Founders

What I learned from reading Life of an American Workman by Walter Chrysler.

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[0:56]The kitchen fire was the only heat we knew in the winter. Often I had to scamper barefoot across a floor where snow had drifted through the cracks of badly fitting windows.

[1:56] We never spent money on things we could get without spending. 

[3:10] This book was written about a year before he had a stroke and about two years before he died. The book is full of memories of parents and friends long dead. 

[3:29] The memories he chose to highlight made me think of this quote on books by Carl Sagan: What an astonishing thing a book is. It’s a flat object made from a tree with flexible parts on which are imprinted lots of funny dark squiggles. But one glance at it and you’re inside the mind of another person, maybe somebody dead for thousands of years. Across the millennia, an author is speaking clearly and silently inside your head, directly to you. Writing is perhaps the greatest of human inventions, binding together people who never knew each other, citizens of distant epochs. Books break the shackles of time. A book is proof that humans are capable of working magic. 

[4:10] And I think that is what this book is. It is Walter Chrysler speaking directly to you and I over 80 years after he died. 

[5:18] On a few occasions his Dad would let him come to work with him [on the Union Pacific Railroad]. This is how Walt remembered that: The part of me that would be most tired would be my face. It was tired from grinning in my hours of ecstasy.  

[6:35]  He learned from his parents the need to be self sufficient. They built their own house. They raised their own food. They created their own jobs. If they wanted plumbing they made it themselves. 

[7:00] He is very passionate about mechanics and understanding machines. He has to create his own tools because he is too poor to buy them.  

[7:35] I went to work at 6 in the morning and was through at 10:30 at night. 

[9:02] I was a cocky youngster and full of confidence. 

[9:34]  He really valued work and learning and the sense of self confidence you get from doing something well. 

[10:01] A good workman was likely to mistrust any tool whose metal had not been tempered by himself. But I had an even better reason for making mine. I lacked the money with which to buy them. Years after I ceased to need them to earn a living, those tools I made were placed on display in a glass case on the observatory floor, 71 stories up in the tower of the Chrysler building. That is one of the most remarkable paragraphs in the entire book. Think about this: In one lifetime he goes from being so poor that he has to make his own tools—to having a skyscraper built for the company that he creates and that bears his name.  

[10:42] Jeff Bezos has a quote that says, "We don’t choose our passions, they choose us." 

[11:59] Walt couldn’t find the answers he needed in his small town so he wrote an abundance of letters to Scientific American: Whoever received the questions from subscribers must have thought that Walter P. Chrysler was a pen name for a dozen youths. At least half of whom were crazy. Yet many of my questions were answered. 

[12:13] A great story about Walt’s lifelong association with Mr. Neubert.  

[14:00] How Walt described himself at 22: I was cocky. I thought I was quite the kid. I had a sense of hurry. I had ambition and wanted to get ahead. 

[17:48] It seemed to me I could not make anyone understand. I was ambitious. I dared to tell her [his future wife] that I intended someday to be a master mechanic. I realized I had a lot of learn before I could really hope to have that dream fulfilled. That is why I wanted to go to a bigger place so I could get more experience. Most of the time—even in my own mind—I was pretty vague about what I was going to do.  

[20:08] Walt on his early 20s: I must confess I liked that sort of life. I liked the freedom, the sense of adventure, and the lack of responsibility. 

[22:29] He eventually becomes the highest paid person in the entire automobile industry. When he goes to work at GM he starts at $6,000 a year. A few years later he is making $600,000 a year. But that is not happening yet. Walt at 26 was making 30 cents an hour. 

[23:20] A great story about Old Man Hickey. There are a series of stories in this book where somebody took the time—usually someone a generation older—and took an interest in Walt and taught him a useful life lesson.  

[30:14]  Don’t let a fine opportunity slide by just because you are comfortable in a job that you have mastered. Don’t be afraid of your future. 

[31:29] I was learning responsibility weighs more heavily than iron.  

[33:11] Another passion grabs him: I saw this car. $5000! I had $700 to my name. I never stopped to ask myself if I should, if I could afford to go in hock to buy that car. All I asked myself was where could I raise the money?  

[34:39] Walt understood the potential impact of the automobile industry before most other people: The automobile is transportation too. The railroads have made this a richer country. Ask yourself what this country will be like when every individual has their own private car. 

[36:29] He does something really smart. He goes from working for the railroads to working for the manufacturer of the trains. He discovers there's a lot more money and pleasure in manufacturing.

[37:12] What was more important was the change in me. The fun I had experienced in making things as a boy was magnified a hundred fold when I began making things as a man. There is, in manufacturing, a creative joy that only poets are supposed to know. Someday, I'd like to show a poet how it feels to design and build a railroad locomotive.  

[39:42]  Making the jump to Buick. He goes from making $12,000 a year to $6,000: This is not the first time in his life that he will accept less money for a better opportunity, nor is it the last time. 

[40:25] There is a great quote by Marc Andreessen: Best thing about startups is you only experience two emotions: euphoria and terror.  

[42:40] Henry Leland had great respect for Walter Chrysler. He said that when he explained something to Walt he got it a lot quicker than everybody else. 

[43:04]  Walt compares and contrasts the mature locomotive industry to the new automobile industry.  

[44:21] The result of continuous improvement: They go from making a car in 4 days to making one in 15 minutes.  

[48:24] Walt is about to quit GM and go make his own car. This is what Billy Durant does to make sure that doesn’t happen: I’ll pay you $500,000 a year to stay on as President of Buick. 

[50:16] He thought Billy Durant was a genius and one of the most important people that helped the automobile industry thrive, but he had a hard time working with him: That’s the kind of fellow he was. We’d fight and then he’d want to raise my salary. The automobile industry owes more to Durant than it has yet acknowledged. In some ways he has been its greatest man. 

[53:36] Walt retires at 45. He is coaxed out of retirement with the high paying opportunity to turn around a failed automobile company: He says he will undertake the job for two years at $1 million a year. They say okay it is worth the risk of spending $2 million to see if this guy can get us back our $50 million.  

[56:20] I remember leaving a meeting saying I would not touch this with a 10 foot pole. What I was saying I would not touch was later on to be revealed to be the greatest opportunity of my whole life. 

[1:00:58] Walt’s great idea in response to not being allowed to showcase his car at the 1924 Automobile Show. 

[1:03:48] Walt said buying Dodge was his greatest accomplishment. Other people at the time said he was buying a lemon. This is how Walt responded: That was the opinion of some minds that contained little understanding of industry and especially of the automobile industry. Buying Dodge was one of the soundest acts of my life. 

[1:07:06] Every time we had a conversation, it seems to me, he shed tears yet always would start with them was thinking of the past when he was a poor young man. Sometimes, at first, I mistakenly supposed that he was feeling sorry for himself. Finally, I came to realize what it was that so deeply moved him when he contemplated his auspicious start, including those years of riding freight trains from town to town when he was hunting a chance to work and gain more experience. It was gratitude of course; gratitude to everything American that made possible his great success. He told his story in the hope it might inspire other lonely boys roving in the land to keep on trying. 

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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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What I learned from reading How to Get Rich: One of the World's Greatest Entrepreneurs Shares His Secrets by Felix Dennis.

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[0:01] How Felix started his first business with no money. 

[4:30] Human nature does not change. We are cooperative animals. Those who wish to start a company cannot expect a free ride, but they might be surprised at the number of people willing to help them to some degree or another. 

[5:11] This book was one of the most requested books for me to cover on the podcast. I was hesitant to read it because of the title. After reading it I think a better title would be How I Got Rich. 

[7:36] A large part of this book is philosophical. He is asking us, “Is this really what you want?” He opens up about his drug addiction. About his addiction to prostitutes. About how he blew 100 million dollars and almost died. 

[8:13] How To Get Rich sets to tell you about how I did it. How I got rich without the benefit of a college education or a penny of capital. It will expose the many errors I made along the way, which will contribute greatly to the length. 

[10:51] My constant refrain when I was bumming rides from friends as a teenager was, “You don’t understand. I was born to be driven.” 

[13:00] The key, I think, is confidence and an unshakeable belief that it can be done and that you are the one to do it. Tunnel vision helps. Being a bit of a shit helps. A thick skin helps. 

[16:01] Nearly all the great fortunes acquired by entrepreneurs arose because they had nothing to lose. Nobody had bothered to tell them that such a thing could not be done or would be likely to fail. Or if they had told them then they weren’t listening. They were too busy proving those around them wrong. 

[17:24] On trusting your instincts: The first few million dollars I ever made was the direct result of trusting my instincts— which were entirely at odds with conventional wisdom. I published a series of 8 full-page folded posters with articles printed on the back and charged the same price as magazines with 10 times the number of pages. I sold millions of copies around the world. Those magazines have earned me tens of millions of dollars in the last 25 years and are still earning me money today. 

