#328 Tom Murphy (Buffett's favorite manager)

What I learned from reading The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William Thorndike.  ---- I use EightSleep to get the best sleep of my life. Find out why EightSleep is loved by founders everywhere and get $500 off at eightsleep.com/founders/ ---- Get access to the World’s Most Valuable Notebook for Founders by investing in a subscription to Founders Notes ---- (5:00) Tom Murphy] gave me one of the best pieces of advice I've ever received. He said, 'Warren, you can always tell someone to go to hell tomorrow'...You haven't missed the opportunity. Just forget about if for a day. If you feel the same way tomorrow, tell them then-but don't spout off in a moment of anger." All I Want To Know Is Where I'm Going To Die So I'll Never Go There: Buffett & Munger – A Study in Simplicity and Uncommon, Common Sense by Peter Bevelin. (Founders #286) (5:15) Thirty years ago Tom Murphy, then CEO of Cap Cities, drove this point home to me with a hypothetical tale about an employee who asked his boss for permission to hire an assistant. The employee assumed that adding $20,000 to the annual payroll would be inconsequential. But his boss told him the proposal should be evaluated as a $3 million decision, given that an additional person would probably cost at least that amount over his lifetime, factoring in raises, benefits and other expenses (more people, more toilet paper). And unless the company fell on very hard times, the employee added would be unlikely to be dismissed, however marginal his contribution to the business. — A Few Lessons for Investors and Managers From Warren Buffett by Warren Buffett and Peter Bevelin. (Founders #202) (7:30) The autobiography of the founder of CBS: As It Happened A Memoir by Bill Paley  (9:00) The goal is not to have the longest train, but to arrive at the station first, using the least fuel. (10:00) Tom Murphy’s simple formula: 1. Focus on industries with attractive economic characteristic