Sessions: David Senra (Founders Podcast)

In this engaging conversation, David Senra, host of the Founders podcast, joins Acquired hosts Ben Gilbert and David Rosenthal to discuss the power of storytelling, the importance of intense interest in one's work, and the unique impact of podcasting. Senra shares his personal journey, from working at a car wash to becoming a dedicated podcaster, emphasizing the role of experience and authenticity in creating content that resonates. The trio also explores the influence of Warren Buffett and Charlie Munger, the dynamics of the venture capital industry, and the notion that the best businesses often resemble "cheerful cults." Throughout the dialogue, Senra, Gilbert, and Rosenthal reflect on their respective paths, the unpredictability of entrepreneurship, and the value of following one's passion, illustrating the idea that life's lessons are often learned through action rather than formal education.

• Acquired is a podcast about great technology companies and the stories and playbooks behind them.
• David Senra of the Founders podcast is a guest on Acquired.
• Senra is known for reading hundreds of founder biographies and discussing them on his podcast.
• The hosts of Acquired, Ben Gilbert and David Rosenthal, share a similar passion for business history.

"Today's episode is our next installment of acquired sessions, a video format on YouTube that we started playing with last year. Our guest today is David Senra of the Founders podcast."

• The Acquired podcast hosts are passionate about business history and share this interest with their guest, David Senra, who has read extensively on founder biographies.

• David Senra has not reached hundreds of biographies but has done dozens.
• Senra is praised for his dedication to studying entrepreneurship and investing.
• He had a recent conversation with Charlie Munger, discussing Munger's influence and the impact of historical examples in their discussion.

"I don't know that I'm at hundreds yet as me David, but I'm definitely in dozens."

• David Senra is committed to learning about the history of entrepreneurship and investing, aspiring to read hundreds of biographies.

• Senra had a three-hour dinner with Charlie Munger.
• Munger is admired by many, including Senra, who sees him as a wise grandfather figure.
• Senra was nervous before meeting Munger and was impressed by Munger's graciousness and sharp intellect at 99 years old.
• The meeting took place in Munger's library, which contained many biographies and books recommended by Munger.

"I had a three-hour dinner with Charlie Munger."

• The dinner with Charlie Munger left a significant impression on Senra, who was able to engage in an extensive conversation with Munger.

• Munger's library is extensive, with floor-to-ceiling shelves filled with books.
• Senra was with a group of friends who had set up the meeting with Munger.
• Senra had prepared questions but never got the chance to ask them due to the natural flow of conversation.
• Munger's recall of historical figures and events was impressive, particularly his stories about Henry Kaiser.

"And so I get there, and we start off in his library, which is, like, the best place for me that you could possibly see."

• Senra was deeply impressed by the extensive collection of books in Munger's library, which reflected Munger's vast knowledge and interests.

• Henry Kaiser was a significant figure in his time, comparable to Elon Musk's fame today.
• Munger's recall about Kaiser and his partner was detailed and vivid, even at his advanced age.
• Senra was curious about Munger's memory retention and Munger's response indicated a natural retention without notes.

"And the crazy thing is, he's 99, right?"

• Munger's ability to recall detailed historical information at the age of 99 was astonishing to Senra.

• Senra brought a special edition biography of Henry Flagler as a gift for Munger.
• They discussed Flagler's impact on Florida and his actions that showed a disregard for societal rules.
• Flagler's story was an example of human potential and ambition.

"I had brought a gift form because he talks about Rockefeller all the time."

• Senra's gift to Munger was a thoughtful gesture, highlighting their shared interest in historical figures and their legacies.

• Senra and the Acquired hosts discuss the challenges of presenting historical figures who have both remarkable achievements and notable flaws.
• They agree that it's important to acknowledge the imperfections of these figures while also learning from their successes.

"Every single time, I'm like, oh, people aren't perfect. None of your heroes are perfect."