[19:50] If you could turn the clock back for me by 40 years I would willingly give you every penny and every possession I own in return. And I would have the better of the bargain. 

[20:28] If I had my time again—knowing what I know today—I would dedicate myself to making just enough money to live comfortably. 

[21:00] Making money was, and still is, fun. But at one time is wrecked chaos upon my private life. It consumed my waking hours. 

[23:26] Think of fear—not as the King Kong of bogeymen—but as a mare. A mare, after all, is a horse. A horse can be tamed, bridled, saddled, harnessed, and eventually ridden. Harnessing the power of such a creature adds mightily to your own. Thus the nightmare of prospective failure provides you with the very opportunity you are seeking. 

[26:16] There is a lot of money and opportunity in unglamorous industries: One of the richest self-made men I know digs a hole in the ground to dispose of household waste. That's not how his company describes itself in its annual report, but essentially that’s what it does, along with building incineration plants. Glamorous? No. But in a good year, he earns $20 to $30 million. That's a sensational result for a small, wholly owned private company. 

[28:30] Advice John Lennon gave to Felix Dennis: “It won’t do, man. It’s not that you can’t sing. Sure you can do a fair imitation of Chuck Berry, but people don’t pay for imitations. You gotta find your own voice or stick to editing your magazines.” 

[32:26] One of Felix’s lowest moments: The electricity had been turned off in my flat weeks ago. So had the gas. I couldn’t afford to pay the bill. I sat by an open fire, feeding broken furniture I had scavenged from the trash into my living room fireplace. 

[33:00] If you happen to read biographies, as I do (scores of them every year), you will find a thread that runs through almost any story of success against the odds: They don’t give in. 

[34:08] It is my hope that this book will cause you to consider very carefully whether you are truly driven by inner demons to be rich. 

[35:06] This is how I interpret this book. He is writing to an earlier version of himself. 

[40:24] Felix winds up in the hospital. The doctors tell him if you don’t get off the drugs, and the alcohol, and the nightlife, you are going to die. 

[40:44] How Felix describes the person he was in the 80s and 90s: It is especially lethal to a coked up, overweight, cigarette smoking, malt whiskey swilling idiot with too much money who believe they are built of titanium. 

[41:10] On Winston Churchill and the importance of self belief: The iron determination and self belief of this one old man meant more to Britain at that moment than all the other Kings and Queens and her long history.

[44:02] But I do ask that you begin, right now, right at this very moment, to ask yourself whether you believe in yourself. Truly. Do you believe in yourself? Do you? If you do not, and worse still, if you believe you never can believe, then by all means go on reading this book. But take it from me, your only chance of getting rich will come from the lottery or inheritance. If you will not believe in yourself, then why should anyone else? Without self-belief nothing can be accomplished. With it, nothing is impossible. 

[45:35] I may well have been able to put a few hundred million in the bank because I recognized that this getting rich malarkey is just a game. A delusion, if you will. 

[48:19] Ownership is not the most important thing. It is the only thing that counts. 

[54:17] The most important part of the book. I won’t take notes on it. You just have to read it or listen to me read it. 

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading Master of Precision: Henry Leland by Ottilie Leland and Minnie Dubbs Millbrook.

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[0:17] Henry Leland laid the foundation for the future of American industry. He had established manufacturing procedures never previously so effectively employed and took a position of leadership. In the next decades would be comparable in statute with, although quite different from, William Durant, Henry Ford and Alfred Sloan. 

[0:40] It should be pointed out that Leland's contribution to the development of the motor car was the establishment of high standards of manufacturing. 

[2:33] Henry Leland always got deep satisfaction out of anything which was made right. He had—in high degree—the pride of craftsmanship that had marked the master workman down the centuries. 

[3:07] He developed the Cadillac, the self-starter, The Lincoln car, held up high standards of performance for the industry, and established the first notable school of automotive mechanics. 

[4:05] A lesson Henry Leland learned from his Father: He bequeathed a singularly trustful disposition to his son, who could never believe that other men were not inherently as good and honorable as he himself. He was several times to pay a stiff penalty for this faith in human nature. 

[4:56] A lesson Henry Leland learned from his Mother: “There is a right way and a wrong way to do everything. Hunt for the right way and then go ahead.” This simple admonition was to become a creed that would govern all of his actions as he rose in industry. 

[6:10] He lives through the beginning of two industries in his life: Manufacturing in general and the automobile industry in specific. 

[7:24] Henry Leland was not sure he wanted to become an apprentice machinist. The hours were long—10 hour days, 6 days a week—and most factories did not pay high wages. Moreover, farming was still the traditional American operation, which offered a possibility of independence and did not shut a man indoors with noisy machinery. 

[9:06] Henry was already discovering the education that could be mined from books. At first, the fond of reading, he had been attracted by cheap adventure novels, which he borrowed from the local library. One night a stranger there, seeing what he was taking out exclaimed, “Surely don't read that trash!” Henry replied, “What better use can I make of my time than to read?” The stranger answered, “It makes a lot of difference what you read,” and then suggested some better books. The episode was a revelation to young Leland and he was soon reading volumes that acquainted him with American genius in literature, government and invention. 

[9:55] Abraham Lincoln was his idol. Lincoln Motor Company—which Henry founds when he is in his 70s— is named after Abraham Lincoln. If we want to continue the conversation that Steve Jobs and Larry Ellison were having [about who is history’s greatest person] in The Billionaire and The Mechanic—Jobs said Gandhi. Ellison said Napoleon. Leland’s answer would be Abraham Lincoln. 

[12:05] Even if he experienced a financial penalty, Henry Leland wanted to do the honorable thing. 

[12:44] Henry wanted to work where he could render the greatest service to his country [during The Civil War]. He had learned that the U.S. Armory needed expert mechanics, and he had determined to help with war production. The particular lesson he learned in the Armory was the value of order and neatness in a work shop. Everything was clean and systematic, a state of affairs not common in early factories. 

[14:37] Precision was his god. His personal work was outstanding. 

[14:56] The discipline and subordination of factory life ran counter to American individualism. 

[16:31] A nervous breakdown drove him from the shop to the far for rest. 

[16:48] His mind, independent and teaming with ideas, made it difficult for him to work with others. He longed for a business in which he might put his theories to work but he had no money, a family to support, and his father and mother were in need of aid. 

[20:00] The manufacture of the hair clippers [which he invented and brought to market against the opposition of his bosses] was spirited and rose to an output as much as 300 daily. For this I received a ‘Thank you’ and 50 cents a day more in my pay envelope. That was on of the times I thought I ought to quit making other men rich and go to work for myself. 

[20:41] Henry Leland was good at sales by not trying to be good at sales. He wanted to educate people. He was gifted at selling because he gave the customer useful advice. 

[22:26] As usual there was little money left over for saving. And yet Henry Leland was more hopeful of going into business for himself than ever before. He had brought his skill and experience to the service of the ambitious industrialists of the west and they had shown him in return the financial method that had put them in business. Each had organized a company by selling stock. “Eureka,” said Henry Leland to himself, “I have found it,” for he had great experience and he was sure he could raise a little money. His dream of an independent business might come true after all. 

[23:40] Henry Leland had a lifetime of experience before he starts his first company. He was 47 years old. He had been working in factories since he was a teenager. 

[25:03] Leland was a missionary for precision. He held people to high standards. 

[26:07] Horace Dodge trained directly under Leland for two years before starting a machine shop of his own. 

[27:45] The building up of a business, which expands rapidly and must be financed primarily from its own earnings, is often a discouraging process. 

[27:56] How Henry Leland advertised the services of his foundry: We appeal for business only to those who want the best. We do not attempt to compete with the average foundry on price. We believe no other foundry can successfully compete with us on quality. 

[29:57] “There always was and there always will be conflict between Good and Good Enough. In opening up a new business one can count on meeting resistance to a high standard of workmanship. It is easy to get cooperation for mediocre work, but one must sweat blood for a chance to produce a superior product.” —Henry Leland 

[35:10] Henry Leland founds Cadillac when he is almost 60 years old: Henry Leland now embarked on the great adventure of his life; he would play an important role in the organization of Detroit’s first successful automobile company. 

[35:27] Cadillac was making $2 million per year in profit when Billy Durant buys Cadillac for $4.5 million. 

[37:21] Other men had built cars for many reasons—for the fascination of creation, for the profits in it—but Henry Leland agreed to build a car because he did not want to see a pet engine unappreciated and unused. 

[38:53] Henry Leland was an expert in a field where experts were still uncommon. 

