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

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“Well, that's a loaded question. There's a lot there. But let's start with Danaher. Everybody told me you're too concentrated. You need to diversify. Thank God I didn't listen to any of these schmoes that were encouraging that. And if you think who was encouraging, it was investment advisors, people who know no differently, who look at this with a traditional lens, and it was just wrong. I mean, what better way to stay concentrated than to invest in yourself and what your beliefs and your convictions are on a long-term basis? So we didn't diversify. And obviously that served us very, very well. During my lifetime, Danaher will always be a very concentrated position because I don't know where to put that magnitude of dollars. Otherwise, today, what am I going to do?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We've spent a lot of time, my brothers and I trying to figure out how we want to give money away, an efficient, impactful way. That was how it was all born in this stage of the game. You know, I'm investing for the benefit of mankind on a long-term basis because we've taken the giving pledge, Emily and I've signed the giving pledge. 98% of our wealth will go for the benefit of mankind.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“The idea of building a museum started to percolate in my head at that point in time and really started to take root in the early 2000s. And of course, I met Emily and we talked about the story of how Glenstone was born. But it all started right there. And with my dad also being a champion of the underdog arts education became important, general education became important. And there's no bad charitable cause, but you have to pick some things that you want to go deep within. And we try to bring the same operating prowess to how we give money away as we do to how we build businesses. It's hard work. You got to roll up your sleeves and not all nonprofits are made equal. You want to make sure the dollars are spent wisely and that they give great return to those that it's spent on.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Came in and took us out. We drank very heavily that night. I left Russia in a pair of gin shorts, a torn t-shirt and the sandals I was wearing and melted in the spot I ran out of them and all our belongings were gone. So we went back to the border and remember they kept our passports which was a lucky thing. We had a plane that took us back out, left Russia, got home and My dad said, so would you learn from this? I said, what do you mean? He said, well, do you want to be the richest guy in the cemetery? I said, nope, not interested in that. And that's when the philanthropic side of Mitch was born. What am I going to do with all the good fortune that's been bestowed upon me and started thinking about what were the things I loved and what was important to me? And I loved the arts.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I didn't get doused with fuel, but I dove into a pit and ran away on all fours. And ultimately, what happened was helicopter burned to the ground, the guy doing the refueling passed away as part of this because he was doused with fuel and he had a difficult ending. And the four of us tried to figure out how we were going to get out of this little village. So we asked, do you have cell phone? No, it's 1998, nothing to really speak of. Do you have a satellite phone? We don't have a satellite phone. There's obviously no wiring, so no hard lines. So how do we get a message out? Well, we have a World War II vintage radio. We went up, couldn't get the radio to work, but they got a Morse code message out. This is 1998, emergency emergency send a helicopter. About 12 hours later, another helicopter.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“And he puts fuel piece into the tank and starts filling. And we're getting out of the helicopter. And as we're getting out of the helicopter, the fuel nozzle comes loose and starts spitting fuel into the rotor blades. And the helicopter ignites an ultimately melts to the ground. And the fuel was spit on one of my great friends, Joe Robert, who was standing maybe three feet from me, but the wind was blowing away from him when the fuel hit him. And that's the only thing that saved him because the”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“The fishing's not very good, and we hit one of these hot streaks. And I tell you, we fish for four days of the seven and didn't have a nibble. We looked at each other and we said, let's get out of here. Let's go back and explore Murmansk. We'll learn a little bit about the people, the town would never really experience Russian culture. It'll be really interesting. Great idea, everybody says. So we charted a little bubble helicopter to come and take us out early. And we had about an hour and a half helicopter ride, but this helicopter didn't have the ability to go the full distance. So it had to stop and refuel. We stopped in this little village that was sustaining itself on herding reindeer and catching salmon. And we sat down in the helicopter, and this Russian dude comes with a big hose over his shoulder to refuel.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I can specifically tell you where that came from. It all started in 1998 when I went on an adventurous fishing trip to Russia. We flew into a town called Murmansk, famously known because it's where the Russian Navy fleet was based. So it was a military town of about 400,000 people. Back in those days, they didn't even have computer technology in Russia. We were computerized, of course. But when we got to the airport, They couldn't run your passport through a check, so they just kept your passport until you wanted to come back and leave the country. So they took our passports. We flew in one of these Russian-era helicopters to this fishing camp with myself and three other fellows that were good friends. And if you know anything about Great Atlantic salmon fishing, when it's hot,”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“That's a learning that came from Danaher, and I think that's why you see so many people getting involved in software or everything digital today because of the recurring nature of 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