• Senra acknowledges that historical figures are complex and flawed, and it's important to recognize both their positive and negative aspects.

• Senra critiques biography writing styles, preferring to focus on the subject's climb to success rather than excessive family history.
• He emphasizes the importance of learning from the journey of historical figures rather than their end status.

"Like, you know how a normal biography is written, right? It's like, way too much family history."

• Senra prefers biographies that concentrate on the individual's journey and achievements rather than extensive background information.

• Senra focuses on the younger versions of successful figures to understand their journey and growth.
• He mentions the importance of learning from the climb and the process of building an empire.

"I go and stare at pictures like a freak of young Charlie Munger when he was, like, 38 or young Warren Buffett."

• Senra is interested in the early stages of successful individuals' lives to gain insights into their path to success.

• Acquired hosts discuss their process of creating podcast episodes, focusing on the subject's journey and learning from historical figures.
• They emphasize the importance of understanding the context and predecessors of the subjects they cover.

"And so, which is totally, like, I mean, aside, we have no agenda here."

• The hosts of Acquired aim to provide a comprehensive and contextual understanding of their subjects by studying their history and influences.

• Senra and the Acquired hosts discuss the value of learning from history and the mistakes of the past to avoid repeating them.
• They touch on the concept of learning as a form of leverage, using the accumulated knowledge of history to make better decisions.

"Learning from history is a form of leverage."

• Senra views the study of history as a strategic advantage, providing insights and knowledge that can be applied to current challenges.

• Senra discusses how entrepreneurs can benefit from biographies and podcasts by gaining insights and ideas that can be applied to their own businesses.
• He shares a story of a young entrepreneur who gained significant value from consuming such content.

"I've become close friends with the guy through the podcast."

• Senra highlights the practical benefits of learning from the experiences of successful entrepreneurs through biographies and podcasts.

• Senra notes that many successful entrepreneurs and investors study and admire the figures that came before them.
• He emphasizes the importance of learning from idols and predecessors in one's field.

"They're all reading biographies. They're all studying the history of business."

• Senra believes that understanding the history of business and learning from past entrepreneurs is a common trait among successful individuals.

• Senra shares his perspective on the role of curiosity and continuous learning in achieving success.
• He mentions the example of Charlie Munger, who gained significant returns from a single idea found in Barron's magazine.

"Charlie tells a story. He's like, yeah, I made $400 million from reading Barron's for 50 years."

• Senra illustrates how curiosity and a dedication to learning can lead to extraordinary outcomes, as demonstrated by Charlie Munger's experience.

• Senra explains the origin of his podcast and his lifelong habit of reading.
• He shares personal details about his background and the importance of reading in his life.

"So I've just always been a reader."

• Senra's passion for reading and learning has been a consistent habit throughout his life, leading to the creation of his podcast.

• Senra cites Dan Carlin of Hardcore History and comedian Bill Burr's Monday Morning Podcast as influences on his podcasting style.
• He admires Carlin's ability to captivate audiences with monologue podcasts and Burr's pioneering work in podcasting.

"I feel the greatest podcaster of all time is Dan Carlin from hardcore history."

• Senra is inspired by Dan Carlin's monologue podcasting approach and aims to emulate that style in his own work.

• Senra operates his podcast entirely on his own, handling everything from book selection to recording and editing.
• He values the control and personal touch this brings to his podcast.

"Like I do everything. No one touches anything so, like, everything, soup to nuts."

• Senra's dedication to managing all aspects of his podcast reflects his commitment to maintaining the quality and authenticity of his content.

• The Acquired hosts discuss their meticulous editing process, which involves removing unnecessary content to create tight, high-quality episodes.
• They express a continuous desire to improve and deliver value to their audience.

"So the way that we edit is our editor takes the first pass, and he's unbelievably good, and we're so lucky to have him."

• The Acquired hosts are committed to delivering the best possible content by refining and improving their episodes through a rigorous editing process.