[41:13] We buy the best parts we can find. I have always contended price should be considered last by a manufacturer in selecting materials for his product. 

[45:10] His theory was that the one essential ingredient of success was mastery of one’s self as well as one’s job. 

[47:57] A story: If you do the right thing people will remember. 

[52:10] Henry Leland is 77 years old when he starts Lincoln Motor Company 

[54:21] Henry Leland did not believe in quitting: It was manifestly impossible for the Lelands, men of tender heart and unswerving integrity, to take a cold, dispassionate view of the financial straits of the Lincoln Company. Many automobile companies had had money troubles; some had undergone a variety of reorganizations, combinations and other stratagems to keep alive and their directors and management had not been considered dishonest or insensible of their trust even though investors may have lost a portion or all of their equity. But such a course was unthinkable for the Lelands; as long as there was breath in their bodies they would oppose it. They had invested everything they owned in the company. 

[1:01:05] Henry Ford and Henry Leland were like oil and water: We see a difference in management culture. Leland led from the front. Ford beat you down from above. 

[1:02:27] How Ford management described the Lincoln organization: The whole organization is unusually harmonious and uniformly competent. 

[1:05:40] A letter from Henry Leland to Henry Ford: I cannot but feel certain that you intended to keep those pledges when you made them to me personally and, while I cannot understand the long delay on your part, I still hope and trust that you will not shake my life long faith in humanity. 

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading The Difference Between God and Larry Ellison: God Doesn't Think He's Larry Ellison by Mike Wilson

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[1:06]  You want to know what I think about Larry Ellison? Well, I suppose he had some private sort of greatness but he kept it to himself. He never gave himself away. He never gave anything away. He just left you a tip. He had a generous mind. I don’t suppose anybody ever had so many opinions, but he never believed in anything except Larry Ellison. 

[1:45] That was the way Ellison’s mind worked. He was like a search engine gone haywire. 

[3:01] I asked Ellison how he had seen his adult life when he was a kid. What he thought was going to happen to him. “You mean did I anticipate becoming the fifth wealthiest person in the United States? No. This is all kind of surreal. I don’t even believe it. When I look around I say this must be something out of a dream.” 

[3:57] Ellison is the Charles Foster Kane of the technological age. He is bright, brash, optimistic, and immensely appealing, yet somehow incomplete. 

[4:31] He worked in the computer industry for several years but never had a job that suited what he saw as his superior intellectual gifts. 

[6:08] The stockholder who benefited the most from Oracle’s performance was Larry Ellison, exactly what he intended. Ellison started the company because he wanted to be his own boss. And he stayed in control throughout his tenure at Oracle always holding onto enough stock that his power and authority could never be seriously challenged. 

[7:57] To him there was now power greater than the human mind. 

[8:23] What Larry reminds me of is a truth that Benjamin Franklin hit on 250 years ago. He says his mind was much improved by all the reading he did. There were very tangible results in Benjamin Franklin’s life when people found his conversations more enjoyable because he was a more interesting person to talk to—that led him being able to raise money for his business. It helped him close sales. Larry Ellison is very much the same way. 

[8:53] When hiring, Ellison valued intelligence more than experience. He often looked for unruly geniuses instead of solid, steady workers. 

[10:52] If he hadn’t made me rich, I’d probably hate him because he is obnoxious. He is not nice to people. 

[12:39] He was capable of chilling selfishness and inspiring generosity. He could dazzle people with his insights and madden them with his lies. He was a fundamentally shy man who could delight audiences with his colorful speeches. He was known for his healthy ego and often seemed deeply insecure. Many people learned to accept Ellison’s contradictory nature. 

[14:01] In 1970 sales of packaged computer programs amounted to only $70 million for the entire year. 

[15:55] There is a book called The HP Way. I did a podcast on it (Founders #29) 

[16:20] The Oracle Way was simply to win. How that goal was achieved was secondary. 

[17:18] Ellison’s early life left a lot to be desired. He was never very happy with the humdrum facts of his life so he changed them. Beginning when he was a child, and continuing into his days in the Forbes 400, Ellison lived partly in a world of his own invention. 

[18:15] He wasn’t going to be smothered by the dreary circumstances of his life. He was going to leap over them. 

[20:13] Larry reads a lot of biographies. One person he admired the most was Winston Churchill. He had a lot in common with Churchill. Both were mediocre students. Both desperately sought the approval of their fathers to no avail. And both were witty, insatiably curious, and charming when it suited them. Reading about Churchill reassured him that even ‘gods have moments of insecurity.’ 

[22:30] A description of Larry in his mid twenties: Ellison was extremely hard on himself. He had a mental image of where he should be and what he should be and he was not able to attain it. 

[25:19] He has incredible intelligence and he applies it with incredible intensity. 

[26:44] The subject he liked best was himself. He was forever telling people how wonderful he was, how smart he was, and how rich he was going to be. 

[29:50] For Ellison Oracle was a holy mission. 

[30:33] There was a problem. A sheet rock wall stood between the offices and the computer room. Scott said, “Larry, we need to hook up these terminals. How are we going to hook them up?” “I'll show you how.” Ellison replied. He grabbed a hammer and smashed a hole through the wall. Bruce Scott came to believe that Ellison's entire business philosophy could be summed up in that single act. Find a way or make one. Just do it. 

[32:41] Ellison could not have dreamed up a more amiable and helpful competitor than IBM. Think of the marketing of relational technology as a race, with Ellison and IBM as two of the main entrants. IBM taught Ellison to walk, bought him a pair of track shoes, trained him as a sprinter, and then gave him a big head start. How could he lose? 

[35:14] He was practicing. He was working. He knew there was a problem and he fixed it. 

[35:47] The idea that somebody else might take away Oracle's business was poison to Ellison. He understood the importance of locking up a large share of the market early. “How much does it cost Pepsi to get one half of a percent of the market from Coke once the market has been established?” he once asked rhetorically. “It's very expensive. This market is being established. If we don't run as hard as we can, as fast as we can, and then do it again twice as fast, it’ll be cost prohibitive for us to increase market share.” 

[36:14] Larry put marketing first and everything else second. Average technology and good marketing beat good technology and average marketing every day. 

[39:17] My view is that there are only a handful of things that are really important and you should devote all of your time to those things and forget everything else. 

[40:46] I was not terribly forgiving of mediocrity. I was completely intolerant of a lack of effort. And I was fairly brutal in the way I expressed myself. 

[41:16] Kobe Bryant: I had issues or problems with the people who don’t demand excellence from themselves. I won’t tolerate that. 

[42:30] The guy that was in charge of Oracle’s advertising in the early days of the company: My ads attack like a pack of speed crazed wolverines and have the same general effect on your competition that a full moon does on a werewolf. 

[44:00] Larry fundamentally believed that his company was going to be more important than IBM. You can’t imagine how far fetched those ideas sounded. He would say he was here to become the largest software company in the world. People were taken aback. 

[45:32] Larry goes against consensus. Every single on of his advisors told him sell equity, sell equity, sell equity. And Larry just had a fundamental belief that that would be a mistake because the equity is going to be worth a lot more in the future. 

[46:21] There are only two kinds of people in the world to Larry. Those who are on his team and those who are his enemies. There is no middle ground. 

[48:03] Even when he was feeling his worst Ellison remained an optimist. A man who couldn’t help looking forward. He lived in the future. 

[49:34] He was terrified he would fail, confirming his father’s dark predictions about him. There was a note in his voice that you didn’t usually hear with him—just scared, worried. 

[56:30] I am very competitive, and sometimes, when somebody does something really great, I get upset because I just feel like that isn’t me. And my reaction to Steve [Jobs] wasn’t competitive at all. I felt what he had done was so wonderful, and I was so proud of him, and I love him so much, it was almost as if I had done it. I didn’t feel the least bit competitive. The wonderful thing about loving somebody else is that it can expand your ego in the best sense. If they do something great, you feel terrific about it. 

[57:38] The only things that are important in our lives are love and work. Not necessarily in that order. We work because work is an act of creation. We identify with it. Both love and work conspire to deliver some kind of happiness. If we can get reasonably good at both of them, we are in really great shape. 

[58:21] He’s got the same problem the rest of us have. He has to engage in an enlightened pursuit of happiness. To figure out what makes him happy. Human beings are builders. He is going to have to find something he really wants to build. He is going to have to have some idea and create something out of that idea. 

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading The Billionaire and the Mechanic: How Larry Ellison and a Car Mechanic Teamed up to Win Sailing's Greatest Race, the America’s Cup, Twice by Julian Guthrie.

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[0:01] Larry Ellison to Steve Jobs: I’m talking about greatness, about taking a lever to the world and moving it. I’m not talking about moral perfection. I’m talking about people who changed the world the most during their lifetime.

