Sessions David Senra (Founders Podcast)

In this engaging episode of Acquired, hosts Ben Gilbert and David Rosenthal, along with guest David Senra of the Founders podcast, delve into the intricacies of business history, the lessons of great founders, and the art of podcasting. They discuss the importance of storytelling, clarity of thought, and being authentically invested in one's work as key to creating content that resonates with audiences. Senra, known for his intense dedication to reading founder biographies, shares insights from his dinner with Charlie Munger, emphasizing the unpredictability of success and the value of focusing on one's intense interests. The trio also touches on the role of interest rates in business valuation, the power of education through experience, and the notion that the best businesses often resemble "cheerful cults," with a loyal following built over time through genuine connection and shared learning.

• "Acquired" is a podcast dedicated to technology companies, their stories, and playbooks.
• Hosts Ben Gilbert and David Rosenthal introduce a special episode featuring guest David Senra from the Founders podcast.
• David Senra is recognized for his obsession with business history and lessons from great founders.
• The episode is part of "acquired sessions," a video format on YouTube.

"Welcome to this special episode of Acquired, the podcast about great technology companies and the stories and playbooks behind them. I'm Ben Gilbert." "I'm David Rosenthal, and we are your hosts."

The quote introduces the hosts and the purpose of the special episode, highlighting the focus on technology companies and the important lessons from their histories.

• David Senra has read hundreds of founder biographies and created detailed podcast episodes on them.
• His work is driven by a passion for business history and the teachings of founders.
• David is considered a close friend and a source of inspiration for the "Acquired" hosts.

"David is quite possibly the only person we know who is more obsessed than us with business history and the lessons that great founders teach us."

The quote emphasizes David Senra's dedication to studying founders and the impact of his work on others interested in business history.

• David Senra recounts his three-hour dinner with Charlie Munger, where he could ask any questions.
• He describes Munger as a wise grandfather figure and admires his intellect and memory even at 99 years old.
• Senra's conversation with Munger included stories about historical figures and personal recollections.

"I had a three-hour dinner with Charlie Munger... Charlie's a different level for me. I literally think of him like the wise grandfather I never had."

This quote conveys David Senra's admiration for Charlie Munger and the significance of their dinner conversation.

• David Senra discusses the importance of learning from historical figures and reading their biographies.
• He mentions the profound impact of figures like Henry Flagler and the lessons one can learn from studying their lives.
• Senra emphasizes the idea that humans have no limits other than those they impose on themselves.

"Oh, humans have no limits other than the ones we put on ourselves."

The quote captures the essence of Senra's belief in human potential, inspired by the stories of historical entrepreneurs.

• David Senra reflects on the notion that all heroes are flawed and the importance of learning from their entire stories.
• He criticizes typical biography writing styles for focusing too much on family history rather than the individual's climb to success.
• Senra values the lessons from the climb and the ideas behind the stories rather than the precise historical accuracy.

"You know how a normal biography is written, right? It's like, way too much family history... I want to know the climb."

This quote illustrates Senra's preference for focusing on the significant achievements and lessons from a person's life rather than their entire family background.

• David Senra compares entrepreneurs to learning machines, constantly absorbing information and improving their businesses.
• He discusses the importance of studying history and learning from past entrepreneurs to avoid repeating mistakes.
• Senra highlights the value of biographies as a form of leverage for gaining knowledge and applying it in one's life.

"They're learning machines. And so you get to Charlie's bookshelf, and it's just biographies I've never even heard of. And I do this for a living."

The quote emphasizes the never-ending pursuit of knowledge and the depth of learning that successful entrepreneurs like Charlie Munger engage in.

• David Senra shares his lifelong habit of reading and how it led to the creation of his podcast.
• He describes his upbringing and how reading served as a means of escape and learning.
• Senra's podcast, "Founders," originated from his desire to share the interesting ideas he reads about each week with others.

"So I've just always been a reader. That's the only thing ever, the only one unbroken habit I've always had."

This quote reveals the foundational role that reading has played in David Senra's life and how it has shaped his career.