“One of the great secular themes that we like is recurring revenues. I forget the exact percentage of Danaher that's recurring revenue today, but it's circa 70 or 80% where you work with a drug company, you supply a lot of the ingredients to the cake or the drug itself, and you've got an annuity stream for 15 years. Once you get spec'd in to be the supplier of your products with the customer, we just love that. And it gives you the chance and the opportunity to be thinking about lots of other things as you've got that steady state business coming in. The same would apply to software, the recurring revenue themes of software, software businesses today. So I look at recurring revenues as a really great theme for everything we want to do, investing in our private side of the equation.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Help them with simple concepts like funnel management, channel management, policy deployment, single minute exchange of dyes, all the things that I've had the good fortune to learn over the years that will help these businesses grow in scale with the course of time. But it really all starts with what have we got in that leader? And do they have that DNA that we're looking for learning agility and duration of time and desire and passion to be great. If those are there, we've got something to work with.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“So number one for me, it all starts with, does the business have a platform to do something special over the course of time? If we understand that that's the case, then the first thing I want to do is I want to meet the CEO slash founder running the business. And I want to really size him or her up. And the thing I'm really looking for is, number one, can they give us a 20 to 30 year run? Do they have the learning agility to pivot when the business needs to pivot? And do they have the passion to want to create something great? If I see that in an individual, then I know that I can work with that individual to help them strategically with the business, to help them figure out how to scale the business as they grow, to help them with organizational design.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Who's making a new drug in an early stage business and you say to them, you've got to wait 18 months to get samples and anaplasmid really going. It's not very appealing to the customer. Now, the whole industry was that way. Can we create competitive advantage by shrinking our lead times? I don't know the exact timeframe now, but it's probably we're down to three or four months lead time now from what was 12 to 18 months. And it's a real competitive advantage versus our set of other competitors out there today to be able to say to a young company trying to do this, we can get you your product a lot faster. For instance.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“without putting capital dollars in. In the plasma business, if you want to put capital in, not only is it a lot to build capacity, but it takes a long time. It could take you a couple years to add capacity. What SMED allows you to do is figure out how to more efficiently change your tooling over, do different things that shrink the time to change from one therapy to another. And as a result, we wrung out 20 or 30% capacity for no dollars invested to help these guys service their customers better and more efficiently because during COVID, lead times on plasmids went from what was the equivalent of six months to call it 18 months. It was very, very difficult.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We don't want to work on anything else. Our leaders will go out and teach policy deployment right away, and we'll also learn what those businesses need right off the bat. By way of, for instance, Dan Her acquired a business a few years ago called Al Devron, the gold standard in plasmid manufacturing in the world today. And we all know that everything in drug development in cell and gene therapy starts with plasmids, and they had a capacity area. We have a concept in our toolbox that's part of the business system known as SMET, single-minute exchange of dyes. And what SMED is an enabler for you to do is ring out”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Integration and superior integration and okay integration usually ends poorly. You need to quickly pivot to help those that are being integrated into the business become familiar with the culture. So what our leaders do right away is they go teach a concept known as policy deployment, which is how we run a business at Danher. It's really done off of a couple sheets of paper and it embeds what you need to do this year to basically be on the journey to make your longer term plan. It's actually a very simple process. It takes the complexity out of all this crazy strategic thinking that goes on. One of the vital few things that we need to do right now to preserve and protect the business for the next 12 months and what are the vital few things that we need to be doing now to turbocharge the business for years to come.