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80      "recording_transcription": "thank thank thank thank these smaller shaped that 'm happy be 's jump in well know met cultural and 's cool due and both coach Dawkins guys go show love those guys which glad got great that was one highlights hope get meet him met mom but need 'm sorry really that well 's start with sports but start with basketball many people may realize that actually began preparing your second career your career and business while were still in NBA can tell us that preparation look and motivated well first understand that same principles really apply from been basketball player well CEO when about focus strategy discipline 'm still same guy that those same principles CEO and and was doing basketball player first and also competitor because hate lose anything wife encouraged me play daughter 1 on 11 way about about 1516 years old there player know 've got it get 9 and got across and was playing mother would her get 9.5 and closer love winning and took that same competitive spirit board room well 'm perfectionist was perfectionist basketball player did drills and and again and even today 'm perfectionist and want everything way when about principles being athlete basketball player same CEO 'm 'm guy who's going get there early and 'm about 'm professional today said but Levin 30 where know got on campus 5 11 said chapel half hour away but that's who know and that was preparing did was asked doctor bus was that dream win championships but want become businessman after best book career with Lakers and took me up on her up on wing and became mentor one many mentors and taught me Laker business open books up me liquor business was beer run day day Alicia camping trip about it 133 lot commissioner took and was one these guys that was crazy out call me arm and from Lakers wanna know doesn't own funds going on phone numbers and after US Agnes 'm cold call 20 people way go lunch with me and say surprise surprise took advantage platform trust me and pick brain about business made them successful and incorporated into home style and while was playing basketball was getting ready but make mistake about it was 150 percent in it would be Laker and be in best basketball player could be in off season was prepared this life after basketball but was crazy basketball player CEO because when 're trying prove people wrong first said wouldn't be able play point guard 69 prove them wrong said couldn't go from basketball court board room and it's been pleasure when 'm wrong again and 'm guy who goes way in and love doing 'm doing it but basketball prepared me business world question about it know it won Best Buy could be CEO that today adding touch on good lessons that learned in transitioning your career there's lot people who come business school hoping pave it out one career and another basketball pun intended and would be would be your top piece advice them before well take your ego out it made me great basketball player would make me great CO understand because didn't know business that's why those mentors was important me and them somebody finally gonna say and and source knowledge that's why was meeting with many people because was hungry knowledge and wasn't shy about asking questions and me it was making got in room put people make got enough experts in terms BMI mentors that express in business and and make that applied learned from them lot times after these 're such in our own world that forget that know after retire 're still young and life live know retired in thirties still lot life in lot living and 'm happy that knew second life was going be business didn't it was going get this level never thought in wildest dreams it would get where today but knew wanted be businessman and would was going everything in power become successful one well 'd was very successful and want play back earlier in your career early partnership with Starbucks around 1998 opened 100 25 stores them and low income neighborhoods it was first time Starbucks and done that your stores were more successful than national average own those anymore but can talk about important that deal was in your career go back before that 1 because taxes Magic Johnson theatres set up that one and did homework research find out minorities within one group people going movies that time but theaters built in our community and said while it within one group people going theater movies build on will calm demand that already there met with Sony execs and told him look grow your business be urban America got unbelievable spent about look aspen power now African Americans $0 spending power Latinos another $0 spend POW and growing said there Sir wow that's lot disposal disposable income and that could make business being become successful very quick and said 's it put up half money put up half money and first people said oh Way got tired being on graffiti gonna be on walls and happened was first theater in Crenshaw and LA was and top 10 highest grossing theatres in nation and was tweak bit that concession stand minorities will different than everybody else grew up on cool lake strawberry great on this soda drink coke now reason said that because per caps was highest in industry wait minute keep that cold in there and Michael customer base drink cold 'm successful spicy hot dogs somehow pain yellow peppers that that was first time in theater history that ever happened and was able understand customer base and deliver them and 'm use that word time students out there want write that word down and that's deliver because 're gonna be in business especially in today's market place 've got up deliver consumer guess leave that fast delivered customer base 30 years that's why number one brand in urban America and cope coke in there hot dog change it would been problem tell little quirks quick story about looked me basketball player 're about open first print show and and asked full buyer from from someone else mean does that opening that man same amount got give same amount suburban our suburban theatres open up there on Friday sold out hot dogs that normally take month sell out in suburban and sold it out in one night why because minority that go dinner and movie will been aware can hear movies that's another reason per capsule high understanding your customer base and know urban consumers want and deliver that sold because were very successful with Magic Johnson theaters went up Seattle because saw this long line outside this coffee place because Starbucks hand comma coffee said got give them that this was got in line in own way and wait finally got up there and drink coffee drink tea assume that your best T. took sip that TSA will wonder said man that's next successful that can happen in urban America cold called sold CEO Starbucks and said look want come up and flew up Adam meeting and thank god was basketball fan and season ticket holder Seattle SuperSonics and sat down and talked and told him go this business would be urban America because know Starbucks got store man saturate market which great dominate market and say but there's none in urban America and got this great spending power and knew that it would be successful in urban America that franchisees 'm become one want be your partner put up half money put up after said well got sell it board 's couple more media long story short about 4 more meetings in any finally decide come down and manage might this and this really important lot young people out there got make that selling and tell people it's gonna be truth one when come and your business looks everything that told him it better look that enough comes down on Friday night and thank god with Houstons first movie was coming out waiting exhale about 4 5000 African American women wrapped around corner trying this movie it comes up come around corner 's it was maze this many people waiting this well got side concession stand was mean were making money crazy because everybody was and finally movie started sat in one biggest was 500 seats and movie got go about 20 minutes and every African American woman in thought knew would be them personally start talking screen girl why steal way and should go our brands B. would that be true story urban 've never movie going experience quiet and said got deal run it did 3 test and this way that work comes in young people gave me 3 test deliver with 3 when looked up said gotta tweak Starbucks fit and with America coffee was great but desert was quite know scones take this comb without books input sweet potato pie pound cake socket make big Scopula said way it it will pay $3 couple well proved everybody wrong per capsule Hyatt in Perkins and it went from building 3 build in 125 multiple was already negotiated when when contract was up in terms number 125 sold them back Howard and walked away with big smile on face and and did too because says already and end interviews that 's been able after our partnership said our stores really change star books but in lot minority managers district managers employees and and now 's built now 500 1000 stores in urban America and this great it's great me be guy who opened door Starbucks going into urban America and should clap that because that's still about deliver and get those goals in on part cast when 've been 459 and it would been that been reviewed because changed out those desert and also took out lawn well using that played regular star books and put in prince Motown music women 5 that resonate with urban consumer now 've 've got sitting there and made your first purchase and 're comfortable and got your head movement and got your favorites next gonna sit there long enough make your second purchase save it and minorities it call place that's place bike that's restaurant that's burger place it that's 're going go time because both were delivered us and 're same way and that's why deliver and also stay in touch with that customer base in terms asking them questions this that always stay in tune and in touch with our customer base make 're doing and that's why 've been successful well hear talking about diversity perspective and important that was there's been focus recently on lack diversity within Silicon Valley and tech industry in general does does that play into your investment in partnership decisions and also about recruiting and retaining diverse talent now that 're out your own organization first one know when about Silicon Valley and about only one percent engineers African Americans about 3 percent it know that's way too low but keep using that excuse can't find enough and engineers who minority that's fine but about lawyers accountants HR department those areas that can hire minorities who qualified allow them sit on this campus and other caps want be engineers can be know love work Google would love work work Facebook and on and on and on and diversity starts top it party DNA who it's going happen that's why love stand and want hand out with one opportunity look those 2 cultures wanted opportunity and deliverance deliver and that's ask opportunity and tell those who look want hire way America looks in next 20 years half America even more than half America's gonna be minorities first couple companies that understand that estar hire minorities now 'll understand really deal with them only employees but also consumers and me it's easy me and hire smart young people matter fact got one your own that work me stand on Ryan and Ryan tell was great about running Ryan was on campus couple years ago and was doing internship work force and that's when were thinking about buying sparks put Ryan on sparks deal and it was Ryan hit analyze numbers it came back myself and said know thought number that would pay this box there's gonna be good deal said this part would done far still got young bright bright minds Ryan in our company and Stanford produce and great young smart also single any ladies out lot and once allies that deal broke it down me knew that wanted him because also people skills work me too it's be smart want somebody who can also go out and on behalf our company represent us and does wonderful job that and brand everything me gotta make that that protect brand everything else sustainability grown that now but one that could ruin it attained it brand diluted brand and want make that protect that brand and that's why hire people Ryan who can only protector bramble grow brand and bottom line same time and and Dodgers Dessa stand ability $14000000000 insurance company that bought card apple trust out Iowa thus headquarters 're going move that illinois'based drawing game Busta business 're 're growing it and when look it everything that want now was fighting first respect didn't respect me when first came in board rooms because still looked me basketball player but that Starbucks deal change that drove our why took powers brand it was already shoes but took that brand another level it was first company ever Jay Leno picked up Starbucks Cup live on TV instead charge people that money couple coffee and laughed but it shows was happy was on tonight show and cost me dollar 'm saying were able grow brand star books free and also in lot end day also be able grow bottom line too and that's why that partnership was one partnership that really got me everything that wanted and 've number one real estate about fun and and terms our urban fun did did 300000000 which 600000000 our second fun and 'm very fun did $1000000000 and L. pretty fun Ron Burkle's company kindly Johnson went out raise about 500000000 that's when bought lot bought about 20 radio station also train brand on and on and on with real estate fun about W. in Austin Texas and about Hilton and Washington DC those out properties still on and got Transamerica building downtown Los Angeles used own that and those type properties that invested in and was really unique and special that could go from basketball court juggling that little basketball real estate von Avenue and that would be fun and now 'm would Guggenheim and mark Walker told me go out and raise money man about $200000000000 come us and tell this quick story because won't be disappointed gotta stand appointment that know 'm Stanford everything's already sparkpeople because might be working one on one day mind me change being cool can't sit down time young people when first went out raise first fun one CalPERS down road from and turned me down 4 times and last time committee turned me down say why other minority com revisor raise money and 're talking about them and couldn't answer that question was up there too them give me around $50000000 invest and urban America that was unheard that time and finally went up time after that fifth time finally said know 're gonna give 50000000 and 'm come back that where deliver 50000000 can come back and get 100 more 0 bought shopping center 22000000 it was 40 percent occupied made etcetera 0 percent occupied out resold center 48000000 26 back up Sacramento and said Hey go and guess happened start respect me businessman now lot go get turned down 5 times did gonna get back up and try again gonna go head head down disappointed and get up and try again knew great business plan knew great strategy and believed in it that's why kept going up Sacramento and finally say and that's took off remember gonna get turned down luck on your business plan us can tweak it didn't make adjustments that but call one believe in it and 've done your homework and your research and find that good chance be successful with your business keep going never anybody find who can become who set magic disappoint got was more than that and now 'm proving it each and every day Jack Dorsey say Hey Magic come on join border square 've been turning down boards left and and finally believe and believe in him and 's built said finally say but hadn't proven myself would never come and ask me join board square back that's it Stanford every little 2 young people write this down always be ready adapt and it 'm serious market change W. 8 adapt and adjust and did that real estate fun bill condos market member banks would loan and more money and everybody was in trouble but quickly sit minute can change renter's model that fast and guess happened it didn't affect our bottom line still was successful because were smart enough say that's gonna work because nobody can get loans but can go renter's model in this can still work us baby make quick and nimble enough say know can adapt and adjust 's going on in market place today can change business tweak business make it still work attacking about resiliency throughout that and want shift more personal issue turn questions and that your house and contracted HIV height your super stardom in basketball and overnight became face disease that time people thought was gave white man's disease can talk about experience having become leader in community that might otherwise never been associated with well first it was tough it was tough because in beginning get that phone call come doctor's office 're in Utah filed away home from Utah can plan game know was wrong was going on and walk into doctor's office and him tell me HIV it was devastating mean 'm 'm talking about was on floor devastated and it took me hours come grips with say it and was more devastating than that was 'd got me and wife was pregnant now got drive home teller HIV and more than thinking about myself was thinking about her and and baby that time and tell never thought know and did everything thought know hi was married game OB put in maximum effort and 'm now phone this happens out Mary woman that met on Michigan state campus that 've always wanted marry best friend and those going through your mind 're driving home now face toughest challenge in life more than Michael more than Larry 'm glad can laugh about it now too but it was when hit door knew was wrong know it settle down begin tell HIV and cried baby that that makes it tough young people your mistake only hurts but those who love herself affected your mistakes and Hey isn't been nothing but great wife great friend and and put put her risk and put her in this situation and know 're talking about and 'm trying console her and told understand want leave know and hit me hard upside head axes that 're gonna be together this only time knew that was going chance live because cookie laugh would be because needed her support system and only that was difficult time need ones that love help get toughest moments and 'm happy stayed and supported me and got best news about couple weeks later was baby was after doctors were ran test 've been on face this disease now 24 years also person who encourage speak out and and help educate everyone about us great great question great question went back and forth once follow her status went back and forth on should go public and met with lady who was living with .'s time Elizabeth Glaser changed life was time that time and told me urban want become face this disease need face it means face and 'll be perfect gotta go public it's going help world and says great drugs coming down pipeline and was that time was only one drug that time AZT and 'm glad was there me well and promised her that would become face that would lot different help those who living with it and also educate people great foundation named after her and doing great work and cook and after meeting with her decide go public that time and and now look numbers 1000000 1000000 people living with HIV and in this country but one out 8 even know it was lot people walking around now ability HIV and fact that button black and brown community in big way when about numbers this Bessie numbers blacks in terms 557 man 455 percent black women it's really important that still get our go out and get tested also go back your results now can get it tested in your own home now announced one drug this 30 drugs that's why live in today about drugs much better today easy take today this still fear minorities going find out HIV and that's that's been really hurt our community in big way and fight against discrimination guess those living with HIV go out educate people and that's this this life and love love know going out talking about HIV and aids and also helping people and that's 'm about and when joined President Bush ETS commission back that time this father remember went Boston and hospice 30 bids walked in only one there was full one patient was enough one bedrooms was well with other 29 rooms take it process could get room thought these people who made Roman and go through process get one it takes year 2 get clear and that that day 'd quit said this people who leave rooms who'll be on street and take him through this long process and quit that day and built Magic Johnson foundation and 've already given idols almost about $15000000 different ETS organization wave tested 40000 minorities this every day love it know and H. . V. M. .'s site 120 students scholarship now colleges country built 16 technology center and because lot minorities can't afford computer in home give them access one and this that every single day and last thought it was Magic Johnson Biscay academies because now problem in urban America only drop outs now 're building these drop back incentives kids can get off street get high school diploma and it's great that 've graduated 400 students far and guess louder 'm in college now should clap that should go question though much time left but want raise your hand people with mikes will come down and find and 'll start with question from would it take 5 know can't run off came way from LA that's long way and answers questions know dodges in play off be blown up but know it go it first question from Twitter was hardest lesson learned when transition from basketball business thought it would be easier because was Magic Johnson but actually was harder 10 banks turned me down size CalPERS turned me down was looking grow and used up about lot income get me level but now want go another level and want that growth and needed big money and went banks and 10 them turned me down and out sit well 10 turn me down among make everybody turned me down went next bank and say and it's really funny should grace really funny now Gracie after Levin bank say and only dodges",
81      "recording_transcription_org": "thank you thank you thank you thank you these smaller shaped that are I'm so happy to be here let's jump right in well for you know I just met cultural and he's a cool due to and both coach Dawkins all my guys go show I love those guys which is glad you got great that was one of my highlights hope I get to meet him I met his mom but I do need I'm sorry I really like that all right well then let's start with sports but start with basketball okay many people may not realize that you actually began preparing for your second career your career and business while you were still in the NBA can you tell us what that preparation look like and what motivated you well first we we have to understand that the same principles really apply from been a a basketball player as well as a CEO when you think about focus strategy discipline so I'm still the same guy that has those same principles as the CEO and and what I was doing as a basketball player first and also competitor because I hate to lose at anything right by my wife encouraged me play my daughter 1 on 11 way about is about 1516 years old there are player you know we've got I let it get to 9 and then I got across and if I was playing my mother I would let her get to 9.5 and then are closer to I I love winning and I took that same competitive spirit to the board room as well I'm a perfectionist so I was a perfectionist as a basketball player I did the drills over and over and over again and even today I'm a perfectionist and I want to do everything the right way so when you think about principles of being a athlete or basketball player is the same thing as a CEO I'm I'm a guy who's going to get there early and no I'm not about I'm a professional today they said okay but Levin 30 where you know I got on campus at 5 to 11 I just said at the chapel for a half hour away the but that's who I am you know and so I think that was preparing what I did was I asked doctor bus was that my dream is not just to win championships but I want to become a businessman after my best book career with the Lakers and he took me up on her my up on his wing and became a mentor or one of my many mentors and so he taught me Laker business open the books up to me let me see how the liquor business was beer run day to day Alicia camping trip all the stuff about it okay sort of the 133 if not a not a lot as he commissioner then I took and I was one of these guys that was crazy so out call me arm and from the Lakers I wanna know all he doesn't own the funds are going on their phone numbers and then after the US Agnes I'm cold call 20 people as a way to go to lunch with me and they say so surprise surprise I took advantage of my platform trust me and so I pick their brain about business what made them successful and I incorporated into my home style and so while I was playing basketball yes I was getting ready but make no mistake about it I was 150 percent in it would be a Laker and be in the best basketball player I could be in the off season I was prepared for this life after basketball but I was a crazy basketball player must like I am CEO because when you're trying to prove people wrong first they said I wouldn't be able to play point guard at 69 so I had to prove them wrong then they said I couldn't go from the basketball court to the board room and it's been my pleasure for when I'm wrong again and so I'm a guy who goes all the way in and I love doing what I'm doing it but basketball prepared me for the business world no question about it you know if it won for Best Buy I don't think I could be the CEO that I am today adding a touch on some good lessons that you learned in transitioning your career there's a lot of people who come to business school hoping to pave it out of one career and then to another basketball pun intended and what would be okay what would be your top piece of advice for them before as well take your ego out of it see what made me a great basketball player would make me a great CO I have to understand because I didn't know business so that's why those mentors was so important to me and them somebody finally is gonna say no to you and and then you have to have a source for knowledge right as so that's why I was meeting with so many people because I was hungry for knowledge and I wasn't shy about asking questions and so I think for me it was just making sure I got in the right room put the right people make sure I got enough experts in terms of BMI mentors that express in business and then and then make sure that then I applied what I learned from them a lot of times after these we're such in our own world that we forget that you know after we retire you're still young and do you have a whole life to live you know I retired in my thirties as so I still have a lot of life in a lot of living to do and so I'm so happy that my I knew my second life was going to be a business I didn't think it was going to get to this level I never thought in my wildest dreams it would get to where I am today but I knew I wanted to be a businessman and I would I was going to do everything in my power to become a successful one well you'd think I was very successful and I want to play back to earlier in your career you had an early partnership with Starbucks around 1998 you opened 100 25 stores for them and low income neighborhoods it was the first time Starbucks and done something like that your stores were more successful than the national average you don't own those anymore but can you talk about how important that deal was in your career what let me go back before that 1 because the taxes the Magic Johnson theatres set up that one and I did my homework research to find out minorities within one group of people going to the movies at that time but we have no theaters built in our community and I said while it within the one group of people going to the theater to the movies if I build on they will calm the demand that are already there so I just I met with the Sony execs and told him look grow your business have to be to urban America we got unbelievable spent about look at aspen power right now African Americans $0 spending power Latinos another $0 spend the POW and growing said there Sir wow that's a lot of disposal disposable income and that could make my business being become successful very quick and so they said let's do it I put up half the money they put up half the money and the first thing people said oh No Way they got tired of being on graffiti gonna be all on the walls and what happened was my first theater in Crenshaw and LA was and the top 10 highest grossing theatres in the nation and what we had to do was to tweak the bit that the concession stand a little bit minorities will little bit different than everybody else so we grew up on cool lake so I had to have strawberry great all on this soda we just don't we don't drink just coke so now the reason I said that because my per caps was some of the highest in the industry wait a minute so if I keep that cold just in there and Michael my customer base don't drink cold I'm not successful right then I had a spicy or hot dogs somehow a pain yellow peppers that that was the first time in theater history that ever happened right and so I was able to understand my customer base and over deliver to them and I'm I use that word all the time you students out there I want you to write that word down and that's over deliver because if you're gonna be in business especially in today's market place you've got up over deliver to the consumer or guess what they don't leave you that fast I have over delivered to my customer base for 30 years that's why I have the number one brand in urban America and so if I had to just cope coke in there not the hot dog change it would have been a problem let me tell you a little quirks quick story about how they looked at me as a basketball player so we're about to open my first the you don't print show and I like and I asked the full buyer from from someone else I mean how does that we have for the opening so is that man the same amount we got a give you is the same amount we have a suburban our suburban theatres we open up there on Friday we sold out all the hot dogs that normally take a month the sell out in suburban and sold it out in one night why because minority we that don't go to dinner and a movie we will have been aware as I can hear you at the movies so that's another reason my per capsule so high you have to have understanding of your customer base and I know what urban consumers want and I deliver that sold because we were very successful with the Magic Johnson theaters I went up to Seattle because I saw this long line outside this coffee place because Starbucks like hand comma coffee so I said I got to give them that this was so I got in the line in their own way and then wait I finally got up there and I don't drink coffee I drink tea so I assume that we have your best T. whatever took a sip of that TSA will no wonder I said man that's the next successful thing that can happen in urban America so I cold called how is sold CEO of Starbucks and said look I want to come up and see so I flew up to see Adam we had a meeting and thank god he was a basketball fan and season ticket holder of Seattle SuperSonics and we sat down and talked and I told him to go for this business would be to urban America because you know Starbucks got a a store man they saturate the market which is great they dominate the market and I say but there's none in urban America and we got this great spending power and I knew that it would be successful in urban America is that what we don't do franchisees are so I'm not here to become one I want to be your partner I put up half the money you put up after so he said well I got to sell it to the board let's have a couple more media so long story short we have about 4 more meetings in any finally decide to come down and see how we manage might do this and this is really important to a lot of you young people out there you got to make sure that what you are selling and what to tell people it's gonna be the truth right one when they come and see what your business looks like everything that you told him is it sure better look like that so sure enough he comes down on a Friday night and thank god with the Houstons first movie was coming out waiting to exhale so I had about 4 5000 African American women wrapped around the corner trying to see this movie so how it comes up we come around the corner he's it was a maze we had this many people waiting to see this well we got a side the concession stand was just I mean we were making money by crazy because everybody was order something and then finally the movie started so we sat in one of my my biggest how was 500 seats and the movie got go about 20 minutes then and every African American woman in their thought they knew would be his them personally so they start talking to the screen girl why you steal way he and you should go our brands B. I would that be the true story as the urban I've never had a movie going experience quiet all I and he said you got to deal so we run it we did 3 as a test and this is the way that work comes in young people so he gave me 3 the test so I had to over deliver with the 3 so when I looked up I said okay we gotta tweak Starbucks just a little bit to fit and are with America the coffee was great but the desert was not we don't quite know what scones are so I had to take this comb without a must books input sweet potato pie a pound cake socket to make a big Scopula they said no way my no it is it will pay $3 for a couple well we proved everybody wrong my per capsule Hyatt in his Perkins and it went from building 3 to build in 125 the multiple was already negotiated so when the so when my contract was up in terms of the number of 125 I sold them all back to Howard and I walked away with a big smile on my face and so and he did too because he says already and all the end if you all the interviews that he's been able to do after our partnership he said how are our stores really change star books but in a lot of minority managers district managers employees and so and now he's built now 500 to 1000 stores in urban America and this is great so it's great for me to be the guy who opened the door for Starbucks going into urban America and we should clap for that because that's so is still about over deliver and see if I had to get those goals in their on my part cast when they've been 459 and it would have been that has been reviewed by so because I changed out those desert and then I also took out the lawn as well using that they played the regular star books and I put in prince Motown music of women 5 things that resonate with the urban consumer so now I've I've got you sitting there and you made your first purchase and you're comfortable and you got your head movement and you got your favorites right next to you you gonna sit there long enough to make your second purchase save it and then minorities it we call a place that's my place bike that's my restaurant that's my burger place whatever it is that's what we're going to go all the time because they both were delivered to us and you're the same way and so that's why you have to over deliver and also stay in touch with that customer base in terms of asking them questions do you like this you like that we always stay in tune and in touch with our customer base to make sure we're doing the right thing and that's why I've been successful as well I hear you talking about diversity of perspective and how important that was for you there's been a focus recently on the lack of diversity within Silicon Valley and the tech industry in general how does how does that play into your investment in partnership to decisions and also how do you think about recruiting and retaining diverse talent now that you're out of your own organization for the first one is you know when you think about Silicon Valley and you think about what is only one percent of engineers African Americans about 3 percent I think it let you know that's way too low but they keep using that as an excuse what we can't find enough and engineers who are minority okay that's fine but what about you have lawyers accountants the HR department those are the areas that you can hire minorities who are qualified right allow them sit on this campus to and other caps so we not just we just don't want to be engineers we can be you know we love the work at Google we would love to work work at Facebook and on and on and on and so diversity starts at the top it is not a party DNA is not who you are it's not going to happen that's why I love stand for see and we don't want to hand out with just one opportunity a look at those 2 cultures they just wanted the opportunity and their deliverance over deliver and that's all we just ask for an opportunity and I tell you those who look you want to hire the way America looks in the next 20 years half of America or even more than half of America's gonna be minorities so the first couple companies that understand that estar hire minorities now they'll understand how to really deal with them as not only employees but also consumers and so for me it's easy for me and I like to hire smart young people matter fact I got one of your own that work for me stand on the Ryan and Ryan tell you what was great about running a Ryan was here on the campus a couple years ago and he was doing some internship work force right and so that's when we were thinking about buying the sparks so we put Ryan on the sparks deal and it was Ryan is hit analyze the numbers it came back to to myself and said you know he thought at the number that we would all pay for this box there's gonna be a good deal if you had a said don't do this part of the I would have done so far still so we got young bright bright minds like Ryan in our company and so Stanford you produce and some great young smart also to a single so any ladies out a lot of and then once he allies that deal broke it down for for me I knew that I wanted him because he also you have to have people skills to work for me too it's not just be a smart I want somebody who can also go out and on behalf of our company represent us and he does a wonderful job of that and so my brand is everything to me SO I gotta make sure that the thing that I protect is the brand see I have everything else sustainability I have grown I have all that now right but the one thing that could ruin it all is attained it brand diluted brand and so I want to make sure that I protect that brand and that's why I hire people like Ryan who can not only a protector bramble grow to brand and the bottom line all at the same time and so what by and the Dodgers Dessa stand ability I have a $14000000000 insurance company that I just bought a card apple trust out of Iowa thus I headquarters we're going to move that to illinois'based drawing game Busta business we're we're growing it and so so when I look at it I have everything that I want now right I have I was fighting for first respect as they didn't respect me when I first came in the board rooms because they still looked at me as a basketball player but that Starbucks deal change all of that see I drove our why I took powers brand it was already shoes but I took that brand to another level it was the first company ever Jay Leno picked up a Starbucks Cup live on TV instead of what you charge no people that kind of money for a couple coffee right and we all laughed but how it shows was happy I I was just on the tonight show and they cost me a dollar you see what I'm saying so we were able to grow the brand of star books for free and also at the in the lot at the end of the day also be able to grow the bottom line too and that's why that partnership was the one partnership that really got me everything that I wanted and then I've had the number one real estate what do you think about fun and and the terms of our urban fun so I did we did 300000000 which is 600000000 our second fun and I'm very fun we did $1000000000 and then we had a L. pretty fun what Ron Burkle's company you kindly Johnson so we we went out raise about 500000000 so that's when I bought a lot of the we bought about 20 radio station also train brand on and on and on with the real estate fun if you think about the W. in Austin Texas and think about the Hilton and Washington DC all those things out of properties we still on and got the Transamerica building downtown Los Angeles we used to own that and so those are the type of properties that we invested in and so was really unique and special that I could go from the basketball court juggling that little basketball to have an a a real estate von Avenue and that would be fun and now I'm