• Ben Gilbert and David Rosenthal discuss the growth and improvement of their podcast over the years.
• They talk about the challenges of creating content that impresses a knowledgeable audience.
• The hosts emphasize the importance of constantly raising the bar and learning from each episode.

"We always want to be embarrassed by our last episode. We've just constantly kept raising [the bar]."

The quote captures the hosts' commitment to continuous improvement and the high standards they set for their podcast content.

• Kevin Rose was a guest on the show, known for his involvement in Web 3.
• He had a podcast called Foundation, which was considered high quality.
• The podcast featured prominent guests like Elon Musk and Sam Altman before they became widely known.
• There's a sense that if Kevin Rose had continued with Foundation, it would have become a "monster" due to its early high-profile interviews and potential.

"Imagine if he would have stuck with that show. It would have been a monster." "The only episodes that ever came out was like, here's me interviewing Elon Musk. Here's me interviewing Sam Altman."

The quotes reflect a missed opportunity for the Foundation podcast to grow into a significant platform had it continued, considering its early access to now-famous figures.

• Tim Ferriss's podcast and books, like "The 4-Hour Workweek" and "The 4-Hour Body," had a significant impact on the speakers.
• The slow carb diet and cold showers were particularly influential.
• The resurgence of cold plunges as a trend was noted, with a connection to Tim Ferriss's earlier promotion of similar concepts.

"I was a big fan of his podcast. I'd read, like, four hour work week." "Body changed my life. Yeah, with the slow carb." "Slow carb diet, cold showers. And the funniest thing is this whole cold plunge thing. That's like becoming a thing now. I'm like, was nobody like, reading Tim Ferriss in 2011?"

These quotes highlight the lasting influence of Tim Ferriss's work on personal productivity and health, and how ideas presented years ago can resurface and become popular trends.

• David Ogilvy's advertising principles were discussed, emphasizing the importance of understanding that audiences are constantly changing.
• The quote from Ogilvy about advertising to a "moving parade" rather than a "standing army" was highlighted.
• The speakers discussed the application of this principle to podcasting, where new listeners continuously join and may not be familiar with older content.

"You're not advertising to standing army. You're advertising to moving parade." "I will literally get on calls with media company founders that are selling ads or building companies. I'm like, oh, yeah, you must have read Olga Vader. Like, what?"

The quote and its explanation focus on the dynamic nature of audiences and the necessity for content creators and advertisers to continually reach out to new people rather than relying on a static audience.

• Different podcast monetization strategies were discussed, including hard paywalls and subscription models.
• The speakers shared experiences and insights on maximizing audience reach and revenue.
• The conversation included references to other successful figures in advertising history, like Claude Hopkins and Albert Lasker, and their influence on modern practices.

"So I'll give you a shorter breakdown because I went through so many of them, but I just put a hard paywall. Listen, the first 30 minutes, you want to listen to all of them, then you pay, right?" "And this is when we had that chat that you were talking about. We were like, dude, you're doing it. You're doing it, right?"

These quotes detail the speaker's journey through different podcast monetization models and the realization that a mix of free content and premium access can be effective.

• The speakers reflected on how businesses and founders often stand on the shoulders of giants, combining existing ideas in novel ways.
• Sam Walton's strategy for Walmart was discussed as an example of taking existing ideas and applying them to overlooked markets.
• The importance of learning from historical figures and applying their insights to modern business was emphasized.

"It's the combination of these ideas, like Sam Walton taking sole Price's ideas and his competitor ideas, and like, hey, what about you guys are kind of ignoring these 4000 person communities?"

The quote illustrates the concept of innovation through the recombination of existing ideas, as exemplified by Sam Walton's approach to Walmart's expansion into small communities.

• The speakers discussed the importance of respecting the listener's time, especially when the audience includes high-income professionals.
• They touched on the need for meticulous editing and content selection to ensure the podcast provides value.
• The potential of using transcripts and platforms like YouTube to reach wider audiences was also mentioned.

"You made the good point earlier, and we can elaborate on that. Why you're so psychotic about this sentence needs to get out of here. Like these two sentences. Let's remove it, because if you could, fact you're in the average hourly rate of the people in your audience. It is unbelievable."

