YouSaid · the spoken record

Mitch Rales

lines on the record: 128
first: 2024-05-02
most recent: 2024-05-02
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“It's appreciated in these things compound on themselves. If we get enough of it going out there, it might change the short-term dynamic of the way people think into a long-term visionary thinking model. So we'll see what happens. I like to say I just got to live long enough to see the 20 to 30 year outcomes start to come in the years to come and be like a proud parent watching their kids grow up.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We're working on together. Well, thank you for that. By the way, we did do a tour of every stadium of an away game that we went to. We would arrive at the stadium at 10 and spend two hours touring around each of those stadiums asking the same type of questions. What are you doing that's really great? What would you do over and over again? What'd you miss along the way? And some of the learnings were just extraordinary. Good stuff.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Play some musical chairs here. Everybody kind of looked at them and he said, you offensive guys all sitting together? No, no, no, no. You defensive guys all sitting together? No, no, no, no, no. Every offensive guy must sit next to a defensive guy and every defensive guy must sit next to an offensive guy and you guys got to get to know each other. There are no fiefdoms around this place. We're all in this together to be a team. We got to rely on each other here. So when the offense is down a little bit, the defense got to pick it up and vice versa. You guys got to lean on each other all year long. So let's get to know each other well. And that's very different than what happened under the last administration.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“There's only two places that I can think of in the world where people of any color, any religion, any sexual orientation, and more can gather for a common cause, those two places, stadiums and art museums. I happen to have the privilege of being associated with both now. Churches, synagogues, very homogeneous. If you don't get the multi-dimensional total what the world looks like today in any one of those places of worship, they're important places, but everybody gathers for a common cause at stadiums and museums. It's just different. And like I said, I'm privileged to be part of something like that. By the way, to show the change that's starting to take place, Dan Quinn, our new coach, when he had the first team meeting, he said, we're going to.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“and the lunch that's necessary for any kid in the third or fourth grade within a hundred miles of the stadium to come to this hall of fame and see the history of the team, and if it's at the stadium, walk out onto the field and look up at the mass around and daydream a little bit about coming to a ball game and then leave with a hat and t-shirt compliments of the commanders, and hopefully we build fans for life. And that's what it's going to take over the course of time to really re-engage the community in a way that just hasn't existed for the last 24 years.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“A purpose and values, and all of that is being developed as we speak. I've got a layout of all that I would really like to see implemented here in the not too distant future that will come. We've lost a generation of fans. If you're eight years old to call it 25 years old, you learn to give your Sundays to other things other than NFL football in Washington. And we need to get those people back. But more importantly, we need to cultivate the next generation of fans. I have this vision where every call it third or fourth grader should come to a hall of fame that we're going to build that will become part of our stadium complex or part of our new practice facilities. We're not quite sure where we want to do that yet. But the commander should pay for the transportation and the teacher.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Anybody else because they wanted to be at every game. And this is just a journey that's going to take time to come to grips with. But we also listen to them. They said one of the guys said, See this shampoo I'm using head and shoulders? Can't we do better? I said. Wow, I didn't know that, but I do know a little something about shampoo. He said, how in the world do you know something about shampoo? I said, just trust me. I made a little arrangement for scene, scene is now in the locker room, both at our practice facilities and at the stadium, and everybody is a happy scene shampoo user these days. And now wouldn't you know it? They're saying, where do I get this stuff? I want my wife to have access to this. And now seen as a sponsor of the commander. So it's awesome the way this journey goes.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“In the first game of the season was against the Arizona Cardinals, and fortunately we know Arizona fans don't really travel. So when the guys came out of the tunnel for the first game to a sellout crowd, everybody wearing burgundy and gold, the emotions were off the chart. And wouldn't you know it was one of the few games that we won this year? But it's a testament to what can be done. And I think we'll sell every game out this year and we'll have less opposing team fans in the stands. Five years from now, we'll have very little opposing fans in the stands. Ten years from now, we won't be selling a ticket to an opposing fan, and it'll get back to the way it used to be in the eighties and the nineties where there was a waiting list to buy tickets to come to the game. Nobody dare wanted to sell their seats.