My guests today are Alex Behring and Daniel Schwartz, Co-Managing Partners of 3G Capital.

3G has built one of the most distinctive firms in investing around a simple idea: there are only a handful of truly great businesses and even fewer great CEOs. Their model is to raise capital with the intention of making just one investment per fund, commit meaningful amounts of their own money alongside their partners, and focus all of their time and best people on that single opportunity. 

Their approach has produced a series of iconic deals, including Burger King, Tim Hortons, Hunter Douglas, and Skechers. They have also become known for developing talent early, giving young leaders real responsibility and ownership, and holding an unusually high bar.

Once you've heard from Alex and Daniel, I highly recommend you read our in-depth profile on them and 3G Capital. They gave our managing editor Dom Cooke unprecedented access and the outcome is an excellent profile about the fifty year history of 3G and how the model began with Jorge Paulo Lemann in Brazil.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠. 

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Become a Colossus member to get our quarterly print magazine and private audio experience, including exclusive profiles and early access to select episodes. Subscribe at ⁠colossus.com/subscribe⁠.

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⁠Ramp’s⁠ mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠⁠ to sign up for free and get a $250 welcome bonus.

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Trusted by thousands of businesses, ⁠Vanta⁠ continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit ⁠vanta.com/invest⁠. 

-----

⁠WorkOS⁠ is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit⁠⁠ ⁠WorkOS.com⁠⁠⁠ to transform your application into an enterprise-ready solution in minutes, not months.

-----

⁠Rogo⁠ is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at ⁠Rogo.ai/invest⁠.

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⁠Ridgeline⁠ has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com⁠.

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Welcome to Invest Like the Best

(00:02:43) Episode Intro: Daniel Schwartz & Alex Behring

(00:04:03) The “One Investment Per Fund” Model

(00:08:22) Great Businesses Own the Relationship With Their Customers

(00:11:23) The Unique Structure of 3G Capital

(00:13:36) How a Transaction Takes Shape

(00:17:04) Why Hunter Douglas Was Appealing

(00:21:34) The Advantages of Staying Small

(00:23:58) Alex’s Railroad Story

(00:26:36) Ownership is Key

(00:30:26) Centralize the What, Decentralize the How

(00:31:55) The “Burger King is Run by Children” Story

(00:34:21) Negotiating with Tim Hortons

(00:40:39) Never Compromise on Quality

(00:42:01) Talent Over Tenure

(00:50:26) 3G’s Operating System

(00:57:14) When a Brand is Bigger than the Business

(01:00:17) Why Burger King Was Undervalued

(01:03:15) The Beauty of the Franchise Model

(01:06:24) Kraft Heinz: A Case Study in Concentration Risk

(01:09:07) Skechers: Great Product Meets Great Distribution

(01:16:07) Finding Forever Businesses

(01:17:52) Zero-Based Budgeting & When It Works

(01:21:10) The Current State of Capital Markets

(01:25:23) Misconceptions About 3G

(01:32:01) The Power of Patience

(01:33:39) The Kindest Thing

My guest today is Ben Horowitz, the co-founder of Andreessen Horowitz. Since its founding in 2009, a16z has grown into one of the most influential firms in venture capital, reshaping how technology companies are funded and how power and ideas move through Silicon Valley and around the world.

This conversation focuses on sides of Ben’s story you don’t often hear. Ben reflects on the people who shaped him, including Nas, Andy Grove, and his father, and shares why he chose to personally fund new technology for the Las Vegas Police Department.

We also talk about how he thinks about a16z’s responsibility in shaping the trajectory of America, the scale of his ambition for the firm, and what he sees as the biggest risk facing the country.

Please enjoy this great and unique conversation with Ben Horowitz.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠. 

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠ to sign up for free and get a $250 welcome bonus.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Vanta. Trusted by thousands of businesses, Vanta continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit vanta.com/invest. 

-----

This episode is brought to you by Rogo. Rogo is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at Rogo.ai/invest.