would Guggenheim and mark Walker told me you don't have to go out and raise money no the man is about $200000000000 just come see us okay okay and I tell you this quick story for some of you because some of you won't be disappointed I gotta stand appointment is that okay I know I'm at Stanford everything's already sparkpeople because I might be working for one on one day okay if you don't mind me change a little bit being to you okay cool I can't just sit down all the time young people so when I first went out to raise my first fun I one of the CalPERS right down the road from here and they turned me down 4 times the and the last time the committee turned me down they say what why haven't some other minority com revisor raise money and do what you're talking about them and I couldn't answer that question right I was up there too to have them give me around $50000000 to invest and urban America that was unheard of at that time and so finally I went up to the time after that the fifth time they finally said you know what we're gonna give you the 50000000 and if you I'm a come back to that where if you over deliver what the 50000000 you can come back and get 100 more 0 I bought a shopping center for 22000000 it was 40 percent occupied I made etcetera 0 percent occupied out resold at center for 48000000 at the 26 back up to Sacramento and said Hey you go and guess what happened they start respect to me like a businessman now a lot of you go get turned down 5 times like I did are you gonna get back up and try again are you gonna go head to head down disappointed and I get up and try again see I knew I had a a great business plan I knew I had a great strategy and I believed in it that's why I kept going up to Sacramento and finally they say yes and that's what I took off so remember you gonna get turned down so my luck on like your business plan us all right you can tweak it didn't make adjustments to that but call one if you believe in it and if you've done your homework and your research and you find that you have a good chance to be successful with your business keep going never let anybody to find who you can become who you are they set all magic disappoint got no I was more than that and now I'm proving it each and every day Jack Dorsey just say Hey Magic come on join my border square I've been turning down boards left and right and I finally believe and I believe in him and what he's built so I said I finally say yes but if I hadn't proven myself by he would never come and ask me to join his board of square okay back to you that's how we do it at Stanford we every little by 2 young people write this down always be ready to adapt and it just I'm serious market change W. 8 to adapt and adjust and we did that what my real estate fun we had bill some condos he the market just member banks would loan and no more money and everybody was in trouble I am but quickly we sit by the minute we can change to a renter's model just that fast and guess what happened it didn't affect our bottom line we still was successful because we were smart enough to say okay that's not gonna work because nobody can get loans but we can go to a renter's model in this can still work for us so baby make sure you quick and nimble enough to say you know what I can adapt and adjust to what's going on in the market place today I can change my business tweak my business to make it still work attacking about resiliency throughout that and I want to shift to a more personal issue okay or we turn to questions and that is your house and you contracted HIV at the height of your super stardom in basketball and overnight you kind of you became the face of a disease that at the time people thought was they gave white man's disease can you talk about the experience of having to become a leader in a community that you might have otherwise never been associated with well first it was tough it was tough because in the beginning get that phone call come to the doctor's office we're in Utah filed away home from Utah can plan a game I don't know what was wrong what was going on and to walk into the doctor's office and him to tell me I have HIV it was just devastating I mean I'm I'm talking about I was on the floor devastated and it took me hours just to come to grips with what he had just say it right and then what was more devastating than that was I'd just got me and my wife was pregnant so now I got to drive home the teller I have HIV and more than thinking about myself I was thinking about her and and my my my baby at that time and I tell you I never thought you know and I had did everything right I thought you know just hi I was married to the game OB put in maximum effort and I'm now phone this happens right out Mary the woman that I met on Michigan state campus that I've always wanted to marry my best friend and all those things are going through your mind as you're driving home so now face the toughest challenge in my life more than Michael more than Larry I'm glad I can laugh about it now I too but it was a when I hit the door she knew something was wrong so you know it SO I settle down I begin to tell I had HIV and she cried like a baby at that thing that makes it tough young people your mistake not only hurts you but those who love you herself to they are affected by your mistakes and Hey she isn't been nothing but a great wife great friend and and I put put her at risk and put her in this situation and so you know as we're talking about and I'm trying to console her and then I told you I understand if you want to leave you know and then she hit me so hard upside my head axes that we're gonna be just together this the only time I knew that I was going to have a chance to live because if cookie had a laugh I don't think I would be here because I needed her as a support system and only that was a difficult time so you need the ones that love you to help you to get toughest moments and so I'm so happy she stayed and supported me and then we got the best news about a couple weeks later she was okay the baby was okay after the doctors were ran a test so I've been on the face of this disease now for 24 years also the person who encourage you to to speak out and and help to educate everyone about us a great great question great question we went back and forth once we follow her status we went back and forth on if we should go public and so I met with a lady who was living with a A.'s at the time Elizabeth Glaser changed my whole life she was time at that time and she told me urban I want you to become the face of this disease they need to face it means a face and you'll be perfect you gotta go public it's going to help the world and she says some great drugs coming down the pipeline and she was right at that time was only one drug at that time AZT and so I'm glad she was there for me as well and then I promised her that I would become the face that would do a lot of different things to help those who are living with it and also to educate people as she has a great foundation named after her and doing great work to and so cook and I after meeting with her decide to go public at that time and and now you look at the numbers is 1000000 over 1000000 people living with HIV and in this country but one out of 8 don't even know they have it was a lot of people walking around right now ability have HIV and then is the fact that the the button the black and brown community in a big way when you think about the numbers this Bessie the numbers of blacks in terms of 557 man 455 percent black women so it's really important that we still get our go out and get tested also go back for your results now you can get it tested in your own home now announced a one drug this 30 drugs that's why live in today you think about the drugs so much better today easy to take today this still a fear of minorities going to find out if they have HIV and that's that's been really hurt our community in a big way and so I fight against discrimination I guess those are living with HIV I go out educate people and that's what I do this this is my life and so I love what I do I love you know going out talking about HIV and aids and also helping people and that's what I'm all about and then when I joined President Bush ETS commission back at that time this is the father I remember I went to Boston and they had a hospice 30 bids I walked in only one there was full of one patient was enough of one of the bedrooms was well with the other 29 rooms they had to take it to a process for you could get a a room I thought these people who made a Roman and they have to go through a process to get one it takes like a year or 2 just to get clear and that just that day I'd quit I said this is not right as people who leave rooms who'll have to be on the street and we take him through this long process and so I quit that day and I built the Magic Johnson foundation and we've already given idols almost about $15000000 so different ETS organization wave tested over 40000 minorities so this is what I do every day I love it you know and not just the H. I. V. M. A.'s site we have 120 students all scholarship right now colleges all over the country we built 16 technology center and because a lot of minorities can't afford to have a computer in their home so we give them access to one and so this is the things that we do every single day and then the last thing I just thought it was Magic Johnson Biscay academies because right now the problem we have in urban America is only drop outs right now so we're building these drop back incentives for the kids can get off the street get their high school diploma and it's so great that we've graduated 400 students so far and guess what louder I'm in college right now so we should clap for that okay so we should go to question do though we we don't have much time left but if you just want to raise your hand the people with the mikes will come down and find you and we'll start with the question from what would it take 5 so you know we can't just run off I came all the way here from LA that's a long way and answers the questions you know dodges I in the play off don't be blown up here but I know it go it first question from Twitter what was the hardest lesson you learned when you transition from basketball to business I thought it would be easier because I was Magic Johnson but actually was harder 10 banks turned me down to size CalPERS turned me down I was looking to grow and I had used up just about a lot of my income to get me to a level but now want to go to another level and I want that growth and I needed some big money and so I went to the banks and 10 of them turned me down and then out I sit well if 10 turn me down among make sure everybody turned me down so I went to the next bank and they say yes and it's really funny what should I grace is really funny right so now Gracie after the Levin bank say yes and no only the dodges",
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94      "recording_transcription": "happy cPanel title this event remaking global finance and obviously there lots very interesting trends in financial community moment up around technology around direction currencies around direction US trade policy and on and forth could spend little time laying out agenda but more useful us quickly and introduce that casts and can get them talk about issues apart very quickly starts up money and 'm work long and distinguished panel Christina god with us madam account managing director IMF 're very welcome Stephen minu chin US treasury secretary very much in news last 2004 hours on US dollar will progress can make on that terrier next 60 minutes Jim could professor economics LSE also young global leader World Economic Forum and 'm hoping that can give us helpful input Chinese position on wed global finance headed up very pleased with us Larry thank thank being Allari chairman and CEO black role 's bit outspoken about direction US tax policy 'm very recently decided write letter lot CEOs urging them be more responsible perhaps in way about responsibilities shelters and society up act there with this chairman supervisory board delete your bank believe only bank only real Banca that on our panel said even though it about direction global finance thank much being with us and hopefully can give us European perspective on these issues 'm lost but Lisa course Philip Hammond chancellor United Kingdom much being with us on C. N. B. C. event says 's stop off straight away treasury 635 can come and 're probably expecting this go further clarification this morning your earlier remarks way way said believe obviously weaker dollar good us now actually advocating weak dollar policy United States well first say guess would been disappointed didn't start out with me first question on dollars since this that people love ask treasury secretaries about first me say 've actually been quite consistent on comment on dollar and perhaps 've been slightly different than previous treasury secretary because in recent times previous secretaries talked up dollar 've been consistent in 've said only yesterday and today but previously first currency markets probably most liquid markets in world and fundamentally support free and trading in currency markets comments been that in short term where dollar concern that it will fluctuate that in short term there's obviously benefits and any issues with lower dollar and and again in terms benefits it beneficial our trade imbalances there also issues people who hold dollars want be clear and collagen boat in long term fundamentally believe in strength dollar it reserve currency believe it will continue be reserve currency given strength and confidence in US markets be very clear about that that shift in U. S. position on dollar atole but again 'd say it's shift in position on dollar it perhaps slightly different than previous treasury secretaries who in recent times commented on strong dollar strong dollars again it's acknowledgement that dollar and in essence again where it in short term will be determined markets wanna be overly tricky with language but back me sounds someone who's worked around financial markets while and probably nearly long attempt implicit acceptance weakening dollar from on in it again 'm making comment whether it's implicit weakening were implicit strengthening again be clear in short term where dollar concern and it's it's spend lot time thinking about there benefits where dollar and there costing where dollar depending upon which side table 're on focuses longer term where dollar and be clear know 've been treasury puts out currency report where comment on other people's intervention work very closely with out will support fixed people who try fix currencies support free in floating currency reflective market and mean 'm aware irony fact that 'm asking this generating apps third round verbal intervention that markets having respond and deal with this stage in sense level dollar prop priority **** US administration again where where dollar now priority it's it's focus free markets clarified that 've got it now hate 53 minutes laughter John one other people realize there's another really attractive talk about and that's bit coin and crypto currencies want come back me later 'm happy talk about would know social media numbers will go off scale minute stop talking about safe because millennials will finally start shooting in but take heat off moment madam god know 've spent lot time in recent years focusing on risks currency wars and verbal intervention in currencies and countries using opportunity talk down value own currencies way getting traded phone stage IMF been very clear on its attitude towards that given that beginning March in Paris now introduced US administration on Asian products and non intervention in dollar far treasury secretary concerned this point worried that actually may be headed off down ride where begin response from other nations who worry that this week going disadvantage them in terms that trade relationship with United States well backtrack and and least mention begin with that's current global economy where it stands in very sweet spot tend focus on latest safe and and and that's fine with media but 's look global economy it's moment moving pretty solid rate focused 3.9 percent growth next year 3.9 percent growth your office about about 120 countries seen income growth on per capita basis in last 12 months still seeing financial conditions that reasonably accessible extremely easy and 'll seeing clear engines gross one investment and discussion with various central bank governors them in main seeing investments go up and second that seeing trade international trade growing even faster than global growth rates any measure that would try slow down trade that would try limit strength this engine would be concern because seeking more growth better growth more inclusive growth sustainable growth need fire from engines trade one and should make that trade well governed that set rules that apply trade fair reciprocated properly enforced and 'm that there will be common denominators around fact that everything perfect moment but that any measures that was restrict trade would hurt growth that sounds diplomatic way directing file back United States and Washington 'm pointing out that MF doesn't agree with process that escalates tariffs in either direction well who would agree with measures that food significantly reduce trade that would significantly in parks growth and reduce it there that agree on that rules game be clear rules game be fair and rules game be enforced and know was listening very carefully present call was president and wasn't saying Austin different from that 're saying that landscape changed 've been 've innovations in multiple sectors including finance but only and that examine rules under which operate but opening areas under rules based system that well and force that conducive growth and and actually Christine and actually share very similar views on this because our issue want more trade that want less trade which one reciprocal and fair trade our issue where there big trade imbalances it markets may be open in one direction and would say United States probably most open trading market in world and most it open investment mark in world want continue that but want fair trade this about reciprocal trade and where there trade issues will enforce them about China does it fad trading system 've very productive conversations conversations yesterday with with Chinese that president trump and president xi 've very direct conversations about both our objectives shrink trade imbalance and that's it March standpoint that's about increasing exports China and and shrinking that it's obviously one largest growing markets and want US companies be able participate in open wide foreign ministry this morning said hats protectionism cannot be put on China's head professor Jim come Chinese government would agree with treasury sectors assessment well in China and China wants embrace this know trade integration globalization and more trade and frankly pressure on reciprocal know trade protectionist pressures but say that it also trying shift its trade know production away from these lower and manufacturing sectors excess capacity and solar but that story good signal trade tensions that might come about also because there's going be lot domestic pressure coming from Chinese businesses and Chinese people pressure government react will take stance Chinese government and that stance will increasingly bait overnight that south Korea's LG says it will raise prices its white goods in response this tariff although it's it's it's it's know it depends on it's good signal 's going happen and that China wants shift its production structure but it's know service imbalances in terms trade matter commercial policy balance imbalance between saving and investment and it's due currency trade policies that will solve these imbalances in Larry can noting wanted comment on that point well talk about dollar second dollar secretary discussed most liquid currency in world it it reserve currency weakness dollar more due successes Europe and other parts Asia last year in Davos will were quite fearful European Union were looking in front different elections elections turned out quite well European economy doing far better than thought expected last year and in fact it's doing far better today than expected even 3 months ago currency address and 're making way too much out state and from secretary IV markets efficient move around believe US economy xcelerated because tax reform dollars going start appreciating when there true evidence more successful US economy quite frankly media's making way too much about it it's this normal course markets markets move around in information and that's 's happening it's that simple know 've done less than 15 minutes in your second speaker that's blame media when media starts being blamed get that there element look that could be it with that media media's businesses create information and noise and and broker make more money on velocity noise serve good purpose now and believe media does pushing envelope pushing envelope it creates rich resolution process valuations and this ecosystem operated and serve it well validation Larry thank way up where 're gonna put that on piece tape and it'll play and again be sensible moment there chaplain hide site weaker dollar because week actually could make funding arrangements treasury secretary little tough going forward and there's quite lot issues that come next 12 months about risks weaker dollar undermining attractiveness currency from global perspective well your and where 're gonna permanent weaker dollar and would assert our economy grows it's going grow into 2018 into 19 dollar probably will strike that economy strengthens would say long run and and know secretary aware it and focusing on it focus on that user other people's balance sheet fund our economy Japan and Italy much greater debt GDP but domestically funded deficits lot Verizon know that going get our finances in worry that will create real deterioration in valuation that's today issue that issue that live with recognize and only issue trade became violent and want _ violin that that outcome but trade became violent issue and saw 804 caption in purchasing US treasuries other end it other bar and lenders that would create disequilibrium and 'm forecasting that but those types tail risks that focus on and that's tale risk that before talked about trade always that tail risk end but maybe that tell risk been elevated trade becomes front center issue but agree with secretary created trade policies which was functional post World War 2 it was belief that America will better when world does better and revaluation its 57 year old trade treaties that anti trade secretary said and believe that process probably could be good one and obviously secretary said each could become win win though there's gonna be disproved cooler rooms in different industries and different but 's be clear secretary said United States most open society in terms trade and international company face different would say impediments other places where operate mean make great point about growth in Europe move conversation on but this this week currency in United States going cause full Mr druggy who trying negotiate very tricky job showing world that growth strong in Europe but maintaining interest rates near emergency levels while weaker dollar will arrive euro's competitive competitiveness in international markets does Mr druggy square circle well first 'd thank that invited bank and this panel European that because it implies that that banks and European banks will play role in remaking finance which isn't self evident one goes around doubles and was thank that secondary Lee your resolve and also held topic interest rates first why fully agree",
95      "recording_transcription_org": "happy cPanel the title all of this event the remaking of global finance and obviously there are lots of very interesting trends in the financial community at the moment up around technology around the direction of currencies around the direction of US trade policy and so on and so forth I could spend a little time laying out the agenda here but I think more useful for us to move on quickly and introduce that casts and then we can get them to talk about some of the issues apart so let me very quickly starts up money and I'm work a long and distinguished panel Christina god is with us madam account is the managing director of the IMF you're very welcome as Stephen minu chin is the US treasury secretary very much in the news over the last 2004 hours on the US dollar will see what progress we can make on that terrier over the next 60 minutes Jim could you is professor of economics at the LSE she is also a young global leader at the World Economic Forum and I'm hoping that she can give us some helpful input as to the Chinese position on wed global finance is headed up very pleased to have with us so Larry thank thank you for being here Allari think is the chairman and CEO of black role he's a bit outspoken about the direction of US tax policy I'm very recently decided to write a letter to a lot of CEOs urging them to be more responsible perhaps in the way they think about their responsibilities to shelters and society up whole act like there is with this the chairman of the supervisory board at delete your bank I believe the only bank the only real Banca that we have on our panel said even though it is about the direction of global finance thank you so much for being with us and hopefully you can give us a European perspective on some of these issues I'm lost but not Lisa course Philip Hammond to the chancellor of the United Kingdom thanks so much for being here with us on the C. N. B. C. event says so let's stop off straight away at treasury 635 can come to you and I think you're probably expecting this we go to further clarification this morning of your earlier remarks here way you way you said I believe obviously a weaker dollar is good for us now all you actually advocating a weak dollar policy for the United States well let me first say I I guess I would have been disappointed if you didn't start out with me as the first question on the dollars since this is something that people love to ask treasury secretaries about so first for me to say I think I've actually been quite consistent on my comment on the dollar and perhaps I've been slightly different than previous treasury secretary because in recent times previous secretaries have talked up the dollar so I've been consistent in what I've said at not only yesterday and today but previously is first of all the the currency markets are probably the most liquid markets in the world and we fundamentally support free and trading in the currency markets so my comments have been that in the short term where the dollar is is not a concern of mine okay that it will fluctuate that in the short term there's obviously benefits and any issues with a a lower dollar and and again in terms of the benefits it is beneficial for our trade imbalances there are also issues for people who hold dollars so I want to be clear and collagen boat in the long term I fundamentally believe in the strength of the dollar it is the reserve currency I believe it will continue to be the reserve currency given the strength and the confidence in US markets so let me just be very clear about that that is not a shift in the U. S. position on the dollar atole but again what I'd say is it's not a shift in my position on the dollar at all it is perhaps slightly different than previous treasury secretaries who in recent times have just commented on strong dollar strong dollars so again it's an acknowledgement that the dollar is and in essence again where it is in the short term will be determined by the markets I don't wanna be overly tricky with the language but back to me sounds like as someone who's worked around financial markets for a while and probably nearly as as long as you attempt an implicit acceptance over a weakening of the dollar from here on in it again I'm not making a comment whether it's implicit weakening were implicit strengthening again let me be clear in the short term where the dollar is is not a concern of mine and it's not it's not something I spend a lot of time thinking about there are benefits of where the dollar is and there are costing where the dollar is depending upon which side of the table you're on what I am focuses longer term where the dollar is and let me be clear you know we've been the treasury puts out a currency report where we comment on other people's intervention we work very closely with the I am out of will we don't support is fixed people who try to fix their currencies we do support free in floating currency is reflective of the market and they see is I mean I I'm aware of the irony of the fact that I'm asking you this so I am generating apps the third round of verbal intervention that the markets are having to respond to and deal with at this stage in what sense is the level of the dollar prop a priority **** for the US administration again where where the dollar is right now is is not a priority it's a it's a focus of the free markets we clarified that I've got it now I think so I hate you 53 minutes laughter John just one I I think other people I do realize there's another really attractive thing to talk about and that's bit coin and crypto currencies so you want to come back to me later I'm happy to talk about what he would you know as social media numbers will go off the scale the minute we stop talking about safe because the millennials will finally start shooting in but just to take the heat off you for a moment here madam the god you know we've spent a lot of time in recent years focusing on the risks of currency wars and verbal intervention in currencies and countries using the opportunity to talk down the value of their own currencies as a way of getting traded phone stage of the IMF has been very clear I think on its attitude towards that given that we all beginning to see at the March in Paris now introduced by the US administration on Asian products and non intervention in the dollar as far as the treasury secretary is concerned at this point are you worried that I actually we we may be headed off down a ride where we begin to see a response from other nations who worry that this week at all is going to disadvantage them in terms of that trade relationship with the United States well let me just backtrack and and at least mention to begin with that's the current global economy where it stands is in a very sweet spot we tend to focus on the let the latest safe and by so and so and that's fine with the media but let's look at the global economy it's at the moment moving at a pretty solid rate we focused 3.9 percent growth next year 3.9 percent growth the your office about about 120 countries have seen income growth on a per capita basis in the last 12 months we are still seeing financial conditions that are reasonably accessible if not extremely easy and we'll certainly seeing to clear engines for gross one is investment and we just had a discussion with various central bank governors all of them in the main all seeing investments go up and the second thing that clearly we all seeing is trade international trade growing even faster than global growth rates so any measure that would try to slow down trade at that would try to limit the strength of this engine would be of concern because if we all seeking more growth better growth more inclusive growth sustainable growth we need to fire from all engines trade is one and I think we should make sure that trade is well governed that the set of rules that apply to trade all fair reciprocated properly enforced and I'm sure that there will be common denominators around the fact that not everything is perfect at the moment but I think that any measures that was sort of restrict trade would hurt growth that sounds like a diplomatic way directing the file back at the United States and Washington I I'm just pointing out that the I MF doesn't agree with the process that escalates tariffs in either direction well who would agree with measures that food significantly reduce trade that would significantly in parks growth and reduce it there by I think that what we agree on is that the rules of the game have to be clear rules of the game of to be fair and the rules of the game of to be enforced and I think you know I was listening very carefully to present my call was my president and the he wasn't saying something of Austin different from that you're saying that the the landscape has changed they've been must've innovations in multiple sectors including finance but not only and that we have to just examine the rules under which we operate but certainly opening areas under a rules based system that is well and force is something that is conducive to growth and and actually I think Christine and I actually share very similar views on this because our issue is we want more trade not that we want less trade which is one reciprocal and fair trade so our issue is where there are big trade imbalances it the markets may not be is open in one direction as they are and I would say the United States has probably the most open trading market in the world and the most it open investment mark in the world we want to continue that but we want fair trade so this is about reciprocal trade and where there are trade issues we will enforce them what about China does it have a fad trading system I think we've had very productive conversations I had conversations yesterday with with the the the the Chinese I think that president trump and president xi we've had very direct conversations about both of our objectives is to shrink the trade imbalance and that's it for March standpoint that's about increasing exports to China and and shrinking that we think it's obviously one of the largest growing markets and we want US companies to be able to participate in an open wide the the foreign ministry this morning said the hats of protectionism cannot be put on China's head professor Jim do you do you think come the Chinese government would agree with the treasury sectors assessment well in China and China certainly wants to embrace this you know trade integration globalization and more trade and frankly the pressure is on for reciprocal you know kind of a a trade protectionist pressures but I have to say that it is also trying to shift its trade kind of you know production away from these lower and manufacturing sectors excess capacity and solar but that is not a story good signal for the kind of trade tensions that might come about also because there's going to be a lot of domestic pressure coming from the Chinese businesses and the Chinese people to pressure the government to react so they will have to take a stance the Chinese government and what do you think that stance will increasingly bait as we here overnight that south Korea's LG he says it will have to raise the prices of its white goods in response to this tariff although as I think it's it's it's it's you know it depends on if it's not a good signal for what's going to happen and I think that China wants to shift its production structure but it's you know the service imbalances in terms of trade is not a matter of just commercial policy is a balance imbalance between saving and investment and it's not just due to the currency or trade policies that will solve these imbalances in Larry you you can noting you wanted to comment on that point well let me just talk about the dollar for second the dollar as a secretary discussed is the most liquid currency in the world it is a it is the reserve currency I think the weakness of the dollar is more due to the successes of Europe and other parts of Asia I think we last year in Davos will we were quite fearful of the European Union we were looking for in front of different elections elections turned out quite well the European economy is doing far better than we thought we expected last year and in fact it's doing far better today than we expected even 3 months ago so the currency address and I think we're making way too much out of state and from the secretary IV the markets are efficient they move around I do believe as the US economy xcelerated because of tax reform the dollars going to start appreciating when there is true evidence of a more successful US economy so I think I quite frankly the media's making way too much about it it's this is a normal course of markets markets move around in the just to do information and that's what's happening it's that simple you know we we we what we've done less than 15 minutes here in your the second speaker that's blame the media for something what when the media starts being blamed for something I get is that there is an element to look over that could be it okay with that I think the media the media's businesses to create information and noise and and you as a broker you make more money on the velocity of noise so I I I think to serve a good purpose now so and I do believe what media does by pushing the envelope by pushing the envelope it creates a rich a resolution process of valuations and so this is how the ecosystem we all operated and you serve it well validation by Larry thank way up where we're gonna put that on a piece of tape and it'll play over and over again let me be sensible for a moment the there is a chaplain hide site to a weaker dollar because a week at all actually could make the funding arrangements for the treasury secretary a little tough going forward and there's quite a lot of issues that are to come over the next 12 months so so so so what about the risks of a weaker dollar undermining some of the attractiveness of the currency from a global perspective well your and see where we're gonna have a permanent weaker dollar and I would assert if our economy grows like we think it's going to grow into 2018 into 19 the dollar probably will strike that as the economy strengthens I would say over the long run and and I know the secretary is aware of it and focusing on it we do we do have to focus on that we are a user of other people's balance sheet to fund our economy Japan and Italy has a much greater debt to GDP but the domestically funded their deficits over a lot of Verizon we all know that we are going to have to get our finances in order if we don't worry that will create a real deterioration in the valuation that's not a today issue that is a issue that we all live with the we all recognize and the only issue is if trade became so violent and I want to _ violin that I don't see that as an outcome but a trade became a violent issue and you saw 804 we caption in the purchasing of US treasuries by other end it by other bar and lenders that would create a disequilibrium and I'm not forecasting that but those are the types of things the tail risks that we all have to focus on and that's a tale risk that we had before we talked about trade we always had that tail risk to the end but maybe that tell risk has been elevated as trade becomes the front center issue but I do agree with the secretary we created trade policies of which was a functional post World War 2 it was a belief that a America will do better when the world does better and the revaluation of its 57 year old trade treaties I don't think that is anti trade as the secretary said and I do believe that process probably could be a good one and obviously as the secretary said each could become a win win though there's gonna be disproved cooler rooms in different industries and different things but let's be clear the as the secretary said the United States is the most open society in terms of trade and as the international company we do face different I would say impediments other places where we operate I mean you make a great point about growth in Europe just to move the conversation on but this this week currency in the United States is going to cause I had a full for Mr druggy who is trying to negotiate the very tricky job of showing the world that growth is strong in Europe but maintaining interest rates at near emergency levels all the while a weaker dollar will arrive the euro's competitive competitiveness in international markets how does Mr druggy square the circle well first of all I'd like to thank you that you have invited a bank and to this panel a European for that because it implies that you think that banks and European banks will play a role in the remaking of finance which isn't self evident if one goes around doubles and was so thank you for that a secondary Lee to the your resolve and they also held topic of interest rates I think first of all why we fully agree",
