Episode Details

What I learned from reading Cable Cowboy: John Malone and the Rise of the Modern Cable Business by Mark Robichaux.

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Outline:

Thread of highlights from Cable Cowboy by @Loadlinefinance

Malone was stalwart about building long term value through leveraged cash flow. Earnings didn’t count. He wasn’t constrained by quarterly expectations.

Malone built the pipes, then bought the water that flows through them.

Malone took spartan operations to another level. Absolutely no bureaucracy. No waste. We don’t believe in staff. Staff are people who second-guess people.

Malone averaged one M&A deal every two weeks over 15 years. That’s insane. These guys were slinging billion dollar deals like bowls of breakfast cereal.

One of the best parts of the book is Robichaux’s exploration of Malone’s complex personality. It’s not just a fawning glow piece.

The beginning of industries are always filled with cowboys, pirates, and misfits.

This book— by far — has been the most requested book for me to cover on Founders for years.

Founders episodes on Andrew Carnegie:

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)

Founders episodes on JP Morgan:

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

The Hour of Fate: Theodore Roosevelt, J.P. Morgan, and the Battle to Transform American Capitalism by Susan Berfield (Founders #142)

Mavericks Lecture: John Malone

Two Rockefeller podcasts:

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

John D: The Founding Father of the Rockefellers by David Freeman Hawke (Founders #254)

Bob when recruiting John: You've got a great future here. If you can create it.

Malone's top executives were rough riders.

In 1972 TCI had $19 million in annual revenue and its debt load was an obscene $132 million.

Magness learned to listen instead of talk.

Successful people listen. Those who don’t listen, don’t survive long. —Michael Jordan Driven From Within by Michael Jordan and Mark Vancil (Founders #213)

That $2,500 loan turns into hundreds of millions of dollars for his grandsons.

New employees were asked can you walk 10 miles in 10 below zero weather?

The cable companies hardly paid any taxes because of the high depreciation on the equipment.

He skimmed the company's numbers, looked up at Betsy and blurted out, I'm gonna hire the smartest son of a bitch I can find.

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

Once you make a guy rich don’t expect him to work hard. Very unusual people do that.

You can identify an opportunity because you have deep knowledge about one industry and you see that there is an industry developing parallel to the industry that you know about. Jay Gould saw the importance of the telegraph industry in part because telegraph lines were laid next to railraod tracks.

Edison: A Biography by Matthew Josephson (Founders #267)

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