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“And I can't commit to you that we can get every fan for an opposing team out of the stands right away. But what I can commit to you is we will sell every one of these games out. We will get the presence of commanderism back into the stadium.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We should be doing differently. One of the stalwart players who will stay unnamed, but he's a great one, raises his hand and he says, Mr. Rails, I said, no, no, no, no, no. Mitch, we don't go by Mr. around here. He said, one of the things that's really impactful to us is when we play a game in our home stadium, we have more fans rooting for the visiting team than we do our own team. And we have lots of negativity in the stands because of the former owner. And we actually like playing games on the road more than we like playing at home. And I sunk in my chair and I said, oh, I'm so sorry to hear you say that, but I also understand.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“They're everyday human beings and one of the things that I did with Josh, as well as others, is last year every week I had a lunch sit down with 10 to 12 of the players. And we would go around the table and introduce ourselves and say a little something about ourselves, where we grew up, what our family history is, our collegiate careers, and what we aspire to. And we all shared our stories. And then I always ask the question, So guys, what is it that you see here that really”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Few Super Bowls. He went to Denver and recalibrated the organization there, and they won a Super Bowl with Peyton Manning, and he left for San Francisco, where he took another step up in his career. And ultimately was part of the organization that turned that franchise back around. Obviously took them to the Super Bowl this year. And he was ready. Adam was ready for primetime. Now he's our new general manager and so far so good. This is going to be an exciting journey. I don't think the exposure publicity wise is the thing that makes me very happy, but it's a necessary evil to go along with, I think, the work that we want to do to try to make 10 million people happy.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Reasons to re-engage with football in the DMV. And I think it's starting to happen. We feel it. We sense it. The building in Ashburn, Virginia, where our headquarters are and our practice facilities are, there's a different energy level right now in the building, and we're all crescendoing now that we finish free agency. And by the way, signing 20 new free agents and a handful of our own on top of that we re-signed is kind of unheard of turning that much of the organization over. So once again, talent. It's all about talent acquisition. And now we've got six choices in the top 100 of the draft. And Adam and DQ and the team need to choose wisely. But Adam has a history of pretty good selection. Comes from some pretty good places. He started in New England where he wanted to.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“If we draft well and we get our quarterback, we're going to get there really fast. If it takes a little time, that's okay. This is a rebuilding. I've said to them over and over again, we have to look at this as like we're building a house brick by brick, layer by layer until the house gets built the right way and consistain itself. We can't guarantee Super Bowls, but what we want to guarantee is that we're perennial playoff contenders. And when you make the playoffs on a regular basis, other good things are likely to happen in due course. So that's the way we're thinking about this. This will not go down as the greatest investment I ever made. I think we'll do just fine long term, but the idea here is more about a philanthropic mission to rehabilitate the 10 million fans and give them Sunday afternoon.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Who have a locker room presence that are going to change the way people think about how they play the game? I mean, you bring a guy like Bobby Wagner in. He's going to be a first round ballot hall of famer. He's only got a year or two, maybe three left in his capabilities. But what he can do for the organization from a mentality standpoint, how you practice, how you play the game, how you think about leadership, and how you inspire others, we got a lot of other bobbies that we've brought in as well. And so we've created a strategic vision for what we want a Washington commander to be. And Adam and DQ are executing upon that. It's going to be uneven along the way. We've got a lot of rebuilding to do. They call it recalibrating. And we'll get there.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“He's a humble guy. He's beloved around the league. And he wants to reinvent himself. And when he lost his job in Atlanta, he passionately tells the story about how he hired somebody to help himself diagnose everything that happened in Atlanta and what were the lessons learned. What more can you ask for from somebody than that? And why wouldn't you give a guy who's got a chip on his shoulder now, a second shot because he wanted to learn and had the learning agility and the internal thought process to say I need to go get some help to basically reinvent myself. This is a great human being and I think he's going to do wonders and he's proven out to be a talent magnet. That was part of our thesis and also hiring Dan and Adam is that these guys would attract great people around him. So we've now started to bring in proven”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“And it all starts with getting the right talent in place. And there was a talent migration that took place at the commanders because of the previous owner and the difficulty that he had with the community at large. And it was tough for him to find people that want to come to work every day that shared the passion and enthusiasm