[0:56] Larry’s choice for history’s greatest person could not have been more different from Gandhi (Steve Jobs’s choice): the military leader Napoleon Bonaparte.  

[3:15] Steve liked to say the Beatles were his management model — four guys who kept each other in check and produced something great.

[3:47] Larry’s favorite history book was Will and Ariel Durant’s The Age of Napoleon, which he had read several times. Like his buddy Steve, and like Larry himself, Napoleon was an outsider who was told he would never amount to anything.

[6:09] Now the book is technically about the America’s Cup race. But that is not really what it is about. This books gives insights into extreme winners.

[7:50] Steve and Larry had found they had much in common. They both had adoptive parents. Both considered their adoptive parents their real parents. Both were “OCD,” and both were antiauthoritarian. They shared a disdain for conventional wisdom and felt people too often equated obedience with intelligence. They never graduated from college, and Steve loved to boast that he’d left Reed College after just two weeks while it took others, including Larry and their rival Bill Gates, months or even years to drop out. 

[9:09] Steve Jobs: “Why do people buy art when they can make their own art?” Larry thought for a moment and replied, “Well , Steve , not everyone can make his own art. You can. It’s a gift.”

[10:46] What he (Steve Jobs) liked was designing and redesigning things to make them more useful and more beautiful.

[11:02] If Michael Jordan sold enterprise software he would be Larry Ellison. Larry is addicted to winning.

[12:38] An idea I learned from Steve was the further you get away from one the more complexity you are inviting in.

[13:20] Larry was a voracious reader who spent a great deal of time studying science and technology, but his favorite subject was history. He learned more about human nature, management, and leadership by reading history than by reading books about business.

[14:52] His adopted Dad said over and over again to Larry, “You are a loser. You are going to amount to nothing in life.”

[15:19] Larry treats life like an adventure.

[15:26] He envied how Graham’s parents supported him on his adventure, as this was the opposite of his own life. The story of Graham transported Larry from the regimentation of high school to the adventure and freedom of the sea. Here was a boy alone at sea for weeks at a stretch; dealing with storms, circling sharks, and broken masts; visiting exotic locales. Through it all he was his own navigator.That is definitely the way Larry approached his life.

[18:04] Why Larry uses competition as a way to test himself: He wanted to see just how much better a sailor he had become. It will be an interesting test. There was a clarity to be found in sports that couldn’t be had in business. At Oracle he still wanted to beat the rivals IBM and Microsoft, but business was a marathon without end; there was always another quarter. In sports , the buzzer sounds and time runs out.

[18:50] It is not what two groups do a like that matters. It's what they do differently that's liable to count. —Charles Kettering

[22:20] Why test yourself: After the laughter died down Larry turned serious. “Why do we do these things? George Mallory said the reason he wanted to climb Everest was because ‘it’s there.’ I don’t think so. I think Mallory was wrong. It’s not because it’s there. It’s because we’re there, and we wonder if we can do it.” 

[24:11] Larry’s personality: He didn’t like letting them have control. It was the same reason he didn’t have a driver, and it was why he liked to pilot his own planes and why he had been married and divorced three times. He didn’t like being told what he could and couldn’t do.

[26:04] With any new thing you do in your life, you are going to have to overcome people telling you that you are an idiot.

[28:08] While Ellison demanded absolute loyalty, he did not always return it. The people he liked best were the ones who were doing something for him. The people he hired were all geniuses until the day they resigned—when in Ellison's view— they became idiots or worse.

[29:44] What Larry is reading during the dot com bubble collapse: The books on his nightstand included Fate Is the Hunter: A Pilot’s Memoir by Ernest Gann, The Jordan Rules by Sam Smith, and William Manchester’s multivolume biography of Winston Churchill.

[30:25] Whenever Larry felt remotely close to being at risk of failure he couldn’t stop working. 

[30:58] I’m going to read you one of the funniest paragraphs I have ever read. The guy Larry is talking to is insane:

In the dot—com heyday he got a call from Farzad Nazem, who used to work at Oracle and was now a top executive at Yahoo. 

Nazem told Larry, “Disney wants to merge with us. Why would we ever want to do something like that? What have they got?” 

Larry answered his old friend, 

“Gee , let me think. They have the most valuable film library in the world, the most valuable TV channels in world, and successful theme parks everywhere. Disney makes tons of money and they’re probably the most beloved brand on the planet. 

Now, what have you got? A Web page with news on it and free e-mail. 

Has everyone gone crazy ?”

[32:38] Oracle has been around for 40 years. How many companies can survive 40+ years?

[33:00] One of the key insights I took away from Larry is this idea about game within a game. I'm glad I'm reading these books about Larry Ellison at the same time I watched this 10 part documentary on Michael Jordan (The Last Dance) because I think both Jordan and Ellison figured out something that is fundamental to our nature.

I don't think hey were not setting out to try to figure out something fundamental about human nature. They did so in their own process of self discovery.

They hack themselves by creating games within games.

They understand over a long period of time that your motivations, your dedication, your discipline is going to ebb and flow and they had to find a way to hack themselves.

[38:19] There is one sentence that sums up Larry’s personality: “Winning. That is my idea of fun.”

[38:38] There are a lot of extreme winners on Larry’s team. That is one of the things I like most about the book. It gives you insights into their mindset, how they prepare for their sport—which I think is applicable to whatever you do for a living.

[40:00] Dixon said, “Larry, my advice is that we go out there tomorrow to try to win the race. We will probably get beaten and you should be prepared to lose gracefully.” Larry was stunned by the suggestion. After a long pause, he said that he could be gracious after losing, but wasn't capable of being gracious while he was losing, he had come here to win.

[42:00] The Vince Lombardi line Larry loves: Every team in the National Football League has has the talent necessary to win the championship. It's simply a matter of what you're willing to give up. Then Lombardi looked at them and said, I expect you to give up everything, and he left the room.

[42:25] Give me human will and the intense desire to win, and it will trump talent every day of the week.

[43:05] His lack of interest in marriage was not about fidelity, but had more to do with problems he had with authority. In marriage, he had to live a good part of his life the way the other person wanted him to live it. Larry wanted to live his life his way. This part reminds me of what we learned on the podcast I did on Frank Lloyd Wright.

[44:17] His favorite Japanese saying was, “Your garden is not complete until there is nothing else you can take out of it.”  

[44:44] Rafael Nadal asked how Larry had made his life such a success. 

Larry launched into a long philosophical musing about how innovation in technology is quite often based on finding errors in conventional wisdom, and when you find an error you have to have the courage take a different approach even when everyone else says you’re wrong. 

Then Larry abruptly stopped himself. 

“Forget everything I just said. The answer is simple. I never give up.” 

[46:09] He was incapable of waving the white flag.

[46:24] Kobe Bryant: A young player should not be worried about his legacy. Wake up, identify your weakness and work on that. Go to sleep, wake up, and do that all over again. 20 years from now, you'll look back and see your legacy for yourself. That's life.

[46:47] Larry is constantly willing to put himself in uncomfortable situations so he can improve.

[49:00] One of Larry’s favorite maxims was: “The brain’s primary purpose is deception, and the primary person to be deceived is the owner.”

[49:07] How does his favorite Maxim relate to why he likes sports? Because in sports, you can't deceive yourself. He just said the brain's primary purpose is to deceive yourself—so he needs to hack himself. He needs to have his game within a game, so he is incapable of deceiving himself. Larry liked having opponents, even enemies. “I learn a lot about myself when I compete against somebody. I measure myself by winning and losing. Every shot in basketball is clearly judged by an orange hoop — make or miss. The hoop makes it difficult to deceive yourself.”

[49:56] The insight is if we do something really hard we won’t have any competition.

[52:26] The athletes Larry knew were obsessed with the game they played. They were like his friend Steve Jobs who worried about the color of the screws inside a computer.

[53:12] They reminded Larry of a line from Tombstone: Wyatt Earp asks Doc Holliday,“ What makes a man like Ringo, Doc? What makes him do the things he does?” Doc replies, “A man like Ringo has got a great big hole, right in the middle of him. He can never kill enough, or steal enough, or inflict enough pain to ever fill it.” For better and worse, Larry had the same hole, and he tried to fill it by winning. But as soon as he closed in on one of his goals, he immediately set another difficult and distant goal. In that way, he kept moving the finish line just out of reach.

[54:31] Back home, standing by the lake where he and Steve had debated things great and small, Larry was certain that decades from now there would be two guys walking somewhere, talking about their icons. Steve would be mentioned. 

He would be one of those “misfits, rebels, troublemakers, the round pegs in square holes, the ones who see things differently,” words popularized in Apple’s “Think Different” ad campaign. Steve would be remembered as one of those with “no respect for the status quo.”

