TIP372: Identifying A Great Company w/ Jim Collins

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 22 August 2021

⏱️ 91 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, we have a very special guest and that is researcher and author, Jim Collins. Jim is most well known for his books, such as Good to Great, Built to Last, How the Mighty Fall, Great by Choice, Turning the Flywheel BE.20, which have sold over 10 million copies worldwide. Trey Lockerbie has been having a lot of conversations lately about the global macro environment, and while it can be an endlessly fascinating topic and a fun spectator sport, it’s important to never lose sight on the fact that as investors, we are investing in companies, and it’s important to study the different species of companies and what makes them great. There is no better expert on this topic than Jim.

IN THIS EPISODE, YOU'LL LEARN:

(00:09:14) The definition of greatness
(00:35:28) What makes up a Level 5 leader
(00:43:16) How much weight to put into innovation
(00:51:32) What exactly is a flywheel effect?
(01:16:29) How luck plays into success and so much more

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Jim Collins website
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Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TI-P.
0:02.6	On today's episode we have a very special guest and that is researcher and author Jim Collins.
0:08.8	Jim is most well known for his books such as Good to Great, Built to Last, How the Mighty Fall,
0:14.0	Great by Choice, Turning the Flywheel, and B2.0, which have sold a total of over 10 million copies worldwide.
0:21.8	I've been having a lot of conversations lately about the global macro environment,
0:25.6	and while it can be an endlessly fascinating topic and a fun spectator sport,
0:29.8	I think it's important to never lose sight of the fact that as investors we are investing in
0:34.2	companies, and it's important to study the different species of companies and what makes them great.
0:39.6	So there is no better expert on this topic than Jim Collins.
0:43.4	To prove my point, I'd like to take a moment and highlight a segment of Great by Choice regarding
0:47.8	Southwest Airlines. If we look at Southwest Airlines over 30 years from 1972 to 2002,
0:54.3	you would find that the company endured everything from labor strife, fuel shocks,
0:58.7	deregulation, interest rate spikes, air traffic control strikes,
1:02.7	hijackings, crippling recessions, bankruptcies, and even yes 9.11.
1:07.2	And yet, had you invested $10,000 in 1972, it would have grown to over 12 million.
1:14.6	63 times better than the S&P 500.
1:17.9	I took the opportunity to explore how Jim thinks as a researcher.
1:21.6	We discuss the definition of greatness, what makes a level 5 leader, how much weight to put into
1:27.4	innovation, what exactly is the flywheel effect, how luck plays into success, and so much more.
1:33.6	Jim was very generous with this time and I very much enjoyed our conversation.
1:37.7	So, without further ado, please enjoy this discussion with the wonderfully brilliant Jim Collins.
1:47.5	You are listening to the Investors Podcast.
	...

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