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114      "recording_transcription": "happens interested in products very interesting it can be useful great well this propose our users very briefly Richard mentioned 'm co founder and CEO venture Richards city Ole were brothers and 're 3 brothers that school founded black box 3 engineers Richard background in venture capital and engineering Roger management consultant and engineering and myself used teach engineering and one our advisors 's based out California San Francisco now office starts up and internet its 7 venture was president CEO company that that sold fingerprints silicon sensor today available on iPhone still love screens this brief idea about our team and 've been operating past 10 months and basically that bugs does it makes meeting more productive automating note taking and may take make making every in single information shared during these meetings searchable today's meeting agenda with consists 3 first would understand and when did your needs and objectives it's good fit and start ups your coworking space adopt this technology will gonna run life them with it which will be various features product and can answer any questions that may very maybe before it jumping into know life it would be great know mentioned said there's 60 startups put this in number members many would it would those be it big teams usually and and every single start up it's more it's usually it easier it's know one company one person wrote hi teams which super fun fluctuate Sir it's lot 1990 members seems might be little less 60 look list very interesting recently but mostly teams in 1 and our biggest team accelerated program operating space that's different but which server disconnecting connecting laptop because 're running out battery Deanna one which taking care this it conduct lot most our times in this start up because system someone working in industry basically spend lot time in meetings and search on Google basically this meetings toxic meeting looks where idea dies away that waste time and hope 're seeing this today meeting and mainly these database on very large number surveys that 've conducted on average spent one third our time doing meetings and basically doing these meetings that this where objectives being shared with other team members this where everyone being told and can capture essence these meetings and cannot make them available and accessible every time every way basically 're wasting our time doing these meetings in extract most out them start taking notes and this way that 've been trained past 20 years but there today technology available digitize everything and make it more productive this offer and it in get back said that teams that one person it's one person company basically assume going be around 60 people enter species working there put this more maybe in terms ours 's take average day first beautiful office space noticed this down image got very good design and 's on average day many hours would spent in meeting rooms in conference schools that were know pick average day would this look mean very difficult say it need really define and meeting which question 's enemy 3 objectives meeting today 3 headings basically first want add get picture on off and speaks 's happening 's 's operate it's operating there in terms meetings there that's first one clarify know ideas it taking place there and second weekend same objective show with product in real time giving live demo product gonna take maybe 3 5 minutes showing this every time and after this any question were more than happy us and 're asking lot questions there good fit between offer and need because want be speaking time from our end without asking question learn more about start ups in your space operating because want sell that value someone basically asking questions that 're asking know many hours spend on meeting type teams this would allow us understand there's good fit between our technology and your coworking space 'm hi can hear me would say that most 've 'd say people tend be in meetings and calls and product that would be useful them could be service that taking takes notes during those calls and and that could be call know one person and space calling someone wherever in world checking technology can be used sorry since distracting 'm sorry 're taking technology because it would be helpful when people reserve meeting room that very good mentioned too since most them on because can want can show product it and maybe get your feedback it's it's working in real time whether there could be fit with 're meeting meetings be conducting that sounds good 's connect phone and show this in real time second and give idea why 're connecting phone far this been used know and meeting rooms and interviews San Francisco Chronicle reporters Financial Times Forbes and it would even 've been having get White House correspondents using this in interviews high level trust know in in in content where it's really important and information that shared really high value 've been having this trust from our users in those settings having this and being T. that having been able achieve this level trust with those user been rewarded rewarding us be able know get trust in those meetings where know information that been know consider very valuable now screen and that ready write your who your target customer 've been having them any company whose conducting meetings that want keep track this goal goal goal make meetings more productive anyone who's having one on one person interview team meeting and that's taking place goal be able digitize this content make it available full taken automatically and search engine go back in time and instantly find any information that share it and play it exact specifics again 'm gonna tell this in in real time there this this phone open sample video that can run can run this in parallel 're gonna basically this app it's called black box can simply open it it's going look this your client meetings your interviews speaking events conferences and 's take example with 20 second video 're gonna run and 're gonna try transcribe 's 's being said this progress against extreme poverty minimum amount necessary feed your family now about less than 10 percent world falls in extreme poverty 3 decades ago it was 30 percent was basically did saw real time transcription software why there was know someone speaking this give example it doing return Everytime prescriptions 're gonna save it and first can tear showing up record file them one can simply click and explore file can explore text version audio version this text will give full full transcript and want go inside 's this does look from inside can that this giving us only full text was said but also highlighted key words based on natural language understanding algorithm that gonna tell us that was mentioned it was about extreme poverty 2 times got this would mention and can play it down exact second 's choose one those extreme poverty 3 decades ago it was 30 percent were able find that this information related that topic can go back and find related other but 's maybe give me second can after recording done notes being get captured happens make suggestion week key topics covered during this meeting doing this interview and this software that's being provided and it also allows them searched want get access Richard's gonna 's another this longer example where it was around 20 minutes it's talk about funding and start ups it's done this your link can in this case those key words money customer service can't play highlights can't people always say about why need raise money need hire highlights when 're recording there's big blue but know noticed year clicked on it while were recording this your flagging key moments conversation 're flagging those moments and once click on highlights gonna bring it down those moments and want go and search other key words word money mentioned 62 types can find those moments trace them back down second 's want search on professional investors click on it professional investors where 'll meet with dad and talked that little say Hey 're going come mention that can can search want it's only key words that can search can search everything basically after meeting phone that captured everything want search any topic that want 's suppose now want discuss said about black box would search would type in black box and would find every single moment where black box was mentioned and can play it back this doing it's digitizing this information and making it available any time that can act on information shared and make specific decision much faster than flip in through your nose and say didn't capture exactly was mentioned can repeat this information and follow up with your client about that mentioned during talk with team mate having everyone on same page because everything now searchable captured and available anytime can basically be much more productive during meeting focusing on conversation and after meeting working on yourself on these information and moving forward with your day day tasks there far feature that taking more than another there one that can bring more value than rest was was show too far 's 's taking more far 've seen where it's mean that that's good helpful and noticing it technology identify voice and person commercial version that released on market and accessible everyone this that offer can make this available customized solution specific needs where ed this really important identify different speakers but notice that average user this technology need access speaker identification because basically use case someone using black box would be Want remember discussed about objectives tomorrow and would type in objective and will be able access everything instantly other that want show that only can search within specific file but can search within your database folder 's suppose wanna search any topic can 's suppose want say did talk about meetings search meetings and general and home page and will be directed your finds where someone mentioned word meeting and can be directed instantly these fights instead going back and forth every single file and search specific information because in start up word corporate setting would multiple meetings and end day would forgotten in which meeting talked about example aware go market strategy and would say this and want stick with discuss about it and would search go market strategy and can play exactly this moment without wasting time and either flipping through notes even searching and every single fight search engine conducting search on every single file on everything that and it's giving access everything instantly and it put it in in in frame this it this coming step know many companies now starting look such solution it's much this solution that valuable it's known that this it that that one going be make question more know saw point companies started using automated that meaning know automated emailing system and nowadays it seems obvious everyone using get it's human someone be sending know 100000 emails day week month and now need system them this automatically and this automating it's that that usually sticking know man hours achieve note taking and even there's information that were lost in meetings that were never recollected accurately later on it's step that know everyone point will date but it's question when whether know someone will be too it doing it today will be doing it know 5 years from now and it's about also opportunities that might missed having integrated such technology be more productive and know conduct more productive meetings 'm going route and leaving this meeting better group coming in but 'm why did decide enter space about space chose enters peace among corking spaces first on that assumption that corking cases might be good fit 're doing and that hold on one moment remember that were saying",
115      "recording_transcription_org": "happens so just interested in the products very interesting think it can be useful great well the this is what we propose a for our users so at very briefly as Richard mentioned I'm the co founder and CEO of the venture at Richards is the city Ole were brothers and so we're 3 brothers that school founded black box 3 engineers Richard has a background in venture capital and engineering Roger management consultant and engineering and myself I used to teach engineering and we have one of our advisors he's based out of California San Francisco he is now see office starts up and the internet of things at its has 7 venture he was the president of the CEO of the company that so that sold the fingerprints silicon sensor today available on iPhone still love the screens so this is a brief idea about our team and we've been operating for the past at 10 months and the basically what that bugs does is it makes meeting more productive by automating note taking and may take make making every in a single information shared during these meetings searchable so for today's meeting the agenda with consists of 3 things first would like to understand and when you did your needs and objectives to see if it's a good fit for you and the start ups at your coworking space to adopt this technology will gonna run a life them with it which will be the various features of the product and then we can answer any questions that you may have okay very so maybe if we before it jumping into the you know to the life then what it would be great to know as you mentioned you said there's 60 startups so if you put this in number of members how many would do it would those be is it big teams usually and and every single start up or it's more a so it's usually it easier it's like you know one company one person wrote okay all right so hi teams which is super fun so at a fluctuate Sir it's a lot like 1990 members or something all right seems might be a little less 60 look at a list very interesting recently but mostly teams in 1 and then some our biggest team we have an accelerated program operating at the space okay so that's a whole different thing but which server disconnecting connecting the laptop because we're running out of battery so Deanna one which is the taking care of this it just if if we like we conduct a lot of most of our times in this start up because system or if someone is working in the industry basically we spend a lot of time in meetings and if we search on Google basically this is what you have to have meetings are toxic meeting looks are where idea dies away stuff that waste of time and I hope you're not seeing this today for a meeting and mainly these are the database on the very large number of surveys that we've conducted on average we spent one third of our time doing meetings and basically doing these meetings that this is where the objectives are being shared with the other team members this is where everyone is being told what to do and if we can capture the essence of these meetings and if we cannot make them available and accessible every time every way basically we're wasting our time doing these meetings so what do we do in order to extract the most out of them is we start taking notes and this is the way that we've been trained to do for the past 20 years or so but there is today technology available to digitize everything and make it more productive so this is what we offer and it just in order to get back you said so that the teams that you have they are one person so it's a one person company so basically I assume is going to be around 60 people at to enter species working there if you put this more maybe in terms of ours let's take an average day first you have a beautiful office space I noticed this down the image so you got a very good design and let's see on an average day how many hours would you see are spent in meeting rooms or in the conference schools that if you were to you know to pick at an average day how would this look like I mean I very difficult to say I it you need to really have to define what is and meeting which I think is kind of a question so let's see enemy you had 3 objectives for the meeting today or the 3 headings so basically we so first want to just add to get the picture on off and speaks what's happening like what's the what's the operate how it's operating there in terms of meetings there so that's the first one just to clarify some you know some ideas of how is it taking place there and then second weekend at the same objective is to show you with the the product in real time so giving you a live demo of the product is gonna take maybe 3 to 5 minutes showing you this every time and then after this any question you have we were more than happy to us and if we're asking a lot of questions just to see if there is a good fit between what the offer and you need to because we don't want to be speaking all the time from our end without asking question to learn more about how the start ups in your space are operating because we don't want to sell something that is has no value for someone so basically by asking the questions that we're asking to know how many hours you spend on meeting or what type of teams do you have this would allow us to understand if there's a good fit between our technology and your at coworking space hello so I'm hello hi can you hear me okay so I would say that most I've I'd like to say yes if people I tend to be in meetings and calls and then so a product that would be useful to them could be a service that taking takes notes during those calls okay and and that could be a call thanks you know just one person and space calling someone wherever they are in the world or no checking technology can be used to am sorry since distracting I'm sorry to okay so you're taking technology because it would be helpful when people do reserve a meeting room that okay very good so so as you mentioned too since most of them are on because what we can do is if you want we can show you the the product as it is and maybe get your feedback how it's how it's working in real time whether you think there could be a fit with what you're at at the meeting how the meetings are be conducting that sounds good all right so let's connect the phone and show you this in real time just a second so and just to give you an idea why we're connecting the phone so far this has been used by you know and meeting rooms and interviews by the San Francisco Chronicle reporters at Financial Times Forbes so and it would like even we've been having get White House correspondents using this in their interviews so we have a high level of trust you know in in in content where it's really important and information that is shared has really high value so we've been having this trust from our users in those settings so we we think having this and being a T. that having been able to achieve this level of trust with those user is been rewarded rewarding for us to be able to you know to get their trust in those meetings where they have you know some some information that they they have been you know they consider very valuable so now I think we have the screen and that is ready to write their is your who is your target customer so we've been having them like any company whose the conducting meetings that they want to keep track of this is the goal so the goal the goal is to make meetings more productive so anyone who's having a one on one person interview or a team meeting and that's taking place the goal is to be able to digitize this content to make it available have a full no taken automatically and then have a search engine for you to go back in time and instantly find any information that you share it and play it to the exact specifics again so I'm gonna tell you this in in real time right there so here we have this is the this is the phone let me just open a sample video that we can run we can run this in parallel so as you see here all right so we're gonna do is basically this is the app it's called black box you can simply open it so it's going to look like this you have your client meetings your interviews speaking events conferences and let's take an example here with the 20 second video we're gonna run and the we're gonna try to transcribe what's what's being said all this progress against extreme poverty the minimum amount necessary to feed your family now about less than 10 percent of the world falls in extreme poverty just 3 decades ago it was 30 percent so here was to basically just did is saw the real time transcription of the software why there was you know someone speaking so this is just to give you an example of it doing the return Everytime prescriptions so we're gonna save it and then the first thing you can do you see a tear showing up you have the record file them one you can just simply click here and explore the file you can explore the text version or the audio version this is the text will give you the full the full transcript and then if you want to go inside let's see what this how does he look like from the inside we can see that this is giving us not only the full text of what was said but also we have the highlighted key words based on natural language understanding algorithm that we have is gonna tell us that what was mentioned it was about extreme poverty 2 times we got this would mention and we can play it down to the exact second so let's choose one of those extreme poverty just 3 decades ago it was 30 percent so he we were able to find that this information related to that topic we can go back and find something related to other things but let's maybe just give me a second okay so as you can see after the recording is done all the notes are being get captured what happens is we make a suggestion of what week the key topics covered during this meeting or doing this interview and this is the software that's being provided and it also allows you to at have them searched if you want to get access to to Richard's gonna so here's another like this is a longer example of where it was around 20 minutes so here it's a talk about funding and start ups it's done by the this your link then so what you can see in this case those are the key words we have money if you see customer service we can't play the highlights if you so you can't thing people always say about why they need to raise money is they need to hire the highlights is when you're recording there's a big blue but I don't know if you noticed or year we clicked on it while we were recording so this is your flagging the key moments of a conversation so you're flagging those moments and once you click on highlights is gonna bring it down to those moments and if you want to go and search other key words so the word money is mentioned 62 types we can find all those moments trace them back down to the second let's see want to search on professional investors we click on it like professional investors to where you'll meet with dad and I talked to that little say Hey we're going to have you come to mention that you can you can search whatever you want it's not only the key words that you can search you can search everything so basically after meeting you have the phone that captured everything you want to search any topic that you want so let's suppose now want to discuss what we said about black box you would search you would type in black box and you would find every single moment where black box was mentioned and you can play it back so what this is doing is it's digitizing this information and making it available any time so that you can act on the information shared and make a specific decision much faster than if you have to flip in through your nose and then say all I didn't capture exactly what was mentioned can you repeat this information and then follow up with your client about something that you mentioned during the talk or with a team mate so by having everyone on the same page because everything is now searchable captured and available anytime you can basically be much more productive during the meeting by focusing on the conversation and after the meeting by working on you by yourself on these information and moving forward with your day to day tasks is the is there so far a feature that you think is taking more than another is there one thing that you think can bring more value than the rest of what was what was show too far what what's what's taking more so far as what you've seen here where it's I mean I think that that's good helpful and noticing like is it do you have the technology to identify the voice and a person yes so for the commercial version that is released on the market and accessible for everyone this is not something that you offer we can make this available for customized solution for specific needs where ed this is a really important to identify different speakers but what we notice is that the average user of this technology do not need to have access to speaker identification because basically they use case of someone using black box would be All I Want to remember what we discussed about the objectives for tomorrow and then he would type in objective and then they will be able to access everything instantly the other thing that we want to show is that not only you can search within a specific file but you can search within all your database folder so let's suppose you wanna search any topic you can let's suppose you want to say what did we talk about at meetings you search meetings and the general and the home page and then you will be directed to all your finds where you have someone mentioned the word meeting and then you can be directed instantly to these fights instead of going back and forth every single file and then search for the specific information because in a start up word or a corporate setting you would have multiple meetings and at the end of the day you would have forgotten in which meeting we talked about for example aware go to market strategy and then you would say okay this and I want to stick with the discuss about it and then I would search go to market strategy and then I can play exactly this moment without wasting time and either flipping through my notes or even searching and every single fight the search engine is conducting search on every single file on everything that you have and it's giving you access to everything instantly and it just to put it in in in a just a frame here at this is it this is a coming step so you know many companies are now starting to look for such a solution so it's not so much as if if this solution is something that is valuable it's known that is this is it like is that that one is going to have to be have to make the question is more you know you saw at some point like companies they started using automated that the meaning you know like automated emailing system and nowadays it seems so obvious everyone is using get it's not human for someone to be sending you know 100000 emails a day or a week or a month and now they need a system to do have them do this automatically and this is automating it's that that usually sticking you know man hours to do to achieve the note taking and even there's information that were lost in meetings that were never recollected accurately later on so it's a step that you know everyone at some point will have to to date but it's just a question of when whether you know someone will be too it doing it today or they will be doing it you know 5 years from now and it's about also the the opportunities that you might have missed having integrated such a technology to be more productive and you know to conduct more productive meetings so I'm going to route and I am I am leaving this meeting better group coming in but see I'm so why did you decide to enter space like about space so we we chose enters peace among the corking spaces so first we we on that we had the assumption that corking cases might be a good fit for what we're doing and that hold on one moment I just remember that you were saying okay",
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154      "recording_transcription": "history 's give ray nice cool 'm in speech in life bomb entering call third stage life life being existing in 3 big stages on first that 're know 're learning from others your dependent on others 're kid second stage your life your working others dependent on and 're trying be successful after 'll get little later stage life third stage your life others successful without and that 're free and courting Joseph Campbell and free live in freedom di that that element freedom and 'm stage in life where . story bridge water out 2 bedroom apartment and 1975 and 've brought it where it now it cording fortune it's fifth most important private company in United States it's been successful it's been good and that objective this particular stage help others be successful without me learned along way certain up principles every time would make decision would write down reasons would make that decision and on 's put them out debated them and develop these principles about principles being these reasons making decision her in this week and this situation deal with it it was also very important me operate in very unusual way that seemed very sensible me and it's idea matter meritocratic way one describe Bridgewater being idea meritocracy in other words real idea meritocracy which 'll explain and show real idea meritocracy in which goals meaningful work and meaningful relationships meaningful work mean 're on mission that feel 're on mission together those great and meaningful relationships meaning that care about each other it's part community and be on that mission together and that was really good great in terms our success but it was meaningful work and meaningful relationships through radical truthfulness and radical transparency that means literally people saying anything that feel that want say in terms being polite but that sharing really believe it's true and working themselves through idea meritocratic way and literally record everything everybody mean literally there combination videos and tapes meetings that happened that nothing hidden because can't real idea meritocracy can't yourself and it's very unusual place and it was really basis our success and want explain that way operating because this idea meritocratic way in which there's meaningful work and meaningful relationships through radical truthfulness and radical transparency that could 4 full disagreement and ways getting past that this agreement legal system that been key our success that's want try combat conf conveyed 'm gonna take few minutes try go through few slides give sense this know wanted big audacious goals wish big audacious goals go after your goals and on your way your goals 're going encounter your problems and your failures that's going happen otherwise go straight goals now that's learning process counter your failures failures part learning process from failures found was great started failures lessons started them puzzles rather than develop emotional reactions those failures pain plus quality reflection would make give me progress started almost failures puzzles that could study puzzles proposals was would differently in future that wouldn't produce that problem again when it happened and would reflect well was that that would be principles would differently in future 5 solved that puzzle would get gem and gem was principle principle handle it better in future because failure learning process it's essential part learning process can realize that write down those principles Pridham down it's been fantastic learn those principles and it would help me improve and would go on more dishes goals and look evolution personal evolution almost every evolution evolution con company and pollution everything being this constant looping process that this 5 step process in other words be successful that 5 first know your goals and go after those goals be clear on your goals and will encounter problems on way those goes Ozzy beer barriers there your tests now noticed motion complain about them your problems diagnose those problems root cause get root cause and that root cause might be yourself your doing wrong with somebody else doing wrong can't personalize it really look it that make those changes and when get out that route because only knowing that root cause channel design way get around that group because 're good yourself it's find somebody else who's good that 're good because nobody can be good everything but that can't keep banging yourself on wall design that's practical get around with it and follow through and it on people come up with designs but that's necessary and trying that that's necessary again will find out getting your goals cop Orange County your next set problems and on and that believe first person level Lucien merry process that helping those rules that was able write down and that can get in these but this poor principles choose one passing them along go grab those rules were actually able them put in algorithms ambil decision making processes that replicate brain will get into that in minute in in be successful in markets one be independent thinker in be in sync entrepreneur one be independent thinker and bad against consensus and be because consensus in markets built into price that way look into price 'll bet against consensus and will be wrong fair amount times about betting against consensus but in any case need be independent thinker and entrepreneur need be independent thinker because that 're inventing new 're doing and know know 're in me be successful needed independent thinkers in them be effective well now going get this independent thinkers agree on anything idea meritocracy in other words system that literally systematically allows thoughtful disagreement that these idea meritocratic people could get answer because that's fantastic can that full disagreement get answer very powerful having that and system icing principled systems system having 4 full disagreement 90 meritocracy could produce greater amounts successes also produced failures but would look that way producer learnings and that would be produced result happy employees who really believe in this idea meritocratic in company intellectually and other ones own company happy and in place and it became easier attract those types people those types people who believe that know everybody make sense and that there was power and full disagreement and that allowed us attract more people and that was basis going from 2 bedroom apartment Bridgewater now about now 1500 people nuts and that's it works 90 meritocratic meritocracy and want pass that along and want say ID meritocracy could your own versions this pick fine but 3 different necessary 90 meritocracy first everybody put honest thoughts on table now watch this and it's many organizations many people keep it bottled up in heads ride know and 're critical behind scenes and that's bad can put your honest thoughts on table with other people's honest thoughts that understand people thinking it makes everything first lot more efficient it's terribly inefficient when everybody know other person thinking and also it doesn't allow ownership Campion idea meritocracy work 3 bodies talking behind scenes with allow talking behind scenes but anybody can challenge anything any time understand art thoughtful disagreement full disagreement many people react badly disagreement change modus operandi and start your thinking it should be curiosity know who's know who's wrong it should prompt curiosity anger it tends produce extent anger because it's barbaric animal behavior that happens evening lower part us says this flight flight and good dispute attack know and and that's good there protocols that that won't go into now that time but it 're laid out in pool book art thoughtful disagreement raise probabilities because collectively 're going it idea meritocracy and know this well collectively 're gonna make much better decisions than individual stop with information that's in your head and your opinions that's that's that's terrible believe that one greatest tragedies mankind such easy fix arm people who were stock with wrong opinions in heads that put out there and stress test and say 'm raise probabilities being art thoughtful disagreement gift and understand author through disagreement that brings in better thinking individually and probability moving into better answer than would individually that requires skill and that disagreement 's going on that collective decision making very powerful stahn well but might still disagreement after up those might come up agreed upon ways getting pastor disagreement your disagreements that knowing and on it's lower case legal case go when trial get but believe that this decision making system fair and because believe it's fair and 've that opportunity that can make your that say now can get past disagreement and rather those 3 that idea meritocracy happen know and wanted IT meritocracy about those 3 this very meaningful relationships and meaningful work together produced this success because and this radical truthfulness and radical transparency in produces idea meritocracy that's it other in idea meritocracy and in great personal development when know someone know can expect from can talk about people can deal with really getting out people know your gonna hide those and talk about those people who want come into this environment would honestly know strengths and weaknesses and work on those that can produce better teams people weaknesses can work with people color corresponding strains and also know about themselves and also be very straight forward and can hand that responsibility that but can't handle this responsibility because appear these weaknesses get objectively question whether those weaknesses those strengths can that objectively that really great this important element that been fantastic us and 'll give sense this making point that know that Ellen job qualities needed than somebody in goal eliminate that 'm going give now use technology and algorithms started know 25 years ago too and done it too and it's great model norms great use algorithms take principles and put them into making decision making system our investment decision making made replicating thinking and actually putting them in algorithms and taking in data and same about half our management processes and believe that were on path that will algorithmic idea meritocratic decision making done algorithms that can everything and that can make better decisions than individual stuck in heads and because can specify algorithm everybody can albums on but could criteria and can evaluate merit criteria but should give little sense that one want show up little clip one tools that use give flavor 're doing who can club can in give glimmer into this looks 'd take into meeting and introduce tool ours called .collector that helps us this week after US election our research team held meeting discuss trump presidency would mean US economy naturally people different opinions on matter and were approaching discussion .collector collects these views it list few dozen attributes whenever somebody thinks about another person's thinking it's easy them convey assessment simply note attribute and provide rating from one 10 example meeting began researcher named generated may 3 another words badly showing good balance open mindedness and assertiveness meeting transpired gens assessments people ended up this others in room different opinions that's normal different people always going different opinions and who knows who's 's look people thought about was doing people thought did well others poorly with each these views can explore thinking behind numbers 's 're in and Larry said note that everyone gets express thinking including critical thinking regardless position in company Jan who's 24 years old and out college can tell me CD that 'm approaching terribly this tool helps people both expressed opinions and separate themselves from opinions from higher level when Jen and others shift attentions from him putting own opinions looking down on screen perspective changes own opinions one many and naturally start asking themselves know opinion that shift in perspective going from seeing in one dimension sing in multiple dimensions and it shifts conversation from arguing our opinions figuring out objective criteria determining which opinions best behind .collector computer that watching and watch with these people thinking and it correlates that with and it communicates advice back each them based on that it draws data from meetings create point list painting people and and it does that guided algorithms knowing people helps match better with jobs example creative thinker who was on reliable might be matched up with someone who's reliable but creative knowing people also allows us decide responsibilities give them and weigh our decisions based on people's merits record believability 's example vote that took where majority people felt one way but when weighed views based on people's merits answer was completely different this process allows us make decisions based on democracy based on autocracy but based