Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode]

Invest Like the Best with Patrick O'Shaughnessy

Colossus

Technology, Business, Investing

4.7 • 2.5K Ratings

🗓️ 2 May 2024

⏱️ 128 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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. Listen to more Art of Investing. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to you by Passthrough. If you've ever filled out a subscription document to invest in a fund or worked with LPs to fill out their docs to invest in your fund, you know what a nightmare this exercise can be. Passthrough finally solves this problem. They configure custom workflows for your electronic subscription agreements and KYC & AML requirements to shrink the time for your investors to complete their sub docs. It's the best way to manage a critical part of your relationship with your LPs and is simply a drastically better experience for both investing firms and LPs alike. To learn more, go to passthrough.com. This episode is brought to you by Tegus, the only investment research platform built for fundamental investors. Whether you’re trying to get up to speed on a new market or keep tabs on a portfolio company, Tegus is the end-to-end investment research platform you need. With Tegus, you can quickly understand a company's business model, drivers, benchmarks, and management quality. To monitor an entire market, download our pre-built financial models — or update your own with the latest data using Tegus’ new Excel Add-In. Tegus gives you all of this and more, all bundled into a single software license. Find out why 95% of the top 20 global private equity firms are Tegus customers. Learn more and get your free trial at tegus.com/patrick. ----- 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. 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 Mitch’s 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) - Danaher's Evolutionary Journey: From 1.0 to 4.0 (00:56:37) - Building a Culture of Internal Growth and External Innovation (00:58:42) - The Art of Successful Acquisitions and Integration Strategies (01:03:03) - Seeking Leadership Qualities and Business Traits for Long-Term Success (01:06:14) - The Journey from Personal Experience to Philanthropy (01:13:10) - Investment Philosophy: Concentration vs. Diversification (01:29:46) - Operational Expertise as a Catalyst for Company Growth (01:34:17) - Identifying and Supporting Talent in Business (01:43:02) - The Impact of Secular Trends on Long-Term Investments (01:49:53) - Revitalizing the Washington Commanders (01:57:36) - Engaging with Fans and Building a Winning Culture (02:05:16) - The Importance of Long-Term Vision

Transcript

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0:00.0	This episode is brought to you by Pass Through.
0:02.0	If you've ever filled out a subscription document to invest in a fund,
0:05.0	or worked with LPs to fill their docks out to invest in your fund,
0:09.0	you know what a nightmare this exercise can be.
0:11.0	Pass Through finally solves this problem. They
0:13.7	configure custom workflows to your electronic subscription agreements and K-Y-C-AML
0:18.2	requirements to shrink the time for your investors to complete their
0:21.3	sub-docs. Before we started using pass-through at my firm Positive Sum,
0:25.0	it took days or weeks for LPs to complete their sub-docs.
0:28.0	Pass-through brought that down to just 20 minutes
0:30.0	and then made it possible for repeat investors to complete documents in as little as two minutes.
0:35.2	With 35,000 investors on the platform, there's a good chance your LPs have already used it.
0:40.2	Passthrough already has 500 clients today, including enormous global asset managers and venture firms like positive sum.
0:47.0	It's the best way to manage a critical part of your relationship with your LPs,
0:51.0	and is simply a drastically better experience for both investing firms and
0:54.5	LPs alike. To learn more go to passthrough.com. This episode is brought to you by
1:00.5	Tegis the only research platform built for fundamental investors.
1:04.4	How hard do you work to get the insights you need to make a great investment decision?
1:08.4	How many hours do you spend digging through public records and expert transcripts or manually
1:12.4	updating complex models.
1:14.8	Investors should compete on their ability to analyze investments, not how well they aggregate data.
1:19.6	That's why TIGAS offers a unified end-to-end research platform that combines robust qualitative
	...

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