Buyers and Builders

The greatest builders in history share one habit that changed their fortunes.You’ll hear how a single paragraph led Munger to a $500 million investment, how Jeff Bezos started Amazon because of one statistic in an article, and how Elon Musk saw an opportunity through the absence of information.This episode is about building your mental warehouse of ideas, training your intuition, and developing the kind of insight that compounds for life.The SponsorsThis episode is brought to you by CapitalPad. A marketplace that connects acquisition entrepreneurs who need capital with investors who want exposure to small-business deals. If you’re raising for a deal - or want to back operators - check out https://capitalpad.com/ - A deal-by-deal private equity investing platformOur sponsor Spacebar Studios builds and runs your newsletter so you stay top-of-mind with founders, brokers, LPs, and talent. HoldCo Builders listeners also use their two-week free trial. Go to https://www.spacebarstudios.co/inquire and get started for free.Timestamps0:00 Intro: The compounding power of reading0:49 Investor quotes on reading2:04 A real competitive advantage2:32 A 50-year habit and the $500M outcome3:25 The Tenecco idea and the $8M to $80M jump4:42 Sponsor: CapitalPad5:52 Jeff Bezos: One stat that launched Amazon6:09 Morris Chang (TSMC): A textbook insight that rewired an industry6:36 Elon Musk: no Mars plan6:50 Dietrich Mateschitz7:11 Bill Gates: The Altair 8800 moment7:25 Phil Knight: Japanese trade finance to Nike’s supply chain8:55 Naval Ravikant on lifelong reading9:23 Sponsor: Spacebar Studios10:27 $8M to $80M to $500M10:50 “5 to 10 great insights in a life”11:40 The 29x BYD outcome11:48 How reading trains intuition: “You can almost smell it”12:22 The ultimate unfair advantage of reading13:00 Final challenge: Are you reading like your life depends on it?Support our Sponsors:CapitalPad: https://capitalpad.com/SpaceBar Studios: https://www.spacebarstudios.co/inquireSubscribe on Spotify:https://open.spotify.com/show/6lr5bE3SNZF2uEE7Nb0DHh?si=cP_nAarhRmep1lvnR6uk5gSubscribe on Apple Podcasts:https://podcasts.apple.com/us/podcast/holdco-builders/id1695713724Follow Mikk/PrivatEquityGuy on Twitter: ⁠⁠https://x.com/PrivatEquityGuyThis podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Grant Hensel, an operator and investor with Entrepreneurial Capital, shares insights from Peter Lang's advanced M&A masterclass. He highlights the importance of practical tactics like a 128-question pre-LOI audit, effective first-call bonding, and using LinkedIn for outreach. Grant discusses setting ambitious goals for scaling his fund and the math behind achieving 5× returns. He emphasizes M&A as a problem-solving tool and introduces innovative strategies for off-market acquisitions, aiming to help searchers generate proprietary deal flow.

Discover the fascinating insights of Joe Liemandt, a billionaire who turned sleepy software into profitable assets. He emphasizes that leaders must raise standards and motivate employees, viewing motivation as the key to success over mere information. Liemandt challenges companies to adopt value-based pricing to unlock their true worth and advocates for hiring self-motivated individuals. With a focus on building a culture of curiosity and excellence, he shares the importance of listening to customers directly for continuous improvement.

Steve Carroll, CEO and co-founder of Kelso Industries, shares his journey from nearly bankrupt to managing a billion-dollar company through strategic acquisitions of HVAC and mechanical businesses. He discusses the pivot from a broken first deal to a partnership-driven acquisition model that retains owner expertise. Discover the importance of local operations, innovative cash management, and recruiting talent to scale while preserving company culture. Plus, Steve reveals his best investment advice: invest in hardworking leaders!

Nick Hatchka, founder of Cube Investments, shares his impressive journey in acquiring over a dozen businesses. He discusses the allure of building a generator services platform in California, driven by growing power demands. Nick emphasizes the importance of choosing the right business models and partners, highlighting lessons learned from navigating seller-dependent companies. He also touches on the challenges and strategies of scaling operations, maintaining customer relationships, and fostering a conservative financial approach for sustained growth.

Explore the ambitious journey of raising $450 million for a private equity fund without any prior track record. Discover the importance of having complementary founder strengths and the lessons learned from costly fundraising mistakes, like hiring a disappearing rainmaker. Urs emphasizes a long-term focus on partnerships, especially with pensioners, and shares insights on thematic research that drives their investment strategies. Learn how innovative hiring practices and proactive due diligence set them apart in a competitive market.

In this insightful discussion, Alexis Sikorsky, an entrepreneur who achieved a nine-figure exit from his software company, shares his remarkable journey from launching West Africa's first ISP to navigating the pitfalls of growth and survival during economic downturns. He discusses his innovative APEX methodology for advising founders on successful exits, emphasizing the importance of agility and planning. Alexis also reveals the transformative power of M&A as a growth strategy and reflects on personal lessons learned throughout his entrepreneurial endeavors.

Nikolai Dimitrov, founder of Unity Investment Partnership and former professional footballer, shares his journey from sports to acquiring small businesses in Central and Eastern Europe. He discusses his unique approach to acquisitions, emphasizing the importance of terms over price and utilizing seller financing. Nikolai recounts his struggles during a 12-18 month dry spell and how he built a strong team despite initial setbacks. He highlights the value of effective post-acquisition management and the significance of culture in growing his firm.

Grant Hensel, founder of Entrepreneurial Capital, has an impressive entrepreneurial background with ten startups, including seven failures but also two successful exits. He dives into his passion for backing self-funded searchers and discusses his unique investment criteria focused on resilient SMBs. Grant shares hilarious anecdotes from buying a marketing agency for his wife, insights on the importance of operator quality, and why he believes self-funded search is a true grit test. Tune in for his thoughts on finding searchers and his post-acquisition playbook!

Dive into the fascinating world of search funds with insights from Tim Ludwig, who shares his journey from investor to operator. Discover the secrets of acquiring and running small businesses, including why emotional intelligence can outshine raw IQ in leadership. Learn about the evolving landscape of search fund investments and how to identify promising industries. The discussion highlights the importance of aligning values and maintaining communication for business success. Plus, get practical tips for navigating the competitive market of acquisitions!