-----

This episode is brought to you by ⁠WorkOS⁠. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit ⁠WorkOS.com⁠ to transform your application into an enterprise-ready solution in minutes, not months.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Welcome to Invest Like the Best

(00:02:43) Episode Intro: Ben Horowitz

(00:03:27) The State of America Right Now

(00:06:06) How Policy Could Destroy America

(00:08:29) AI Changes the Laws of Company Building and Investing

(00:11:40) Why AI Researchers are Paid $100M

(00:13:16) Thoughts on Growing Inequality

(00:18:07) Societal Challenges Due to AI

(00:19:56) Ben’s Scope of Ambition for the Next 20 Years

(00:22:48) Andy Grove’s Influence on Ben

(00:27:44) Starting Andreessen Horowitz

(00:32:53) Early Mistakes

(00:36:17) What Capital Markets Are Missing

(00:37:44) Why VC and Not PE

(00:40:03) Tradeoffs with Scale

(00:41:10) A Culture is Not a Set of Ideas, it’s a Set of Actions

(00:43:05) Lessons from His Father

(00:45:03) Exciting Use Cases of AI

(00:46:46) Ben’s Friendship with Nas

(00:50:05) Funding New Technology for the Las Vegas Police Department

(00:54:07) The Kindest Thing

My guest today is ⁠Gokul Rajaram⁠, Founding Partner at Marathon Management. Gokul is one of the most prolific product builders and investors of the last twenty years. He has built the core ad and product businesses at Google, Facebook, Square, and DoorDash, working at each company during its most formative scaling periods.

Alongside his operating career, Gokul has invested in more than 700 companies, giving him an unusually broad view into how products are built and scaled.

This conversation is about how product building is changing with AI. We discuss the one thing Gokul believes is truly future-proof in AI, why companies like Zendesk and Slack are more exposed than Salesforce or NetSuite, and the only sources of defensibility. 

We also talk about everything Gokul has learned from helping build the most important ads businesses, including the only three ways an ad business can make money, how those constraints shape product decisions, and what consumer behavior change threatens every major platform.

Gokul shares lessons from working closely with Larry and Sergey, Mark Zuckerberg, Jack Dorsey, and Tony Xu.

Please enjoy my conversation with Gokul Rajaram.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠. 

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠⁠ to sign up for free and get a $250 welcome bonus.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠Vanta⁠. Trusted by thousands of businesses, Vanta continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit ⁠vanta.com/invest⁠. 

-----

This episode is brought to you by ⁠Rogo⁠. Rogo is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at ⁠Rogo.ai/invest⁠.

-----

This episode is brought to you by⁠ ⁠WorkOS⁠⁠. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit⁠ ⁠WorkOS.com⁠⁠ to transform your application into an enterprise-ready solution in minutes, not months.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com⁠.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Welcome to Invest Like The Best

(00:00:53) Meet Gokul Rajaram

(00:02:05) How Product Development is Changing with AI

(00:07:32) Philosophy of Product Management

(00:10:19) What is Future-Proof in AI Era

(00:11:25) Building AI Applications Today

(00:15:03) Systems of Record vs Agent Companies

(00:16:58) Which Legacy Software Companies Are Most Exposed

(00:22:15) Stickiness in the AI Era

(00:24:10) Learning from Larry Page and Sergey Brin

(00:28:15) Learning from Mark Zuckerberg

(00:31:31) Learning from Jack Dorsey

(00:35:40) The Art of Great Product Design

(00:36:49) Weekly CEO Communication

(00:40:27) Three Ways to Succeed in Advertising

(00:44:27) What Should Scare Major Ad Platforms

(00:48:24) North Star Metrics

(00:50:09) Self-Serve Products

(00:54:50) Careers in the AI Era

(00:59:03) Stay Long Enough to Have Impact

(01:00:10) Founder Authenticity and Superpowers

(01:02:21) Navigating the Idea Maze

(01:03:42) Role of Boards

(01:06:31) Excellence in Customer Acquisition 

(01:09:11) The Kindest Thing 

This week is a special episode. Only David Senra could get me to be on the other side of the mic. Because I don’t plan on being interviewed often, I wanted to share this conversation, which I so enjoyed, with our audience.

It went in a very different direction than I expected. We barely talk about investing or interviewing. Instead, we talk about finding an organizing principle for life, undiscovered talent, and the idea that “the reward for good work is more work.”

We also discuss the principles that guide how I think about building Invest Like the Best, Colossus, and Positive Sum.

This conversation was originally recorded and released on David Senra, and I wanted to share on the Invest Like The Best feed as well. Please go follow what he’s doing, there’s no one like David.

Enjoy!

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠.⁠⁠⁠⁠⁠⁠⁠⁠

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠ to sign up for free and get a $250 welcome bonus.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Vanta. Trusted by thousands of businesses, Vanta continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit vanta.com/invest. 

-----

This episode is brought to you by Rogo. Rogo is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at Rogo.ai/invest.