• Senra and the Acquired hosts reflect on their early podcast episodes and the growth they have experienced since then.
• They recognize the value in seeing the improvement over time and learning from past work.

"I do this all the time where I'll go back and listen to old episodes because people are like, that's weird. You listen to podcasts."

• Senra and the Acquired hosts view their early episodes as an opportunity to learn and appreciate the progress they have made in their podcasting careers.

• Senra emphasizes the importance of passion and commitment in podcasting, stating that he would continue to read and discuss biographies even without an audience.
• He believes that genuine interest and dedication are key to success in any endeavor.

"How much would you have had to pay Steve Jobs to stop working at Apple?"

• Senra compares his own dedication to podcasting to the passion that drove successful figures like Steve Jobs to continue their work regardless of external factors.

• The conversation concludes with Senra and the Acquired hosts sharing their podcasting experiences and the lessons they have learned.
• They discuss the importance of continuously improving and delivering high-quality content to their audiences.

"I think you're never gonna be embarrassed about your latest episode."

• Senra and the Acquired hosts agree on the importance of striving for excellence and being proud of their work, while also acknowledging the potential for further improvement.

• The podcast was initially named with various iterations such as "History's Greatest Men" and "History's Greatest," which were later considered terrible.
• The name was narrowed down to "Founders," which was deemed perfect.
• The individuals involved in the conversation did not originate from the tech world or engage in content marketing.

"And so I went through a bunch of different names. History's greatest men, history's greatest, like, history. All this. These terrible names. And I just started narrowing it more and more and more to, like, founders."

The quote indicates the process of brainstorming and refining the podcast name, leading to the selection of "Founders" as the final choice.

• The idea for the podcast was influenced by knowledge of prominent figures like Warren Buffett and Elon Musk.
• The podcast was inspired by high-quality shows like Kevin Rose's "Foundation," which featured interviews with successful individuals before they became widely known.
• Tim Ferriss's works, such as "The 4-Hour Workweek" and "The 4-Hour Body," had a significant impact on the individuals, particularly the slow-carb diet and cold showers.

"It was just, like, the idea I had known about, like, Warren Buffett, Elon Musk, and all these other people. And I remember you had Kevin rose on your show a long time ago."

The quote demonstrates the influence of well-known figures and successful entrepreneurs on the conception of the podcast.

• The podcast's advertising strategy is likened to a "moving parade," not a "standing army," emphasizing the need to continually reach new audiences.
• Historical figures like David Ogilvy are cited as geniuses in advertising, with lessons that are still applicable today.
• The idea of republishing content to reach new followers is discussed, using the example of the Sequoia episode.
• The conversation touches on the importance of not wasting the time of valuable audience members.

"You're not advertising to standing army. You're advertising to moving parade."

The quote encapsulates the concept that advertising should target a continuously changing audience rather than a static one.

• A business model journey is recounted, where a hard paywall was initially used, allowing listeners to hear the first 30 minutes before paying for full access.
• The effectiveness of the paywall and conversion rates are discussed alongside the realization that many more would listen for free than pay.
• Insights on revenue generation from both direct monetization and advertising are shared.
• The importance of content quality is highlighted, recognizing the high value of listeners' time.

"So I'll give you a shorter breakdown because, like, I went through so many of them, I just put a hard paywall. Listen to the first 30 minutes. You want to listen to all of them, then you pay, right?"

The quote details the initial subscription model used for the podcast, requiring payment for full episode access after a free 30-minute preview.

• The conversation emphasizes the importance of learning from historical figures and integrating their ideas into modern practices.
• The use of Readwise to organize and review book highlights is mentioned as a key tool in the learning process.
• The significance of reading and understanding historical business practices is discussed, with references to old interviews and shareholder letters.
• The idea of combining novel ideas with existing knowledge is seen as a path to innovation.