to build the business without him getting in the way. Now we could talk about lots of negativity, but for us it all started with getting a great general manager in place. We hired Adam Peters, going away the best candidate that was on the board for us to go get to help us sort through player personnel and building of the team. We hired Dan Quinn, former head coach for the Atlanta Falcons, was the defensive coordinator for the Dallas Cowboys. What I love about Dan is”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“He fell deeply passionate about creating a stewardship to rehabilitate this franchise to the iconic nature it had during the 80s and the 90s. And one of the lessons that you learn is with a brand like this, you can do a lot of nasty things to the brand and the brand ends up surviving because of its strength. And that's what happens with NFL franchises in the top 10 markets. So we 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. First of all, the demographics are wonderful for the NFL, the powerful position that they have as an organization and the Passion around the fan base of NFL teams is second to none.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Have to go back to the beginning to understand why I made this investment and what the opportunity that we see going forward is. So the former Redskins, now the commanders, were a team I grew up with. I really don't have an interest in investing in sports other than this asset. And it's a love for this team. And even more importantly, a love for what we refer to as the DMV, the district, Maryland and Virginia, and bringing 10 million fans out of a horror movie that they've been in for the last 24 years. It's been a difficult run for this franchise. Top five franchise in the country and what arguably is the most important sport for sure in North America and maybe the world. And Josh Harris and I”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Ahead of the curve and thinking about what can happen to these businesses that are problematic and get ahead of that curve and be the ones that reinvent rather than get disrupted.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“So think about this too. If we have half a dozen or more shots on goal with vertical market software companies that we're invested in, what's going to happen here? We're going to learn from each other and we're going to be able to pass those judgments on. This space is big enough for everybody to play without getting anybody's way. And if we can take those learnings and pass them on or even create a small corporate infrastructure or a learning center for better words, how is AI going to impact these businesses? Who's doing the best thinking around that? How do we leverage all that thinking across the portfolio of these investments we've made? I think that we create potentially better outcome. So we've shot these bullets. We've now gotten the cannon out in vertical market software and we have a fiduciary responsibility to be”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We're talking about the intersection of health and beauty. Who doesn't want to look good and do it with healthy products? When you have the testimonials of people that come back and say, not only does my hair look great, but you've solved my problem with ACME because we know the toxicity of a lot of And who doesn't want to have more hair on their head? God knows I wish I had been using seen earlier on. I might have a little more hair on my head than I have right now.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“They have to. They have to. I mean, Sumis is obviously doing great work for people in desperate need of specialty health care. And getting them access to the best doctors in the country virtually within a very short period of time, in many cases hours or a day or two, for a need, whether it be for an orthopedic surgery or a cancer diagnosis or some other form of disease for them to be able to deal with the best stocks in the country I think is really an important thing. And they did it the smart way. They built the infrastructure first. And now the challenge that Julie and his team will have is scaling the business. We'll help with investors bringing the right talent in that can help the businesses scale for the very needs that they have. But think about a recent Greg scene.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't know whether we're going to get 50 to 100 baggers on these vertical market software deals, but we're going to get a lot of baggers one way or the other. And we're going to get great returns without massive amounts of risks. And if we get one or two 50 to 100 baggers in there, the whole portfolio of vertical market software is going to turn into an incredible investment as a whole.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Now for 10 years, but five years earlier, they sold 80% of their investment to return money to their shareholders at a very nice profit, still retaining 20%. That 20% that just got sold was worth more than the 80% that they sold it for five years earlier. And it's no fault of theirs. It's what the model requires to keep the engines greased and flowing. It doesn't mean we have to partake in that type of thing. I would rather own the whole thing and then sold for the big dollars or continue to own the business.