-----

This episode is brought to you by ⁠WorkOS⁠. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit ⁠WorkOS.com⁠ to transform your application into an enterprise-ready solution in minutes, not months.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Welcome to Invest Like The Best

(00:04:26) Intro

(00:05:14) The Joy of Championing Undiscovered Talent

(00:07:33) How One Tweet Changed David's Life

(00:10:16) The Upanishads Passage That Shaped Patrick's Worldview

(00:15:32) Growth Without Goals 

(00:17:24) Why Media and Investing Are the Same Thing

(00:33:05) The Search for True Understanding

(00:35:36) The Daniel Ek Dinner That Launched David’s Podcast

(00:39:02) Making Your Own Recipe From the Ingredients of Great Lives

(00:43:46) The Privilege of a Lifetime Is Being Who You Are

(00:52:06) Bruce Springsteen

(00:57:23) Clean Fuel vs Dirty Fuel: The Source of Your Ambition

(01:01:43) The Unfair Advantage of Podcasting

(01:04:12) Relationships Run the World

(01:11:10) The Origin Story of Invest Like the Best

(01:12:45) Building Colossus: Why Start a Magazine in 2025

(01:18:42) People Are More Interested in People Than Anything Else

(01:22:12) Hiring Through Output

(01:26:23) Learn, Build, Share, Repeat

(01:30:01) The Daisy Chain: How Reading Books Led to Everything

(01:33:15) Red on the Color Wheel: Sam Hinkie's Observation

(01:40:17) Finding Your Superpower and Becoming More Yourself

(01:45:06) Repetition Doesn't Spoil the Prayer: Teaching as Leadership

(01:48:11) Life's Work: A Lifelong Quest to Build Something for Others

(01:52:00) The Ten Roles Game and What Matters Most

(01:59:12) Husband, Father, Grandfather

(02:01:52) The Kindest Thing

My guests today are Tom Digan and Greg Stewart. Tom is the co-founder of Ladder, and Greg is its CEO.

Ladder was my first angel investment. What followed over the next seven years is one of the most unlikely and dramatic business stories I’ve been a part of.

Today, Ladder is the number one grossing fitness app in the App Store, approaching $100M in ARR with more than 300,000 paying members. But the path from near death to dominance involved debt collectors, leadership changes, and a full reset during the pandemic.

Tom and Greg built Ladder by being relentlessly empirical about their customers, ruthless about prioritization, raising money wherever they could, and doing whatever it took when most founders would have quit.

We cover the messy early years when survival meant negotiating creditors, how they found PMF by reading thousands of app store reviews, and how they built a TikTok growth engine with no performance marketing experience.

They share their long-term vision for becoming the category winner for health and fitness and the impact of AI and GLP-1s on their business.

This is a conversation about how hard it really is to build something valuable, told by two people who lived through all of it.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠.⁠⁠⁠⁠⁠⁠⁠⁠

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠ to sign up for free and get a $250 welcome bonus.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Vanta. Trusted by thousands of businesses, Vanta continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit vanta.com/invest. 

-----

This episode is brought to you by Rogo. Rogo is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at Rogo.ai/invest.

-----

This episode is brought to you by ⁠WorkOS⁠. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit ⁠WorkOS.com⁠ to transform your application into an enterprise-ready solution in minutes, not months.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Welcome to Invest Like The Best 

(00:04:26) Episode Intro

(00:05:45) Ladder: The #1 Fitness App

(00:09:28) The Messy, Early Years

(00:14:47) Sponsors

(00:16:20) The Darkest Point

(00:18:17) Why Greg Joined Ladder

(00:19:45) The Turning Point: Ladder 2.0

(00:21:57) The Key to Negotiating with Creditors

(00:23:16) Fundraising Challenges and Strategies

(00:25:50) Developing Ladder Teams

(00:31:31) Listen to Your Customers

(00:32:57) Launching Nutrition

(00:38:53) Sponsors

(00:39:31) Don’t Listen to Investors on Product Feedback

(00:40:18) The Cave Process

(00:43:13) Crossing the Chasm

(00:43:53) How to Crack TikTok

(00:51:10) The Content Frontier

(00:52:07) Controlled Bets at Scale

(00:54:19) Why you should Build a B2C Company

(00:57:37) The Impact of AI and GLP-1s

(01:02:32) Sponsors

(01:02:53) Staying Focused on the Core Product

(01:05:00) Building the System of Record for Health and Fitness

(01:09:45) What It’s Like Talking to Investors Now

(01:12:32) The Kindest Thing

My guest today is Reed Hastings, the co-founder and former longtime CEO of Netflix.