"I went to. Wait, but explain the standing army versus. So you're not advertising to standing army. You're advertising to moving parade."

The quote reiterates the earlier point about the advertising approach and the necessity of adapting strategies to reach a dynamic audience.

• The podcast medium is appreciated for allowing multitasking while consuming content.
• The potential for YouTube as a platform for audio content is discussed, along with the expectation that YouTube will eventually incorporate podcast functionality.
• The importance of not wasting the time of high-value listeners is stressed, leading to careful editing and content curation.
• The use of Readwise for quick access to relevant information and as a form of mental practice is highlighted.

"But I think I'm going to put all my podcasts up on YouTube. Not, I don't have any video, but I think I'm going to use the script."

The quote discusses the strategy of using YouTube as an additional platform for podcast content despite the absence of video.

• The challenge of handling family wealth and its impact on motivation is discussed, with references to historical figures and personal anecdotes.
• The dilemma of whether to give wealth to children and its potential to demotivate them is considered.
• The conversation touches on the importance of being present in children's lives and balancing work with family time.
• The impact of wealth on different generations and the uncertainty of how to best manage it for future generations is acknowledged.

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

The quote reflects the notion that withholding wealth from children may lead to resentment, adding complexity to decisions about family legacy and wealth distribution.

• Podcasts represent a modern tool for sharing and learning, which wasn't available a decade or so ago.
• Union Square Ventures and Foundry Group utilized blogging as a form of content marketing.
• Books like "Venture Deals" by Brad Feld and Jason Mendelson, along with blogs like "Venture Hacks" by Naval Ravikant and Babak Nivi, were early forms of sharing knowledge in the VC space.

"This is how Union Square Ventures became Union Square Ventures, or Foundry Group became Foundry Group, because... Yeah, blogging. And then Brad and Jason writing the book on venture deals. I mean, it's like angel venture hacks."

• The quote emphasizes the role of blogging and writing in establishing thought leadership and brand identity in the venture capital industry.

• Berkshire Hathaway's shareholder letters are considered highly successful content marketing.
• Warren Buffett and Charlie Munger spend significant time crafting these letters, which are educational and subtly promote their business.
• The letters are viewed as a masterclass in investment and business philosophy.

"No, Berkshire shareholders. Because this is how, you know he's a genius. It is the greatest act of salesmanship, because you never even see the sale happening."

• The quote highlights how the Berkshire shareholder letters are a subtle yet powerful tool for salesmanship and education, reflecting Buffett's genius.

• Charlie Munger expressed surprise at the level of success he and Warren Buffett achieved.
• Munger believes they receive too much credit and finds the combination of wealth and adoration odd.
• The humility in acknowledging the role of luck and external factors in their success is notable.

"He's surprised how successful him and Warren turned out, but how could you not be surprised?"

• This quote captures Munger's humility and the natural surprise at the scale of their success, which was beyond their initial ambitions.

• Teaching others has been a key part of building a good reputation for Berkshire Hathaway.
• The shareholder letters are an educational tool that also subtly promote Berkshire as a desirable business partner.
• The process of educating and sharing knowledge has built immense goodwill and brand strength for Berkshire.

"I wonder if this is because they spent so much time teaching others. So what is, when you listen to choir, you guys are teaching, right? Berkshire. They're teaching."

• The quote suggests that the act of teaching and sharing knowledge has contributed to the strong reputation and success of Berkshire Hathaway.

• Personal branding and refusal to dilute brand identity have been key to the success of entrepreneurs like Ralph Lauren and Akio Morita of Sony.
• Stories of entrepreneurs sticking to their vision and building their own brands resonate with consumers and can influence purchasing decisions.

"Same thing with Ralph. Ralph was broke. Him and his wife are living in a house or apartment with a train running over on top of them. They're sleeping on a mattress, and he's making ties, and Bloomingdale's like, we'll take 'em. We love 'em. Take that name off. You're gonna be our house brand. And he packs up his ties. He's like, I'm not here to build your brand. I'm here to build mine."