[59:16] Those moments are my most cherished and enduring memories of my time with Steve. The four of us sitting together at Kona, eating papayas and laughing for no reason at all. I'll miss those times. Goodbye, Steve.

[1:00:00] Larry’s nightmare: In Larry’s mind, it fed into a culture based on a homogenized egalitarian ethos where everyone was the same, where there are no winners and no losers, and where there are no more heroes.

[1:02:21] Larry says something to Russell (the guy running his team). It echoes what Charles Kettering said last week: It is not what two people do the same that matters. It is what they do differently. Larry says, “You already have a job, Russell. You've got to figure out why we're so damn slow, our set another way. Why is New Zealand so fast? What are they doing that we're not?

[1:03:08] Don’t give up before you absolutely have to. Stay in problem solving mode: Larry was not happy when he heard that speeches were being written and plans being made for the handover of the Cup, but he ignored it all until he was asked to settle an argument over who was going to give the concession speech during the handover. 

“Let me get this straight: people are fighting over who gets to give the concession speech? I don’t give a fuck who gives the concession speech. If we lose, everyone who wants to give a concession speech can give a concession speech. But we haven’t lost yet. Why don’t we focus on winning the next fucking race , rather than concession speeches.”

Larry, a licensed commercial pilot with thousands of hours flying jets, likened their situation to a plane in distress. When pilots have a serious emergency, they immediately go into problem solving mode, and they stay in that mode until the problem is solved — or until just before impact. 

In that final moment, the aircraft’s cockpit voice recorder captures the pilot’s brief concession speech. There are two versions of the speech, one secular, one not: “Oh God ” and “ Oh shit.” Larry had not yet reached his “Oh God” or “Oh shit” moment. Down 8 points to 1, he remained in problem solving mode.

[1:06:19] As Muhammad Ali once said, “It’s just a job. Grass grows, birds fly, waves pound the sand. I beat people up.” No one was going to live or die on the basis of these things. But contests were his best teachers. At some point, one person gets measured against another. They find out who wins and who doesn’t, and along the way they learn something about themselves. Larry had learned that he loved the striving, the facing of setbacks, and the trying again. 

[1:07:56] It’s hard for me to quit when I’m losing — and it’s hard for me to quit when I’m winning. It’s just hard for me to quit. I’m addicted to competing.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading Professional Amateur: The Biography of Charles Franklin Kettering by Thomas Boyd

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[3:06] If you had to summarize Charles Kettering this is the way you would do it: “As symbol of progress and the American way of life—as creator of ideas and builder of industries and employment—as inspirer of men to nobler thoughts and greater accomplishments—as foe of ignorance and discouragement—as friend of learning and optimistic resolve—Charles F. Kettering stands among the great men of all time.”

[3:36] He was an American inventor, engineer, businessman, and the holder of 186 patents. He was a founder of Delco, and was head of research at General Motors from 1920 to 1947. Among his most widely used automotive developments were the electrical starting motor and leaded gasoline. He was also responsible for the invention of Freon refrigerant for refrigeration and air conditioning systems. He developed  the world's first aerial missile. He led the advancement of practical, lightweight two-stroke diesel engines, revolutionizing the locomotive and heavy equipment industries.

[4:42] This is Ket talking about why it is so important to approach your work with the mindset that you are a professional amateur: We are simply professional amateurs. We are amateurs because we are doing things for the first time. We are professional because we know we are going to have a lot of trouble. The price of progress is trouble. And I don’t think the price is too high.

[6:52] There is a quote from Thomas Edison that says “We don't know a millionth of one percent about anything.” Ket has that same belief. This is Ket echoing Thomas Edison: “In reality, we have only begun to knock a few chips from the great quarry of knowledge that has been given us to dig out and use. We are like the two fellows who started to walk from New York to San Francisco. When they got over into New Jersey, one said: “We must be pretty nearly there. We have been walking a long, long time.” That is just how we are in what we know technically. We have just barely begun.

[9:57] I am enthusiastic about being an American because I came from the hills in Ohio. I was a hillbilly. 

[10:21] I thought the only thing involved in opportunity was whether I knew how to think with my head and how to do with my hands.

[13:37] One lesson from his childhood that stuck with him his whole life is that you need to only worry about things you can control. One of the older men is teaching him this through a story: Besides learning about water power and flour mills, he got from the wise old miller some bits of philosophy which he stored in his young mind. “A lot of people are bound to worry,” the miller once told him. “If you can do something about it, you ought to worry. I would think there was something wrong with you if you didn’t. But if you can’t do anything, then worrying is just like running this mill when there is no grist to grind. All that does is to wear out the mill.”

[14:49] He is not interested in rote memorization. He wants to understand the principles behind the thing. He wants to know the why.

[18:12] The man from whom he learned most was Hiram Sweet, the wagon maker. But Sweet was more than a wagon maker. He was, as Kettering said long afterward, “an engineer of such keen ability as to be remarkable. You would no more think of running across such a man in a small town than you would of flying without a flying machine.” Hiram Sweet had invented and built a self-computing cash register which was in daily use at the drugstore. He had also made an astronomical clock. “Where did you find out all this?” Kettering asked Sweet. “I work in this wagon shop ten hours a day,” he replied, “from six-thirty in the morning until five-thirty in the afternoon; and when I have no wagon work to do I work on Sweet’s head.” Years afterward, when Kettering had become a noted man, he recalled the days spent in Sweet’s wagon shop, “Letting him work on my head . . . I learned more from that old wagon maker than I did in college. The world was so wonderful and he knew so little about it that he hated to sleep.”

[20:22] Ket got what he said later was one of the important lessons he learned in college. He learned it from the eminent actor, Joseph Jefferson. Jefferson, together with his company, came to the university town to play his famous part of Rip Van Winkle.

One of the men asked him how often he had played the part of Rip Van Winkle. 

The great actor told just how many hundreds of times he had played Rip. 

“Don’t you get terribly tired doing it so often?” he was asked. 

“Yes, I did get tired after a while. But the people wanted Rip. And so I went on playing him. I said to myself, ‘It doesn’t matter how you feel. Your job is to entertain the audience.’ Then I made up my mind that I would try to portray Rip Van Winkle just a little better each time. And that constant effort at improving the part has kept up my interest and enthusiasm.”

[23:15] There is a time during Henry Ford’s third attempt at building an automobile manufacturing company. And he comes to see Charlie Sorensen.

He's like, “You know what? We're about to run out of money. I guess I'm just not going be able to accomplish this goal.”

There's this conversation that takes place between Henry and Charlie and at the end, Ford is fired back up. Ford was like “I felt like quitting at the beginning of the conversation. Now I don't.”

A few short years later, he winds up attaining his life goal of building a car so inexpensively that the average person can have it. I think that’s important.

There's so many times in Ford’s life story that he wants to quit, that he's disheartened.

[26:44] The obstacle of not knowing how never kept him from undertaking anything he thought needed to be done. “It is a fundamental rule with me,” he said once, “that if I want to do something I start, whether I know how or not. . . . As a rule you can find that out by trying.”

[28:04] Every great improvement has come after repeated failures. Virtually nothing comes out right the first time. Failures, repeated failures, are finger posts on the road to achievement.

[36:18] Remembering the loyal support she (his wife) gave him during that trying period and afterward, Kettering said of her, “She was a great help in those early struggles, for she never got discouraged.” After she passes away from cancer he says she was the only thing in his life that he never tried to improve.

[41:19] How Ket and his partner financed their company: To get even that small endeavor under way Kettering and Deeds had to put in all the money they could scrape up, and they mortgaged everything they had. Deeds put a mortgage on his house and Kettering on a lot that he owned. Both borrowed money on their life insurance policies. They also put up their patents and the contract with Cadillac as collateral for a loan from the bank. Cadillac paid them some money in advance. They sold some preferred stock, too, and raised money in every way possible.

[42:09] All human development, no matter what form it takes, must be outside the rules; otherwise, we would never have anything new.

[45:29] Kettering admired The Wright Brothers and all they did in overcoming obstacles to successful flight. Those obstacles were psychological as well as physical, for it was commonly believed then that heavier-than-air flight was impossible.  “The Wright Brothers,” Kettering said, “flew right through the smoke screen of impossibility.”

[46:08] I have always had a rule for myself. Never fly when the birds don’t, because they have had a lot of experience.

[49:22] The destruction of a theory is of no consequence for theories are only steppingstones. More great scientific developments have been made by stumbling than by what is thought of as science. In my opinion an ounce of experimentation is worth a pound of theory.

[50:57] Ket hates committees: Mrs. Kettering read about Lindbergh’s solo flight across the Atlantic, she said to her husband, “How wonderful that he did it all alone!” 

