My guest this week is Bill Gurley, general partner at Benchmark Capital. Our conversation is about one specific issue that has popped up as a topic of interest in the investing community in recent months: the comparison between bringing a company public through a traditional IPO vs. what’s known as a direct listing.
 As a third party observer with no real dog in the hunt (as we don’t buy IPOs at O’Shaughnessy Asset Management), I thought this was a small and nuanced issue. I’ve therefore been surprised by the strength of opinions on both sides of this issue as I’ve explored it behind the scenes this past week. It feels almost like I’ve encountered a political third rail, where one side throws a lot of vitriol towards the other. 
 To be clear, this episode is very much in favor of direct listings instead of traditional IPOs. For those that want a good discussion of the IPO process and its upsides, check out episode 173 of the Exponent podcast with Ben Thompson. 
 Now please enjoy my very interesting conversation with Bill Gurley
  
 For more episodes go to InvestorFieldGuide.com/podcast.
 Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
 Follow Patrick on Twitter at @patrick_oshag
  
 Show Notes
 1:22 - (First Question) – His view on the IPO process
 5:42 – Will now be the turning point for IPO’s
 6:40 – The engagement between a new company going public and their counterparty and the IPO process
 13:38 – The math of capital costs
 18:18 – Banks that underprice the IPO’s
 20:45 – The psychology of IPO’s
 23:14 – The pop in the IPO and the media
 24:54 – The value that shareholders give vs VC’s
 25:37 – The Green Shoots
 28:17 – The lock-up
 31:40 – Direct listings vs IPO’s
              36:07 – Spotify’s CEO Reveals Why He’s Not Doing a Traditional IPO
 38:23 – The capital raised in an IPO and diluting the company
 40:18 – Privilege access and buy-side firms
 43:33 – What will actually lead to changes in the IPO space
 44:48 – Why he became so interested in the IPO space
  
 Learn More
 For more episodes go to InvestorFieldGuide.com/podcast. 
 Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
 Follow Patrick on Twitter at @patrick_oshag

Bill Gurley – Direct Listing vs. IPO  - [Invest Like the Best, EP.144]

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My guest today is Ken Langone. Ken is a legendary American businessman best known for his co-founding of Home Depot. He is also a former director of the New York Stock Exchange and a passionate philanthropist. He shares with us a lifetime's worth of wisdom, building Home Depot into a powerhouse and prioritizing his employees above all else. He says he still “bleeds orange” to this day. You’ll hear as he recounts his business endeavors, his strict belief in keeping your word, and his true pride in his country, which he knows to be the land of opportunity. We discuss his work with Ross Perot, the idea of an upside-down hierarchy, and the power of loyalty. For anyone who may find it easier to follow along, we have a transcript of the episode on joincolossus.com. Please enjoy this conversation with Ken Langone.  

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For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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This episode is brought to you by Tegus, the go-to destination for bold investing. The investment research platform trusted by 95% of the top 20 global private equity firms just got even better. Building on their solid reputation for expert insights, Tegus has expanded to become the first true all-in-one research platform. The new Tegus makes diligence faster, easier, and more convenient than ever before. Your Tegus license gives you access to over 70,000 expert transcripts, more than 4,000 fully drivable financial models, and exclusive datasets like company management checks, industry KPIs, hard-to-find non-GAAP data, and more. Tegus is the fastest way to learn about a public or private company and the most cost-effective way to conduct investment research — now all under one roof. Learn more and get your free trial at tegus.com/patrick.
-----
Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @patrick_oshag | @JoinColossus
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:
(00:00:00) Welcome to Invest Like the Best
(00:004:00) The Unforgettable Pitch to Ross Perot
(00:08:37) Winning Over Perot with Honesty and Insight
(00:16:08) The Art of Negotiation and Trust
(00:19:31) Loyalty, Integrity, and the Power of Keeping Your Word
(00:23:51) Home Depot's Culture of Service and Empowerment
(00:29:16) Frank's Authentic Leadership and Its Impact
(00:31:00) Transforming NYU Medical Center
(00:33:45) Ken’s Investment Philosophy: Long Hold Only
(00:39:56) The Power of Resilience in Business
(00:45:37) The Kindest Thing Anyone Has Ever Done For Ken

Ken Langone - The American Dream - [Invest Like the Best, EP.368]

My guest today is Robin Dunbar. Robin is a biological anthropologist, evolutionary psychologist, and specialist in primate behavior. He is the man behind Dunbar’s number, a theory about the number of stable relationships we can maintain at once. Robin unravels the thread of research that led him to Dunbar’s number and describes how this plays into every single person’s layers of human connection. It was fascinating to hear how his findings on social circles have implications for optimally structuring businesses and organizations, as well as the idea of homophily, all of which Robin thoughtfully explains. It was a treat to get to explore these topics with Robin Dunbar himself so please enjoy this great conversation.  

