My guests today are Alex Behring and Daniel Schwartz, Co-Managing Partners of 3G Capital. 3G has built one of the most distinctive firms in investing around a simple idea: there are only a handful of truly great businesses and even fewer great CEOs. Their model is to raise capital with the intention of making just one investment per fund, commit meaningful amounts of their own money alongside their partners, and focus all of their time and best people on that single opportunity.  Their approach has produced a series of iconic deals, including Burger King, Tim Hortons, Hunter Douglas, and Skechers. They have also become known for developing talent early, giving young leaders real responsibility and ownership, and holding an unusually high bar. I highly recommend you read our in-depth profile on them and 3G Capital. They gave our managing editor Dom Cooke unprecedented access and the outcome is an excellent profile about the fifty year history of 3G and how the model began with Jorge Paulo Lemann in Brazil. For the full show notes, transcript, and links to mentioned content, check out the episode page ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠.  ----- Become a Colossus member to get our quarterly print magazine and private audio experience, including exclusive profiles and early access to select episodes. Subscribe at ⁠colossus.com/subscribe⁠. ----- ⁠Ramp’s⁠ mission is to help companies manage their spend in a way that reduces expenses and frees up time for teams to work on more valuable projects. Go to⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠ramp.com/invest⁠⁠ to sign up for free and get a $250 welcome bonus. ----- Trusted by thousands of businesses, ⁠Vanta⁠ continuously monitors your security posture and streamlines audits so you can win enterprise deals and build customer trust without the traditional overhead. Visit ⁠vanta.com/invest⁠.  ----- ⁠WorkOS⁠ is a developer platform that enables SaaS companies to quickly add enterprise features to their applications. Visit⁠⁠ ⁠WorkOS.com⁠⁠⁠ to transform your application into an enterprise-ready solution in minutes, not months. ----- ⁠Rogo⁠ is the AI platform for finance. They're building agents for Wall Street that are trained to understand how bankers and investors actually do work: from diligence and modeling, to turning analysis into deliverables. To learn more, visit rogo.ai/invest. ----- ⁠Ridgeline⁠ has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. Visit⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ridgeline.ai⁠. ----- Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠). Timestamps (00:00:00) Welcome to Invest Like the Best (00:02:43) Episode Intro: Daniel Schwartz & Alex Behring (00:04:03) The “One Investment Per Fund” Model (00:08:22) Great Businesses Own the Relationship With Their Customers (00:11:23) The Unique Structure of 3G Capital (00:13:36) How a Transaction Takes Shape (00:17:04) Why Hunter Douglas Was Appealing (00:21:34) The Advantages of Staying Small (00:23:58) Alex’s Railroad Story (00:26:36) Ownership is Key (00:30:26) Centralize the What, Decentralize the How (00:31:55) The “Burger King is Run by Children” Story (00:34:21) Negotiating with Tim Hortons (00:40:39) Never Compromise on Quality (00:42:01) Talent Over Tenure (00:50:26) 3G’s Operating System (00:57:14) When a Brand is Bigger than the Business (01:00:17) Why Burger King Was Undervalued (01:03:15) The Beauty of the Franchise Model (01:06:24) Kraft Heinz: A Case Study in Concentration Risk (01:09:07) Skechers: Great Product Meets Great Distribution (01:16:07) Finding Forever Businesses (01:17:52) Zero-Based Budgeting & When It Works (01:21:10) The Current State of Capital Markets (01:25:23) Misconceptions About 3G (01:32:01) The Power of Patience (01:33:39) The Kindest Thing