“It would have been still more wonderful,” Kettering replied, “if he had done it with a committee.”

[51:30] We find that in research a certain amount of intelligent ignorance is essential to progress; for, if you know too much, you won’t try the thing.

[54:42] New ideas are the hardest things in the world to merchandise.

[56:03] So great was his respect for independent thought and initiative in others that it was often difficult for those working on a project to find out just what he himself thought ought to be done in a given circumstance. He was careful not to stamp out a spark of fire in anyone. Instead, he would fan it to a bright glow. 

[57:31] He has been an inspiration to me and to the whole organization, particularly in directing our thoughts and our imagination and our activities toward doing a better job technically and the tremendous importance of technological progress.

[1:00:07] You have to try things: Action without intelligence is a form of insanity, but intelligence without action is the greatest form of stupidity in the world.

[1:00:19] In putting out new things troubles are not the exception. They are the rule. That is why I have said on so many occasions that the price of progress is trouble.

[1:03:16] Let the competition think you are crazy. By the time they get it it will be too late: If you will help them keep on thinking that, we’ll not be bothered with competition during the years in which we are working out the bugs and developing a really good locomotive.

[1:05:14] It is not what two groups do alike that matters. It’s what they do differently that is liable to count.

[1:05:47] There are no places in an industrial situation where anyone can sit and rest. It is a question of change, change, change all the time. You can’t have profit without progress.

[1:06:18] We don’t know enough to plan new industries: You can’t plan industries, because you can’t tell whether something is going to be an industry or not when you see it, and the chances are that it grows up right in front of you without ever being recognized as being an industry. Who planned the automobile industry? Nobody thought anything of it at all. It grew in spite of planning.

[1:08:22] Because the field of human knowledge is so far from complete, he thinks our schools ought to teach that we know very little about anything.

[1:09:04] The greatest thing that most fellows are lacking today is the fool trait of jumping into something and sticking at it until they come out all right.

[1:09:54] He seems to have a complete absence of any timidity whatsoever. 

[1:10:54] I can conceive of nothing more foolish than to say the world is finished. We are not at the end of our progress but at the beginning. 

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading Softwar: An Intimate Portrait of Larry Ellison and Oracle by Matthew Symonds.

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[0:01] Although much of my time with him coincided with a period of adversity for Oracle, I never once saw Ellison downcast. His unquenchable optimism and almost messianic self belief never faltered.

[5:06] The single most important aspect of my personality is my questioning of conventional wisdom. My doubting of experts just because they are experts. My questioning of authority. While that can be very painful in terms of your relationships with your parents and teachers it is enormously useful in life. 

[12:19] People — teachers, coaches, bosses — want you to conform to some standard of behavior they deem correct. They measure and reward you on how well you conform — arrive on time, dress appropriately, exhibit a properly deferential attitude — as opposed to how well you do your job. Programming liberated me from all that.

[16:34] I had always believed that at the top of these companies there must be some exceptionally capable people who make the entire technology industry work. Now here I was, working near the top of a tech company, and those capable people were nowhere to be found. The senior managers I saw were conformist, bureaucratic, and very reluctant to make decisions. 

[23:08] Oracle’s first product reflected Larry Ellison’s desire to do something no one else was doing: The opportunity was huge. We had a chance to build the world’s first commercial relational database. Why? Because nobody else was even trying. The other relational database projects were pure research efforts. If we could build a fast and reliable relational database, we would have it made. I thought that relational was clearly the way to go. It was very cool technology. And I liked the fact it was risky. The bigger the apparent risk, the fewer people will try to go there. We would surely lose if we had to face serious competition. But if we were all alone in pursuit of our goal of building the first commercial relational database system, we had a chance to win.

[26:03] Larry is a sprinter. Not a grinder: Although he always talked about technology and Oracle with passion and intensity, he didn’t have the methodical relentlessness that made Bill Gates so formidable and feared. By his own admission, Ellison was not an obsessive grinder like Gates: “I am a sprinter. I rest, I sprint, I rest, I sprint again.” Ellison had a reputation for being easily bored by the process of running a business and often took time off, leaving the shop to senior colleagues.

[30:55] If you speak out in support of small, unimportant innovations that fly in the face of widely held beliefs—I do it all the time—you are likely to be dismissed as stupid or arrogant, and that’s pretty much the end of it. However, if you defend a really big idea that challenges widely held beliefs, you’re likely to generate a mass of hatred, and you just might pay for it with your life. When Galileo defended Copernicus, he was ridiculed, imprisoned, and then threatened with death unless he recanted. Charles Darwin cautiously postponed publishing On the Origin of Species and The Descent of Man for more than twenty years, but that judicious delay did not save him from vicious personal attacks coming from all ranks of contemporary society.

[37:09] Ellison on mistakes he made before the near death experience of Oracle: I was interested in the technology. I wasn’t interested in sales or accounting or legal. If I wasn’t interested in something, I simply ignored it. I just wasn’t paying proper attention to my job. I was doing only the things that interested me. It was the same problem I had in school. But this happened in my forties. I wasn’t a kid anymore.

[38:40] Surviving Oracle’s near death experience made Larry Ellison stronger. It made him happier: After Oracle’s crisis, looking into the abyss and surviving, I felt emotionally strong enough to take a more realistic look at myself. I was tired of striving to be the person I thought I should be. If I was to have any chance at happiness, I had to understand and accept who I really was. 

[42:12] Larry Ellison’s core business philosophy: Larry Ellison says he’s happy only when everyone else thinks he’s wrong. The core of his business philosophy is that you can’t get rich by doing the same thing as everyone else. “In 1977, everyone said I was nuts when I said we were going to build the first commercial relational database. In 1995, everybody said I was nuts when I said that the PC was a ridiculous device — continuously increasing in complexity when it needs to become easier to use and less expensive.”

[50:56] Larry’s great story about how duplication of effort costs Oracle a ton of money.

[53:13] Never, ever, think about something else when you should be thinking about the power of incentives. —Charlie Munger: One of the worst ideas I can remember was when Ray decided we didn’t do enough selling through partners. The sales force convinced him that the way to fix this was to pay more money to the sales force if the deal went through a partner than if the deal came directly to Oracle. For example , if you sold a million - dollar deal directly, Oracle would get a million dollars and you would get a $ 100,000 commission. But if you sold a million - dollar deal through a partner, Oracle would get $ 600,000 and you would get a $ 120,000 commission. Needless to say, our sales force pushed as many deals as they could through partners that year, so the partners were happy. The sales force got higher commission payments for going through partners, so they were happy. The only loser was Oracle.

[57:57] Ellison’s strategy: 1. Pick a fight. 2.Burn the boats: Once I’m finally certain of the right direction, I pick a fight, as I did with Gates. It helps me make my point, and it makes it impossible to do an about—face and go back. Once a course has been plotted, I sail a long way off and burn my boats. It’s win or die.

[1:01:20] Larry Ellison on Bill Gates: Bill and I used to be friends, insofar as Bill has friends. Back in the eighties and early nineties , all the people in the PC software industry hated Bill because they feared Bill. But Oracle didn’t compete with Microsoft very much back then , so we got on pretty well. As I got to know Bill, I developed a great respect for the thoroughness of his thinking and his relentless, remorseless pursuit of industry domination. I found spending time with Bill intellectually interesting but emotionally exhausting; he has absolutely no sense of humor. I think he finds humor an utter waste of time — an unnecessary distraction from the business at hand. I don’t have anything like that kind of focus or single mindedness.

[1:06:13] Larry Ellison on why Larry Ellison does what Larry Ellison does: My sister told me that whenever I got too close to a goal I’d raise the bar for fear of actually clearing it. We’re endlessly curious about our own limits. The process of self—discovery is one of testing and retesting yourself. I won the Sydney—to—Hobart. Can I win the America’s Cup? I’ll find out. The software business is a more difficult test; it’s a much higher stakes game; there are more people playing this game; it’s a lot more interesting game; and it’s a lot more exciting. If I wasn’t doing this, I’m not sure what else I would be doing with my life.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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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What I learned from reading The Fast Times of Albert Champion: From Record-Setting Racer to Dashing Tycoon, An Untold Story of Speed, Success, and Betrayal by Peter Joffre Nye.

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[0:01] A brief summary of the life of Albert Champion: Champion had been born in Paris April 2, 1878. By age twelve he was an errand and office boy for a Paris bicycle manufacturer. He became interested in bicycle racing, won the middle-distance championship in France, and went to the United States in 1899 for a series of races. He won the American and world championships, returned to France to study automobile manufacturing, and returned to the United States in 1900. He tried auto racing, almost lost a leg in a racing accident, and then organized the Champion company. His original backers kept the name and moved the company to Toledo at about the same time Champion joined Durant. In Flint, Champion became known as one of the most colorful and flamboyant figures in a town full of them. He lived to see both his new company, later named the AC Spark Plug Division (using his initials), and the company he had left, the Champion Spark Plug Company, become giants in their field. He was a multimillionaire when he died.