on algorithms that takes people's believability into consideration which usually this and that could believability waiting 's imagine that data on everybody that Europe but go walking in room and everybody's got opinion because and without actually thinking with element score who more likely better opinion because there's certain dynamic put out on 10 people in room and 're going get one 2 're either going idea America 're going either autocratic decision making in other words everybody fit fiends opinions and guy who responsible that and says 's decision based on that that's more normal sometimes go around room does everybody and there's notion consensus and that's 'm good either out 's best did did because really know that answer really running company this reason did this it was out need want try angulated about people who believe might better thinking F. 3 believable people believe one and believe else there's good chance that might be wrong and also one going help about them why these believe ability scores that accumulated data and other people's thinking who better worse different and people can change those scores take those into consideration and that's believability waited decision making because it helps idea meritocracy that's will go question and answer them important talk about idea meritocratic decision making however choose it and tools use get that release subordinate importance idea that idea meritocratic decision making believe that 're going start get dis principal decision making idea meritocratic decision making 're going paths print learning principles dealing with situations that themselves will be ID meritocratic situation and 're going Google find out facts now will increasingly be able go Google and find out should handle certain principles and and in that idea meritocratic way with believability waited decision making and one throw that out there and 'll our conversation 'd start with concept called use and that affects our thinking process back can talk about well brain actually lot parts in that that compete with each other make decisions about 2 being use thoughtful that in our conscious mind and emotional which in our sub conscious mind there lot motivations that probably even know better subliminal that came from maybe early childhood your circumstances that below surface and 're odds struggle with each other when 're on issue would know your weaknesses would know other people really about intellectually would know those 'm lotion lady might know those and when 're dealing with our environment say would this environment radical truthfulness radical transparency almost everybody intellectually says it and when 're going through it say it and them also struggle with emotional selves 're going through it until re adapt and when start re adapt and say knowing 's true good and and yacht now know weaknesses and know other people thinking about me and could approach about it make transition other side that that use that lead struggles know disagree that disagreement 'm finding emotionally difficult it's curiosity why shouldn't it be enjoy but that emotional that struggle that's use and tips that people can help themselves get through use issue with more resilient feedback whether know number number that in book first our first me answer it before go that particular one whenever there's whenever there's conflict recommend that go higher level one level up whenever disagreement go go one level up with person driving conflict with even yourselves when dilemma and look and come up with agreement should be with each other in other words 's say and disagreement rather than court in anger that disagreement go above and should say use your very should disagree former contract should be with each other and thank practical modus operandi that's and there's also ways it ways it certain first know that decision makers 2 step process there's first taking in and there's side capacity take in other person's point view knowing noticing your body reacting noticing reacting 'm in heart rate rise can pause 2 minute rule 7 can 22 minutes that person 2 minutes say want having those kinds protocols number in room explained in book with this curiosity where there's blocking know somebody in discussion 'll lot block taking it in these protocols won't go through them but those protocols having those protocols in place that practice our our fear created app called dispute resolved when anybody dispute push button and there's path in dispute resolver it's explained in appendix book tools anyway there and it describes procedurally one does depending on level dispute very common and display those cute when simplest night agree mutually agree on mediator agree on major move others might be on matters principle and almost progresses log leap legal cases 's your evidence 's this and who judge now when this dialogue discussion about feedback it might turn into tense situation with this agreement there medians exchange said prioritize because people who will go towards email but when use email miss tone and content and context generalization want person find medium exchange that 're most comfortable with because there pros and cons each people in moment feel that 're spontaneous in moment may be more introverted and that won't present themselves best in in personal one on one discussion that would prefer email say listen lay out thoughts hear your thoughts email and that opportunity back and forth people would it either way important that agree on 's most effective them excellent now 's say in organization goes through calamity and there trust issue in organization does company go about rebuilding trust within point 's well again article truthfulness and radical transparency means doing and did with experience with radical transparency literally every every crisis was with every situation was in would camera in that discussion look pros and cons issue everybody can that pro pros and cons discussion know there's spin trust issue it's hidden behind scenes it with radical transparency everybody can imagine it would be issue that could people making decisions literally that's weighing pros and cons and seeing real on and it could be anything from top organization even somebody firing somebody else use was darn well that radical transparency and coming out it and writing principles why did handle it that way and putting those principles out that everybody can debate that principle look that principle enormous times consuming way but effective way and having idea meritocratic way where look that say that decision was made that way maybe that's way would it but now understand thinking behind it because that there's alienation trust and appreciation that increasingly build organization in which there's wee and now know there's that those people who making decisions and really understand it and go along with that and that becomes source tension and there factions and that and there's resolution after resolution and get past it know radical truthfulness radical transparency brings trust and also means that bad on that bad that happened because bad happens in dark and make it radically transparent and everybody can bring up that everybody owns it radical transparency very effective tool in terms building trust and putting why limit none this perfect but it's been Rachael's force excellent why organizations going towards radical transparency well that inevitably will mean it know that it's easy collect data on everybody everybody's gonna know everybody's and question who's got radical transparency know gonna with radical transparency wanna make with radically transparent evolutionarily 're going go this and radical truthfulness radical transparency because it's going be tough hide it's control and time in and time thank take control means decision maker and these people these different points view and meritocratic hear this one never resolve those somebody wants get on with decision making and that that's because 're still in this believe will be in our own little world said that it in head rather than out head and in that notion make best algorithmic decision making it's in that but still it's in head and want want and know better and that that's that's big part it and thinking about time resolve it with these people that real time efficient effective way having idea meritocracy those bear barriers and there's this music that emotional using out those in would say there said 's important mission Bridgewater's having meaningful relationships that found that with this transparency 've been able guess supercharge relationships that 've in company it's our job lot say even but even go company level 'm saying any group individuals can decide whether 're going be read radically truthful and transparent and on same mission get 5 people together and said 're going be on that and that's going where it started because start company and say much going be with each other it because that honesty 'm being on that mission going bring people closer together almost proves everybody closer together hiding in absence trust bad and only absence trust but can't real ownership understand and say know everybody in 'm saying everybody and obligation make sense powerful and when read it together much more magical happens paycheck and job know now when free principles there been processes worries that maybe this principle work this point but now need re evaluated constantly because guess someone describe everything happens about everything happens and again instead look individual that coming out it's 're in snowstorm but says say species species encounter having and write principal that when next one comes along and it's bad species and go that principle and look it and everyone slightly different and that leads than refinement principles those differences pride and that transparently very powerful on always and realize that principle perfect principle works those different gradations get more fleshed out become clear and that's that's book principals about it's it's these and that 'll will from this encounter and counter and get refinement and would urge individually this one most wonderful that's happened me know when comes along situation particularly painful situation there might signal want another one those after get past your pain end it record your pain and about principles and write them down would handle that type situation write it down diary when accumulate those can share those that's very powerful 'm going create app in which mean include sap which will coach which somebody says 'm in this situation should and go that coach in theirs and that relevant principles come up but 'd rather than principles 'm gonna make it each successful person 'm going get in on pages personals actually sings principles that situation and that there and your own principles and write it down that when your in situation could look that situation and say should going those principles because start that in principal way it it's it's very helpful and will refine down 5 step process 's end 5 steps 2 people most trouble with it's very interesting it really depends on brains were there real big picture thinkers who problems with goals know where want go but problems pushing through results there people in terms diagnosing room because it's challenge everybody problem one those steps and that observing themselves which step problem with begin understand brain works it's problem though were collectively because step 're having problem with another person help them with that can really help them be effective that step and that's really key success in life key success in life largely knowing 're good and who can help be good those that can lean on each other and be affected excellence in book mention Campbell's hero's journey and type impact in work and your fellow well son gave it me in 2015 hope wait later journey but was particular point on journey where was gave me and late stage stage now described route returning bull and returning loan stage where know learned lot and people learn lot and go retirement and was making point that when learn lot pass along that others and described very vividly black public attention people that and but described it know that that stage important it pass along learned described it difficult process and when that that others successful with without get stage where 're free live in free die because that obligation heat that perhaps were caught me but read book it's very interesting even in book recounted in few pages hero's journey and start about where modify on this path hero's journey know book hero 0 faces book Joseph Campbell did went through history and maths and on says there's certain type person who taste adventure and goes in through that through that and battles in in wins and losses and mission becomes important and others become more important than themselves and rice can call that spirituality that but that it basis on Star Wars on that was basis anyway that book was it's that notion that journey and it's good book in case happen read it that particular spot but anybody referring it probably would find that's me there one biggest was out get this Europe there will come time that were going terrible situation and 're going miserable and and reflect on that situation hadn't happened and whether metamorphosis change personal change me in case happened in 1982 was was dead wrong publicly dead wrong in markets find out take time tell story made but floor 'm sorry form Bridgewater 1975 and know small company and and analyzed and done calculations that American banks lent opt urging countries lot more money though those countries going be able pay back and result would done dental in debt crisis and that was very very very controversial point view and added it turned out in that regard be Mexico defaulted in 8/19/82 and fill up 're going economic collapse because received lot attention was asked testify Congress explain situation would went on Wall Street week which was show time and believe that were going this economic collapse that was exact bottom stock market exact bottom start could been more wrong only was more more wrong lost money was money from was from clients was broke that borrow $4000 from dad help take care family it was very very painful painful mistake but with reflection would say was one best that happened me because it shifted mindset from thinking 'm Reid asking myself know 'm it gave me humility that needed balance with audacity could change approach metamorphosis and on and each person going own particular challenge that way and 'm saying in Joseph Campbell that this get it describes that experience in this and metamorphosis and that metamorphosis humility and 'm worried that might get it and get best triangulation that's motivated idea meritocracy bring in most best independent thinkers work together that's that's anyway it's good book lot your principles but far your father and your mother type principles teach well dad was jazz musician work late night was about him was was strong capable why didn't much because was playing lot 19 but stay there but and in later years week got closer and mom mom know this know memories lots memories out her was very fortunate in that mother who loved and dad who strong create character and creativity mean remember him know and it's eighties would with lot snow stand in way driving get out that shovel and went through World War 2 and that 'm and it was good those role models and would know that's it was excellent and talked about this earlier know people that benefit ball that map wonderful luxury family and can go school part marriage public school but can get that lot people today that and that's big issue transition there because were talking about psychological well that might be good family but there's economic component and 've been talking lot about wealth inequality and populism him thought maybe could toggle but more about that look this ideological usually clear on look this elegant practicality it and and on and 'm dealing with economics and there's mechanics that result this leading accommodate it 're hidden in economic average want go on link wrote 2 pieces that might find interesting on that divided top 40 percent from bottom 60 percent majority people and looked economy majority people and were look that economy it terrible economy it grown it's only population that rising death rates from opiates from suicide greatest change in in incomes it's it's bad economy and there's this economy on top and divided it 60 percent could divided into 2080 and picture be basically same only in terms installation and on up death rates rising this show it's phenomenon and it's coming result number technologies big influence on that globalization in many ways big influence on that there other but anyway that exist rich and poor together and living next each other in same community and share budget where divide pie and economic downturn 're gonna conflict form conflict and and on populism extension that this isn't first time this happened guess everything's another one those in study on populism which also on link 're interested in reading it looked 14 populist cases on classic iconic populist case and work and could read about those there's iconic wave populism that dynamic that disparity that problem which will be particularly important when next economic downturn which probably 'm almost certain will be before next presidential election which means that 'll be lot polarity it's big issue that's that's that's usually it's issue it's it's both equitable and issue equity and it's issue practicality that deal with that would say it should be national initiative would say but president somebody in which take metrics give metrics that part population could look metrics and metric it improving it worsening and does it look and initiatives be able deal with it that economically 're many that can be done wife involved would Connecticut Connecticut highest per capita income in country but it it consists rich people next lot poor people and average shift and works in school system with water called disengaging did disengaged our student one who goes school but really doesn't study tests doesn't take test fails basically failing still disconnected one that doesn't go school even know where own come school 22 percent students in Connecticut either disengage connected and look reasons that and look cost that means cost programs won't get into this lot but saw programs that keep that help keep kids in schools and get them engage that needlessly in there and graduate from high school incarceration rates change crime rates change average cost incarceration between 85 and $125000 year cost society that that happening that anyway there those kinds issues that be looked essentially forthrightly there's got be viewed issues got metrics and there's got be processes in place dealing with and that's our biggest economic issue break magic wand and could write 3 pieces policy that could be passed Congress in Europe Senate would be solve this issue that's going on now believe it's well again believe idea meritocratic decision that that big issue Argo was answering that this other question started biggest issue deal with conflict and and principles that unite us and big bring people together and that sense working it through and working it out in that and that less selfish way that healthy it know would differ deal without other particular issue said would would say there should be national commission and address practical ways dealing with such issues and also clear metrics theirs owning results those those changes but after post war period mean situation where threat World War 2 could unite Americans towards 1 because after work lead lot social progress and thought know after 911 happened period time came together but it collapsed one may be there with them scares me look history history populism real in 19 thirties phenomena and because that was 'll in this piece that wealth gap became largest 1 tenth 1 percent top 1 tenth 1 percent our population snap worth equal bottom 90 percent population network that that polarity go back them out 19 thirties after depression 19361937 and that led pop era populism lot countries left in this ride and there's conflict and lot countries chose strong populist leader there strong leaders tend be more confrontational tend be more militaristic tend be more nationalistic and that was that period in that period interestingly democracies chose autocratic can dictatorships chose because try bring water it and 1 common ways gathering support conflict with enemy foreign enemy it got 911 brings people together common enemy brings people together along that that's dangerous dynamic when 're dealing with this would say that it's more start figure out deal with these common problems try with them in more together that doesn't mean being tough but it means know being tough collectively 'd say 'm sorry interrupted your question but wanted emphasize that particular dynamic people more identifying political party own identity much 're in this together it seems 're splintering in country it's this one demerit cracked everybody throws out this that who gives damn about it know because thinking it doesn't make it true everything got because it's true resolve and get it 's true such cream that contract can actually rules having figure out 's true and about it actually going practice meditation well got into meditation and it done Beatles in 1969 next went went went there went in in meditated and came back and sounded interesting and started meditating in 96 and it changed life would would recommend transcendental meditation sorts different times meditation that it changed life been powerful and it's probably biggest gift that can give anybody because it gives published rob it it connects your conscious mind with your sub conscious mind and gives equanimity creativity that ordinarily wouldn't and reason it does that mechanistically way it does it having mantra which word that means meeting it's sound know popular one would be read repeat that with your breath and that means that get rid your thoughts because sit there and say 'm gonna try can't that thoughts jump around and get rid your thoughts go this mantra repeated and again and when pay attention that can't be thinking about that eventually mantra disappears and 're in sub conscious state and when 're in that sub conscious state 're 're conscious unconscious your your sub conscious state and that's where it's relaxing and it's great and it gives that equanimity but it also was where creativity comes from because muscle creativity say 'm gonna work there get creative it's more relaxation your take hot shower and this great idea comes bubbles up from your sub conscious and it enhances creativity and also would say one best that one can wrecking reconcile ones sub conscious motional self with one 's intellectual self because can get those line work in both ways 're gonna make better decisions meditation given me that equanimity look out know might want happen but can approach them calmly and better it's big deal it's been big deal me it helped analyze your emotions in heat argument it helps go above yourself and your situation and know look there's rate and there's circumstances it on there where it and this happens this way and should be done because 're in it 're in that blizzard coming and distinguish know type it principal that higher level should deal with it know 're either going be in it 're going be above that more that principle looking down it in that level it's much better be this level and go in and them it helps bring it that level ever found yourself promise this trap where start meditating in star feeling much better and good and also imitation morsel stop it's been long me that happens feel good when meditate mean can feel difference can can say need go on that day know it's it's that refreshing it's always good it always feels good and it's been advantage when 're in best markets where much noise going around does allow life know break family circumstances it those tell since book come out your thoughts been about reactions book did expected reactions other way curly well when in 2010 store get up unwanted pop publicity and attention and put out our internal principles were and it was down was PDF file and it was downloaded 3.5000000 times and got lot thank yous put out be understood and that problem may leave book 'm say English should be much more private person put out this book and decided go on social media try explain and interact with that and 've found it be wonderful 'm finding that gets 'm finding having big impact people giving middle phalanx 're asking questions about it there it's it's it's having desired impact passing along that one when want it and 'm actually really enjoying interactions on social media because it's it certain on personal this even though it's impersonal 'm know 'm it Sir it's good day feel good about it excellent now apps mention book when planning release those on 6 9 monsters someone that when when 're already would make them available everybody thinks 're gonna take audience questions now question please go ahead and jump on bike thank much coming really enjoyed your commentary about secret life and finding your blind spots and when talk about that it reminds our own project oxygen and talk lot about same principles in terms making decisions address that because one way that address it through diverse 'm sorry address one finding your blind spots verses using consensus way measure believability and correctness ask balance those 2 having everyone having consensus about idea verses making truly comprehensive range opinions would want smartest people most demonstrated believable people who will disagree with each other and disagree with about best path confuse consensus everybody fail make mistake thinking that lot people valuable opinions when may want try get most valuable ones and want try identify that look were going be medical problem and should about medical problems on know want ask your your friends want find out who most believable people who will disagree with and your cat each other find . gave health case and in book about can find this doctor find that doctor and them will argue that one greatest ways going through this type triangulation get really capable people who will argue with each other tri angulation about that'll probably give good indication well that might be would will learn and when triangulation that's where interesting learning really becomes because hear 2 sides argument and hear that debate 're going and ask your own questions and on begin probe and get richer understanding subject matter than ever could and can come that level and and and and get that 'm arguing consensus decision making arguing believe ability waited decision making believability waited decision making means finding out in very subjective ways in particular community who would be more reliable and and go into and believability waited decision making made that most effective approach know 've answered your question guess it's hard because objective it and especially in this era social pressures actually there's 3 use there's and there's intellectual and there's time pressures who should be and guess it's hard when means objective know that it's it's it's gives well first saying want find that out going create your idea meritocratic decision making will compromise it because convinced that operate this way will find solutions 're probably almost everybody really on that path tell me it's hard in book comes 'm giving structure literally that 're doing there's lot that can go go and follow that because said can't compromise that but long 're gonna keep saying people say it's going be hard be idea meritocratic decision making and thoughtful disagreement and these believability waited decision making won't it and will be losing competitive advantages in your god really need really want it that's most important question answer it's good sounds base that value wanting that truth and that's come comfort this believability metric dynamic and progress find about figure it out and get it only goal next person your book listen it and your book fresh and your voice very family one about transparency that talk about that it's it's great it and give one exception that interest me when read it listen it which was sharing compensation information from employees and gave arguments why that wouldn't work but could use arguments transparency against that was wondering approach that first know everybody own there's either one where lots questions can one way could it other way and who knows exactly which way it and times said myself wrestle about which way it much and it's in your struggle out it probably could flip coin decide because it probably about equally well good on question hand that's being referred make everybody's individual trans compensation transparent and reason chose that because found that on and and instead make very clear metrics and compensation levels groups people rather than talk putting particular names that that everybody knows 're doing this wall without generalization know where comp levels others on and reason did that because when found myself in discussions with evaluation that guy doing with other people and that was good know words effective sudden say know Harry's earning this amount and now describe relationship and value waiting area and 're going now be judge alma value waiting ari and that type and that's 're gonna be able be good and nor should that where can in terms compensation 'm radically transparent message that conversation want it want be radically transparent want make get into one those exactly radically transparent because really care too much about that it either way fine but doing on general concepts that 'm talking about about taping about those kinds idea meritocratic those bigger issues because question before it big could can wrestle around and choose that individual 'm describing chose it want want get your perspective on your organizational principles being adopted more widely in more different organizations in particular relative luxury would say being able being that head your organization be able design organization know operate according those principles effectively saying know way our principles work in this organization can gonna get lost read most us in that position was wondering know these principles being adopted more widely people starting organizations that operate according set principles from day one any advice on those us with more know bottom level hierarchy can influence that more local know workgroup level that came out very simply that those people who ability control organizations will consider this way operating in it and was said entrepreneurs people who can that will make choices and 're know that 'm having effect on that and that's helping that that's good and but people who 'll start about choices that where work can come environment that more idea meritocratic and one that's less idea merit crack and 've got lot choices and people running organizations that's also that's attractive be able drive that attract those people know your personal values from could work in place in which didn't opportunity make sense know those young people out that criticize me that way it should be in that and could work there it's me it would be can ship couldn't it it's personal choice feel that's important will gravitate organizations that more idea meritocratic and evolution will take its course both but because entrepreneur because individuals doing that thank online question real quick measurement big theme in your book approach measuring teams whose work only second effects example produc aesthetics who prevent bad from happening counterfactuals want say that in everyone these types questions where in which there's particular dilemma problem solve it starts off with mind group mines thinking solve that problem and doing that in idea meritocratic way will give best answer solving that problem and that most important when 'm asked that question 'm 'd give particular answer question but gave particular answer question wouldn't can Dave fact that power individually that anyway face that question does group any group and take second consequences and know decomposition that can take little test sorts could take each person's ideas and say now figure out best way that and could gather those best ways and come up with that best way and that path now on **** that that's always past understand that path 'll get best way can get and that's better than ways that and it becomes clear in in our particular case and 'm that there series evaluations that very clear evaluations that people make themselves in believability way about dimensions that sometimes can't measure sometimes can measure results directly another word can measure somebody's batting average equivalent and sometimes it needs critique 're asking somebody saying better than somebody else there's quantitative measure that type measure that but could say 're critiquing such measures can happen op levels and know that measurements that come up with jointly and that's good measurements can create metrics about it qualitative said ought give example populism well measure popular Madison Avenue and again qualitative but could start create that process found that and large almost anything that can can express in algorithm and in rule real question get that good rule excellent thank speaking with us today Mister Dio name Max and 'm reading through this book which 'm thoroughly enjoying one question keep coming back assessing timing because operate in vacuum coming up with correct decision one knowing be radically truthful when giving feedback one but assess timing around giving that type feedback coming those executing those decisions well there's there's name part chapter on decision making there's section on on timing actually might go that section on timing and know and large but it but it 're also asking timing feedback 're asking time timing feedback would say it's can it's virtually continuous that that.collector that did that it giving everybody feedback from everybody and causing people go above that happening continuously in every moment day people know 360 review continuously lot people time and can step back and patterns can look daily care but and can step back into bigger picture but it really very advantageous beat doing it continuously because can connected specific in other words lot time somebody give evaluation and there's 1000000 annual review about review silly that get it say now 're doing these but can't connect it specific being able connect that fall in time specific know could look back that and consultation with other people handled it this way and can make that very tangible thank will question regarding organization grow position amazing that that want disagreements will be discussed 'm wondering serve in plots time persuade each other reduce discriminates this lady takes time reach consensus in group 'm miss opportunity because take too much time on global consensus will result in book there's it left 're talking about risk there can exist it's expressed in book on that that it doesn't that and there's interns holder from where but important explore quickly that notion should make decision because find since everything happens and again on particular case get down very clear way make decision effectively 'll be able move passed it find that inefficiency organizations in which people argue endlessly and resolve it that know it terrible but need protocols need tools thank will read book 'm ticket online question real quick in your book talk about making decisions expected value calculations find estimating pay off lot easier than estimating probability success given that people in general bad estimate probabilities can share techniques found work well well one that found your bill was write decision rule out depending on nature decision role hi can test it would work and in past and get sense that in and that's when decision rules said",