This quote underscores the meticulous approach to podcasting where every sentence is scrutinized to ensure the content is worth the listener's time, recognizing the high value of the audience's attention.

• The speakers talked about the challenges wealthy individuals face when considering how to pass on their wealth to their children.
• They discussed different approaches and the potential impact of wealth on motivation and relationships within wealthy families.
• Charlie Munger's advice on handling family wealth and the importance of not steering children too much were highlighted.

"But he goes, you have to give them the money anyways or they're going to hate you for it."

This quote from Charlie Munger acknowledges the delicate balance between providing for one's children and the potential resentment that could arise if they feel they've been denied their inheritance.

• The conversation turned to the importance of differentiation in business and the need to do something unique that competitors cannot.
• They discussed how businesses like Amazon Go and Union Square Ventures have differentiated themselves through innovative models.
• The speakers also considered how venture firms could stand out in the current economic climate.

"Physical retailing is an ancient business. So I'm not going to do it until I know. It's so hard to improve on. An ancient industry has to be completely differentiated."

Jeff Bezos' quote about the need for differentiation in entering the physical retail space reflects the broader principle that businesses must offer something distinct and improved over established practices to succeed.

• Content marketing can be an incredibly effective sales tool without appearing as a sale.
• Berkshire Hathaway Shareholder Letters are seen as a prime example of successful content marketing.
• Time and effort are heavily invested in these letters, reflecting their quality and impact.
• The content serves an educational purpose, teaching readers about investing and business.
• The letters subtly present Berkshire Hathaway as a desirable company to do business with.

"It is the greatest act of salesmanship, because you never even see the sale happening." "You could just not read a book and just read Berkshire's letters, and you're going to get fantastic education, right?"

The first quote emphasizes the subtlety of content marketing done right, where the sale is invisible but effective. The second quote highlights the educational value of Berkshire Hathaway's letters, suggesting they provide significant learning on their own.

• Personal growth is often measured by comparing oneself to successful individuals at similar ages.
• Understanding the journey and mistakes of others can provide guidance and inspiration.
• Success can often be surprising, even to those who achieve it, as it's hard to predict outcomes.
• Ambition and hard work are key, but so is recognizing the role of luck and timing.

"So I was like, charlie, I'm literally in the middle of reading about you when you were around my age." "He's surprised how successful him and Warren turned out, but how could you not be surprised?"

The first quote indicates a method of seeking relatable benchmarks in personal growth. The second quote reflects on the humility and surprise at one's own success, acknowledging the unpredictability of such outcomes.

• Brand loyalty can be significantly influenced by personal connections to a brand's message or representatives.
• Personal stories and experiences shared by brand representatives can enhance consumer affinity towards the brand.
• Content creators and entrepreneurs often have a personal brand that influences consumer decisions.

"Hearing that made me buy more polo clothes. Hearing your affinity for Geico makes you buy Geico." "Jocko made a podcast I love."

The first quote demonstrates how personal stories can drive consumer behavior and brand loyalty. The second quote shows how content creators can influence consumer choices through their work.

• Teaching others can be a powerful form of marketing and brand building.
• Berkshire Hathaway's approach to education through shareholder letters has built a strong brand and loyal following.
• Content that educates tends to create a deeper connection with the audience.

"I wonder if this is because they spent so much time teaching others." "That's why people love Charlie and Warren. How much have us three learned from them?"

The first quote suggests that the time spent on education by Charlie Munger and Warren Buffett contributes to their appeal. The second quote acknowledges the personal impact of learning from these figures.

• Founders often have mixed feelings towards venture capitalists, appreciating those who add value while disliking interference.
• The venture capital industry's reputation can impact the willingness of entrepreneurs to engage with VCs.
• Building deep, genuine relationships is more valuable than having numerous shallow connections.

"What vcs don't understand is like how much founders hate them." "You're only going to succeed if you get the very best ones."

The first quote reveals a general sentiment among founders towards VCs, highlighting the importance of the VC's role and approach. The second quote stresses the need for VCs to attract top-quality founders to be successful.