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“or ESAB it's all about acquisitions that are led first by strategy and they have to be strategically aligned with what we want to do with the business and what do I mean by that everything's about strengthening the core i talk about workflows all the time as one of the great secular trends today how do you increase your workflow how do you become more important to the customer so that the customer wants to buy your product because you can one create a more seamless better outcome for them do it at a price point that's more affordable than your competitors because more integrated workflows give you greater flexibility with your customers and so it all goes back to strategy first and foremost and then you need an integration process and we've learned over the years the difference between okay”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Hiring for folks that share our principles and values and vision. That's the way we go about it. Transformational thinking won't exist unless we do it that way.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“We need that outside thought process, fresh thinking. I mean, Reiner Blair, our CEO, came to us from a chemicals business. This is a guy with great learning agility, and he's probably as good as they come in the life science and diagnostic space today, particularly where the strength in life science. So as we recruit from the outside, we're looking for that learning agility. We're looking for people who have a problem solving mentality. We hire very specifically along the lines of what our DNA and our culture are because we need that alignment. We need team building people. We can't have somebody who comes in who rules in an authoritarian way that just says my way or the highway, you're out if you don't like it. That just doesn't work in the world that we live in today. We need to do a lot of our.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“It all starts with talent, acquisition, or talent development. We have a process inside Danahar where we would like 75% of our hires to come from within. Self-promotion from within the enterprise. These are people that understand our DNA, understand our culture. And we want to reward them in their careers for doing great work. So what's the best way to do that? Here's the next stage in your career. We mentor, we develop, and we work with people to try to help them improve their livelihood through career development. However, we need to go to the outside for 25% because you need that outside thought process. We for a minute don't believe we know everything within. Once you become 100% inward thinking, the beginning of the end will start to take place.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Which is going to tell us what the gold standard of business is going to be in the next 10 to 15 years and start to incorporate all of that thinking into the strategy of the business. He knew, as did we, that Reiner Blair was the best person to architect 4.0. And Tom left the business earlier than he probably would have wanted to, but he didn't want to take the chance that we run the clock out on Reiner and Reiner might decide to take a job somewhere else. So he put the enterprise ahead of himself, which was an incredible thing. I'm grateful to Tom to this day for making that level five leadership choice for the best of Danah rather than what would have been ideal for himself.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“So the strategic thinking and the focus that went in under Tom's leadership was something. And I like to say that Tom embodied what is through and through as a level five leader. Jim Collins defines level five as someone who's prepared to make all the difficult decisions, has great strategic acumen, and then when those decisions are implemented, gives everybody else the credit. This is what Tom did. And Tom also realized that he wasn't the right guy to implement 4.0, which was how do we go deep in life science and diagnostics and really create a strategic vision that incorporates early stage investing and understanding what's happening in life science and diagnostics today in that early stage world.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“That Oligoste manufacturing and sativa. First, go back. Paul, which was an $11 billion transaction in filtration of biologics, and then Citiva. So I think the number was something along the line of Tom did 43 billion dollars worth of acquisitions that helped us become the leader in the biologics manufacturing space, if you were to look at our workflow today, We complete 80, 85% of the workflow that's necessary for biologics manufacturing with our product portfolio.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“On those verticals. So Tom really did a remarkable job under 3.0 of changing the ins and the outs, give you, for instance, on that. Out went fortive with all the industrial businesses, by the way done in a very tax-efficient way and in a way that gave Ford of a balance sheet investment grade to continue to reorganize itself for the long term as well out the door by way of spin-off as well went in vista, which was our dental business. Dental was very different than life science and diagnostics. Number one in the world.