Listen to Founders Podcast
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
-----
This episode is brought to you by Tegus, the only investment research platform built for fundamental investors. Whether you’re trying to get up to speed on a new market or keep tabs on a portfolio company, Tegus is the end-to-end investment research platform you need. With Tegus, you can quickly understand a company's business model, drivers, benchmarks, and management quality. To monitor an entire market, download our pre-built financial models — or update your own with the latest data using Tegus’ new Excel Add-In. Tegus gives you all of this and more, all bundled into a single software license. Find out why 95% of the top 20 global private equity firms are Tegus customers. Learn more and get your free trial at tegus.com/patrick.
-----
Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @patrick_oshag | @JoinColossus
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes:
(00:00:00) Welcome to Invest Like the Best
(00:04:39) The Journey to Discovering Dunbar's Number
(00:07:28) Exploring the Layers of Human Connection
(00:12:27) The Significance of the 1.5 Layer in Social Circles
(00:16:55) Surprising Insights from Social Network Studies
(00:20:40) Applying Dunbar's Number to Organizational Structures
(00:27:51) The Science of Social Bonding in Primates and Humans
(00:33:23) Unlocking the Endorphin System Without Physical Touch
(00:34:10) The Power of Laughter, Singing, and Storytelling in Group Bonding
(00:36:00) The Limitations of Digital Interactions for Building Relationships
(00:39:51) Reviving Social Clubs and Activities for Workplace Bonding
(00:44:40) The Importance of Homophily in Friendships and Social Networks
(00:50:40) Challenges and Solutions for Overcoming Loneliness and Building Trust
(00:53:45) The Impact of Technology, Religion, and Mental Health on Social Connections
(00:61:47) Reflecting on Time as a Fundamental Aspect of Social Dynamics

Robin Dunbar - Optimizing Human Connection (Dunbar's Number) - [Invest Like the Best, EP.367]

My guest today is Sean Feeney. Sean is the co-founder of Grovehouse Hospitality Group and the owner of Lilia and Misi, two of New York City’s most sought-after restaurants. He left his job in Trading to chase down a dream with Michelin star chef Missy Robbins. Sean leveraged his finance background to write his own rulebook for the restaurant industry, crafting several establishments that now boast several thousand people on the waitlist any given night. His story is as entertaining as it is inspiring. As we go step by step through his business endeavors, he points out all of the times he was told “it’s just always been done this way” and how that revealed to him where he could innovate. Sean’s restaurants are the perfect example of building a business into the fabric of a community, collaborating with other brands in authentic ways, and staying true to yourself along the way. Please enjoy this awesome conversation with Sean Feeney. 

Listen to Founders Podcast
Join Positive Sum as a Research Analyst
﻿
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
-----
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @patrick_oshag | @JoinColossus
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:
(00:00:00) Welcome to Invest Like the Best
(00:03:58) First Question - A Chance Encounter with a Michelin-Starred Chef
(00:08:52) The Birth of a Culinary Partnership
(00:12:49) Embracing the Genius Within
(00:16:41) Innovative Approaches to the Restaurant Business
(00:24:53) Creating Demand: The Art of Exclusivity
(00:28:49) Learning from the Best: Insights from Kith's Success
(00:34:21) Defining Exceptional Hospitality
(00:44:20) The Power of Customer Relationships in Hospitality
(00:52:31) Unlocking Team Potential 
(00:53:33) The Philosophy of the Perfect Turn
(00:54:05) Balancing Art, Commerce, and Satisfaction
(00:56:13) The Impact of Authentic Experiences and Brands
(01:03:24) The Evolution of a Hospitality Brand
(01:06:38) Community Engagement and the Power of Simplicity
(01:24:40) Creative Responses and Business Lessons Learned
(01:36:05) Lessons From Working In The Restaurant Industry 
(01:43:01) The Kindest Thing Anyone Has Ever Done For Sean

Sean Feeney - Reinventing the Restaurant Business - [Invest Like the Best, EP.366]

My guest today is Dave Fontenot, founder of HF0. Born out of Dave’s experiences in monasteries across the world, HF0 is a twelve-week residency for repeat founders to supercharge their next venture. For 12 weeks, 10 teams of engineers relocate to HF0’s house in San Francisco. During the residency, everything is taken care of so their sole focus is coding and building. It’s one of the most interesting incubators I have come across and we discuss the model and its monastic origins in detail. Please enjoy this conversation with Dave Fontenot.