[2:55] His father dies at 47 years old: One of the turning points in Albert’s life is the early death of his father. He had to become the breadwinner of the family at 12 years old. The experience formed Albert’s character. For the rest of his life, he threw himself into work, forever escaping into the task at hand, keeping busy, always planning new projects, in time building up a business with factories in three countries and offices of his own.

[6:19] Albert Champion was a showman who was addicted to self-improvement: He was willing to put in the work necessary for self improvement. Champion practiced rising a unicycle everyday. He learned how to draw onlookers and hold their attention. Champion had discovered the value of self—improvement. He would apply that principle again and again.

[9:15] Adolphe Clement is a blueprint for Albert Champion: Clement goes from poor orphan to building a successful bicycle and automobile manufacturing company.

[13:46] How do you introduce a brand new product to a society that is resistant to change? You sell to those who would be willing to pay for improvement: Dunlop pneumatics faced a tough sell with a public forever wary about buying a new product —only persuasive evidence would sway the public to accept change. Clément could count on the rabid racing crowd to try anything they thought could give a competitive edge.

[15:53] What Albert Champion learns from watching a 750 mile bicycle race—tenacity is more important than talent: A chord struck with Champion that Terront came from nothing, a nobody. Yet through the force of willpower, keeping his wits under extreme physical demands that made Lavel give in, and drawing on the strength of his body, Terront turned into a grand winner. Perhaps Laval had more talent, which he showed as the first to reach Brest. Nevertheless, Terront had greater tenacity — and that difference made him the victor. 

[22:17] Attaining glory motivated Albert Champion: Racing was about making money for the dual compelling needs that invigorated him. He gained financial support for his family and the ego endorsement enjoyed by entertainers and politicians. As his ego grew, he needed to impose himself on crowds of strangers and win their love. Each race he won was greeted immediately with audience approval followed by a bouquet of flowers, a victory lap, then a cash award. 

[23:49] Lessons Albert Champion learned from his trainer Choppy Warburton: Warburton offered two axioms from his experience about competition that impressed Champion. No lead is too great to overcome, and you can’t win unless you think you can.

[25:01] Albert Champion on the benefits from the strenuous training regiment Choppy made him endure: But Choppy was doing something — he was educating me to take punishment, and whenever I began to tire in a race, the grueling training I had would permit me to overcome the fatigue and come out victorious time and time again. No matter what game a man is in, he is only as big as the amount of punishment he is able to take. He educated me on the importance of physical training, for as the old saying goes, you cannot be mentally fit unless you are physically fit.

[34:12] Albert Champion’s personality: Champion, quick—tempered as usual , grew disgusted with colleagues he saw riding with caution rather than daring.

[36:31] Albert Champion’s plan to raise money so he could start his own company: Champion felt the onus to create his own business to serve America’s mushrooming auto production. He considered forming a company , taking advantage of his name recognition, to import French auto parts, especially spark plugs. To get in the business, he needed capital. To acquire the needed capital, he would have to win frequently in his final season as a pro cyclist. He determined to go all out for one last campaign — not in America, but in France.  The purses were much bigger there, and he could win the money he’d need in order to establish his own business. Albert staked his ambitious future on capturing the title en route to raising the money to create his place in the nascent US auto industry.

[43:40] Albert Champion on the importance of continuous learning: He told an interviewer that one of his constant efforts was to manage his time for more and better work. He explained that he always sought to improve everything he did. I remember a salesman one time telling me that he knew the game from A to Z. He stated that nobody could tell him anything about selling. That was to me the best proof possible that he knew nothing about selling because those who really understand merchandising, manufacturing, or anything else that is important in life are those who realize how little they really know about it and how much there is to learn every day.

[47:25] Billy Durant prioritized speed. Durant recruits Albert Champion to move to Flint the same day they meet: Durant sounded out Champion before nudging the focus toward recruiting him to Flint. Durant later recalled: If he were quite sure that he could make a plug that would answer our purpose, I suggested that we go to Flint, and if he liked the place and the layout, I would start an experimental plant, and if he could make good, I would give him an interest in the business. (this later makes Albert very, very rich) He had never been to Flint, knew nothing of the Buick, or the plans I had for the future.

[55:10] Albert Champion invested heavily in research and development. This is why: I spent a fortune on spark plug experiments at the start. My friends thought I was crazy. I knew I was right. He put prototypes through long and rigorous tests before submitting patent applications. More durable spark plugs would benefit passenger cars. He said: “Keep ahead of the race. That is what brings success. It makes the great racer. It makes the successful businessman. No champion ever arrived resting on the oars.”

[56:33] Albert Champion on the similarities of athletic competition and building a business: I have always felt that the education and training I received as a bicycle racer was a great help in business because it is a game in which you train to fight and win. He emphasized that experimenting and learning leads to progress: I always remember what a friend of mine once told me. He was a well—known chemist, an authority in the automobile world. He said that four times during his life he has had to scrap his knowledge of chemistry and begin again at the start. He was not only happy about it. He is ready to do the same thing over and over when he finds it necessary.

[1:03:20] The legacy of Albert Champion: His death closed a career as brilliant as that of any Horatio Alger hero, from errand boy in Paris, France, to millionaire automobile accessories manufacturer in America. The spark plug designs, dashboard speedometers, and companies Champion started have stood the test of time. Today the Champion Spark Plug and ACDelco brand names are recognized around the world. More than 200,0000 people a year attend performances at the Boston Center for the Arts, all passing the brass plate celebrating his Albert Champion Company, where he had made his first Champion spark plugs. Approximately 50 million vehicles operating in the United States are currently on the road with ACDelco spark plugs, filters, brakes, and other components. And every April at the Paris Classics bicycle race, another winner’s name is added to Albert Champion’s on the roster of legends.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading My Years with General Motors by Alfred Sloan.

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[2:40] There are ideas worth billions in a $30 history book: Henry talked to me on several occasions about a book by the former chairman of General Motors. He told me he had learned a very important concept from that book, which he wished to use in the growth of Teledyne. . .during a very difficult economic time of recession, General Motors had needed additional funds to finance their growth and had a plan to sell bonds to the general public. The bond sale was a complete failure, and the chairman (Sloan) had written in his book that it had taught him an important lesson. It was that for a corporation to grow and to have a strong financial base, it needed to have, as part of itself, an interest in substantial financially oriented institutions. So General Motors had started GMAC and invested in other financial groups. As a result of his interest in this idea, Henry had decided that at some point, he would seek out financial organizations we could acquire. We began acquiring a number of financial and insurance companies, which was a significant change from our usual aerospace, metals, industrial and consumer company acquisitions.

[5:45] Alfred Sloan had a singular focus: General Motors and the Hyatt Roller Bearing Company, have been almost the sole interests of my business life.

[6:28] Alfred Sloan’s perspective on work: I simply took the view that we should go at the job vigorously and without hampering restrictions. I put no ceiling on progress.

[12:22] Billy Durant came up with the idea for General Motors. Alfred Sloan perfected it: Durant’s pioneer work has yet to receive the recognition it deserves. His philosophy was an emerging one in the Model T era and was afterward to be realized not by him but by others, including myself.

[19:08] The accumulated intelligence of mankind is what makes us special amongst all other species Everything is built upon the foundation before it: It has been called to my attention that Eli Whitney, long before, had started the development of interchangeable parts in connection with the manufacture of guns, a fact which suggests a line of descent from Whitney to Leland to the automobile industry.

[29:20] Alfred Sloan had a great perspective on problems. They are temporary and we can fix them: Economic declines have a way of shaking out the weak ones in business, and we had weaknesses. Some people cannot see beyond a slump, but I have never yielded to economic pessimism and in times of decline have kept in mind the eventual upturn of the business cycle and the long—range dynamics of growth. Confidence and caution formed my attitude in 1920. We could not control the environment, or predict its changes precisely, but we could seek the flexibility to survive fluctuations in business. I mention this because confidence is an important element in business; it may on occasion make the difference between one man’s success and another’s failure.

[33:15] Sloan on how difficult Henry Ford was to compete against: With Ford in almost complete possession of the low—price field, it would have been suicidal to compete with him head on. No conceivable amount of capital short of the United States Treasury could have sustained the losses required to take volume away from him at his own game. 

[38:40] Alfred Sloan on committees: I have often been taxed, by people who do not know me, with being a committee man—and in a sense I most certainly am—I have never believed that a group as such could manage anything. A group can make policy, but only individuals can administer policy.