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Start to re simplify the business and gain greater clarity and focus. And under Tom's leadership, we divested by the way of a spin-off all of our original industrial businesses, the heavy-duty industrial apparatus. It was part of Danher. And out the door went about 25% of revenue, but 60% of the complexity of the number of opcodes that we had. We were able to change the face of what Ford of does. That's the name of the business that was created as a result of the spin-off and simplified Dan or her greatly to become much more healthcare specific, especially in life science and diagnostics applications as a whole and start to spend our capital wisely at focusing deep”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Beckman Coulter towards the end of 2009-2010 type of timeframe. And so the birth of our interest in healthcare really started to form. So Larry's era took the business from $3 billion to $14 billion. We horizontally diversified extensively, but it was towards the end of Larry's tenure with Danaher in 2014 that I think we all became aware at the board level that we were too complex. And we learned that we were starting to lose a little bit of our capabilities. How do you do 50 strategic plans, 50 operating reviews, and go deep on these businesses and really understand them when you've got global competition that's come in? So the idea and the pivot that we made with 3.0 and Tom Joyce is the leader was”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Really, not experiencing a heart attack. Once you get that quick read out, you can do much more testing that goes down to the central lab. But these are critical instruments that make decisions quickly for a doctor to diagnose what's going on. And we learned the quality of what the secular trends are with a healthcare business. And this is where secular trend thinking started to develop for us and what are better businesses to own, less cyclicality. things that you don't have to tear apart when you go into a recession because your revenues have shrunk 10, which is what happens for the most part in the industrial world still to this day. So here was a business that continued to grow. We could bring the business system to work and gosh, when you're in a recession, you're still organically growing, we learn something from that. That led us into...”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Of which happened under Larry, the central theme that continued more than anything, though, was the business system and the DNA and the culture, and you'll hear that continuously between each of the executives that went on to run the businesses themselves. But we also dipped our toe under Larry's leadership into the healthcare space. And we bought a business in 2003 called Radiometer, which is blood gas analyzing instrumentation for people in the ER or the ICU at hospitals. And this is critical testing that will give the doctors a very quick readout on what's happening in your bloodstream. So if you've come in with the potential for a heart attack, we can quickly tell you, was it a heart attack? What was the severity? Or do you just have indigestion and you're...”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Motors and controls and other interesting manufacturing products that we started to diversify a little bit with George. And so 1.0 was really about building these businesses in a way where we got real operating prowess associated with the business. We rolled out the business system. We diversified a bit, but stayed very much with our industrial roots. When George retired in 2000, 2001 and turned the reins over to Larry. The business was about $3 billion in revenue at the time. And we had created something that was pretty interesting. And then the culprit began. And the idea was to continue to buy businesses that we thought were really good businesses with good brands in the industrial arena and expand our product offering significantly.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Steve's thinking about the high level and the strategy and how we continue to architect the business. And I'm in there on the manufacturing floor, working with folks on how we make the businesses more efficient. That's what was going on. And I think, like I said earlier in our conversation, we realized we could do it, but it wasn't what we were best suited to do. And so we went on a run for the better part of seven years running Danaher before George came in in 1990. And really the George era of 1.0 was all about professionalizing the business, winning share in the tool business. I mean, George took our share of nonpowered hand tools from 20% to 40% over the course of the decade that he was in charge of the business. He also worked us into...”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Master's shield and merge them into this defunct real estate investment trust called DMG and changed the name to Danher. And so Danaher was born with the merger of these assets in September of 1984 and ground zero got started. The idea was we're just going to start buying more companies and we bought a bunch of industrial manufacturing assets, mostly in the tools business, think sockets, wrenches, ratchets. We produced 80% of the product for the craftsman line as if, for instance, back in its day, we're making a million sockets a day back in the 80s for craftsmen and others.