• This quote illustrates the importance of brand identity and the conviction it takes for entrepreneurs to build and maintain their own brands, as demonstrated by Ralph Lauren.

• Brands that connect with their audience on a deeper level, such as through podcasts or shared values, build stronger loyalty.
• This connection can influence consumer behavior, as seen with Geico insurance and Brooks running shoes, both owned by Berkshire Hathaway.
• The personal touch and authenticity in marketing can lead to a more engaged and loyal customer base.

"Hearing that made me buy more polo clothes. Hearing your affinity for Geico makes you buy Geico. The advertisers you haven't acquired because they love you, your audience."

• The quote underscores the direct impact that personal connection and brand affinity have on consumer behavior and loyalty.

• Educational content, such as Paul Graham's essays, can have a profound impact on people's lives and career decisions.
• The focus on improving odds for founders through venture capital investments reflects the value of educational content in the VC industry.
• The right content can attract and retain an audience, as well as provide significant value to them.

"I spent three weeks reading Paul Graham's essays. Paul Graham's essays changed my life."

• This quote conveys the transformative power of educational content, as experienced by the speaker through Paul Graham's essays.

• The venture capital industry's reputation has been impacted by recent events, such as the Silicon Valley Bank situation.
• Differentiation among venture firms is increasingly important, as the industry faces scrutiny and a potential decline in aggregate brand reputation.
• Building and maintaining a strong, positive brand is crucial for venture capital firms to stand out and attract the best entrepreneurs.

"I think the aggregate brand and reputation of the venture industry has taken a massive hit, totally massive hit over the last several years."

• This quote highlights the challenges facing the venture capital industry and the importance of differentiation and reputation management.

• Jim Clayton wanted input in an event for employees, but Warren Buffett monopolized the event.
• Buffett is known for his love of shareholder meetings, despite not needing to host them.
• Buffett continues to engage in shareholder meetings, highlighting his passion for them.

"Jim Clayton was at either, like, an event to talk to the employees or whatever the case was. He, like, Jim wanted to have input, and he's like, Warren would not allow it. Like, he monopolized."

• The quote indicates Jim Clayton's desire for input was overridden by Warren Buffett's control over the event.

• Discussion on the disorienting effects of extreme wealth, using examples of Jeff Bezos and his extravagant assets.
• Wealthy individuals use expensive assets like yachts and private jets not just for leisure but also for business, impressing clients, and sealing deals.
• The concept of using luxury assets for business is likened to a luxury suite at a sports arena.

"Like, he doesn't have to do anything in the world that he doesn't want to do. Right. And that's how, you know, he loves it."

• This quote emphasizes the freedom and preference that comes with immense wealth, as exemplified by Buffett's continued involvement in shareholder meetings.

• Discussion on the importance of low-cost structure in business, following the examples of Sam Walton, Jeff Bezos, and John D. Rockefeller.
• Contrast between the business environment during Amazon's early days and the current environment with low interest rates and abundant capital.
• The shift in public company profiles, where previously profitable companies at IPO are now rare.
• The role of interest rates in shaping the economic environment and asset prices.
• The importance of clarity of thought and the ability to communicate complex ideas simply and memorably.

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

• This quote by Warren Buffett succinctly explains the fundamental impact of interest rates on asset valuation, emphasizing their universal importance in economics.

• Encouragement to follow intense interests and the potential for future jobs to be currently non-existent.
• The importance of reading and developing attention span in an era dominated by digital distractions.
• The idea that traditional career advice may not apply to everyone, and the value of experience over formal education.

"Don't listen to your parents. Don't listen to your teachers. I go, follow whatever. You're intensely. I just gave him Charlie Munger's advice. What are you interested in? Keep following that."

• This quote captures the essence of the advice given to children, emphasizing the pursuit of personal interests and passions over conventional expectations.