Episode Details

What I learned from reading Constellation Software Inc. President's Letters by Mark Leonard.

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[1:10] Business lessons from Mark Leonard by Tren Griffin

[2:11] Newsletter: Liberty’s Highlights The Serendipity Engine: Investing & business, science & technology, and the arts.

[2:59] I don’t like anyone telling me what to do. I don’t like anyone saying I am an authority figure and you will do it this way. I can’t think of anything that annoys me more. I was stuck by the principal. I challenged teachers. I left home early. I had a bootleg radio license. I built a flamethrower. I did things that weren’t accepted by lots of people. That ability to choose what I think is right is something I prize highly.

[4:49] Distant Force: A Memoir of the Teledyne Corporation and the Man Who Created It (Founders #110) and   The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success (Founders #94)

[4:53] Teledyne grows bigger by dividing businesses into smaller parts wherever possible. Singleton claims that this keeps his managers creative and not wasteful.

[5:12] Our preference is to acquire businesses in their entirety and to own them forever.

[8:57]  The Fish That Ate the Whale: The Life and Times of America's Banana King (Founders #37)

[9:18] 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.

[12:20] Customer relationships that endure for more than two decades are valuable.

[13:08] The longer we have owned a small software business, the larger and better it has become.

[15:32] Jeff Bezos’s Shareholder Letters. All of them! (Founders #71)

[23:22] We didn't get to that point with central edicts or grand plans. We just had a hunch that our internal ventures could be better managed, and started measuring them. The people involved in the Initiatives generated the data, and with measurement came adjustment and adaptation. It took 6 years, but we have fundamentally changed the mental models of a generation of our managers and employees.

[23:56]  A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market (Founders #93 and #222)

[28:06] Our business units rarely get large.

[28:26] This suggests that the size and performance of our business units are almost totally unrelated. I believe that these business units are small for a reason...that the advantages of being agile and tight far outweigh economies of scale. I’m not a proponent of handling our “complexity problem” by creating a bunch of 400 employee business units to replace our 40 employee units. I’m looking for ways of “achieving scale” elsewhere.

[29:06] Debt is cheap right now, so it is pretty tempting to use it. Unfortunately, it has a nasty habit of going away when you need it most.

[30:42] The Essays of Warren Buffett (Founders #227)

[32:51] Book recommendation from Mark: Thinking Fast and Slow

[34:53] I love what I'm doing and don't want to stop unless my health deteriorates or the board figures it's time for me to go.

[36:42] My personal preference is to instead