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Only way I think we got that loan was my dad probably secretly guaranteed the loan behind the scenes and he went to his grave never saying whether he did or he didn't, but we borrowed 100% of the purchase price and it was a business that was doing nine million in revenue at the time, 600,000 in operating profit. And three years later was doing $40 million in revenue and $6 million in operating profit. And we were launched. This was the incubation of more deals to come. We bought the Mohawk Rubber Company in 1983 for $90 million, 88 million of which was borrowed from general electric credit corporation, $2 million of equity which came from the cash flows that Master Shield was producing. And we had the chance to ultimately take Mohawk and”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Run in the business and a great guy still alive to this day in his mid-90s. And we said, we're here to buy your company. I said, you're here to what? We're here to buy your company. Well, where are you two young punks going to get the money from to buy this? We said, we're going to borrow it. He said, how are you going to do that? And he said, well, we're going to borrow 80% against the receivables and we're going to borrow 50% against the inventory. And if somebody gives us an appraisal, we'll be able to get 30% against that. And when you do the math, there's five of the six million, Nick. And he said, well, where are you going to get the million of equity that you need for this business? I said, we're going to borrow it. He said, how are you going to do that? We said, we're not quite sure we'll get back to you on that one. But to make a long story short, a banker in Maryland gave us a million dollar loan. And to this day,”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“PE buyouts or high yield bond financings, but you could borrow massive amounts of money in our first deal came in 1981 when we bought a little vinyl siding manufacturing company called Master Shield for $6 million. We knew a little something about this. We did a little due diligence because I came out of my dad's building supply business for a couple years and one of the products that I was selling as a manager of the Baltimore facility was vinyl siding. And I knew that this was a superior product of steel and wood and aluminum because it didn't chip. You didn't have to repaint it. Vinyl sidings become this standard de facto siding that people use to this day, but it was the hot and upcoming new product. We found this little company had a parent company in bankruptcy and they needed to sell it. So we went down and we looked at the facility and met Nick Martin.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Ground zero started with Steve and I coming off of a fishing trip in Montana together, constructing what we thought we wanted to accomplish with our lives in the business world. And we had this beeh before Jim Collins created the concept of BHAG. We didn't realize it was a BHAG back then. But what it basically was, God, wouldn't it be great if we could create a business in our lifetime that was $250 million in sales doing 10% operating profit margin? Oh, this would be unbelievable. And we shook our heads and we shook hands with one another and we said, let's start this journey. And lo and behold, we didn't know any better. I mean, we lived in a period of time where leveraging assets, they were called bootstraps back then. They weren't called.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“What's the right CEO succession that needs to take place in the business itself? And how do we make sure we proliferate our culture and our business system in perpetuity? That's what we deal with day in and day out. And while Steve and I live in very different parts of the country today, there's not a day that goes by where we probably don't talk five times a day and we're not together. We just have that alignment on what we want to do and where we want to go and it really all starts with what's the next 10 year journey going to look like and how do we participate in a way to help our teams really accomplish that.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Steve and I have been partners now since 1980, and obviously Danaher was founded in 1984. So we've had a pretty good run. Interestingly, we've never had any debates of consequence about money. The debates have always been about what's the right long-term strategy for the business. And I think having respect for one another's opinions along the way, I mean, listen, he can complete my sentences today and I can complete his sentences today and our roles have evolved a little bit differently from the early days to one where we're really aligned. In the early days he was working on strategy, big picture I was working on the operating prowess of the businesses. Today we're both aligned and thinking about long-term strategy. How do we want to allocate our capital?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Answer to that today. I really don't. But we'll have to start thinking about that as we enjoy the fruits of what that pivot was all about for several more years. But something's going to happen and we got to get ahead of the curve in thinking about that. And having that space as founders and not being in, like I said, the meat grinder every day gives you a chance to really be able to think longer term. But that culture, I think, of continuous improvement and long-term thinking. It's understood but not appreciated.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the deeply ingrained culture. of continuous improvement that we have in the company. I think once again, most investors are focused on the short term. Think about this. The stock market mark-to-markets you every day. It's a horrible way to think about a business. It marked to markets you every day. So you need a culture of continuous improvement in long-term thinking that mitigates that thought process so that I don't want to personally think about day to day. I want to think about what we're doing for the next decade. This 4.0 pivot that we're in the midst of, Reiner's been working on for the last several years. And we're not done yet, but we're closer to the finish line. We probably have another year or two to go. And then we'll let that pivot play out for years, but we'll start thinking about what 5.0 is going to look like. And I don't know the...”