Netflix is an example of two ideas that everyone talks about, but are extremely hard to do in practice. The first is finding a simple idea and taking it extraordinarily seriously. Reed talks about how even the DVD business was nothing more than a stepping stone toward streaming, which they envisioned from the company’s inception in 1997. The second is talent density, and what it actually takes to set and sustain an exceptionally high bar over decades as a company grows. 

We talk about how those ideas shaped Netflix’s culture and strategy, what Reed learned from mistakes like Qwikster, and why Netflix treated content like a venture portfolio.

We also discuss Reed’s work today. He shares how he’s thinking about AI, what he’s learned from serving on the boards of Microsoft, Meta, Anthropic, and Bloomberg, and what excites him about Powder Mountain, the ski resort he acquired after Netflix.

Please enjoy my conversation with Reed Hastings.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠.⁠⁠⁠⁠⁠⁠⁠⁠

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠ to sign up for free and get a $250 welcome bonus.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Vanta. Trusted by thousands of businesses, Vanta continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit vanta.com/invest. 

-----

This episode is brought to you by Rogo. Rogo is an AI-powered platform that automates accounts payable workflows, enabling finance teams to process invoices faster and with greater accuracy. Learn more at Rogo.ai/invest.

-----

This episode is brought to you by ⁠WorkOS⁠. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit ⁠WorkOS.com⁠ to transform your application into an enterprise-ready solution in minutes, not months.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps

(00:00:00) Sponsors

(00:03:33) Welcome to Invest Like The Best

(00:04:29) Intro

(00:05:43) Sponsors

(00:07:16) The Concept of Talent Density

(00:11:19) Evaluating Talent

(00:13:47) Managing on the Edge of Chaos

(00:14:51) Why Netflix Gave Large Severance Packages

(00:16:37) The Keeper’s Test

(00:17:07) The Qwikster Mistake

(00:19:15) The Informed Captain

(00:20:39) How to Come Up with Good Ideas

(00:22:32) Transitioning to Streaming

(00:23:05) Being on the Board of Facebook, Microsoft, Anthropic & Bloomberg

(00:26:25) The Role of a Board Member

(00:29:37) Sponsors

(00:30:15) Why Netflix Had Open Compensation

(00:32:04) Netflix’s Content Strategy

(00:37:52) Competing with YouTube and Traditional TV

(00:39:23) Creating Hit Content

(00:40:02) Impact of AI on Netflix

(00:41:24) Innovations in Show Formats

(00:43:23) Sponsors

(00:43:44) Netflix's Technology Backbone

(00:45:29) Expanding into Gaming

(00:46:06) Lessons from Failed Projects

(00:47:30) Financial Strategy and Capital Allocation

(00:50:27) Stepping Down as CEO

(00:50:52) Powder Mountain

(00:56:08) Focus on Education and AI

(00:59:00) Risks and Benefits of AI

(01:00:56) The Kindest Thing

(01:02:56) Sponsors

Today, I am replaying my conversation with Nick Kokonas, one of my favorites from the show.

Nick is the co-founder of 3 of the best restaurants and bars in America - Alinea, Next, and The Aviary as well as the co-founder and CEO of Tock, a comprehensive booking system for restaurants. He majored in philosophy before becoming a derivatives trader and is now one of the most well-known names in the hospitality industry.

In this conversation, Nick shares his experience of bringing a business mindset to the restaurant industry. I'll remember it for why it's so important for a business to really know what it's selling and then actually sell it.

Nick also pulls back the curtain on why restaurants and even book publishers can be great businesses if you do them the right way. I felt like this conversation could have gone on for hours and I hope you enjoy it.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ramp.com/invest to sign up for free and get a $250 welcome bonus.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Head to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to learn more about the platform.

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This episode is brought to you by ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠AlphaSense⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Invest Like the Best listeners can get a free trial now at⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Alpha-Sense.com/Invest⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and experience firsthand how AlphaSense and Tegus help you make smarter decisions faster.