155      "recording_transcription_org": "history so let's give ray a nice cool I'm in a speech in my life bomb entering what I call the third stage of my life I think of life is being existing in 3 big stages on the first is that you're you know you're learning from others your dependent on others you're a kid second stage of your life is then your working others are dependent on you and you're trying to be successful then after you'll get the little later stage of life third stage of your life is others are successful without and that you're free and courting the Joseph Campbell and free to live in freedom di okay so that you have that element of freedom and so I'm at a stage in my life where the I. story bridge water out of a 2 bedroom apartment and 1975 and I've brought it to where it is now it cording to fortune it's the fifth most important private company in the United States it's been successful it's been good and that my objective at this particular stage is to help others be successful without me I learned along the way certain up principles not every time I would make a decision I would write down the reasons I would make that decision and on my let's put them out I debated them and I develop these principles so think about principles is just being these reasons for making a decision of her in this week and this situation how do you deal with it it was also very important to me the to operate in a very unusual way that seemed very sensible to me and it's an idea matter meritocratic way SO one describe Bridgewater as being an idea meritocracy in other words a real idea meritocracy which I'll explain and show to you so real idea meritocracy in which the goals are meaningful work and meaningful relationships meaningful work I mean you're on a mission that you feel you're on a mission together to do those great things and meaningful relationships meaning that you care about each other it's part of the community and to be on that mission together and that was really good great in terms of our success but it was meaningful work and meaningful relationships through radical truthfulness and radical transparency that means literally people saying anything that they feel that they want to say in terms of being polite of course but at that sharing what they really believe it's true and working themselves through to have an idea meritocratic way and to literally record everything for everybody here so I mean literally there of combination of videos and tapes of all meetings that happened so that nothing is hidden because you can't have a real idea meritocracy if you can't see things yourself and so it's a very unusual place and it was the really the basis of our success and I want to explain that way of operating to you because this idea meritocratic way in which there's meaningful work and meaningful relationships through radical truthfulness and radical transparency so that you could have 4 full disagreement and have ways of getting past that this agreement to then move on like a legal system that has been the key to our success so that's what I want to try to combat the conf conveyed to you I'm just gonna take a few minutes to try to go through a few slides to give you a sense of this you know I wanted a big audacious goals I wish big audacious goals for you go after your goals and on your way to your goals you're going to encounter your problems and your failures right that's going to happen otherwise you just go straight to goals now that's the learning process to counter your failures failures as part of the learning process from the failures what I found was great is right I started to think of failures as lessons I started to think of them as puzzles rather than develop emotional reactions to those failures I sort of think pain plus quality reflection would make give me progress so I started to think of almost the are failures like puzzles that if I could see study the puzzles proposals was what would I do differently in the future that wouldn't produce that problem again when it happened so and then I would reflect well what was the that that would be my principles what would I do differently in the future 5 solved that puzzle I would get a gem and the gem was principle a principle to handle it better in the future because failure is a learning process it's essential part of the learning process you can realize that you write down those principles Pridham down it's been fantastic so we learn those principles and then it would help me improve and then I would go on to more dishes goals and I look at evolution personal evolution almost every evolution evolution of a con company and pollution everything as being this constant looping process that I sort of think of as this 5 step process right if in other words to be successful you have that you have to do 5 things you have to first you have to know what your goals are and go after those goals be clear on your goals and you will encounter problems on the way to those goes Ozzy beer barriers okay there your tests now noticed a motion we complain think about them as your problems you have to diagnose those problems to the root cause to get at the root cause and that root cause might be yourself what your doing wrong or with somebody else is doing wrong so you can't think personalize it you have to really look at it so that you make those changes and when they get out that route because only by knowing that root cause channel then you design a way to get around that group because like if you're not good at something yourself it's okay if you find somebody else who's good at the things that you're not good at because nobody can be good at everything right so but you have to do that you just can't keep banging yourself on the wall so you have to design something that's practical to get around with it and then you have to follow through and do it on people come up with designs but you have to do the thing that's necessary and by trying that thing that's necessary again you will find out are you getting your goals are you a cop Orange County your next set of problems and so on and that I believe is the first person level Lucien merry process that is helping those rules that I was able to write down and that you can get in these but this poor principles or choose one passing them along go grab those rules we were actually able to them to put in algorithms ambil decision making processes that replicate the brain will get into that in a minute okay so in order in order to be successful in the markets one has to be an independent thinker in order to be in sync at an entrepreneur one has to be an independent thinker and bad against the consensus and be right because the consensus in the markets is built into the price whatever that way thanks to look into the price so you'll have to think you have to bet against a consensus and you will be wrong a fair amount of times about betting against a consensus but in any case you need to be an independent thinker and for an entrepreneur you need to be an independent thinker because that you're inventing new stuff you're doing something and you know I don't know if you're right so in order for me to be successful I needed to have a bunch of independent thinkers in order to have them have be effective okay well now how are you going to get this bunch of independent thinkers to agree on anything okay I had to have an idea meritocracy in other words I had to have a system that literally systematically allows for thoughtful disagreement so that these idea meritocratic people could then get at the right answer because that's fantastic if you can have that for full disagreement to get the right answer is very powerful by having that and then system icing principled systems a system for having 4 full disagreement for 90 meritocracy we could produce greater amounts of successes we also produced failures but we would look at that way producer learnings and that would be produced as a result happy employees who really believe in this idea meritocratic thing at all in the company intellectually and other ones own the company we had happy and in place and then it became easier to attract those types of people those types of people who believe that you know everybody has the right to make sense of things and that there was a power and for full disagreement and that allowed us to attract more people and that was the basis of going from the 2 bedroom apartment to Bridgewater now so we have about now we have the 1500 people nuts and that's how it works is 90 meritocratic meritocracy and I want to pass that along to you and I want to say okay so what is an ID meritocracy you could have your own versions of this you pick what is fine to you but 3 different things are necessary for 90 meritocracy first you everybody has to put their honest thoughts on the table to see now I watch this and I think it's so many organizations so many people they all keep it bottled up in their heads ride you know and they're critical behind the scenes and that's bad so can you put your honest thoughts on the table with other people's honest thoughts so that you understand what people are thinking okay it makes everything first of all a lot more efficient right it's terribly inefficient when everybody to know what the other person is thinking and then also it doesn't allow ownership the Campion idea meritocracy if you just don't work at 3 bodies talking behind the scenes with we don't allow talking behind the scenes but anybody can challenge anything at any time okay then you have to understand the art of thoughtful disagreement okay for full disagreement so many people react badly to disagreement you have to change the modus operandi and start your thinking it should be curiosity how do you know who's right how do you know who's wrong okay it should prompt curiosity not anger it tends to produce some extent anger because it's like a barbaric animal behavior that what happens is the evening the lower part of us says this flight or flight thing and then the good for dispute as an attack you know and and you you have to that's not good so there are protocols that we have that I won't go into now that I don't have time but it they're laid out in the pool book of how do you have the art of thoughtful disagreement to raise the probabilities because collectively you're going it if if you have an idea meritocracy and you know how to do this well collectively you're gonna make much better decisions than an individual if you just stop with the information that's in your head and your opinions that's that's that's terrible I believe that one of the greatest tragedies of mankind such a easy thing to fix arm is the people who were stock with wrong opinions in their heads that they don't put out there and stress test and say I'm raise their probabilities of being right so the art of thoughtful disagreement gift and understand the author for through disagreement that brings in better thinking then you individually has and has a probability of moving into a better answer than you would have individually that requires a skill and that so then you have the disagreement what's going on at that collective decision making very powerful stahn well but you might still have a disagreement after up those things you might come up then you have to have agreed upon ways of getting pastor disagreement if you have your disagreements that are knowing at you and so on it's like a lower case legal case okay you go when you have a trial you do what you get at but you believe that this decision making system is fair and because you believe it's fair and you've had that opportunity that you can make your that you say now we can get past the disagreement and move on rather so those are the 3 things that an idea meritocracy has to happen you know and so if you think you wanted IT meritocracy you have to think about those 3 things okay so this is a very meaningful relationships and meaningful work together have produced this success because and then this radical truthfulness and radical transparency in produces an idea meritocracy that's it okay the other thing is in order to have an idea meritocracy and in order to have a great personal development when you know what someone is like you know what you can expect from the okay can you talk about what people are like can you deal with really getting out what people are like do you know what your like or you gonna hide those things and not talk about those things okay for people who want to come into this environment would like to honestly know what their strengths and weaknesses are and work on those so that they can produce better teams the people have some some weaknesses can work with people of color a corresponding strains okay and also know about themselves and also be very straight forward and I can hand you that responsibility that but I can't handle this responsibility because you appear to have these weaknesses how do you get objectively at the question of whether you have those weaknesses are those strengths can we have do that objectively that is really great so this is an important element that has been fantastic for us and I'll give you a sense so this is just making the point that you know that Ellen job qualities needed than what somebody is like in the goal is to eliminate that so I'm just going to give you so now I use technology and algorithms I started you know 25 years ago too and we do have done it too and it's a great model norms to great use algorithms to take principles and put them into making decision making system all of our investment decision making is made by replicating are thinking and actually putting them in algorithms and taking in data and we do the same thing for about half of our management processes and I do believe that were on the path that we will have algorithmic idea meritocratic decision making done by algorithms that can see everything and that can make better decisions than individual stuck in their heads and because you can specify the algorithm so everybody can see the albums on but could see the criteria and they can evaluate the merit of the criteria but should just give you a little sense of that one I want to do is just to show you up a little clip of one of the tools that we use give you a flavor of what we're doing okay so who can at the club can in order to give you a glimmer into what this looks like I'd like to take you into a meeting and introduce you to a tool of ours called the.collector that helps us to this a week after the US election our research team held a meeting to discuss what the trump presidency would mean for the US economy naturally people have different opinions on the matter and how we were approaching the discussion the.collector collects these views it has a list of a few dozen attributes so whenever somebody thinks something about another person's thinking it's easy for them to convey their assessment they simply note attribute and provide a rating from one to 10 for example as the meeting began a researcher named generated may have 3 another words badly for not showing a good balance of open mindedness and assertiveness as the meeting transpired gens assessments of people ended up like this others in the room have different opinions that's normal different people are always going to have different opinions and who knows who's right let's look at just what people thought about how I was doing some people thought I did well others poorly with each of these views we can explore the thinking behind the numbers here's what you're in and Larry said note that everyone gets to express their thinking including their critical thinking regardless of their position in the company Jan who's 24 years old and right out of college can tell me the CD all that I'm approaching things terribly this tool helps people both expressed their opinions and then separate themselves from their opinions to see things from a higher level when Jen and others shift their attentions from him putting their own opinions to looking down on the whole screen their perspective changes they see their own opinions is just one of many and naturally start asking themselves how do I know my opinion is right that shift in perspective is like going from seeing in one dimension to sing in multiple dimensions and it shifts the conversation from arguing over our opinions to figuring out objective criteria for determining which opinions are best behind the.collector is a computer that is watching and watch as with all these people are thinking and it correlates that with how they think and it communicates advice back to each of them based on that then it draws the data from all the meetings to create a point to list painting of what people are like and how they think and it does that guided by algorithms knowing what people are like helps to match the better with their jobs for example a creative thinker who was on reliable might be matched up with someone who's reliable but not creative knowing what people are like also allows us to decide what responsibilities to give them and to weigh our decisions based on people's merits record their believability here's an example of a vote that we took where the majority of people felt one way but when we weighed the views based on people's merits the answer was completely different this process allows us to make decisions not based on democracy not based on autocracy but based on algorithms that takes people's believability into consideration yup which usually do this and so that you could see believability waiting so let's imagine that you have data on everybody so that Europe but you just don't go walking in a room and everybody's got an opinion because and without actually thinking with some element of score who is more likely to have a better opinion because there's a certain dynamic you put out on 10 people in a room and you're going to get one of 2 things you're either going to have idea America you're going to either have autocratic decision making in other words everybody fit fiends their opinions and then the guy who is responsible for that and says okay here's my decision based on that that's more normal sometimes you go around the room what does everybody think and then there's a notion to a consensus and that's I'm so good either out what's best what I did I did because I really don't know that I have the right answer I really don't running the company this are the reason I did this as it was out of need I want to try angulated about people who I believe or not might have better thinking or an F. 3 believable people believe one thing and I believe something else there's a good chance that I might be wrong and also one of my going to do help what about for them so why I like to have these believe ability scores that is accumulated by data and other people's thinking of who is better or worse at different things and then you the people can change those scores or take those into consideration and that's what believability waited decision making is because it helps the idea meritocracy okay so that's what we do will go to the question and answer them the important thing here is to talk about idea meritocratic decision making however we choose to do it and whatever tools we use to get at that is release of subordinate importance to the idea of how do you have that idea meritocratic decision making I believe that what you're going to see is if you start to get the dis principal decision making idea meritocratic decision making what you're going to see is paths print learning a principles for dealing with situations that themselves will be ID meritocratic so if you have a situation and you're going to okay Google to find out what the facts are now you will increasingly be able to go to Google and find out how you should handle certain things principles and and the like in that idea meritocratic way with believability waited decision making and the like SO one throw that out there and then we'll have to our conversation I'd like to start with you had a concept called the to use and how that affects our thinking process of back can you talk about the well the brain actually has a lot of parts in is that are the things that compete with each other to make decisions about the the the 2 being use are the thoughtful you that is in our conscious mind and then the emotional you which is in our sub conscious mind there are a lot of motivations that you probably don't even know better subliminal that came from maybe early childhood or your circumstances that are below the surface and they're at odds they struggle with each other so when you're on like the issue of would you like to know your weaknesses would you like to know what other people really think about you okay intellectually you would like to know those things I'm lotion a lady you might not like to know those things and so when you're dealing with our environment you say would you like to have this environment of radical truthfulness of radical transparency almost everybody intellectually says it and when they're going through it they say it and you see them also struggle with their emotional selves as they're going through it until they re adapt and when they start to re adapt and they say knowing what's true is good and and yacht now I know my weaknesses and I know what other people are thinking about me and I could approach what to do about it then they sort of make a transition to the other side so we have that that are to use that lead to struggles like you know disagree that at all disagreement I'm finding emotionally difficult it's curiosity why shouldn't it be enjoy but we have that emotional thing that we have to struggle so that's the to use and what are some tips that people can help themselves get through the to use issue with more resilient feedback whether you know the number of their number of things that are in the book first our first I think okay me answer it before I go to that particular one whenever there's whenever there's conflict I recommend that you go to a higher level one level up whenever you have a disagreement just go to go to one level up with the person driving the conflict with or even yourselves when you have a dilemma and look and come up with an agreement of how you should be with each other in other words let's say you and I have a disagreement okay rather than the court in the anger of that disagreement to go above and you should say how do we use your very how should we disagree former contract of how you should be with each other and they thank you a practical modus operandi that's what we do and then there's also then the ways we do it so the ways we do it are certain things first to know that decision makers a 2 step process there's first taking in and then there's the side the capacity to take in the other person's point of view the knowing noticing how your body is reacting noticing how you are reacting I'm I have in my heart rate rise can I pause we have something like the 2 minute rule 7 can I have 22 minutes then that person has the 2 minutes to say what they want having those kinds of protocols their number in the room explained in the book with this curiosity where there's not blocking you know somebody in a discussion we'll do a lot to block the taking it in so these protocols I won't go through them all but those protocols having those protocols in place that you practice our our fear I have created an app called the dispute resolved okay so when anybody has a dispute you push the button and there's a path in the dispute resolver it's explained in the appendix of the book all the tools are anyway there and it describes procedurally what one does depending on the level of the dispute like a very common thing is if you and I have a display those cute when the simplest things to do is for you at night to agree mutually agree on a mediator so we agree on a major move for some others might be on matters of principle and almost progresses log leap like legal cases what's your evidence what's this and who is the judge now when you have this dialogue discussion about feedback it might turn into a tense situation like with this agreement are there medians exchange said you prioritize because I I see some people who will go towards email but when you use email you miss tone and content and context as a generalization we want the person to find the medium of exchange that they're most comfortable with because there are pros and cons to each like some people in the moment feel that they're not as spontaneous in the moment or they may be more introverted and they think that they won't present themselves the best in a in a personal one on one discussion so that they would prefer by email to say listen I like to lay out my thoughts hear your thoughts by an email and then have that opportunity to have the back and forth some people would like to do it either way is the important thing is that they just agree on what's most effective for them excellent now let's say in organization goes through a calamity and there is a trust issue in the organization how does a company go about rebuilding the trust within the point he's well again I think article truthfulness and radical transparency is the means of doing and what what I did with my experience with the if you have radical transparency so literally every every crisis I was with every situation I was in I would have a camera in that discussion as we look at the pros and cons of the issue so everybody can see that pro some pros and cons of the discussion so you know there's no spin if you have a trust issue if it's hidden behind the scenes I think it with a radical transparency so everybody can see just imagine what it would be like here okay for whatever issue that you could see how people making decisions literally that's weighing the pros and cons and seeing how they are real on and it could be anything from the top of the organization to just even somebody firing somebody else so you don't use was a darn well that radical transparency and then coming out of it and writing principles as to why did you handle it that way and then putting those principles out so that everybody can debate that principle or look at that principle not an enormous times consuming way but an effective way so and then having an idea meritocratic way where you look at that you say okay that decision was made that way maybe that's not the way I would do it but I now understand the thinking behind it because if you don't have that the thing then there's alienation if you don't have trust and you have don't have an appreciation that increasingly you build an organization in which there's a wee and now you know there's that those people who are making the decisions and you don't really understand it and you just have to sort of go along with that and then that becomes a source of tension and then there are factions and all that and there's no resolution after resolution and get past it so you know the the radical truthfulness of the radical transparency brings trust and also means that bad stuff on that stuff the bad stuff that happened because bad stuff happens in the dark sure I think you and make it radically transparent and everybody can bring up that everybody owns it radical transparency is a very effective tool in terms of building trust and putting things so why limit none of this is is perfect but it's certainly been Rachael's force excellent why you think organizations are going towards radical transparency well I think that they inevitably will I mean it you must know that it's so easy to collect data on everybody so everybody's gonna know what everybody's like and then the question is who's got the radical transparency I know what you gonna do with the radical transparency if you wanna make what you do with a radically transparent okay so I think evolutionarily we're going to go to this and a radical truthfulness radical transparency because it's going to be tough to hide I think it's a control thing and I had a time in and time thank so take control thing means a decision maker and all these people of all these different points of view and how meritocratic is just to hear all this one never resolve those things so somebody just wants to sort of get on with their decision making and I think that that's because they're still sort of in this what I believe will be in our own little world mine said is that it is all in the head not rather than out of the head and in that notion of how do you make the best algorithmic decision making so it's not in that but we still have the it's in my head and I want to do what I want to do and I know better and how do I do that that's that's a big part of it and then the thinking of course about the time of how do you resolve it with all these people so that you have a real time efficient effective way of having an idea meritocracy those of the bear barriers and then there's this to music okay that emotional using out those in the I would say there is no you said what's important for the mission of Bridgewater's having meaningful relationships that have you found that with this transparency you've been able to just I guess supercharge relationships that you've had in the company it's our job a lot just say we don't even have to yes but we don't even have to go to the company level I'm just saying any group of individuals can decide whether they're going to be read radically truthful and transparent and on the same mission thanks you get 5 people together and they said we're going to be on that and that's going to where it started to because I start the company and I say how much going to be with each other so it has because that honesty I'm being on that mission is going to bring people closer together almost proves everybody closer together the hiding stuff in the absence of trust is bad and not only the absence of trust but the you can't have a real ownership if you don't understand and don't have a say you know everybody in like I'm saying everybody has the right and obligation to make sense of things powerful and when you read it together something much more magical happens then a paycheck and a job you know now when you free principles has there been processes worries that maybe this principle work at this point but now I need to re evaluated constantly because like you so I guess someone describe I think everything happens just just about everything happens over and over again we instead look at things as individual things that are coming out so it's like we're in a snowstorm but if you just sort of says say what species of thing what species of encounter my having and you write a principal for you right that then when the next one comes along and you see are it's bad species and you go to that principle and you look at it and everyone slightly different and that leads to than the refinement of the principles of those differences pride and then to do that transparently is very powerful so on always and you realize of course that no principle is perfect no principle works so those different gradations get more fleshed out become clear and that's what the that's what the book principals is about it's a it's a bunch of these things and that you'll see how they will sort of all from this encounter and how to counter and you get refinement and I would urge you individually to do this one of the most wonderful things that's happened to me you know when something comes along some situation particularly painful situation there for might signal you don't want another one of those after you get past your pain or at the end of it record your pain and then think about principles and write them down how would you handle that type of situation write it down like a diary when you accumulate those can share those that's very powerful I'm going to create an app in which I mean don't include we have a sap which will coach which somebody says I'm in this situation what should I do and then they go to that coach in theirs and that the relevant principles come up but I'd rather than just my principles I'm gonna make it then each successful person I'm going to get in on pages personals actually sings principles for that situation and you have that there and then you have your own principles and you write it down so that when your then in a situation you could look at that situation and you say what should I do going to those principles so because if you start to think of that in the principal way it it's it's very helpful and they will refine down the 5 step process what's the end of the 5 steps what 2 people have the most trouble with it's very interesting it really depends on how their brains were like there are some real big picture thinkers who are you don't have no problems with goals they know where they want to go but they have problems pushing through the results so there are some people in terms of diagnosing things to the room because it's a challenge everybody has a problem of one of those steps and we see that by observing themselves as to which step they have a problem with they begin to understand how the brain works it's not a problem though if they were collectively because whatever step they're having a problem with another person if they help them with that can really help them be effective at that step and that's really the key to success in life the key to success in life largely knowing what you're not good at and who can help you be good at those things so that you can lean on each other and be affected excellence in the book you mention just of Campbell's hero's journey and what type of impact in his work have you and your fellow well my son gave it to me in 2015 I hope so wait later my journey but I was at a particular point on my journey where I was he gave to me and at the late stage the stage right now at he described what route returning the bull and returning the loan is the stage where you know what you learned a lot and some people learn a lot and then they go to retirement and he was making the point that when you learn a lot you pass along that to others and he described very vividly black I don't like public attention I don't like people that and but has he described it has you know at that that stage how important it is to pass along what you learned he described it as a difficult process and then when you do that so that others are successful with or without you then you get to a stage where you're free to live in a free to die because you don't have that obligation so heat that perhaps were he caught me but if you read the book it's very interesting or even in my book I recounted in a few pages what the hero's journey as and you start to think about where a modify on this path the hero's journey just if you don't know the book hero 0 faces is the book Joseph Campbell what he did is he he went through a history and maths and so on he says there's a certain type of person who has a taste for adventure and goes in through that through that and then has their battles in the in the wins and losses and then they then the mission becomes important and others become more important than themselves and they rice we can call that spirituality whatever that is but that it is the basis of on Star Wars on that was the basis of anyway that his book was so it's that notion of that journey and it's a good book in my case I happen to read it at that particular spot but anybody referring to it probably would find that's me there they don't one of the biggest things was out to get this what is Europe yes there will come a time that you were going to have a terrible situation and you're going to miserable and and how you reflect on that situation hadn't happened and whether you have a metamorphosis a change of personal change me in my case happened in 1982 I was I was dead wrong at at at publicly dead wrong in the markets are find out if I take the time to tell you the story made but okay you have the floor okay so I'm sorry for form Bridgewater 1975 and I had a you know small company and and I analyzed and I had done calculations that American banks had lent to opt urging countries a lot more money though those countries are going to be able to pay back and as a result we would have done dental in order to debt crisis and that was a very very very controversial point of view and added it turned out in that regard to be right Mexico defaulted in 8/19/82 and I fill up we're going to have an economic collapse so because so I received a lot of attention I was asked to testify to Congress to explain the situation I would I went on Wall Street week which was a show of the time and I believe that we were going to have this economic collapse that was the exact bottom of the stock market exact bottom the start I could not have been more wrong not only was of more more wrong I lost money I was money from the I was my from my clients I was so broke that I had to borrow $4000 from my dad to help to take care of my family it was a very very painful painful mistake but with reflection I would say was one of the best things that happened to me because it shifted my mindset from thinking I'm Reid to asking myself how do I know I'm right it gave me the humility that I needed to balance with my audacity could change my approach I had a metamorphosis and so on and each person is going to have their own particular challenge that way and so what I'm saying is like in Joseph Campbell that of this to get it describes that experience as here in the at this and then do you have the metamorphosis and that metamorphosis is kind of a like a humility and I'm worried that you might not get it right and how do you get the best triangulation that's motivated the idea meritocracy bring in the most best independent thinkers to work for together so that's what that's like so anyway it's a good book thanks no no a lot of your principles but as far as your father and your mother what type of principles they teach you well my dad was a jazz musician they work late at night he was a no I think about him he was a he was a strong capable then why didn't see much of because he was playing a lot of 19 but stay there but and in later years week we got closer and my mom mom you know let me do this you know I had memories lots of memories of out of her so I was very fortunate in that I had a mother who loved the and a dad who I had strong create character and creativity I mean I remember him you know and it's eighties he would with a lot of snow stand in the way of driving get out that shovel and he he what he went through World War 2 and that kind of thing so I'm not and it was a good so I have those role models and I would you know that's what it was like excellent and we talked about this earlier you know some people don't have that benefit so I had a ball that map wonderful luxury of family and then I can go to a school is part of their marriage public school but I can get that a lot of people today don't have that and I think that's a big issue transition there because we were talking about the psychological well that might be a good family but then there's an economic component and you've been talking a lot about wealth inequality and populism him thought maybe you could toggle but more about that here OK look this is not an ideological usually clear on just as I look at this elegant practicality of it and and so on and I'm dealing with economics and there's a mechanics that is as a result of this leading to to accommodate so it they're hidden in the economic the average if you want to go on link then I wrote 2 pieces that you might find interesting on like that I divided the top 40 percent from the bottom 60 percent the majority of people and I looked at what is the economy of the majority of people like and if you were to look at that economy it is a terrible economy it has not grown it's the only population that has a rising death rates from opiates from suicide the greatest change in in incomes it's a it's a bad economy and then there's this economy on the top and I I I divided it 60 percent I could have divided into 2080 and the picture be basically the same not only the in terms of the installation and so on the up the death rates rising all of this show it's a phenomenon and it's coming as a result of a number of things technologies a big influence on that globalization in many ways is a big influence on that there are other things but anyway that exist if you have rich and poor together and living next to each other in the same community and they share a budget where they have to divide the pie and you have an economic downturn you're gonna have a conflict you have some form of conflict and and so on populism is an extension of that this isn't the first time this happened I guess everything's another one of those so in the study on populism which is also on link then if you're interested in reading it I looked at 14 populist cases on what is a classic iconic populist case like and what how do they work and so you could read about those there's an iconic wave of populism so that dynamic of that disparity that problem which I think will be particularly important when we have the next economic downturn which I think probably I'm almost certain will be before the next presidential election which means that I think they'll be a lot of polarity I think it's a big issue so that's that's that's usually it's an issue of it's it's both an equitable and issue of equity and it's an issue of practicality that we have to deal with that I would say it should be a national initiative I would say but by the president or somebody in which you take the metrics I give metrics for that part of the population you could look at the metrics and you if you have metric so is it improving or is it worsening and what does it look like and then you have initiatives of how to be able to deal with it I think that economically we're not what what their many things that can be done my wife is involved I would Connecticut Connecticut has the highest per capita income in the country but it has it consists of rich people next to a lot of poor people and the average is shift and she works in the school system with water called disengaging did you a disengaged our student is one who goes to school but really doesn't study for tests doesn't take the test fails is basically a failing still I had a disconnected is one that doesn't go to school they don't even know where they are their own come to school 22 percent of the students in Connecticut are either disengage or just connected at and you look at the reasons for that and you look at the cost of what that means the cost of the their programs I won't get into this a lot but I we we saw their programs that keep that help to keep the kids in schools and get them engage that are needlessly not in there and if they graduate from high school the incarceration rates change all the crime rates change average cost of incarceration is between 85 and $125000 a year so you think of the cost of the society that is that is happening that anyway there are those kinds of issues that I think you have to be looked at essentially forthrightly there's got to be viewed as an issues got the metrics and there's got to be processes in place for dealing with if and that's our biggest economic issue break if you had like a magic wand and you could just write like 3 pieces of policy that could be passed by Congress in Europe by the Senate what would they be to solve this issue that's going on right now or or do you believe it's well I again I believe an idea meritocratic decision I think that that the big issue Argo was answering the for the that this other question for we started I think the biggest issue is how we deal with conflict and how we have and what are the principles that unite us and to big bring people together and that sense of okay working it through and working it out in that and all that less selfish way so that we do healthy things it you know I would differ we deal without the other particular issue like I said I would I would say there should be a national commission and to address what are the practical ways of dealing with such issues and also clear metrics of theirs owning the results of those those changes but after the post war period I mean we had the situation where the threat of World War 2 could unite all Americans towards 1 because after work to lead to a lot of social progress and I thought you know after 911 happened we we had a period of time we came together but then it just kind of collapsed what what one of the things I may just be there with them to scares me if you look at history the history of populism is a is real in 19 thirties phenomena all and because that was what you'll see in this piece that the wealth gap became largest 1 tenth of 1 percent top 1 tenth of 1 percent of our population snap worth is equal to the bottom 90 percent of the population is network so that that polarity you go back to them out 19 thirties after the depression 19361937 and that led to pop the the era populism a lot of countries is left in this ride and there's a sort of a conflict and a lot of countries chose a strong populist leader there is strong leaders tend to be more confrontational tend to be more militaristic tend to be more nationalistic and that was that period in that period interestingly for democracies chose to the autocratic can dictatorships chose to because to try to bring water to it and 1 of the common ways of gathering support is to have conflict with an enemy a foreign enemy so if it got 911 brings people together a common enemy brings people together along that that's a dangerous dynamic not just so when we're dealing with this I would say that it's more like we have to start to figure out how to deal with these common problems try to do with them