Become a Research Analyst at Positive Sum
Listen to Founders Podcast
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
-----
This episode is brought to you by Tegus, the only investment research platform built for the investor. With traditional research vendors, the diligence process is slow, fragmented, and expensive. That leaves investors competing on how well they can aggregate data — not on their unique ability to analyze insights and make great investment decisions. Tegus offers an end-to-end platform with all the data you need to get up to speed on a company or market: up-to-the-minute financials, customizable models, management and culture checks, and, of course, our vast and growing library of expert call transcripts. Tegus is changing the world of expert research. Learn more and get your free trial at tegus.com/patrick.
-----
Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @patrick_oshag | @JoinColossus
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:
(00:00:00) Welcome to Invest Like the Best
(00:04:05) First Question - Dave’s Journey to Meditation and Monastic Life
(00:07:25) From Monastery to Coding: Finding Flow in Programming
(00:08:32) Creating Spaces for Uninterrupted Creativity: The Birth of HF0
(00:20:24) A Day in the Life at HF0
(00:25:15) Why 12 Weeks? The Philosophy Behind the Duration
(00:27:14) Selecting the Brilliant Minds for HF0
(00:31:43) The Thin Line Between Visionary and Crazy
(00:34:39) Creating Space to Meditate 
(00:37:24) The Economic Model Behind HF0
(00:41:36) Building Successful Residencies
(00:44:48) Expanding the Residency Model to Universities
(00:52:52) Understanding Engineers and Hackers
(01:02:01) The Kindest Thing Anyone’s Ever Done For Dave

Dave Fontenot - The Monastery of Code - [Invest Like the Best, EP.365]

My guest today is Anne-Marie Peterson. Anne-Marie is an equity portfolio manager at Capital Group, a storied investment firm managing 2.5 trillion dollars and getting ready to celebrate its centennial anniversary. Anne-Marie is a seasoned investor, approaching three decades in the industry, with nearly 20 of those years being with Capital. She has become an expert in retail and restaurants and shares her proven strategies in those sectors over her career. We discuss her people-first approach, simplicity as criteria for investment, and the idea that the best retailers are cults. Please enjoy this great discussion with Anne-Marie Peterson.

Listen to Founders Podcast
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
-----
This episode is brought to you by Tegus, the go-to destination for bold investing. The investment research platform trusted by 95% of the top 20 global private equity firms just got even better. Building on their solid reputation for expert insights, Tegus has expanded to become the first true all-in-one research platform. The new Tegus makes diligence faster, easier, and more convenient than ever before. Your Tegus license gives you access to over 70,000 expert transcripts, more than 4,000 fully drivable financial models, and exclusive datasets like company management checks, industry KPIs, hard-to-find non-GAAP data, and more. Tegus is the fastest way to learn about a public or private company and the most cost-effective way to conduct investment research — now all under one roof. Learn more and get your free trial at tegus.com/patrick.
-----
Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.
Follow us on Twitter: @patrick_oshag | @JoinColossus
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:
(00:00:00) Welcome to Invest Like the Best
(00:04:06) First Question - Understanding Capital Group's Investment Approach
(00:05:43) The Importance of Teamwork and Culture in Investment Firms
(00:07:38) The Role of Analysts in Investment Decisions
(00:12:24) The Art of Running Effective Meetings with Company Management
(00:18:12) Exploring the Dominance of Big Tech Companies
(00:19:13) The Common Thread Amongst Great Retailing Companies
(00:30:49) Comparing The Growth in The Tech Market to That of Healthcare
(00:34:14) The Rise of Pharma and its Potential Opportunities
(00:36:56) Power Dynamics in the Tech Industry
(00:38:11) The Idea of Power in Investing
(00:46:21) Unique Challenges and Opportunities in the Restaurant Industry
(00:48:35) The Positive Signal of Enduring Companies
(00:54:54) The Importance of Gratitude and Kindness in Professional Growth
(00:58:40) The Kindest Thing Anyone Has Ever Done for Anne-Marie

Bill Gurley – Direct Listing vs. IPO - [Invest Like the Best, EP.144]

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