[44:20] General Motors was able to overtake Ford because they widened a niche: It was that plan, policy , or strategy of 1921—whatever it should be called— which, I believe, more than any other single factor enabled us to move into the rapidly changing market of the twenties with the confidence that we knew what we were doing commercially and were not merely chasing around in search of a lucky star. The most important particular object of that plan of campaign, which followed from its strategic principles, was, as I have said, to develop a larger place for Chevrolet between the Ford car below and the medium—price group above, a case of trying to widen a niche. That was all, in the beginning, despite the completeness of the plan with regard to the whole market.

[56:40] Alfred Sloan knew the car market was changing. You didn’t make sales by having the best car. You made sales by being different. David Ogilvy called this idea “a positively good product”: In the past, just about every advertiser has assumed that in order to sell his goods he has to convince consumers that his product is superior to his competitor’s. This may not be necessary. It may be sufficient to convince consumers that your product is positively good. If the consumer feels certain that your product is good and feels uncertain about your competitor’s, he will buy yours. If you and your competitors all make excellent products, don’t try to imply that your product is better. Just say what’s good about your product – and do a clearer, more honest, more informative job of saying it. Sales will swing to the marketer who does the best job of creating confidence that his product is positively good.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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

What I learned from reading Billy, Alfred, and General Motors: The Story of Two Unique Men, A Legendary Company, and a Remarkable Time in American History by William Pelfrey.

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[0:01] They were oil and water in all respects. Billy Durant, the high school dropout, was the flamboyant dreamer and gambler, focused on personal relationships and risk. Alfred Sloan, the MIT engineer, was the stern organizer and manager, focused on data, logic, and profit.

[4:40] The paradox of this book in two sentences: Sloan’s most constant criticism of Durant was that he acted on instinct and whim rather than facts. Yet the achievements and decisions of Durant the dreamer were what made Sloan the manager’s spectacular career possible.

[6:50] Alfred Sloan telling us it is a lot harder to stay successful over a long period of time: “The perpetuation of an unusual success or the maintenance of an unusually high standard of leadership in any industry is sometimes more difficult than the attainment of that success or leadership in the first place.”

[10:45] Walter Chrysler left the highest paying job in the entire automobile industry because of Billy Durant’s wasted his time: More than once, Chrysler had been summoned by Durant only to be kept waiting then to discover that the urgent matter that needed to be discussed was nothing that couldn’t have been resolved quickly at the plant level rather than wasting top management’s time and brainpower.

[12:52] Sloan believed Billy Durant had no right to be distracted by the financial markets while Durant was supposed to be running General Motors: Sometimes I used to feel as if he were always holding a telephone in his hand. I think there were twenty telephones in his private office and a switchboard. He had private wires to brokers’ offices across the continent. In the same minute, he would buy in San Francisco, sell in Boston. It did not seem to me that the operating head of a corporation had any right to devote himself to the market, even if the stock of the corporation was involved. 

[17:13] Billy Durant will remind you that everything is possible: What was it in Billy’s genes and character that had led the high school dropout from rural Michigan to even dream of building an empire that would change the world?

[20:30] Billy Durant would tell you to control the things that are important to your business: Billy Durant would never forget the bitter lesson of what he saw as Paterson’s treachery: Always control your own production and, whenever possible, all of the links in the supply chain.

[23:05] Unlike Durant, Alfred Sloan had a singular focus. His singular focus was General Motors: By the early 1930s, Alfred Sloan was widely considered to be one of the richest men in the world, but he had no known hobbies and had never sold a single share of General Motors stock. His only known investment of either time or money in anything beyond the domain of General Motors was the purchase of a yacht at the urging of friends and his wife. 

[26:37] There are ideas worth billions in a $30 history book: In Henry Singleton’s case that is literally true. Reading Sloan’s book had a multiple billion dollar effect on the outcome of Teledyne.

[29:04] Sloan would not tolerate any excuses: Sloan is kinda like Yoda. Do or do not. There is no try.

[29:48] A key ideological difference between Alfred Sloan and Billy Durant was how growth should be financed: What Alfred didn’t mention in his letter was that Hyatt’s growth had come from reinvestment of the company’s own profits, rather than the acquisition and stock market strategy mastered by Billy Durant. A divergence of fundamental strategy that would be at the core of the General Motors crisis and showdown of 1920.

[31:12] An important lesson from history is that new and important industries can start out looking like toys: In 1899 the automobile industry in America was no more than the strange and wild obsession of a few tinkerers and an amusing diversion for the wealthy investors who backed them. Cars were still widely considered impractical toys and dangerous nuisances by most people. 

[34:35] Alfred Sloan admired and copied Henry Leland, founder of Cadillac and Lincoln: Of all the American automobile industry’s unique and colorful characters, the one whom Alfred Sloan most admired and emulated was Henry Leland. Leland was a perfectionist who expected and demanded higher standards than any of his peers. He accepted no excuses and suffered no fools. Sloan devoted more words and detail to what he learned from Leland than he did any other person.

[45:55] Alfred Sloan on why vertical integration was so important in the automobile industry: Every piece of the motor car is essential in the sense that the automobile is not complete unless every part is available. Delay in delivery of any part stops the work. A dependable supply of parts might well make the difference between success and failure.

[48:08] Henry Ford's ONE idea was different from every other automobile manufacturer: He was determined to concentrate on the low end of the market, where he believed that high volume would drive costs down and at the same time feed even more demand for the product. It was a fundamental difference in philosophy.

[49:35] Comparing and contrasting Billy Durant and Alfred Sloan’s approach to growth: For him, the thrill was always in the next deal, not in the nuts and bolts of daily operations. In his mind, empires were built by conquest, not through internal growth. And the road to conquest was through other people’s money and other people’s confidence in his genius, rather than the quiet, conservative road of knowing the fundamentals of manufacturing and marketing, as was followed by the likes of Henry Leland and Alfred P. Sloan.

[56:05] Why Innovation is so important. We must arm the rebels! The automobile sparked not only the great oil boom it also sparked innovations in petroleum refining and metal alloys that led to further innovation in chemicals. It also spawned the motel industry as well as gasoline retailing. Thanks solely to the demand for gasoline to run the internal combustion engine automobile, crude oil production in the United States soared.The first gasoline pump appeared in 1905. By 1915, Standard Oil had developed the first chain of gasoline service stations. In 1916, the federal government began funding the interstate highway system. Ten years later, motels and road side restaurants were common in every state. Thanks to Henry Ford’s Model T, Billy Durant’s vision of a nation transformed by the automobile had become a reality.

[57:47] When most of your revenue comes from one or two major customers you are fragile. Or Why Alfred Sloan sold Hyatt Roller Bearing to Billy Durant: The problem for Alfred and his peers was that, compared with the manufacturers, the suppliers’ pockets were not nearly as deep. Expanding their production capacity meant investment in new plant and equipment, but there was no guarantee that the boom would continue once these commitments were made. Nor was there any guarantee from the manufacturers that they would not shift to a different supplier with lower cost at some point in the future, leaving Supplier A stuck with both excess capacity and the cost of the original expansion.

[1:14:23] How Alred Sloan positioned General Motors product line: Sloan developed a product strategy targeted at buyers’ specific aspirations. Its essence was to divide the market into price segments and offer cars with the most appeal and value in each segment. Sloan called it “a car for every purse and purpose.” No General Motors vehicle division or brand would compete against any other in any of the segments; each was to have a distinct identity and appeal to a distinct buyer.

[1:15:10] David Ogilvy on positioning your product: Now consider how you want to ‘position’ your product. This curious verb is in great favor among marketing experts, but no two of them agree what it means. My own definition is ‘what the product does, and who it is for.’ I could have positioned Dove as a detergent bar for men with dirty hands, but chose instead to position it as a toilet bar for women with dry skin. This is still working 25 years later.

[1:16:48] Alfred Sloan —like Sam Walton—made it a priority to visit dealers: I made it a practice throughout the 1920s and early thirties to make personal visits to dealers. I went into almost every city in the United States, visiting from five to ten dealers a day. I would meet them in their own places of business, talk with them across their own desks in their closing rooms and ask them for suggestions and criticism concerning their relations with the corporation, the character of the product, the corporation’s policies, the trend of consumer demand, their view of the future, and many other things of interest in the business. I made careful notes of all the points that came up, and when I got back home I studied them.

[1:20:46] Billy Durant’s metaphor on the difference between him and Alfred Sloan: But, you see, this infantry captain didn’t have the disadvantage of a West Point education and he didn’t know he couldn’t do it, so he just went ahead and did it anyway.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here. 

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“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