in a more together that doesn't mean not being tough but it means you know being tough collectively I'd say I'm sorry I interrupted your question but I think I I just wanted to emphasize that particular dynamic thanks I I see people more identifying for their political party or their own identity not as much as we're kind of all in this together it seems like we're kind of splintering here in the country it's this whole one demerit cracked things like everybody throws out I think this I think that who gives a damn what you think about it you know like how just because thinking it doesn't make it true everything got because they think it's true how do you resolve and get it what's true such a cream that contract we can actually have the rules of having we figure out what's true and what to do about it actually going to you you practice meditation well what got you into meditation and what has it done for you are the Beatles in 1969 next they went to they went they went over there to they went in the in the meditated and they came back and sounded interesting and I started meditating in 96 and it is changed my life I would I would recommend I do transcendental meditation or all sorts of different times meditation that I think it has changed my life has been so powerful and it's probably the the biggest gift that I can give anybody because it gives you all published rob it it connects your conscious mind with your sub conscious mind and gives you an equanimity creativity that you ordinarily wouldn't have and the reason it does that mechanistically the way it does it is by having a mantra which is a word that means as of a meeting it's a sound something like you know popular one would be so you read repeat that with your breath and that means that you get rid of your thoughts because you if you sit there and say I'm gonna try not to think you can't do that thoughts just jump around and so to get rid of your thoughts you go to this mantra you repeated over and over again and when you pay attention to that you can't be thinking about something that eventually the mantra disappears and you're in a sub conscious state and when you're in that sub conscious state you're you're not a conscious or unconscious your your sub conscious state and that's where so it's relaxing and it's great and it gives you that equanimity but it also was where creativity comes from because you don't you don't you don't muscle creativity don't say I'm gonna work there get creative it's more like relaxation your take a hot shower and this great idea comes to you sort bubbles up from your sub conscious and so it enhances creativity and also I would say one of the best things that one can do is wrecking reconcile ones sub conscious a motional self with one 's intellectual self because if you can get those things a line like if they work in both ways you're gonna make better decisions so meditation has given me that kind of equanimity so I look at things out you know things I might not want to happen but I can approach them calmly and better so it's a big deal it's been a big deal for me has it helped you like analyze your emotions in the heat of like an argument it helps you sort of go above yourself and your situation and you know you look at there's rate and there's the circumstances it on there where it is and all this thing happens this way and okay so what should be done right because if you're in it if you're in that blizzard of things coming at you and you don't distinguish you know what type of thing is it what principal at that higher level how should I deal with it you know you're either going to be in it or you're going to be above that at more of that principle looking down at it in the that level it's much better to be at this level and then go in and do them so it helps to bring it to that level have you ever found yourself I promise of this trap where all start meditating in an all star feeling much better and good and also I don't imitation a morsel stop it's been so long for me that what happens is I feel good when I meditate I mean I can feel the difference I can I can sort of say I need to go on that day you know it's it's that refreshing so it's always good it always feels good and it's been an advantage to when you're in the best of markets where so much noise going around you does allow you to kind of just life you know break family circumstances whatever it is we all have those things tell since the book has come out what have your thoughts been about the reactions to the book did you expected the reactions the other way the curly are well when I in 2010 I store to get up unwanted pop publicity and attention and so I put out what our internal principles were and it was down what I was just PDF file and it was downloaded 3.5000000 times and I got a lot of thank yous I just put out so to be understood and that problem may leave the book I'm as I say I don't have my English should be much more of a private person I put out this book and I then decided to go on social media to try to explain and interact with that and I've found it to be just wonderful what I'm finding is that I gets I'm finding is having a big impact people are giving the middle phalanx they're asking questions about it there it's it's it's having my desired impact of passing along that one when I want it and I'm actually really enjoying the interactions on social media because it's it has a certain on personal this even though it's impersonal so I'm you know I'm it Sir it's good day I feel good about it excellent now the apps you mention the book when are you planning to release those on 6 or 9 monsters someone that when a when they're already I would like to make them available for everybody thinks of so we're gonna take audience questions now so if you have a question please go ahead and jump on the bike I thank you so much for coming I really enjoyed your commentary about kind the secret of life and like finding your blind spots and when you talk about that it reminds you like our own project oxygen and we talk a lot about like all the same principles you have in terms of making decisions so how do you address that because I think one way that we address it is through like diverse I'm sorry address one finding your blind spots right so I think verses like using consensus as a way to measure believability and correctness so like how do you how do you ask balance those 2 things like having everyone having a consensus about an idea verses making sure you have a truly comprehensive range of opinions okay what what would you want is the smartest people most demonstrated believable people who will then disagree with each other and disagree with you about what the best path is you don't don't confuse consensus as everybody don't fail don't make the mistake of thinking that a lot of people have valuable opinions when they may not so you want to try to get to the what is the most valuable ones and you want to try to identify that so look just like if you were going to be a medical problem and you think okay what should I do about my medical problems on the you know you you don't want to ask your just your friends you want to find out who the most believable people who will disagree with you and your cat at each other so you find the I. gave their health case and they are in the book about can find this doctor you find that doctor and you have the them will argue that one of the greatest ways of going through this type of triangulation is if you get really capable people who will argue with each other if you have the tri angulation about what to do that'll probably give you a good indication okay well that might be the right thing to do would you will learn and when you don't have triangulation that's where the interesting is learning really becomes because if you hear 2 sides of an argument and you hear that debate you're going to and then ask your own questions and so on you begin to probe and you get a richer understanding of the subject matter than you ever could have and then you can come to that level and and and and get that so I'm not arguing consensus decision making arguing believe ability waited decision making believability waited decision making means finding out in very subjective ways in a particular community who would be more reliable and not and then go all into the and have the believability waited decision making made that is the most effective approach so I don't know if I've answered your question I guess it's hard because objective it he is and I think especially in this era like social pressures like actually think there's kind 3 use right there's are you and then there's the the intellectual you and then there's time the pressures of like who should we be right and I guess it's hard when you have the means objective how do you know that it's something it's it's gives well the first thing you have to do here is saying do you want to find that out how are you going to create your idea meritocratic decision making will you not compromise it because if you are convinced that you must operate this way you will find the solutions okay you're not probably almost everybody is not really on that path you just tell me it's hard okay if in the book comes I'm giving you structure of the literally the things that we're doing okay there's a lot that you can go go and just follow that because you said I can't compromise that but as long as you're gonna keep saying people say it's going to be hard to be have idea meritocratic decision making and have thoughtful disagreement and do all these things believability waited decision making you won't have it and you will be losing their competitive advantages so do you in your god do you really need if you really want it that's the most important question to answer it's good thing sounds like you base that value of like wanting that truth and that's how you kind of come to a comfort of of this believability metric is is dynamic and progress find about figure it out and get it only goal next person right thanks for your book I listen to it and they all your book fresh and your voice is very family had not one of the things about transparency that you talk about you are you that it's it's great to have it and you give just one exception that kind of interest me when I read it or listen to it which was sharing the a compensation information from the employees and you you gave arguments why that wouldn't work but I could use the arguments for transparency against that so I was wondering how how you approach that okay first of all are the you know like everybody to do their own then there's no no like I either do one where lots of questions you can do one way you could do it the other way and who knows exactly which way to do it and some times I said to myself if you wrestle about which way to do it so much and it's in your struggle out it you probably could just flip a coin to decide because it probably about equally well good so on the question at hand that's being referred is do I make everybody's individual trans compensation transparent and the reason I chose not to do that is because I found that on and and instead make very clear metrics and compensation levels by groups of people rather than talk putting the particular names to that so that everybody knows if you're doing this wall without generalization you know where the comp levels are for others on and the reason I did that is because when I found myself in discussions are with is an evaluation of how that guy is doing with other people and that was a good you know the words effective if all of a sudden you say you know Harry's earning this amount and now I have to describe my relationship and how the value waiting area and you're going to now I have to be the judge of alma value waiting ari and all that type of stuff and that's kind of like not what you're gonna be able to be good at and nor should we do that where I can just in terms of compensation so I'm radically transparent the message that I am the conversation I want to have it here is do you want to be radically transparent I want to make sure we don't get into one of those exactly how radically transparent because I don't really care too much about that do it either way is okay fine but how are you doing on the general concepts that I'm talking about okay what about the taping what about the those kinds of idea meritocratic those bigger issues because just like the question before okay how do we do it okay the big things you could we can wrestle around here and how you choose that individual thing I'm just describing I chose it want I just want to get your perspective on how you see your sort of organizational principles being adopted more widely in more different organizations in particular I think you have the relative luxury I would say of being able to being that the head of your organization be able to design the organization to know operate according to those principles effectively saying you know if you don't like the way our principles work in this organization you can gonna get lost read most of us are not in that position I was wondering you know what do you see these principles being adopted more widely by people starting organizations that operate according to a set of principles from day one or do you have any advice on how those of us with more of the you know bottom level of the hierarchy can influence things that are more local you know workgroup level that came out very simply I think that those people who has the ability to control their organizations will consider this way of operating in it and was you said the entrepreneurs people who can do that will make their choices and I think we're I know that I'm having an effect on that and that's helping that that's good and then but people who don't then we'll start to think about the choices that they have as to where they work right you can come to some environment that is more idea meritocratic and not one that's less idea merit crack and you've got a lot of choices and so for the people running organizations that's also something that's attractive to be able to drive that attract those people if you have to know what your personal values are from the like I could not work in a place in which I didn't have the opportunity make sense of something if if if you know like those young people out that criticize me that is the way it should be right in order to do that and I could not work there it's for me it would be just I can ship I couldn't do it so all right so it's a personal choice if you feel that's important you will then gravitate to organizations that are more idea meritocratic and evolution will take its course both but because of the entrepreneur because the individuals doing that thank you online question real quick measurement is a big theme in your book how do you approach measuring teams whose work has only second order effects for example produc aesthetics or who prevent bad things from happening so you don't have the counterfactuals okay the I want to say that in everyone of these types of questions where in which there's a particular dilemma or problem to solve it starts off with a mind or group of mines thinking how do I solve that problem and doing that in an idea meritocratic way will give you the best answer to solving that problem and that is the most important thing so when I'm asked that question I'm I'd give my particular answer to the question but if I just gave my particular answer to the question I wouldn't can Dave the fact that you have the power individually to do that anyway so we all face that question how does the group if any of a group and you take the second order consequences and how do you know the decomposition of that okay we can take a little test here of sorts we could take each person's ideas and say okay now we have to figure out the best way to do that right and we could then gather those best ways and come up with that best way and that is the path now on my **** at that that's always the past if you understand that path you'll get to the best way you can get to and that's better than the ways that you have and then it becomes clear so then in in our particular case and I'm not that there is a series of evaluations that are very clear evaluations that people make themselves in a believability way about all dimensions of that so sometimes you can't measure sometimes you can measure results directly another word you can measure somebody's batting average or something the equivalent and sometimes it needs are a critique if we're asking the somebody saying better than somebody else there's no quantitative measure for that type of measure to see that but we could sort of say they're critiquing so such measures can happen at all op levels and so you know we do that whatever the measurements that we come up with jointly and we think okay that's good measurements we can create metrics about it so qualitative things like like I said we ought to give the example populism well how do I measure the popular Madison Avenue over and over again so qualitative thing but I could start to a to create that process I found that by and large almost anything that I can think of I can express in an algorithm and in a rule the real question is how do you get to that good rule excellent thank you for speaking with us today Mister Dio my name is Max and as I'm reading through this book which I'm thoroughly enjoying one question I keep coming back to is assessing the right timing right so because we don't operate in a vacuum coming up with the correct decision is kind of one thing knowing to be radically truthful when giving feedback is one thing but how do you kind of assess the timing around giving that type of feedback or coming to those are executing those decisions well there's a there's a name part chapter on decision making there's a section on on timing actually okay so you might go to that section on timing and you know by and large but it but if it I think you're also asking timing for the feedback right if you're asking time for timing for the feedback I would say it's can it's virtually continuous that so that.collector thing that I did that it is giving everybody feedback from everybody and causing people go above that is happening continuously in every moment of the day so people how they you know 360 review continuously by a lot of people all the time right and so then they they can step back and see the patterns they can look at a daily if they care to think but and they can step back into the bigger picture but it really very advantageous beat by doing it continuously because you can connected to the specific in other words a lot of time somebody give you an evaluation and there's 1000000 an annual review think about how to review what how silly that is if you don't get it I say okay now you're doing these things but you can't connect it to the specific by being able to connect that fall in time to the specific you know you could look back at that and have a consultation with other people so I handled it this way what do you think and what you can make that very tangible thank you I will question regarding the organization grow position amazing that that you want is a disagreements will be discussed the I'm wondering if we serve in the plots time to persuade each other how to reduce discriminates this lady takes some time to reach the consensus in the group I'm the miss the opportunity because we take too much time on the global consensus will result in the book there's a it if if left right you're talking about a risk there can exist it's expressed in the book on how to do that so that it doesn't do that so are and there's a interns holder from where the but the important thing here is to explore quickly that notion of how you should make the decision because I find since everything happens over and over again on a particular case if you get down to a very clear way of how you make the decision effectively you'll be able to move are passed it I find that the inefficiency of organizations in which people argue endlessly and don't resolve it is that you know it is a terrible thing but you need the protocols you need the tools thank you I will read the book I'm a ticket online question real quick in your book you talk about making decisions is expected value calculations I find estimating pay off a lot easier than estimating probability of success given that people in general are bad estimate probabilities can you share some techniques you found to work well well one of the things that I found your bill was if I write my decision rule out depending on the nature of the decision role hi can test how it would work and in the past and get some sense of that like in and that's when decision rules I have I said",
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174      "recording_transcription": "your paper nice about this with these same towards your goal used everything in 're going be able vote 've iPhone apps iOS games apple watch out apple TV ads in apps mac know need learn 's dive in first 's download X. code 're using windows checked description below guide on use exclude on windows position identifier put click next year 're going be able specify profits project name type in your app was called up one believe team organization name in there and organ that's project interstate later that this little icon should this congratulations your very first out today got it toward exit offensive make list your closest 0 family members and friends and call up until about your business your business growing your team will be groovy real 3 time topper and online marketing expert 're probably wondering why 'm dressed up hippie well it's because most lead generation and business building tactics that 've been taught use in your business chasing family members and friends and cold calling strangers and inviting people hotel meetings and parties and buying leads and that it's about old school and dated and ridiculous 'm wearing now run out people talk and 'd high quality leads chasing give me few minutes your time in studio now and 'm gonna show simple 3 step formula help start getting leads your business now in 20 first century this 3 step formula that's allowed me roll 1000 people in business and become 3 time topper without ever having chase anybody around well 's bring in white board behind me and 'll show simple 3 step process that called tac 8 CC one about targeting people was trying show business anyone and everyone with holes was met with total rejection and resistance because was primarily dealing with people who didn't already preexisting desire consume it when was offering them once discovered that there really only 3 groups people could start targeting who already wanted was offering them might this got lot easier way less stressful and longer feel give me sales person down free web class coming up date 's up everyone today's video nice with beginners pop up again 're trying super simple stop expect copyright infringement pop music about someone who knows 's gonna come up with conversing that interoperable next next song and was next stop in there comedy stop there go there's get that pretty cool doctors feel clue 's going on didn't either thought was local dealer phone open up outlook me with it that's double one 're serious about becoming was long and now it's next want be basically same size put stop hold option drag again look good enough but option and could get rid these comments need them did receive our passing in string get gonna be pop rock comedy having string through too that want background click on that make about color notice that constraints in looking straight still isn't 's get that shot white in 20 minutes lets could reference controls and hide them and show them and created idea action that basically receive even press button also did made many ID options press and assembly cool safely and but it's still quite enough 'm gonna say 140 got cell congradulations got your very first iOS app in it actually done lot did in only one person and slash away any questions concerns Jim and welcome complete iOS app development council name it away into running extra that's another part program could moja case keep missing can help them with strong and prefix although secretly mom may flash NBA draft will be 8 units team each backing up that story portal will write swift code and 'll configure project properties will select file will write swift code in editor Furthermore choosing storyboard file 's going customize user interface your home on hand side went into that this panel split into 2 payments inspector pain top one know show information well utility area library this reusable user interface elements that can add our project finally won top exclude toolbox this gives controversial various parts X. 's 're running tester out without needing physical iOS device this simulator from tool box but this going launch simulator can 're out running simulators pick on your screen can go up window menu and go under scale and change stealing device fit your screen can also that's from main story about actual project turn into this that 're seeing in simulator 's break it down this top layers view user fees but user sees can configure this from main story file in your actual second view controller this files responsibility manage view instance when user taps on view it will be control and can write code that want run when this happens this view controller represented control dots with file print click it editor area turns into code and were can race with code managed back in our X. get got stop running your project want display on screen add elements beat and our storyboard go ahead and click on main.story 're in editor area will turn and that's this guy down make 're looking object library tab that in filter box type in label that's when show was label element that's simply click and drag that element and drop it into few 're finished yet because position label on our screen could use system called way up size and position elements on street this makes it easier build layout that work on multiple screen sizes and orientation basically 5 holes gate your coalition exertion and should rules such this only should be same height another element this element should be 20 points away from side these rules called Monteleone constraints gonna learn more about our way on next lesson before now 's jump back in X. coat and position label now after your label might noticed that it also showed up it called document outlines and it lists elements in your this window click this little icon show and hide it 's center label industry adding constraints and click on label firmer document outlines selected and down in lower corner these little icons hover them 'll names click on line call in and out pops this menu choose horizontally in container in vertically in container and click this button constrain and 'll legal reposition itself based on newly added constraints that was changed from label with your label selected agency it's config will properties inspected 'd make 're looking correct tap in that school find text property should be first one and that's race that label and end world that's when project in nursing later again with this little run icon and should this congratulations got your very first out today got it toward actual development learn about wish most people believe shouldn't Harley Davidson in your mind but that's exactly why one in mind in most people believe that nobody's doing it it be wrong everybody doing it be but in experience in life and businesses sexually and know this this used be me listen voices other people listened core advises teachers parents friends and always say same same want be successful 've got go school because gracing go college get good grades get cold usually buy house and thought will give remote saying this in this easy this obviously this sick say this this gonna be awesome and in about one 2 months and looked around and was this really reason why life going be and couldn't tolerate this was can't this next life account live in this farm else can other than dog and started looking on internet found alternatives having job and found be starting in your business and entrepreneurship and decided know job 'm gonna go and that did and quit job moved back home with peers into carriage and started own business know when first started idea was doing and failed miserably but next 4 years and 've been in business now about 5 years was able start own business and grow point now where it's making around $20000000000 in doing that it's only one line please this was yourself knowing everybody doing it's almost warning sign that maybe shouldn't Highlander listen in this video 're gonna learn build your app's user interface and that's technical term screen that user sees highly that's used position and size elements end this video 'll built this user interface can 're gonna learn add images and her position 're going be doing with our legal constraints 're gonna learn it in way that's gonna make it work bald screen sizes 're going start brand new actual project did in previous lesson make 're looking under this was tapped and that 've got singled out selected 's click next and in product name 'm going say rest property should already be filled out from prosecutor created from last lesson need change any that click next and going save it on desktop that it it screen 's create image because this element 're going use display images now into our X. could this assets thought that use project click that it's going bring section where store images that use our project expected there's nothing and in fact there's even entry bike on but there images it's 're gonna want add images in us call stop double click file it's going unpack assets can track it directly culture that's fine 're going this image in your actual cost click it in there alternatively can actually highly looking highlight it in docket outline any in inspector came 're looking attributes inspector very top there this image property hold drop down down and 're going initiate split constraints and this hot parts add one UPS truck it and emergency close 50 lot records medical company this call may always 10 half from was most read calm this your first time which needs uhhuh nation enemies from people that gonna G. Charles basically school fight on that address support from human who's grown taxes should be and can them cold father can help me comedy routine left most products made job even from him can tell was up where status bar phone said icons and that it's warning know safe area that area highlighted in blue area where elements will get up stranded that doesn't mean that can't put anything up mean can go ahead and stretch that it was way very top understand that there may be textile filling that carrier time symbols and such this going come into play because when add orderly constraints can specify want that constraint instance first find top margin this element want that be 0 from safe area want it be easier from very edge screen 'm gonna show that now 're gonna highlight U. . image and were go down bottom brought it in different place than about add it because click that triangle safe area from V. 35 when select that these ages now it doesn't go this specified 0 enter view that can color and can put in 're going go ahead and click that and track that much worse green that and having it highlighted in document outlines and go it into full and happy 'm going try and 're gonna and it's supposed stick buccal ready high needs make but this this point this key elements actually contains.hi first idol super decide when that that saying that L..C. and now that label inside it that 95 down your choose that one now that 've created this beautifully give can dell maybe it's screen it 's say status brought this condition because where go out and that almost touching our secret level line buy that in on first screen click please but down broke and build another user interface screen size iPhone 3 where best place get leads online your business it your Facebook Twitter Instagram well small business owner who need more leads and prospects talk about 2 minutes which one these platforms use get well 200 leads every single day online own business and it but before that tell why this question where get leads really nearly important these 2 questions who and and makes very first and most important question should be asking yourself in your business one who should be targeting in other words who already desire consume product service opportunity because when stopped targeting anyone and everyone with holes and only started targeting people that knew already pre existing desire consume was looking left and 3 in previous lesson look details be out agent it's about cream story choose vocal factor thank lines other elements that but it's going be lead item will be want gonna put it step belt line collection LA want arrange school and this our common law about one and it's best follow our auto legal constraint rules in stack configurations get this welcome lesson 4 equipped with your skill that one 'll that everything based out evenly parts list run this in later last task 'm gonna choose iPhone 8 plus later this time uhhuh with portrait orientation 'm gonna press,nd and arrow and landscape orientation and us stop this project and this small one thank look in last 5 're halfway there in this lesson 're diving into this with programming language this video in next 2 're going be learning about basics swift this that 're going need know in complete project that 're working on together know that coding part intimidating lot people but want stick with this lesson and next really pay attention and recommend that open up excluding your own computer entitle exactly 'm showing on screen doing that it's going help remember language structure and key words without having memorize anything and promise less than 10 will be able race with code 's get started checks go can this option get started with playground go ahead and work under iOS which going choose plank go ahead and create that on your desk 's this playground entirely new X. cool project 've been creating in past lessons rather place where can test out code it's perfect need line numbers on left hand side there and 'd them going your actual preferences under text editing section preferences 'll check box that can able show your line discuss our minds well text on hand side and this preview pane want pay too much attention goes on because depending on your version Mexico might different than want get confused going however click this little area shoulders consul and 're going focus on L. put that down rather than 's talk about code that on screen starting from top top 're going this technique green this isn't actually code that going be executed musical comments and 're basically notes remarks that can leave yourself and remind yourself this piece code does why wrote it can write comment long start line with these 2 forward slashes anything 're after that on same line will now these tests when 're lot tougher that's can that's art in this case name that write on data that now this line code on phone impeach can that with our very able but there's one catch 's say that use permanent marker write name on that's key caps can't change name this it works in seven create that 're able create it's easier understand proper term and online another preview",