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Nobody focuses on that, zero. And it's hard for these CEOs. I mean, I'm really respectful of the challenge that they have. So what Steve and I can do is give them the air cover. in the boardroom and with the outside investors. That we are here to support them in ways that really create a long-term vision for the company so that they can be. Also working on the long term side of The equation, as well as having to deal with the complexities of What happens quarter in and quarter out with the business. And I think that's different than what you see with most companies. We care deeply at the board level. About how to help these folks navigate all of this. And I think investors have now learned that the board can play a very valuable role. Helping”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“About these poor souls. They're on the 90 day clock. They got a report to investors every 90 days. You hear the same questions from the investment community. All the questions you're dealing with, what happened during this 90 day period and what's likely to happen the next 90 days rather than what are you doing today to preserve and protect and grow your investment for decades to come?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Each was required if we wanted to continue the compounding journey and to change the nature and makeup of what we have. I really do believe that each business, whether it's Dan or her, whether it's our business at ESAB, which is our global welding business, or many of these early investment that I'm making today. Everybody needs to think about transformation along the way. And do these CEOs have that intellectual learning agility to want to make the transformation that's necessary to And see beyond what's happening in any given year. It's about thinking about what's going on out in the world that could change the nature of What's happening to you as a business and make those adjustments now before you're forced to make them down the road?”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Stage businesses. Things happen that disrupt, and you have two choices you can be the disruptor or you can be the disrupted one. I prefer to be the disruptor, which means you have to be thinking constantly about what's happening to your businesses per se. And we're now in the Danaher 4.0 Which means we started at ground zero, which was Steven Mitch. We had the Sherman era, which was 1.0. We had the Culp era, which was 2.0. We had the Joyce era, which was 3.0, and we're now on to 4.0 with Reiner. And it's interesting that these things tied to this. Because the idea was as one CEO pivoted out and another. Pivoted We had to make sure we had the CEO who was aligned with what the business needed to do to continue to reinvent itself for that next transformation.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Changes a necessary phenomenon, and the world changes. We all go back to the 80s. The Japanese were going to take over the world on manufacturing. They were the de facto standard that we all wanted to live by. Look at what happened to Japan at some point. Events, globalization, new competitors, early”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Still don't want any part of it because at the end of the day, You've put a lot of Time and effort in that you have to start all over again and do another three to five years on that journey and For okay returns, but the real goody basket starts post year to. Start to go from 10x outcomes to”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Do we have the youth in place? That are talented enough, that have the learning agility. and the desire to become great. And if they do, can they give us thirty year time horizon that we need? And will they be able to make the pivots at the right time that need to be made in every business? It's interesting to see this, but That's the way I'm thinking about things before we even really get started If they're just a three to five year person, and it might be a very good return over three to five years.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Years you have no chance to get to a hundred times in twenty to three years. 30 years. So everything that I think about is when I'm sizing up an investment or an opportunity. With my private investing practices is”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“create greatness at the institution. It's no different in the business world. It just takes time and compounding whether it's Or financial returns. It just Takes time. If you want to get to the promised land, which is a hundred times outcome on your investment,”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“In, it's really hard to build anything lasting That's great when you take those type of Time horizons. That's why I said when we talked about Glenstone, I think we're on a 30 year journey.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source
“Don't really get started until you hit the ten year mark. So we watch a lot of what's happening in the world of short-termism.”
2024-05-02 · Invest Like the Best · Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode] · IDENTIFIED FROM THE TRANSCRIPT · source