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Let me tell you a couple stories here. First, Will Thorndyke did a great study that looked at PE making an initial investment in a business, selling an investment to another PE who made more money than the first P, who sold to the third PE, who made more money than the first and the second combined. They've channeled a lot of capital in and out to get their fee structures or to get to the next fund or to return capital to their investors very inefficiently. They could have held it all that time and made it all on a tax-free basis for their investors, but that's not what the model subcribes. Another story that I just heard yesterday, the investor will stay unnamed, as will the business, but they sold a business for many billions of dollars to a strategic publicly traded company. Five years earlier, and they've owned this investment,”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Are growing and thriving, and they're getting better at what they do. But if you deeply believe in where the businesses will continue to go, to continue to get capital to work and not worry about having to pay higher prices is a wonderful thing. Everybody remembers the cheap price they got for the seed stage round, but you got to be realistic.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the earlier you can go with competence, the better because you'd like to get the companies when they're very young or in their infancy stage. You're dealing with venture capital, with seed rounds in Series A and even Series B type of rounds. But when you find something, you want to do the seed, you want to do the A, you want to do the B, you want to do the C, you want to get access to part of the ownership of a public company so you want rights to buy stock in the public offering. You want to take the capital at all levels if you believe deeply in the business and just keep adding to the equation. We've done this now with chapters on multiple occasions. We're getting ready to do it again with Arcadia on another occasion, Data Core, another business I'm invested in. There's another chance for incremental capital to go in. And you're doing it at higher valuations because these businesses.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“As well, and I call that expanding into near adjacencies where there's some synergy. It may come from the customer being there. It may come from adding products to the portfolio that drive efficiency. It could be geographic efficiency with certain of your businesses. There are all kinds of ways to look at the workflow as a whole and gain from it.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“processing, data core has terrific platform of software applications that work for those industries. So helping whether it's healthcare or industrial efficiency is a great secular trend that will go the rest of our lifetimes. Every customer wants you to become more important. They'd rather deal with less suppliers than more as long as you treat them fairly with innovation and price and great service if you can accomplish those type of things. It's wonderful. But the whole mapping of the workflow is really, really important. And understanding all the things that are near adjacencies to what your customers are doing in their own shops, whether it's a factory or a service center, whatever the case may be, if you can become more important to them, you're just going to do better. So we look at that.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I would say one of the great minds around this is Ferrozawan. He sees a lot of these trends. He's thinking about it day in and day out. Obviously, everything, healthcare and efficiency related to healthcare is a secular trend that will last the rest of our lifetime. So thinking about how you make healthcare more efficient, thinking about how you create things that allow people to live longer, healthier, happier lives is a secular trend that will go on the rest of our lifetime. Everything digital is happening in front of us. So whether it's vertical market software or other forms of software invested in a wonderful business called DataCore, which is vertical market software for industrial applications, think about the chemicals industry, the food industry, anybody that's doing balls.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Running a business day to day is very different than what Steve and I do or what I do with my private investment activities. You find great talent with great learning agility. You help them. You kick them in the butt if they get off the straight and narrow a little bit. You pat them on the back when they're doing great things, but you do not get in their way of running the day-to-day of the business. That's where the fault line starts to exist. If you get into the details of managing them on a day-to-day basis, then the relationship is the beginning of the end.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I do. I find it thrilling. There's a lot of people who would like to play 18 every day when they get to retirement age. My definition of 18 every day is about 18 holes once a month. And I would rather be engaging with these young entrepreneurs. I get a lot of energy from that side of the equation in helping them and seeing them thrive over the course of time, a lot of personal enjoyment comes from that. If we do it, the investment side just take care of itself.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“But Paul and Daniel are a little PT boat right now that can turn on the dime and they are doing it. It's wonderful to see. We're doing this with a few other folks. We're working with Jan and his team at chapters on the operating prowess and strategic thinking and policy deployment and lots of different things that are helpful to driving the business. And he's made enormous progress in a very short period of time. But he has enormous progress to continue to make in the journey as he gets things going. He's going to have to bring a different type of operating efficiency to these businesses than what Constellation does if he really wants to separate over the course of time. But he's young in his journey. He's only a couple years in doing what he's doing right now. And so it'll be fun to watch the next. 10 years, what”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“That I can contribute to helping these founders build their businesses over the course of time. We had to help Paul and Daniel unlearn, get rid of the muscle memory that they had of certain practices at constellation. Once again, Mark Leonard at Constellation has built a phenomenal business, one of the great compounding stories of all times, but it doesn't mean we can't build a better version of that for the long term. And we have a clean sheet of paper. What can we do that's better than what Mark has done over the course of time? He's gotten to the point where he's large. And so to turn the battleship or the aircraft carrier is hard. It's really hard for him, you know, at this stage of the game. And he's looking at reinventing right now. I see some of the things that he's doing and he's trying some interesting things. We'll see what happens.