175      "recording_transcription_org": "your paper the nice thing about this with these are the same towards your goal is used for everything in the they're going to be able to vote I've had an iPhone apps iOS games apple watch out apple TV ads in apps for mac yes we know what we need to learn let's dive right in first let's download X. code if you're using windows checked the description below for my guide on how to use exclude on windows position identifier just put click next year you're going to be able to specify some profits for project name just type in your app was called up one believe team as organization name in there and for the organ that's what the project interstate later that this little icon here you should see this congratulations your very first out today you got it toward the exit what an offensive just make a list your closest 0 family members and friends and call up until about your business your business of growing your team will be groovy right his real 3 time topper and online marketing expert you're probably wondering why I'm dressed up like a hippie well it's because most of the lead generation and business building tactics that you've been taught to use in your business things like chasing family members and friends and cold calling strangers and inviting people to hotel meetings and all parties and buying leads and all of that stuff it's about as old school and dated and ridiculous is what I'm wearing right now so if you run out of people to talk to and you'd like to have high quality leads chasing you give me just a few minutes of your time in the studio right now and I'm gonna show you my simple 3 step formula to help you start getting leads for your business now in the 20 first century all right so what is this 3 step formula that's allowed me to roll over 1000 people in my business and become a 3 time topper without ever having to chase anybody around well let's bring in the white board behind me and I'll show you my simple 3 step process is something that I called tac 8 CC one is all about targeting the right people you see whatever I was trying to show my business anyone and everyone with holes I was met with a total rejection and resistance because I was primarily dealing with people who didn't already have a preexisting desire to consume it when I was offering them once I discovered that there are really only 3 groups of people so I could start targeting who already wanted to what I was offering them might this is got a whole lot easier way less stressful and I no longer have to feel like some kind of give me the sales person down I do have a free web class coming up to date what's up everyone today's video nice with beginners bunch of their pop up again we're trying to to super simple so stop expect copyright infringement pop music is about someone who knows what's gonna come up with my conversing that is an interoperable next to the next song and I was next stop in there they are comedy stop right there you go there's right you get for that pretty cool doctors if you feel like you have no clue what's going on I didn't either I thought was a local dealer for my phone open up an outlook I don't like like me with it so that's just double one if you're serious about becoming I was over the long and now it's over next okay so we want to be basically the same size of the stuff to put a stop hold option drag to the right again look good enough but option and I could get rid of all these comments are we don't need them here did receive our passing in the string get is gonna be pop rock comedy whatever sort of having a string through here too that I all you want background click on that make about color I notice that some constraints in looking straight still isn't let's get that shot the white okay what we do here in 20 minutes so you don't lets you could reference the controls and hide them and show them and we created an idea action right here that basically receive even press a button no we also did what made so many ID options press and assembly cool stuff at the safely for and then but it's still not quite enough I'm gonna say 140 hello got cell congradulations you got your very first iOS app in it actually done a lot okay what did we do here in only one person and slash away if you have any questions concerns Jim and welcome to the complete iOS app development council my name is it away into running extra that's another part of the program could you moja case keep missing how can we help them with strong and a prefix although he secretly mom you may not have flash here for the NBA draft will be 8 units to team as is or each is backing up that story portal will let you write swift code and we'll let you configure the project properties will select file will let you write swift code in the editor Furthermore choosing the storyboard file he's going to let you customize the user interface for your at home on the right hand side went into that here this panel is split into 2 payments inspector pain is the top one you know show you information well the utility area library this reusable user interface elements that we can add to our project finally won the top you have to exclude toolbox this gives you the controversial the various parts of the X. let's you're running tester out without needing a physical iOS device this is the simulator from the tool box but this is going to launch the simulator can you see you're out running if the simulators to pick on your screen you can go up here to the window menu and go under scale and change the stealing of the device to fit your screen you can also that's right from the main story what about the actual project turn into this that you're seeing in the simulator let's break it down this top layers view is the user fees but the user sees you can configure this from the main story what file in your actual the second is the view controller this whole files responsibility is to manage the view for instance when the user taps on the view it will have to be control or no and then you can write the code that you want to run when this happens this view controller is represented by the control dots with file print if you click it the editor area turns into the code and were you can race with code managed so back in our X. get the stuff I got here to stop running your project if you want to display something on the screen we have to add some elements to the beat and our storyboard so go ahead and click on main.story we're here in the editor area will turn and that's this guy down here make sure you're looking at the object library tab that in the filter box type in label that's when the show was the label element that's simply click and drag that element and drop it into a few we're not finished yet because we haven't position the label on our screen I could use a system called all the way up to size and position the elements on the street this makes it easier for you to build layout that work on multiple screen sizes and orientation basically 5 holes at the gate how your coalition exertion and how they should rules such as this only should be the same height as another element for this element should be 20 points away from the right side these rules are called Monteleone constraints gonna learn more about our way on the next lesson before now let's jump back in the X. coat and position label now after you had your label you might have noticed that it also showed up here it is called the document outlines and it lists all the elements you have in your if you don't have this window click this little icon here to show and hide it let's center label industry by adding some constraints to and click on the label firmer document outlines the selected and then down in the lower corner we have these little icons if you hover over them you'll see their names click on the a line I call in and out pops this menu choose the horizontally in container in vertically in container and then click this button to constrain and then you'll see the legal reposition itself based on the newly added constraints that was changed from the label with your label selected agency it's config will properties inspected I'd make sure you're looking at the correct tap in that school to find the text property should be the first one and that's just the race that label and their end of the world that's when the project in nursing later again with this little run icon here and then you should see this congratulations you got your very first out today you got it toward the actual development you learn about the I wish most people believe you shouldn't have a Harley Davidson in your mind but that's exactly why I have one in mind in most people believe that if nobody's doing it then it must be the wrong thing to do is if everybody is doing is it must be the right thing to do but in my experience in life and businesses sexually and how do I know this this used to be me I listen to the voices of other people I listened to the core is advises my teachers my parents my friends and I always say the same thing the same if you want to be successful you've got to go to school okay because gracing go to college get good grades do you get a cold so I usually buy a house and I thought or I will give remote is saying this is the thing to do in this is easy this is obviously the right thing to do this is sick say is this is this is gonna be awesome and in about one or 2 months and I just looked around and I was like is this really is the reason why life is going to be like and I just couldn't tolerate this was like I can't do this is the next thing is my life account live in this farm what else can I do other than a dog and I started looking on the internet I found alternatives to having a job and I found to be starting in your business and entrepreneurship and I decided you know what for my job I'm gonna go and that is what I did and so I quit my job moved back home with my peers into the carriage and started my own business know when I first started I had no idea what I was doing and I failed miserably but over the next 4 years and I've been in business now for about 5 years I was able to start my own business and grow to the point right now where it's making around $20000000000 in doing that it's only one line please this was think for yourself knowing everybody is doing something it's almost a warning sign that maybe you shouldn't Highlander listen to in this video you're gonna learn how to build your app's user interface and that's just the technical term for the screen that the user sees a highly that's used to position and size elements by the end of this video you'll have built this user interface as you can see you're gonna learn how to add images and her position or what you're going to be doing with our legal constraints they're gonna learn how to do it in a way that's gonna make it work for bald screen sizes so we're just going to start a brand new actual project just like we did in the previous lesson make sure you're looking under this I was tapped and that you've got singled you out selected let's click next and then in the product name I'm going to say to the rest of the property should already be filled out from the prosecutor created from the last lesson we don't need to change any of that click next and then we are just going to save it on the desktop is that the so it it screen so let's create an image you because this is the element we're going to use to display images right now into our X. could see this assets thought that we use for a project click that it's going to bring you to a section where we store the images that we use for our project as expected there's nothing right here and in fact there's even an entry for the bike on but there are no images it's here so what we're gonna want to do is add some images in here for us to call stop to double click the file it's going to unpack assets so you can track it directly culture that's fine if you're going to have this image in your actual cost click it in there alternatively you can actually highly he looking to just highlight it in the docket outline any right here in the inspector came we're looking at the attributes inspector at the very top there is this image property hold the drop down down and you're going to initiate a split constraints and this is what is the hot parts you add one the UPS truck it and he has an emergency close to 50 a lot of records medical company this call may not always 10 half from I was most read calm if this is your first time which you he needs uhhuh nation enemies from people that are gonna my G. Charles at basically the school fight on that address support so I from human who's all grown here some taxes should be and I think I can see them cold right father what all if you can help me a comedy routine left by the most products made his job even from him so as you can tell he was up here is where the status bar for the phone is right he said here is a bunch of icons and stuff like that so it's just warning you know if you had a safe area that the area highlighted in blue is an area where elements will get up stranded that doesn't mean that you can't put anything up here I mean we can go ahead and stretch that it was all the way to the very top we just understand that there may be some textile filling that like the carrier the time the symbols and such so this is going to come into play because when we add orderly constraints we can specify do we want that constraint like for instance the first must find a top margin for this element do we want that to be 0 from the safe area we want it to be easier from the very edge of the screen so I'm gonna show you that right now we're gonna highlight the U. I. image you and they were to go down here to the bottom right brought it in different place than I am about to add it because he click that triangle here the safe area from the V. 35 when I select that so all of these for ages now it doesn't go this is what we specified 0 enter view that we can color and we can put things in we're going to go ahead and click that and track that much worse green just like that and having it highlighted in document outlines and go for it into the full and do you like you so happy I'm going to try and we're gonna and it's supposed to stick to the buccal ready right here the high for the needs we make right here but at this by this point so this is the key elements actually contains.hi first idol to the super decide when I do that that saying that L..C. and now that my label is inside it so that 95 down your choose that one now that we've created this beautifully give you can dell or maybe it's the screen as a whole it to let's say what the status is brought this condition because of where to go out and see that here is kind of a little bit almost touching our of not the secret level line to buy that in here on the first screen click please but I think hello down to broke and build another user interface I had screen size or the iPhone 3 where is the best place to get leads online for your business is it your Facebook Twitter or Instagram well if you are a small business owner who need more leads and prospects to talk to about 2 minutes which one of these platforms I use to get well over 200 leads every single day online for my own business and how I do it but before you do that let me tell you why this question of where to get leads is really not nearly as important as these 2 questions who and what and what makes for the very first and most important question you should be asking yourself in your business is one who should I be targeting in other words who already has a desire to consume my product or service or opportunity because when I stopped targeting anyone and everyone with holes and I only started targeting the people that I knew already had a pre existing desire to consume what I was looking to left and 3 in the previous lesson you look details just to be out here agent to it's about the cream here right here story choose a vocal factor thank you lines all other elements that but it's going to be the lead item will be to the right I just want to is gonna put it right step belt line you have a collection LA I want to arrange the school thing and this is our common law about one and it's best to follow our auto legal constraint rules in the stack you configurations to get something like this you welcome to lesson 4 okay equipped with your skill that one like the we'll see that everything is based out evenly parts list run this in the some later as a last task I'm gonna choose the iPhone 8 plus some later this time uhhuh right so here we are with the portrait orientation I'm gonna press,nd and the right arrow and here we have the landscape orientation and then let us stop this project and this is a small one like the yes thank you I look in the last 5 you're halfway there in this lesson we're diving right into this with programming language for this video in the next 2 you're going to be learning about the basics of swift this is that they're going to need to know in order to complete the project that we're working on together I know that the coding part is intimidating to a lot of people but I want to stick with this lesson and the next to really pay attention and I recommend that you open up excluding your own computer entitle exactly what I'm showing you on the screen by doing that it's going to help you remember the language structure and the key words without having to memorize anything and I promise you by less than 10 you will be able to race with code all right let's get started checks go you can see this option here to get started with the playground so go ahead and work under iOS which is going to choose a plank go ahead and create that on your desk let's see something like this the playground is not an entirely new X. cool project like we've been creating in the past lessons rather like what place where we can test out some code so it's perfect for what we need to do if you don't have the line numbers on the left hand side there and you'd like them just going to your actual preferences under the text editing section of the preferences you'll see a check box that you can able to show your line discuss our minds as well to see some text on the right hand side here and this is sort of like a preview pane I don't want to pay too much attention to what goes on right here because depending on your version of Mexico you might see something different than what I see I don't want you to get confused of what we are going to do however is click this little area right here shoulders consul and we're going to focus on the L. put that is down here rather than the here okay so let's talk about some of the code that you see on the screen starting from the top at the top you're going to see this technique green this isn't actually code that is going to be executed musical comments and they're basically notes or remarks that you can leave for yourself and remind yourself what this piece of code does or why you wrote it you can write a comment as long as you start the line with these 2 forward slashes anything you're right after that on the same line will do for now all these tests when you're a lot tougher that's what can that's the art is in this case the name that we write on the data to that right now this line of code here on the phone to impeach what we can do that with our very able to but there's just one catch let's just say that we use a permanent marker to write the name on that's the key caps we can't change the name this is how it works just in like seven to create that they're able to just create so it's easier to understand the 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228      "recording_transcription": "entirely too long and actually time collapse 300 pages into 50 minutes bark trying didn't time write good short letters 'm gonna write long letter but in this case 'm gonna teach exactly one management concept one line in this management concept though that CEOs mess up more consistently than anything else and from when 're very very early when 're very very big company it's it's easiest say in most difficult master and concept in musical form books make sensitive musical form this from sly and family stone sometimes 'm and can run friends group bannermen that's that's musical version today's them those years musical can leave now in management concept form basically it's best when make critical decision understand it's gonna be interpreted from points view your point view and person 're talking but people who in room everybody else in other words really be able when making critical decisions decision through eyes company and company which means 've got add up every employee's view and incorporate that into your own view otherwise your management Hey was got this Craig Campbell and 're listening why combinators podcast today uncut interview from masters scale podcast and in it read offense co founder blinked interview Sam Altman alright go 'm with Sam Allman president why commentator who good friend and been involved in many scaling 's start with your entrepreneurial got in entrepreneurship started loop twice started looped thank having me found it accidentally on went college be computer programmer need size 1. and started college after .com bubble Boston start ups anyone's mind in fact it was remember one was surprised freshman in college was that thought people would still be start ups and said were working on start up people laughed and nice way and actually didn't want 're gonna start up worked sis freshman year and staff part in this research on lot that and would that grew project which eventually developed into lived but it started project that worked on after class and night and it was it start up it were company it got point where worked on it during spring spring quarter it was really fun 'm very ashamed say that been planning go be internet Goldman Sachs that summer accepted job offer and realized was much more fun 're 3 us working on this project and program was followed him online and posted this saying 8 accept your summer job come back on your projects and make start and know it seems it would be more fun than banker applied seat and floor 've been interviewed and got funded Russia first company ever fun about laci and that was somehow managed kept going and there anything that it very beginning there anything from now having done looped and were gonna get into that could call that younger self going and YC would tell yourself differently key well one general that did understand them and learn pretty quickly but would saved me quite bit heartache about calibrate risk most people worry way too much about risk know when 're young and nothing lose actually time take risk and that's time unfortunate most people most risk averse in lives need save want work few years buildup savings and 're going start up and parents want and ended up in place but it could gone either way and was very stupidly nervous about risk and this idea that most nearly risk same powerful 11 always try tell people and and that and that position know 're poor college student with money and reputation start fail 2 years older with money work station fine it's actually much harder wait and know your life ramp up and it that's 1 another 'm super easy work with today but was intimacy difficult work with and was 18 19 and would put more effort into trying be better about that and specifically would done be easier work with lot it sat and communicate expectations with others and also realizing that 're fan company and want work hard hours week and super focus protect that's cool but most other people hire specially get bigger other lives and need understand that got everyone learns this lesson quickly but it would saved along way learned earlier and other that got wrong and 19 starting companies often get wrong because fairly organically from projects never take time realize wow this become know sudden 'm on computer time people doing this face this money and 'm really believe that this going be market that will support giant company and there check point where need several checkpoints along way people talk about thought and about that should make those checkpoints because know from other conversations and other both and this total addressable market tam frequently very illusory know most interesting companies start with tale nearly 0 and it's about investors ones that super focused on him with today very good investors focused on that happened 10 years from now this seen most productive him Dressel market seen most predictable large ham down road much people that using it today use it and love it one that was obvious when people got phones even though know few 0 first items sold people them use them every day and love them and it became most precious item remember shortly after iPhone came out was in developing country it was really quite poor and people nothing except 'll smartphone and and and people once one know used read statistics and people need white with journalism would rather give up your smartphone acts and it doesn't really matter taxes there keep smartphone and could predicted with lot certainty and many come many people did that this was going be large market it was small in 2008 2007 and that going grow very quickly because much people love internet there that was same and lot other trans people jump on too early because lot people double but put it on shelf lot people bought R. headsets and put them on shelf doesn't mean that there will be big Sunday but this can make high conviction bat on starting your company today least that least that town will be huge it still feels where palm pilot iPhone era those who remember Paul know one still that got when was ridiculous palm pilot 7 with internet connected one and loved it but other people didn't and thought that was fits can it was very easy tell difference between reaction that and find probably know this but know first use case pay pal was splitting dinner check on palm pilots know that and bloodshed set it up that it can only happen once because it was actually graph security staff 4 nights in row done this demo and cabin work together only 2 that worked out it was raise and did part fun did closing first financing on it inbox classics organize loops did get YC look it mainly 7 years got acquired and was trying figure out want next aside was going partly take mid career sabbatical race cars fire plans travel world that but want disengage from working and would try invest awhile took money made from lift and also raise outside capital and became very traditional season roster 'd invested during during very small chuckle that was possible and back in day because valuations much lower in company these results lost money remember it in 2000 guess 2010 invested in stride and $17000 in bank account time it was last night was 15000 that destroyed and it was meaningful says couple uses different world and that's founder making much money that was size check could but it's still possible once year make initial investment founder and now can't because amounts money 0 gone up much but because it's different world invested during lived made 3 investments and thought liked was well 'm gonna this sabbatical job and did that from does twelfth in 2013 and turned out be fairly good it but didn't it it and try know but it turned out that want be season Esther it running company did being on sidelines and it didn't find didn't get adrenaline rush get out being in trenches running company which that lot fun Christmas when start investing figure out precious investors which continues be very involved with one company and that's model that very under export and 'll more anyway did this was know that was fun and it's pretty well it's real ticket Astley highly compensated job and site but didn't want keep doing that asking about want in Paul Graham jokingly said number times years that retiring stick Y. C. and 've bucket that in head in this interesting alike aggressive but 've heard talk about that more serious was looking into other gonna call backs 'm going run into public company start coming 'd been excited about awhile and more but ate finds 'm really gonna take her Allah in NYC seems such promising and under utilized and important cared about oreo release realize that there set 45 really deeply cared about and why best platform anything was looking out maybe anything compelling go address those and even after about it that one side about could get other people those could change why in big ways and that worked out basically expected which great going more details about were that was was cause this one potential scale this asset it could be much more in Silicon Valley and want go which which account those one kinds companies that were funding were time when was mostly from software companies but lot conviction that could apply same that made why works lot software companies companies lot areas that care about and 8 know ice that apology energy and that same model will work which now people heartache listed arctic but time it was this really dumb one funny side note and note anyone that tries anything where take company in different direction scale it that it always funny read articles same journalists that when say 're into this said Sam's crazy completely unqualified this gonna work wise 's gonna down going after high tech companies stupid year 14 months later know this great Sam's geniuses predestination takeover why know it's ridiculous devices any software companies 's this other ignore that and say love connection 're gonna try this and most people will tell it's gonna work on it's new most people afraid that new and it and long it's again risk this cadre probably that risky probably won't kill company and probably undervalued everyone else stupid 're able that and and first was expand why seem these different directions greatest companies created on bleeding edge people working on and 2014 there already lot people make it mobile apps will still be great mobile app companies 'm but 6 fish in barrel and other areas able go pick up best part company best self driving company which was choirboy GM best nuclear fusion company best technology company that on list and 1 competing Brussels companies meanwhile another photo Shane company go lot work and because well every PC in Santa Rosa wants get $30000000 that was 1 area expanded another was more companies which significantly up number companies find every year example maybe was from 100 280 that now expenditures physically piling often comes from world which logistical nightmare but really good companies can serve raised later stage fund because one other realize especially hard cap companies know can find lot these companies point and raise $50000000 lot us doing that support those companies needed this large pool capital wanted on other side really increase top our fall and started teaching looks basically say Hey 're try distill start start up onto class make available around world started research lab there that important us in our mission and our vision world fit profit company still want but but basically fundamentally YC this new university collection smart people that shared vision world would build and tools that can work together and that's very flexible structure students these and in terms efforts scale YC this global geography this early and late stage there research that also and taking non profits through ICL part it when about and say saw this potential on massive scale impact and went in which were that should double down on earlier and which that would changed that scaling process one that really 2 that really important when 're going try scale organizational on one fairly clear vision and culture and other reasonably clear org structure 're good on division in culture this idea that Y. si wants produce most innovation in world and that in such way make future great everyone 7 people and and state talks one took about that mission mission culture support that and 've done very good job staying true that and and 've won particular product organization on this without me having legislate it there's company look where make lot money but it be it might be bad world won't touch it which most other investment from from such hard time with but know that other investment firms would basic income research support open outside from non profits and got that early and that and getting that really critical because everyone believe same does lot less conflict and also people gonna organically much in direction lot less organization slid and could put up debtor structure in place earlier 've gone through few rations know 1 that's good but usually try structural and price would worked stayed 10 people working which it was when took fall apart fell apart pretty quickly 3040 people that was in deliberate 10:00 say was it 's try bother with really deliberate attempt locker which 'm fan from know about it it was it's it know growth in number people organization sneaks up on and can completely get away without any structure until can't pretty quick flip and about there anything would apply capital more fiercely anything that would said that should recruited these people into organization earlier run super light on Capitol and that our credit 're these that would been smoother and better apply more capital but trade off 've heard on culture and that reflects on companies kinda that when entrepreneurs come YC drive sick shitty industrial part Mountain View and walk into this building that looks it's that that did nice job on inside but it's nice in very 've been it's nice and very cheap sense there's gleaming marble know on sand hill road lot and stop CFO that yells people finds that there $50 per flight buy and in these in specific instances could've applied more money problems and it would helped but there in cultural important us about frugality because want that reflected start ups and start ups bond with us with reflect on it good did try go solve much problems got months capital it's YC selection process because 're gonna go into lessons from YC companies and one learned from New Yorker profile which idea because 've ever seen in that occasionally bring sword in with interviewing on that's that's true that it year wrote that wrong remember look love engineering history sorts and 'd know collect these that Concorde engines and important engineering milestone bought this brown's age and was in office hours and reporter sitting with ME office hours this drudgery sometimes region doing this know sixteenth meeting day need energy and someone phone call and started came beautiful Bronze Age sword and and it 've been waiting this know followed from Europe in this in this big crate and it got it out stunning perfect and mean first pick up and science house with it feels and this particular one know Nicks red hat people's home it's couple 0 years ago little dark but maybe bones too much expert on down 2 deep neck in mail and was excited and ate was on phone with them particularly setting conversation and picked that 're in house and started while was on speaker phone swing it around 5 this pretend and because was happy got this 've been waiting long and didn't realize put it down end was robbed probably really dumb probably gonna make into profile because forcing watch can forget after someone's with her weeks but never swung sword someone every process it was less swing sword more did bring props with interview this in house and arrived print props got it tell me about YC interview process this one them's 've actually really refined years in get really good on there few big ideas that actually very small number big ideas that make Wesley work and one them that there giant amount arbitrage left on it because most investors in Silicon Valley will only find with intro only talk with intro and it honestly and large fairly insular network and White Sea can build process it's too painful can look it everyone smart that wants from us that can unlock huge amount value because one else does that time one else did that now people it but it was well brand yourself edge but know 're able willing going look tens thousands people year with intro announce and there's lot really smart people that because circumstances born into country plugged into Silicon Valley network bridge that and get compensated that but that idea that should open application and shouldn't require intro great now doing it well in practice hard because it very tiring entering training talked 40000 people year lot people lot software this secret under telling other people copy it well spent much time and money building really great internal software that only 50 people in world use and lets us run this process that one else can run and videotape and cross check result transfer your results watch know companies say when suggest coming up strong that can and really sweat every mistake and tell me also before get interesting companies about 're going global efforts were scale more than Silicon Valley network well number one best did that was that milk class that teach artifact got incredible distribution worldwide and brought people from other countries and find that when found someone from another country city first time go back and everybody else that can get into it's hard and this there's this it this there's incredible chain reaction effect once get first good company in new area also complains lot know partnership fly around world and give talks me companies and die phenomenally effective it won't be too much longer more companies pine tree outside US inside US in office with enough fellows program point on ramp version YC on one realize that there was more demand that program that were ever gonna felt were shocked 're gonna get 200 applications first fellowship got 7000 this gonna work designed now that and class that fought together into this new that 're gonna try next year first time which half way between lecture series and while come class where people individual advisers in office hours and after point metrics every week but can remotely and anyone can it now 's go couple great know amazing Licey companies number talked about strike little early one your early yesterday and now actually realized it back on economics now more AGN your angel dust and was because started pretty early with crazy much your savings but higher percentage your savings that would apply risk management never been strong suit but want 50 percent that was roughly somewhere around 90 different money that get level be ours percentage matter and 's 's talk about few them and key kinda lessons scaling look learned common error in Silicon Valley will scale on service 're obviously Collison's amazing and company doing spectacularly well according look in early days bludgeoning be great did learn about scale number one lesson learned White Sea learned about scale well first build product that good people spontaneously want use it and tell friends about it and can that still blitz scale but it's easy it's too much demand hard bliss scaling where try start scaling up before product really great and most your African scale generate demand number one most important insight about blitz scale that good bliss Scalia when having generate demand go but that first got product and in many these cases stripe Dropbox Airbnb it took long time get product but were obsessed with that and when did effort much demand there without much more effort know this going keep growing 2030 percent month years that's real problem with high class problem but it's still real problem build that that scaling that works and generated Facebook Google mean lot it's same type blood scaling that seen go badly it mediocre products raised hundreds millions dollars RBC being down our throats hire more sales people grow faster any any particular examples want name names there's many pick from thankfully most 7 and that pretty good again few exceptions this try beat that idea out people during Y. C. R. and thus most people mistakes in Silicon Valley that in last decade numbers one interesting that slight variant on theory that gave place be action packed one 've learned about scaling initially that scale in get into scaling and actually in fact spend time out in desert getting transaction and it was actually grandma gave this advice and look go New York go door door explain people get them into it wrote essay out that experience and striped experience someone can talk about on essays call that scale it in top most important essays and read on years that never this almost never saw among perfect almost universal among our best companies where 'm usually go get users annually that could never with ten million users that's actually sign bad entrepreneurs experience when people",