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Timestamps:

(00:00) Welcome to Invest Like The Best

(03:58) Intro to Nick Kokonas

(4:36) – Why it’s so important to own something

(6:09) – Make decisions that have outcomes

(8:34) – His interest in the restaurant business

(10:28) – Why restaurants are so tough

(13:39) – How their business mindset changed their running of the restaurant

(16:09) – Words they would avoid in the restaurant

(17:53) – Asking the right questions in the restaurant business

(22:14) – Importance in taking the right risks

(23:36) – Coming up with innovative strategies for ticketing, selling meals ahead of time, and dynamic pricing

(31:42) – Can dynamic pricing be extended to other businesses

(32:54) – Origin of Tock

(37:51) – Early days of Tock and identifying the right customers/challenges

(43:07) – Importance of the first customer

(45:56) – The typical restaurant business model

(50:57) – Lessons from Tock and the importance of knowing what you’re selling

(55:21) – Lessons from publishing

(57:18) – Other aspects of business that people know but do nothing about

(1:01:53) – Their response to Covid and lessons learned

(1:09:17) – The real impact to the food delivery companies

(1:10:58) – How businesses communicate their end processes to their customers

(1:15:41) – The Kindest Thing

Ric Elias - The Art of Living Well - [Invest Like The Best, CLASSICS]

Welcome to this classic episode. Classics are my favorite episodes from the past 10 years, published once a month. These are N of 1 conversations with N of 1 people.

Ric Elias is the CEO and co-founder of Red Ventures, which has a portfolio of fast-growing digital businesses like Lonely Planet, The Points Guy, Bankrate, and large investments in a variety of other businesses across industries. He began the business in 2000 and has grown it to now a global company with thousands of employees.

Ric walks us through the early struggles that have led to what is now a flourishing investing platform, but mostly this episode is a masterclass on cultural values and philosophies that transcend mere financial gain. We discuss the difference between living good and well, the power of forgiveness, and compounding more than just your capital. Ric’s story is one of resilience, humility, and grace. His story about being in the front row of the plane that Captain Sully landed in the Hudson is singular and very moving.

Please enjoy my conversation with Ric Elias.

For the full show notes, transcript, and links to mentioned content, check out the episode page here.

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This episode is brought to you by WorkOS. WorkOS is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. With a single API, developers can implement essential enterprise capabilities that typically require months of engineering work. By handling the complex infrastructure of enterprise features, WorkOS allows developers to focus on their core product while meeting the security and compliance requirements of Fortune 500 companies. Visit WorkOS to Transform your application into an enterprise-ready solution in minutes, not months.

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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. 

Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.

Follow us on Twitter: @patrick_oshag | @joincolossus

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Timestamps:

(00:00:00) Welcome to Invest Like the Best

(00:02:00) Meet Ric Elias

(00:02:49) Chasing the Big Dream

(00:05:38) Understanding Red Ventures: Origin and Evolution

(00:10:25) Operational Success and Company Culture

(00:25:30) Reflections on Money and Personal Well-being

(00:28:49) The Difference between Good and Well

(00:32:55) The Hudson River Plane Crash Experience

(00:42:37) Reconnecting with Puerto Rico and Reviving the Basketball Team

(00:45:07) Underdogs to Champions

(00:48:09) How to Build Trust and Culture

(00:52:29) Reflections on Leadership

(00:56:12) The Role of Confidence and Courage

(00:59:38) The Value of Family and Friendships

(01:01:57) The Pursuit of Purpose Over Profit

(01:06:52) Recruitment and Company Culture

(01:10:07) Reflecting on Success

(01:14:33) The Importance of Pace and Speed

(01:16:23) Other Business Philosophies

(01:23:17) The Kindest Thing

My guest today is Henry Ellenbogen, founder and Managing Partner of Durable Capital Partners. Henry built his reputation at T. Rowe Price, where he led the New Horizons Fund and turned it into one of the best-performing small-cap growth portfolios in the country. In 2019, he left to start Durable.

His philosophy is grounded in a simple belief that great investing is about understanding people and change. Henry has spent his career studying the rare 1% of companies that drive nearly all long-term returns . Durable’s edge comes from being able to tell the difference between a company that is failing and one that is transforming.

Henry often talks about “Act II” teams – founders who take the lessons from their first company and apply them to a new frontier. Durable itself is his Act II.

In our latest Colossus profile, Managing Editor Dom Cooke traces Henry’s story and specifically how he became one of the most influential investors of the 21st century, having learned from founders like Jeff Bezos and John Malone in the early part of his career. I always hear the same thing from founders who’ve met Henry: “he understood my business faster than anyone”. The thing that sticks with me from our conversation and Dom’s profile is just how much he loves investing.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠.⁠⁠⁠⁠⁠⁠⁠⁠

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ramp.com/invest to sign up for free and get a $250 welcome bonus.

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Head to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to learn more about the platform.