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Damn straight pay that extra few bucks to get it done. I think for me if I were to zero in on a single superpower of yours, it's bringing the seasoned operator knowledge base to various situations. And then knowing how to adjust priorities based on, say, the economic environment or based on the size of the company or based on the industry or the capabilities of the team and being able to speak into these different situations in a way that is extremely value add. And I think it's been a lot of fun to see how you are able to shape your support based on all of those environmental conditions and how they're coming together in a single situation. That's 40 years of experience talking where you've seen a lot and just to pass those judgments on to others is what I consider the real opportunity.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“that'll create enormous value and what Paul and Daniel understood with the help of the board and the help of our long-term thinking and our strategic thinking is how to pivot from the traditional constellation model to what I'll call the new and approved version of what we can create that constellation has done so well over the years and that's something that I think is pretty special for these guys. So we're helping him with policy deployment, we're helping them with funnel management, uncertain of their businesses. We're helping them understand how to get synergies from within. We're pushing them to pay a little bit more for a highly strategic asset that makes the whole of that platform better than the individual pieces, which is really important because you wouldn't make that acquisition purely based on financial metrics, but if it's going to make the whole better for the long term.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Platform so that not only are you buying these things at, what do we call it, three times ARR or five times EBITDA, maybe you pay a turn more if they're really growthy 20% type of businesses. But if you can put them into a platform and you create a $100, $200 million platform out of these businesses over the next decade and you've done that 10 or 12 different times and you've got organic growth working for you in a meaningful way versus constellation who doesn't really grow organically, they just do it through M&A and they have a cookie cutter approach on their margins. If you take the longer view and you can get organic growth and you have high gross margins to start, over 10 or 20 year journey, wow, you've created a turbocharged version of Constellation.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Company's constellation software could be reinvented. And we could build a better, more durable constellation for the long term based on some themes, taking nothing away from constellation. One of the great compounding stories of all time. But how do you build a better, more durable constellation over the next 20 to 30 years? The answer is you pay a little bit more. You buy growthy VMS businesses that are mission critical, and you do it around platforms. In other words, can we create an aviation platform? Can we create a small fintech platform? Can we create a platform around the rail industry? Can we create a platform around agriculture? How do we go put a group of businesses together that can generate synergies from one another within a class?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“These duration models of 20 to 30 years, it's all going to take care of itself in the overall returns for the bigger picture. It just takes a couple to change the dynamic for great outcomes to happen. So that's the way that I'm looking at it and thinking about it. But let's take an example like Arcadia. Our listeners will know Arcadia well already as we had Daniel and Paul in class a couple months ago. So they've got a good foundation for their story. What we saw in Daniel and Paul were the things that I talked about earlier, learning agility, deep domain expertise in vertical market software, young, 20 to 30 years type of duration capability, a lot of the wonderful things. And I and others have had this thesis that one of the great”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“as it is to make high quality decisions. Everybody's going to make mistakes, but boy, we want to avoid the big ones, and we can help these companies along the way, not make these mistakes. And the whole goal is to get an option on duration. If you can go for 20 to 30 years, the compounding benefits, I mean, just look at Danaher today. If we're 1,800 times return, if we double the stock price, that means we're $3,600 times return. The compounding at this stage is crazy. And you want to get to these reasonable shots on goal. Now, stuff is going to happen. Death, divorce, partner's not getting along. The business running up against the Death Star that none of us could anticipate. Stuff is going to happen. But if we can get a handful of...”