• People often learn best through stories and memorable aphorisms.
• Storytelling is a powerful tool for conveying complex ideas and lessons.
• The ability to tell a compelling story can enhance the effectiveness of educational content.

"I only think in stories. I think people only learn through stories and then one liners." "A brand is a promise."

The first quote emphasizes the importance of stories in communication and learning. The second quote, attributed to Warren Buffett, succinctly captures the essence of what a brand represents.

• Warren Buffett is known for his deep understanding of businesses and doesn't make impulsive decisions when it comes to acquisitions.
• Jim Clayton idolized Buffett and wanted to sell Clayton Homes to him, acknowledging Buffett's desire to control the narrative.
• Buffett's control over situations is a part of his world-building nature, indicative of his vast wealth and influence.

"At the scale he's operating at, he knows all businesses."

This quote emphasizes Buffett's extensive knowledge of the business world, highlighting his preparation and familiarity with potential acquisition targets.

• Warren Buffett likes to have the "microphone" or control in situations, which can lead to him monopolizing conversations and decision-making.
• His love for the spotlight is evident in his continued participation in shareholder meetings despite not needing to.
• The desire for control is seen as a trait of successful individuals like Buffett, who have reshaped their worldviews as a result of their success.

"Warren wants the microphone. And if you're in an area where Warren doesn't have the microphone, he is not interested."

This quote illustrates Buffett's preference for being in a position of control, especially in public or business settings.

• The ultra-wealthy, such as Jeff Bezos and Warren Buffett, often have extravagant assets like private jets and yachts, which are costly to maintain.
• Despite the high costs, some argue that these assets are underpriced due to their utility in securing business deals and impressing potential clients or partners.
• The lifestyle of the ultra-wealthy is not always additive to happiness, as evidenced by Ralph Lauren's decision to sell his yacht due to its demands.

"Jeff Bezos's private jet has its own private... His new yacht has a chase yacht."

This quote highlights the extreme wealth and lifestyle of individuals like Jeff Bezos, who own assets that are extravagant even by the standards of the ultra-wealthy.

• Luxury assets like yachts and private jets are not just for personal enjoyment but are used strategically for business purposes.
• These assets can influence decisions and create opportunities, similar to how luxury suites at sports events are used to entertain and impress clients.
• The use of luxury assets in business is compared to the courting process in various industries, where impressing potential partners or clients can lead to significant deals.

"They're using it for customers and potential... It's for getting deals, but they're operating at a different level where it's like, oh, these influence."

This quote explains how luxury assets are utilized in business contexts to influence and secure deals, rather than solely for personal leisure.

• Interest rates play a crucial role in the valuation of businesses and assets.
• Low interest rates have a minimal gravitational pull on asset prices, leading to higher valuations.
• Warren Buffett has long understood the sensitivity of asset values to interest rates, emphasizing their importance in economic decisions.

"Interest rates are to asset prices... sort of like gravity is to an apple."

This quote, attributed to Warren Buffett, metaphorically explains the fundamental impact of interest rates on the valuation of assets, likening it to the force of gravity.

• Startups cannot outspend large corporations, so they must find underdeveloped or undervalued talent to succeed.
• The traditional rule that companies should not go public until they are profitable and have substantial revenue has changed, with many unprofitable companies going public in recent years.
• The influx of free money and low interest rates has altered the business landscape, creating both opportunities and bad habits.

"You're not going to win unless you are capable of finding undervalued... Silicon Valley used to be able to build high growth and profitable startups."

This quote discusses the necessity for startups to identify and leverage undervalued talent to compete effectively, especially when they cannot match the financial resources of established companies.

• Successful individuals like Steve Jobs and Charlie Munger are known for their ability to distill complex ideas into clear, memorable messages.
• The value of communication lies in its compression and distillation, making complex ideas accessible and actionable.
• The process of refining communication skills involves repetition, self-review, and a commitment to storytelling and conciseness.

"The value is in the compression and the distillation... If you could listen to an audiobook for 25 hours... one idea that changes your life."

This quote emphasizes the power of effectively communicating complex ideas in a way that is both concise and impactful, offering significant value to the listener.