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This episode is brought to you by ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠AlphaSense⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Invest Like the Best listeners can get a free trial now at⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Alpha-Sense.com/Invest⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and experience firsthand how AlphaSense and Tegus help you make smarter decisions faster.

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Show Notes:

(00:00:00) Welcome to Invest Like The Best

(00:04:00) Meet Henry Ellenbogen

(00:05:29) Origin of Henry’s Investment Philosophy

(00:08:12) Identifying the 1% of Great Companies

(00:12:53) Patterns of Successful Compounders

(00:20:34) Act Two Entrepreneurs and Teams

(00:25:43) Building Durable Capital: Henry’s Act Two

(00:30:11) Dollar Cost Averaging Up Strategy

(00:35:02) Market Structure and Agency Problems

(00:38:26) Impact of Quant Funds and Short-Term Capital

(00:42:21) AI as Transformative Change

(00:45:30) How Affirm Uses AI

(00:48:23) Amazon’s Cost Curve Advantage

(00:51:48) Leadership Through Change

(00:56:54) Robotics and Physical Kaizen

(01:01:29) Favorite Types of Competitive Advantages

(01:05:25) Investment Memo Structure

(01:09:21) 2022 CEO Tour on Market Transition

(01:19:18) Hiring and Developing Talent

(01:24:09) Making Colleagues Better

(01:27:56) Being Intellectually Honest in Investing

(01:29:11) Lessons from Success

(01:33:04) Case for Going Public

(01:36:32) Netflix Transition Example

(01:41:29) Two Types of Greatness

(01:45:42) The Kindest Thing

My guest this week is Gavin Baker. Gavin is the managing partner and CIO of Atreides Management, and he has been on the show many times before. 

I will never forget when I first met Gavin in 2017. I find his interest in markets, his curiosity about the world to be as infectious as any investor that I've ever come across. He's encyclopedic on what is going on in the world of technology today, and I've had the good fortune to host him every year or two on this podcast.

Gavin began covering Nvidia as an investor more than two decades ago, giving him a rare perspective on how the company – and the entire semiconductor ecosystem – has evolved. A lot has changed since our last conversation a year ago, making this the perfect time to revisit the topic.

In this conversation, we talk about everything that interests Gavin – Nvidia’s GPUs, Google’s TPUs, the changing AI landscape, the math and business models around AI companies and everything in between. We also discussed the idea of data centers in space, which he communicates with his usual passion and logic.

In closing, at the end of this conversation, because I've asked him my traditional closing question before, I asked him a different question, which led to a discussion of his entire investing origin story that I had never heard before.

Because Gavin is one of the most passionate thinkers and investors that I know, these conversations are always amongst my most favorite. I hope you enjoy this latest in the series of discussions with Gavin Baker.

For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠.⁠⁠⁠⁠⁠⁠⁠⁠

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This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ramp⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ramp’s mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ramp.com/invest to sign up for free and get a $250 welcome bonus.

-----

This episode is brought to you by⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Ridgeline⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Head to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgelineapps.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to learn more about the platform.

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This episode is brought to you by ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠AlphaSense⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Invest Like the Best listeners can get a free trial now at⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Alpha-Sense.com/Invest⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and experience firsthand how AlphaSense and Tegus help you make smarter decisions faster.

-----

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠).

Show Notes:

(00:00:00) Welcome to Invest Like The Best

(00:04:00) Meet Gavin Baker

(00:06:00) Understanding Gemini 3 

(00:09:05) Scaling Laws for Pre-Training

(00:12:12) Google v. Nvidia

(00:14:53) Google as  Lowest Cost Producer of Tokens

(00:25:18)  AI Can Automate Anything that can be Verified

(00:30:23) The AI Bear Case: Edge AI

(00:33:43) Going from Intelligence to Usefulness

(00:36:34) AI Adoption in Fortune 500 Companies

(00:41:40) Frontier Models and Industry Dynamics

(00:48:05) China’s Mistake and Blackwell’s Geopolitical Leverage

(00:50:11) OpenAI’s Code Red

(00:52:50) Data Centers in Space

(00:58:00) Cycles in AI

(01:01:14) Power as a Bottleneck

(01:03:51) AI Native Entrepreneurs

(01:05:41) Semiconductor VC

(01:09:26) The Mistake the SaaS Industry is Making

(01:14:53) Series of Bubbles

(01:16:31) Whatever AI Needs, It Gets

(01:17:53) Investing is the Search for Truth

(01:18:37) Gavin’s Investing Origin Story