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We can talk about some examples of that, but I say this with great humility. I've seen a lot over the last 40 years. Why in the world would I not take advantage of everything I've learned and seen and pass on those judgments and that experience to others? That's a competitive advantage that we just have to take advantage of. I haven't seen it all, but I've seen a lot. And we can help these young founders.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“and you can put capital to work and you can help them scale and make high quality decisions day in and day out, whether it's like I said before, organizational design, strategic planning, MECO map building. I could give you a list of 20 or 30 different things that we can help these companies with. And I get invigorated by working with young entrepreneurs who want to be great. I guess I'm just a business builder rather than a business seller. And if we can find those shots on goal that give us a percent creating something special, I think the returns will take care of themselves over time and we will recreate all the success that Sequoia was able to create over the course of time.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“secular trends of Dan her being a high single digit grower aspiring to become a double digit grower absolutely not yet the market treated us like we were the plague and can you imagine all the people that sold and paid the tax and they're going to miss all the good bees that are starting to come now so being private is a real benefit if you don't need access to big time capital dollars the public markets are a beneficiary of being able to give you big time capital dollars if you need it so that's the real pro of being a publicly traded company but left to my own devices i'd love to see these businesses stay private for as long as possible because you just make higher quality decisions in that type of framework so finding these young entrepreneurs who can give you duration”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Investors, and you don't have to worry about sitting on your hands and doing nothing when you own a public security. That's hard to do because you're watching the dynamics of the market every day, and certainly companies run into problematic times in their history and their journeys, and that's the worst time to sell. But yet most people do. Oh, it's a problem. They're going to be stuck for the next two years. They forget about the next 10 or 15 years of good things that are going to happen as they work through. I mean, Daniher went through this incredible journey of COVID, the turbocharged our business, massive growth over a two-year period of time. The last eighteen to twenty four months we gave a little bit of it back because we went in from a pandemic to an endemic state. And so a little growth went away. But did anything change on the long term?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“And I said, why can't we do that? What's the architecture necessary to accomplish something like that? Those are pretty outstanding returns. If they can do it, why can't we? And we started this imagination journey. And it basically went along the lines of we want to find passionate and dedicated founders who can give you a long duration runway, think 20 to 30 years where you invest in businesses that have the chance to create a 50 to 100 times outcome over those 20 to 30 years and stay the course. And private is better than public. It doesn't mean they won't go public one day. The greatest thing about a private business is you're never worried about the short term. You're not marked to market on a daily basis. You're not on the 90 day clock of having to report to.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“A paper that I wrote to myself and for the benefit of my foundation called Reimagining the Blue Pint for the Long Term Investing Model. And it all started with the thesis of how successful sequoia was over the years, and God knows they were extremely successful. Three in front of their 30% type of number in front of their compounding over a very, very long period of time, many decades.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Do I mean by that? I think that short-termism became alive and well, as PE and Venture were three to five year type of players and hedge funds were marked to market on an hourly basis. And the fee structures that were associated with these were the traditional 2 and 20%, which take a lot of the benefits of compounding away from the investor because of the high fee structure that was associated with it. So I think the whole asset allocation methodology became co-opted by short-termism and fees and became a very broken process. And I started asking myself the question, what has to change to make this a real opportunity? And it's when, I guess three summers ago, you guys helped me architect.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have to go back in time a little bit to say what was a great invention that took place in the investing world and what has happened to that invention today. And I think that a guy by the name of David Swenson, who is a Hall of Fame investor from Yale, invented the asset allocation methodology some 30 plus years ago where many people went to private equity and venture and real estate and oil and gas and lots of different things, hedge funds. And it was a brilliant strategy. And it was the new thing on the street. And people did extremely well, pivoting away from the traditional US equity 60% bond 40% strategy. And as that evolved over the”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Do sell it, pay the tax, and put it in index funds? I mean, what fun is that? My net worth will be a lot less. We'd rather give it to the foundation and let them start the diversification journey over the long time.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source