DeepSummary
The episode features an in-depth interview with Mitch Rales, the co-founder of Danaher, discussing his business philosophy, principles of compounding, and the journey of building Danaher into a highly successful company over four decades. Rales shares insights on benchmarking, continuous improvement, leadership, acquisitions, and the importance of a long-term vision.
Rales also talks about the creation of Glenstone, a museum he co-founded with his wife, aimed at integrating art, architecture, and nature. He emphasizes the role of philanthropy, stewardship, and giving back to society, including his involvement with the Washington Commanders NFL team.
Throughout the interview, Rales highlights the significance of learning agility, cultivating talent, embracing transformational pivots, and the power of compounding over extended time horizons. He offers advice on identifying and supporting founders and businesses with the potential for long-term success.
Key Episodes Takeaways
- The power of compounding over extended time horizons is a key driver of success in business and investing.
- Continuous improvement, benchmarking, and a commitment to excellence are essential for building great organizations.
- Embracing transformational pivots and learning agility is crucial for adapting to changing environments and sustaining long-term growth.
- Cultivating and supporting exceptional talent aligned with the company's values and vision is vital for leadership and success.
- Philanthropy, stewardship, and giving back to society should be integral components of a business's purpose and legacy.
- A long-term, patient approach to investing and company-building, combined with a focus on secular trends and mission-critical businesses, can lead to exceptional returns.
- Finding and backing founders with the passion, learning agility, and commitment to build for the long term is a key priority for successful investing.
- Benchmarking, voice of the customer, and continuous improvement are as applicable to philanthropic endeavors as they are to businesses.
Top Episodes Quotes
- βWe look at ourselves as the stewards of rehabilitating this franchise, and the same principles apply to this asset as any of the other assets that we're talking about.β by Mitch Rales
- βIf we can get a handful of these duration models of 20 to 30 years, it's all going to take care of itself in the overall returns.β by Mitch Rales
- βTransformational thinking won't exist unless we do it that way.β by Mitch Rales
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Episode Information
Invest Like the Best with Patrick O'Shaughnessy
Colossus | Investing & Business Podcasts
5/2/24
We are excited to share a great conversation with Mitch Rales, the co-founder of Danaher and one of the living legends in the world of business and investing. Consider that Danaher has annualized at over 21% for four decades, resulting in an 1800-times multiple on invested capital! This is Mitch's first long-form interview of any kind, and he covers his entire history and business philosophy. Interviewing Mitch are Paul Buser and Rick Buhrman, who host the Art of Investing podcast on the Colossus network. Please enjoy this comprehensive discussion with Mitch Rales.
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For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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Art of Investing is a property of Pine Grove Studios in collaboration with Colossus, LLC. For more episodes of Art of Investing, visit joincolossus.com/episodes.Β
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) - Welcome to The Art of Investing
(00:05:32) - The Philosophy Behind Glenstone's Creation
(00:12:57) - Benchmarking and Continuous Improvement: Lessons from Danaher and Glenstone
(00:21:22) - The Influence of Mitchβs Father and Upbringing
(00:28:43) - Transforming Danaher During The George Sherman
(00:30:39) - Embracing Long-Term Vision and Patience
(00:36:47) - The Role of Leadership in Navigating Change
(00:42:21) - Danah