue will similarly compound at successive generations of entrepreneurial readers extend his lessons to their own circumstances.

    (12:00) Education is the process whereby the ability to lead a good life is acquired.  — Socrates: A Man for Our Times by Paul Johnson. (Founders #252)

    (22:00) Trust is one of the greatest economic forces on earth.

    (29:00) Charlie is content to trust his own judgment when it runs counter to the wisdom of the herd.

    (31:00) Animated: Charlie Munger: The Psychology of Human Misjudgement

    (31:30) Aim for durability. Durability has always been a first rate virtue in Charlie’s eyes.

    (32:00) Charlie only focuses on great businesses and great businesses have moats.

    (33:00) Johnny Carson by Henry Bushkin. (Founders #183)

    (42:00) You can flourish in a niche: People who specialize in the business world —and get very good because they specialize— frequently find good economics that they wouldn't get any other way.

    (45:00) Being so well known has advantages of scale. This is what you might call an informational advantage. It increases social proof.

    (46:30) Business Breakdowns episode on Coca Cola 

    (49:00) Occasionally scaling down and intensifying gives you a big advantage. (You can find great profit margins this way)

    (50:00) Sam Walton: Made In America by Sam Walton. (Founders #234)

    (51:00) Scale and fanaticism combined is very powerful. (Think Sam Walton)

    (57:00) I also believed then, as I do now after more than fifty years as a money manager, that the surest way to get rich is to play only those games or make those investments where I have an edge. — A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders #222)

    (1:08:00) The best thing a human being can do is help another human being know more.

    (1:14:00) Optimism is a moral duty. — Edwin Land

    (1:17:00) You want to maximize the playing time of your top players.

    (1:17:00) The game of competitive life often requires maximizing the experience of the people who have the most aptitude and the most determination as learning machines.

    (1:22:00) The most important rule in management is get the incentives right.

    (1:25:00) Never, ever think about something else when you should be thinking about the power of incentives.

    ----

    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