229      "recording_transcription_org": "entirely too long and I I I do actually have time to collapse of 300 pages into 50 minutes so like bark trying I didn't have time to write a good short letters so I'm gonna write a long letter but in this case I'm gonna teach exactly one management concept so one line thing in this management concept though is the thing that I see CEOs mess up more consistently than anything else and from when they're very very early to when they're very very big as a company it's it's the easiest thing to say in the most difficult to master and the concept in musical form books right make sensitive the musical form this is from sly and the family stone sometimes I'm right and I can run so their friends group bannermen so that's that's the musical version of today's let them for those years you musical you can leave now in management concept form basically it's best when you make a critical decision you have to understand how it's gonna be interpreted from all points of view not just your point of view and not just the person you're talking to but the people who are in the room everybody else in other words you really have to be able when making critical decisions to see the decision through the eyes of the company and the company as a whole which means you've got to kind of add up every employee's view and then incorporate that into your own view otherwise your management Hey I was got this is Craig Campbell and you're listening to why combinators podcast so today we have an uncut interview from the masters of scale podcast and in it read offense the co founder blinked an interview Sam Altman alright here we go so I'm here with Sam Allman president why commentator who is a good friend and has been involved in many scaling things let's start with your entrepreneurial like what got you in entrepreneurship how how you started loop twice started looped for so thank you for having me here I found it accidentally on a went to college to be a computer programmer I need a size 1.to do and I started college after the.com bubble at Boston so start ups or not anyone's mind in fact it was I remember one of things I was surprised by as a freshman in college was that I thought people would still be kind of a start ups and if you said you were working on a start up people is sort of laughed at you and not nice way and I actually didn't want to we're gonna start up I worked my sis some of my freshman year and the staff is just part in this research on a lot of that and I would have that grew a project which eventually developed into lived but it started as just a project that we worked on sort of like after class and at night and it was not it without a doubt start up if it were not for my company so it kind of got to the point where we had worked on it during the spring spring quarter it was really fun I'm very ashamed to say that I had been planning to go be internet Goldman Sachs that summer accepted a job offer and I realized I was much more fun we're all all 3 of us working on this project and we all kind of a program was followed him online and he posted this thing saying like 8 not accept your summer job I come back on your projects and you make a start and you know it seems like it would be more fun than you have as a banker so we applied to my seat and floor I've been interviewed and got funded Russia first company ever fun about laci and that was somehow managed kept going and is there anything that it is the very beginning is there anything from now having done looped and a bunch of things were gonna get into that if you could call that younger self of yours going and the YC the you would tell yourself to do differently a key things well I think one general thing that I did not understand them and learn pretty quickly but would have saved me quite a bit of heartache is about how to calibrate risk I think most people worry way too much about risk you know when you're young and you have nothing to lose is actually the time to take risk and that's the time unfortunate most people at most risk averse in their lives they need to save they just they want to work for a few years buildup savings and they're going to start up and what their parents want whatever and I ended up in the right place but it could have gone either way and I was very totally stupidly nervous about the risk and so this idea that most things are not nearly as risk is the same as a powerful 11 always try to tell people and and that and that position you know you're like a poor college student with no money and a reputation if you do start to fail like 2 years older with no money no work station is fine it's actually much harder to wait and you know what your life ramp up and then do it so that's 1 thing I think another thing is what do you think I'm super easy to work with today but I was like sort of intimacy difficult to work with and I was 18 or 19 and I would have put more effort into trying to be better about that and what specifically would you have done to be easier to work with I think a lot of it is how you sat and communicate expectations with others and also realizing that if you're a fan of the company and you want to work hard hours a week and the super focus to protect that's cool but like most other people you hire specially to get bigger have other lives and you need to understand that if I got you everyone learns this lesson quickly but it would have saved some along the way if I had learned earlier the and the other thing that I think I got wrong and 19 all starting companies often get wrong is because they have all fairly organically from projects you never take the time to realize like wow this is become you know all of a sudden I'm on his computer time people are doing this we face all this money and I'm do I really believe that this is going to be a market that will support a giant company and I think there is a check point where you need several checkpoints along the way people talk about thought and how do you think about how how do you think that they should make those checkpoints because you know from other conversations and other both you and I think this whole total addressable market tam thing is frequently very illusory I think you know the most interesting companies start with a tale of nearly 0 and it's like a about investors are the ones that are super focused on him with today very good investors are focused on that happened 10 years from now the this thing I have seen the most productive for him is totally Dressel market thing I have seen the most predictable for a large ham down the road is how much the people that are using it today use it and love it so one of the things that was obvious when people got I phones even though like you know a few 0 of the first items sold as people have them use them every day and love them and it became like their most precious item I remember shortly after the iPhone came out I was in a developing what country it was really quite poor and people had nothing except they'll have a smartphone and and and people once they had one like you you know I used to read the statistics and people need to do some white with journalism by like would you rather give up your smartphone or acts and it doesn't really matter what taxes there keep the smartphone and so I think you could have predicted with a lot of certainty and many come many people did that this was going to be a large market it was small in 2008 2007 and he that is going to grow very quickly because of how much people love the internet there that is was the same thing and I think a lot of other trans people jump on too early because a lot of people double but put it on the shelf a lot of people have bought the R. headsets and put them on the shelf doesn't mean that there will not be big Sunday but this is I think you can make a high conviction bat on starting at your company today at least at that or at least that the town will be huge it still feels like where the the palm pilot not the iPhone era for those who remember Paul you know I have one still that I got when I was a ridiculous thing to have a palm pilot 7 with internet connected one and I loved it but other people didn't and I thought that was sort of fits you can it was very easy to tell the difference between the reaction of that and I find I think you probably know this but you know the first use case for pay pal was splitting the dinner check on palm pilots I do know that and apparently like bloodshed set it up so that it can only happen once because it was actually a graph of the security staff for 4 nights in a row or something done this demo and the cabin work together the only 2 that worked out it was kind of raise and they did part of the fun we did the closing of the first financing on it inbox yes classics organize so so loops then how did you get the YC to look at it mainly for 7 years we got acquired and I was trying to figure out what I want to do next aside I was going to partly take a like a sort of mid career sabbatical race cars fire plans travel the world all that kind of stuff but they want totally disengage from working and I would try to invest for awhile so I took the money I made from lift and I also raise some outside capital and I became a sort of very traditional season roster I'd invested a little bit during during the the very small chuckle that was possible and back in the day because the the valuations are so much lower in the company these results lost money I remember it like in 2000 I guess is 2010 I invested in stride and I had like $17000 in the bank account of the time it was last night I was like 15000 that destroyed and it was like a for meaningful says a couple uses different world and that's kind of like as a founder of not making much money kind of that was sort of the size of check you could do but it's still possible to like once a year make an initial investment as a founder and now I just think you can't because the amounts of money at 0 gone up so much but because it's a different world I had invested a little bit during lived I think I made 3 investments and I thought I liked so I was like well I'm gonna do this as mine a sabbatical job and I did that from does the twelfth in 2013 and I turned out to be fairly good at it but I didn't like it at all it and I think you just have to try things to know but it turned out that I don't want to be a season Esther or if you see it I like running a company I did not like being on the sidelines and it just I didn't find I didn't get the adrenaline rush I get out of sort of like being in the trenches of running a company which I think is something that a lot of fun Christmas when they start investing you you figure out a precious I like for investors which is continues to be very involved with one company and I think that's a model that is very under export and we'll see more of so anyway I did this I was like you know what that was fun and it's they pretty well I think it's like a real ticket Astley highly compensated job and site but I didn't want to keep doing that asking about things I want to do in Paul Graham sort of jokingly said number of times over the years that retiring you stick Y. C. and I've kind of bucket that in my head in the this is interesting alike aggressive but I've heard talk about that more serious I was looking into other things gonna call backs no thing I'm going to run into a public company or start coming I'd been excited about for awhile and the more but I ate finds like I'm really gonna take her what what Allah do in NYC seems like such a promising and under utilized thing and so important to what I cared about oreo release I realize that there is the set of like 45 things are really deeply cared about and why see how the best platform of anything I was looking out or maybe anything is so compelling to go address all of those and then even after things about it that one of the side about I could get other people to do those are I could change why see in big ways and that worked out basically is expected which is great going a little bit more details about what the things were that was like here was the cause is this one of things we see the potential scale I see this asset it could be so much more in Silicon Valley and I want to go to what which which account for those so one of the kinds of companies that we were funding I I had a we were at the time when she was mostly from the software companies but I had a lot of conviction that we could apply the same thing that made why she works a lot for software companies the companies a lot of areas that I care about and 8 you know a ice that apology energy and that the same model will work which is now people at all heartache are listed as an arctic but the time it was like this is a really dumb thing one of the things is funny as a side note and just as a note to anyone that tries to do anything where you take a company in a different direction or scale it is that it is always funny to sort of like read the articles for the same journalists that when you say you're into this thing said like Sam's crazy completely unqualified this is not gonna work wise he's gonna down a like going after high tech companies so stupid to like a year 14 months later you know this is great like Sam's geniuses like predestination takeover why see you know it's ridiculous devices or any software companies all's all this other stuff so I think you have to ignore all that and just say like I have I love connection we're gonna try this thing and most people will tell you it's not gonna work on if it's something new most people are afraid of things that are new and you just do it and as long as it's not again risk at this cadre is probably not that risky probably won't kill the company and probably undervalued everyone else stupid so we're able to do that and and the first thing was expand why seem to all these different directions I think the greatest companies are created on kind of the bleeding edge of what people are working on and by 2014 there are already a lot of people make it mobile apps they will still be great mobile app companies I'm sure but 6 fish in a barrel and some is other areas we able to just go pick up the what the best part company the best self driving company which was like a choirboy GM the best nuclear fusion company the best technology company just all that on the list and no 1 is competing to Brussels companies meanwhile like another photo Shane company we have to like go to a lot of work and some do I see because of like well every PC in Santa Rosa wants to get the $30000000 so that was 1 area expanded another was just more companies which significantly up the number of companies we find every year for example maybe was like from 100 to 280 something like that now we expenditures are physically piling often comes from all over the world which is a logistical nightmare but really good for the kind of companies we can serve we raised a later stage fund because one of the other things realize especially the hard cap companies you know you can find a lot of these companies at some point and to raise $50000000 not a lot of us are doing that sort of support those companies we needed this large pool of capital we wanted to on the other side really increase the top of our fall and so we started teaching looks basically say Hey we're all I try to distill how to start start up onto a class to make available around the world we started a research lab there are some things that are important to us in our mission and our vision for the world don't fit as a for profit company still want to do but but basically fundamentally YC is sort of this new university we are a collection of smart people that have some sort of shared vision of the world would like to build and the tools that we can work together and that's a very flexible structure students at all these things and in terms of the efforts to scale YC as like this global geography this early and late stage there is research that you also and taking non profits through ICL as as part of it when you think about and you say okay I saw this potential on a to to have a massive scale impact and I went in which were the things that you had a we should double down on earlier and which of the things that you would have changed that scaling process what kind of I think one thing that is really the 2 things that are really important right when you're going to try to scale organizational on one is a fairly clear vision and culture and the other is a reasonably clear org structure I think we're good on the division in culture this idea that like Y. si wants to produce the most innovation in the world and then do that in such a way we make the future great for everyone not for 7 people and and what what state kind of talks one took over about that as for the mission the mission the culture support that and I think we've done a very good job of staying true to that and and I've won a particular product organization on this without me having to legislate it if there's a company we look at where we think we make a lot of money but it be we think it might be bad for the world we won't touch it which most other investment from from for such a hard time with but you know we do things that other investment firms would not like some basic income research or support open outside or from non profits and so I think we got that right early and that and getting that right is really critical because if everyone I believe the same thing does a lot less conflict and also if people are gonna kind of organically much in the right direction just a lot less organization slid some and I think we could have put up debtor structure in place earlier we've gone through a few rations I think we know of 1 that's good but I usually try to sort of just have no structural and the price I would have worked if we had stayed at like 10 people working I see which is what it was when I took over fall apart fell apart pretty quickly 3040 people something like that was in a deliberate 10:00 I say or was it just kind of like let's try not bother with the really not a deliberate attempt at a locker see which I don't think I'm a fan of from what I know about it it was it's like it you know the the growth in the number of people of organization sneaks up on you and you can completely get away without any structure until you can't as a pretty quick flip and what do you think about is there anything you would apply capital to more fiercely or anything that you would have said that I should recruited these people into the organization earlier we run super light on Capitol and I think that is to our credit so they're all these things that would have been smoother and better if we apply more capital to but the trade off is what I've heard on culture and that reflects on companies like I kinda like that when entrepreneurs come to YC they drive to like a sick kind of shitty industrial part of Mountain View and they walk into this building that looks like it's that that we did a nice job on the inside but it's like nice in the very you've been to have it's nice and very cheap sense like there's no like gleaming marble or you know what you see on sand hill road a lot and we we just like here we stop like a CFO that yells at people if she finds that there is a $50 per flight to buy and so in all these are in all the specific instances we could've applied more money to problems and it would have helped but I think there is something in cultural important to us about frugality because we want that reflected or start ups and are start ups have a kind of bond with us with a reflect what we do so I think on the whole it is good we did not try to go solve much problems by I got months capital so it's kind of the YC selection process because we're gonna go into what are the lessons from YC companies and one of things I learned from New Yorker profile which I had no idea because I've ever seen in his that you occasionally bring a sword in with you to interviewing on for no that's that's not true that is it what year they wrote that wrong no I I think I remember how I do like I look I I love engineering history of all sorts and I'd you know kind of collect these things that like Concorde engines and just like things I think are important engineering milestone so I I I had bought this brown's age sort and I was in office hours are and the reporter is sitting with ME office hours are kind of this drudgery at sometimes region doing this like you know the sixteenth meeting of the day I need some energy and someone is a phone call and the started just came beautiful Bronze Age sword and and it just right I've been waiting for this thing you know like I had followed from Europe in this in this big crate and it I got it out as stunning perfect and I mean the first thing you do is like pick up and science see like house with how it feels and this particular one had like like you know like the Nicks of red hat people's home it's a couple 0 years ago little dark but or maybe bones too much of an expert on down to 2 deep of a neck in the mail and so I was like so excited and I ate I was on the phone with them is kind of like a not particularly setting conversation and so I picked that I we're like in my house and I just started like while I was on the speaker phone like swing it around like 5 this pretend and because I was so happy I I just got this I've been waiting for for so long and I didn't realize how I put it down at the end like I was robbed probably really dumb is probably gonna make into the profile because of forcing a watch you can just forget after someone's with her for weeks but I have never swung the sword at someone every process is it was less the swing a sword more did you like bring props with you to the interview no no this is in my house and had just arrived we don't print props got it so tell me a little bit about the YC interview process this is one of them's you've actually really refined over the years in order to get really good on there a few big ideas that actually very small number of big ideas that make Wesley work and one of them is that the there is a giant amount of arbitrage left on it because most investors in Silicon Valley will only find you with an intro are they only talk to you with an intro and it is honestly I think by and large a fairly insular network and what is the White Sea is if we can build a process it's not too painful or we can look at it everyone smart that wants something from us that we can unlock a huge amount of value because no one else does that or the time no one else did that now the people do it but I think it was as well or we have brand or something right yourself an edge but you know we're able we are willing going to look at tens of thousands of people a year with no intro to announce and there's a lot of really smart people that just because of the circumstances are born into a country or whatever don't are plugged into the Silicon Valley network we are bridge to that and I think we get compensated for that but that idea that you should have an open application and you don't shouldn't require an intro is great now doing it well in practice is hard because it is very tiring entering training talked to 40000 people a year so we have a lot of people a lot of software we this is like a secret under my telling something other people copy it well we spent so much time and money building really great internal software that only like 50 people in the world use and lets us run this process that no one else can run and the videotape and you cross check the result we transfer your results we watch you know companies we say yes or no to we when we suggest for coming up to see how strong of yes that is what we can do and we really sweat every mistake and so tell me also before we get to the some of the interesting companies about you're going global efforts like what were the things the scale to more than just the Silicon Valley network well the number one best thing we did for that was that the milk for class that we teach artifact got incredible distribution worldwide and then not brought people from other countries and what we find is that when we found someone from another country or city for the first time they go back and everybody else that I can get into I see no it's not so hard and so we just see this there's like this it is like this there's incredible chain reaction effect once we get the first good company in a new area we also do complains a lot you know what partnership fly around the world and give talks me companies and die is phenomenally effective it won't be too much longer we have more companies a pine tree outside the US the inside the US in the office with enough fellows program at some point yes we are sort of like an on ramp version to YC on one of things we realize that there was more demand for that program that we were ever gonna felt we were shocked how we're gonna get like 200 applications for the first fellowship got like 7000 this is not gonna work is designed so we have now if all of that and the class that we fought together into this new thing that we're gonna try next year for the first time which is half way between a lecture series and while I come to the class where people have individual advisers in office hours and after point of metrics every week but they can do remotely and anyone can do it so now let's go to a couple of the kind of great you know just amazing Licey companies of the number we talked about strike a little early as one of your early yesterday and I think you now I actually had realized it back on economics I think you now you are more AGN your angel dust and I was because I started pretty early with kind of a crazy like how much of your savings but I think you had a higher percentage your savings that you would apply risk management never been my strong suit but so I think I want to 50 percent not I think that was roughly somewhere around 90 different you have no money at all that I get some level be ours the percentage of the matter and so let's so let's talk about a few of them and what are the key kinda lessons for how the scaling look what we have learned what common error in Silicon Valley will have to scale on service right we're obviously the Collison's are amazing and the company is doing spectacularly well according to look like in the early days bludgeoning to be great what did they learn about how to scale so I think the number one lesson I have learned or the White Sea is learned about how to scale well is the the first thing you have to do is build a product that is so good people spontaneously want to use it and tell their friends about it and if you can do that you still have to blitz scale but it's the easy kind it's you have too much demand the hard kind of bliss scaling is where you you you you try to start scaling up before the product is really great and then most of your African scale is to generate demand so I think the number one most important insight about how the blitz scale is that the good kind of bliss Scalia is when you are not having to generate demand as you go but that you first got the product right and in many of these cases stripe Dropbox Airbnb it took a long time to get the product right but they were obsessed with that and then when they did all their effort is okay we have so much demand there without much more effort we know this is going to keep growing 2030 percent a month for years that's a real problem with a high class problem but it's still a real problem how do we build that so that is the kind of scaling that works and is generated Facebook Google I mean a lot of it's the same type of I think the kind of blood scaling that we have seen go badly is it a mediocre products we have raised hundreds of millions of dollars an RBC is being down our throats to hire more sales people to grow faster any any particular examples I don't want to name names there's so many to pick from thankfully most 7 not and that is pretty good again a few exceptions to this we try to beat that idea out of people during Y. C. R. and thus most of the people mistakes in Silicon Valley of that sort in the last decade of numbers one interesting thing that I think is slight variant on the theory that you just gave the place to be is action packed one of things I think I've learned about some scaling things is initially have to things that don't scale in order to get into scaling and so actually in fact they spend a bunch of time kind of out in the desert not getting transaction and I think it was actually all grandma gave this advice and look go to New York go door to door explain to people just get them into it wrote an essay out of that experience and a striped experience someone we can talk about on essays call do things that don't scale I think it is in the top most important essays for and to read on the years that never had to have this is almost I never saw among perfect almost universal among our best companies where I'm usually you have to go get users annually or do things that you could never do with ten million users that's actually a sign of bad entrepreneurs my experience when people",
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242      "recording_transcription": "'ve heard it area be thank stop stop music cool can put in position that 've got most public that ever happens enterprise software addresses down hill from favorite intro that well rehearsed intro thank confirming facts 're saying them very good why mayor levy CEO and co founder box on welcome this edition build enterprise opera company managing this course that 're taking that correct cat 's 's job today 'm job try and convince that everybody else who speaks throughout this old classes wrong that actually want build enterprise opera company and hopefully 'll be able work through this and good sense why it's super cool be in enterprise and why lot this perceptions going consumer space words it much fun and everything why that's wrong and want enterprise software who wants build enterprise opera company good thank very much hopefully 'll vote end and will hopefully that will shrunk that's that's really actually only goal this point well 're talking 3 today 'm first quick background and and cut history box because when started company didn't know that wanted enterprise software and want get through about why decided go after enterprise and today but talk little about major factors that changed in enterprise software that makes it possible start up today in this category and finally 'll talk little about patterns on that can exploit in ways recognize and and ways actually go build enterprise offer company yourself and that's that's hopefully 'll be practical useful advice on fore warning voice 've been speaking on past couple days hopefully 'll be able get that third part vice actual talk on 'll 'll make it but would be down in lot water apologize that going enterprise this 're talk about quick cut it will stop box with that 240000 business product 're 27000000 users on that that that brought box into organization and use it individuals and there's worried about 99 percent fortune 500 and force that last one percent really Microsoft and seem want those who want buy from us work on that time but 'm know on scale users that brought box into enterprise environments these large organizations that 're using product very wide range industries everything manufacturing and consumer products companies General Electric via Stanford healthcare actually use product collaboration within hospital environments research but between health care media manufacturing and these range industries that that serve get because really start company try and go build enterprise software company even though that ended up happening when started product on launched company in 2005 got idea actually in college back in 2004 and on was anybody using internet back in 2004 great but basically know little ideals use internet back sorry worries jokes point that doesn't might remember that there was lot on internet boring believe this before Facebook this before Snapchat 'm lot that could go can send people 15 second messages and photos that disappeared because didn't phone send in photos in internet in 2 Ford there was lot going on on this basically internet look now 'm barren desert landscape and this was internet and clarify on that happy cables Google in sack cables Yahoo on now that was effectively this was internet and this accurate time this internet in 2004 Yahoo done lot better since but but back in middle 2000 trip try find way in Google was know can taking world but this was entire this extent world 've noticed in 2004 in college was it was reason and this isn't much case today but back and before it was really hard share files and symbol idea it now on go back 10 years and it was either really expensive really hard move data through different corporate networks on internship time and in in internship most job using data was actually copy it about printed out pages and put them in cabinets that's also that's it intern and 're computer science student was really really good copping paper and but forcing skill that really been useful today but was really our share files and getting classroom environments closely working with lots other people it also hard share files 're about it went USC USC gave 15 megabytes online storage space in your email account rights basically about one file and with auto delete every 6 months basically know who running idea time but it's related hard drives there was really really hard store and share files and said well why make it really easy store and share files from anywhere and got this idea another time called box.net and noticed was there were factors that changed in software world first was cost storage was dropping dramatically in our business on basically every year 2 can double amount data and stores it goes into hard drive become was uneconomical 2 3 years ago sudden becomes feasible because cost computing cost storage dropped more powerful browsers and networks Firefox was emerging people were using much faster internet in both homes in classroom and people more locations and wanted store and share information from and these 3 factors that sudden 're merging and 'm gonna 'm gonna soak pull these factors back later when went get tackle vice but it's first point remember always look these changing technology factors because any market that significant change in underlying either raw materials enabling factors vitamin that's about change in very significant way and were very fortunate that basically need data in cloud was was growing in and importance and cost and feasibility doing it was also improving rapidly and decided put together this really quick version box will answer this box.net idea was 's make it really easy share files and it turned out that idea clicked got angel funding from this guy anymore Cuban on and and this would be shark tank but it was very similar time and got this funding and decided that this gonna be super exciting going drop out college 're gonna move bay area this could be awesome and and and when know when drop out college anybody drop out college yet could stay in school need when drop out college everyone pictures that it's going being know incredible Bill Gates dropped out college 'll be Bill Gates Michael dell dropped out college and be know super tight Michael dell Steve Jobs struggle because this people imagine but nobody ever remembers that this guy dropped out college also it's really guarantee obviously that that it's going be successful but but it's it's and actually funny even know it's got on college but on it looks say 's related me it's funny picture on internet basically decided would drop out college moved up first Berkeley and moved Powell also there after and decided that 're gonna open product free got hundreds thousands people that would sign up product every single month with free version protocol that 're going want box know got free one gigabyte files space which again quite quite bit back in 2006 this point but were getting many users and were trying figure out and ran into was common problem that really any runs into but was really pronounced our business model which was it consumers built very robust very comprehensive product and enterprises actually build too assertive insignificant product consumers 're running into was these features that could pay but lot consumers didn't need those features and enterprises really enough about security and enough capabilities around enterprises one user data basically more functionality than consumer wanted in last enterprise one and found ourselves this juncture it found ourselves basically in this in this period where difficult figure out want go deal with business good choice and 're this past where there were were basically choose where juncture where choose which path go down this was back in early mid 2006 up wait 2006 was 23 time company was was 22 our founding team was was even younger with dropped out college and can back in 2006 and 7 imagine know beast pop and and world were very very different when consumer start up it's basically lots fun and know there's parties time and it's super exciting and enterprise basically battling these large incumbents on it's fairly thankless it model because know people generally hate enterprise software that was imagine that that pass was was choose know one these 2 worlds and look that said 'll consumer looks really fun enterprise which really hard and there's lot competition same time in consumer space always fighting this issue monetize actually get people pay products and in consumer space really only business models that can can people pay your application can provide advertising on application and give perspective this these today's numbers give sense scale difference in consumer world under 30 $5000000000 spent on mobile apps every year pretty big number 130 $5000000000 that's that's lot money being spent mobile apps today in advertising global digital advertising market 130 $5000000000 it basically combined most consumer companies going after 're doing commerce going after about $170000000000 either purchasing power on applications global advertising around these kinds services helpers lot opportunity there however in enterprise there's actually 3.$7000000000000 spent on enterprise IT every single year these servers infrastructure software networking services that stack technology equates few $0 spent every single year and and realized was there's pretty wide delta between these 2 markets 're gonna be fighting trying consumers pay few dollars month and Google and Microsoft and apple will probably try and make this product be free time and were rumors that Google drive was coming out in these products that eventually happen 're gonna come out but in enterprise on it's much about trigger that that that trying always save money on ice either actually training increased productivity trying get higher performance from businesses value equation very different brain consumer limited amount money that want actually know make can serve on few possible respond in enterprise it's different shape try about actually looking get out technology help them much value that me that was really important data point however problem was that enterprise software was really really on sexy again very competitive very difficult build business was it really should shot out bed in morning and said 'm super excited fill in price offer company and reason that actually was actually pretty straight time being way that your bills offer was very slow very slow because 're in couldn't break anything customers but sales process was very slow because customers long time purchase technology everyone's pretty used this because that know usually when try and sell price offered company can take up couple years that actually software and can take couple more years other than that offer them even implement technology in first place lot companies around few years without having technology even using enterprise that felt huge problem and wanted be part technology itself really complex user experience mean 'll use both rice operate really complicated fighters asking why didn't god's name designer 47 buttons on page that can't even understand it and reason will get into second but basically there's love care design and user experience this offer really complex and finally that wasn't bad enough sudden about actually sell software and anybody who loves power internet this notion having sales intermediary get your customer seems really unappealing 're gonna go hire people that gonna be everywhere in country and 're going be only interface your customer 're hire these guys in shock and it shocks get lawyer with briefcase and 's going try and on lots enterprise software because 're 're clear it chocolates and and that was it this sales process make enterprise that would really action in our head and mean Chuck was happy guy but but 's still intermediary getting your software were saying well why can't take power internet and actually get our technology out people directly white should go through this sales intermediary scale business now 'll get into it in minute why were wrong about about sales process but this was fear that time and that wasn't hard enough investors in 2000 say 7 saying basically there's way 're gonna make it in enterprise basically again founding team early 20 roles anybody on your team that been in enterprise V. Microsoft and Google and these Google with likes him oracle IBM these companies going stop on can be very very hard actually succeed and be fair were in number areas were very inexperienced team on this this know stage 're still early in our careers Michael Viner princes looked was 13 years old 'm really it be clear on this would look it's made sense this this him our CFO this 29 but on it looks 're gonna go run off with money go Disneyland can appreciate why didn't would be able pull it off can't imagine giving him money basically decided well still go give us our best shot 're gonna take leave this scale consumer experience DNA company receive can bring this into enterprise 're very fortunate were actually investor who equally early in career and made bet on us because with belief that there was publicly change enterprise that would be able take advantage and decided that 're gonna enterprise bring Gordon prize that would play very different set rules about complexity software can change in this new era about fact that sales process very slow can change in this area era move and go directly user into customer opposed having this very indirect process getting our technology out there build in design that user opposed sale and RFP process that customer going go through and looked factors that were true enterprise said 're gonna maybe cases opposite but 're going find changed technology world where can take advantage that shift and building better in newer enterprise software company that was decision that were parked on this path work on about 8 years ago and that why 've been focused on enterprise and today again 240000 businesses that use product and reason architected business model architect software committed solution working in one specific version world and it turned out that way version ended up being with one that that that happened and it'll go into about change about world that built our company around 'm would highly recommend on 're building price company make orient your technology and solution around that was why made decision started take on problem now talk talk about change rugby enterprise that makes it still possible enter it today better and more seamlessly than ever before everything about enterprise and definition software that enterprise uses changed in past 5 years this probably most magical time there could ever be magical time build enterprise opera company now absolutely time in terms much change going on within organizations 's go through couple these first that most application categories moving cloud and big difference this idea it but were going start customer relationship management software company business intelligence software company even content management company 1015 years ago basically go your technology implemented every single customer location matter many customers sold matter reason there in every single spread put that in data center now fall on premise computing was were repeating this work were recruiting much redundancy and it was it was slowing down entire process delivering same with application game on said why does that make any sense today when can put together thousands tens thousands hundreds thousands servers and make it available on demand and use want when need that and that was that's obviously definition call computing happening there was finally CIO's and large enterprises taking advantage this it's it seems obvious everyone in this room because it would never build company buying your own servers it wouldn't start on Amazon Google act rash but enterprise there decades literally decades investment in infrastructure but now move cloud and that's obviously massive shift that finally happening world cheaper low cost on demand computing from world expensive computing benefit building start up it customers same friction when 're gonna go adopt new technology soon computing much cheaper it becomes easier adopt new solutions which means that 're barrier having conversation burial introducing them into into enterprise lot lower which creates massive opportunity start ups 're going world customized software really standardized platforms used mean build custom integrations and customer experience on top software itself and our customers realizing that actually want open platforms making customizable layer above product it used be that when were building price offer company can only really sell top 5 10000 companies in world because only those companies where with talent infrastructure and budget deploy your technology into enterprise today literally 2 person company can sign up box well work with General Electric which 300000 employees fact that can now serve small business anywhere in world well largest companies on planet means that there's much larger market can go after which makes it obviously even better economical economic proposition go out enterprise plot from themselves becoming more global our customers were international literally within first couple weeks starting company it would been usually don enterprise offer traditional way that would taken years actually be able go international and finally and probably most profound shift that because mobile devices it iPhones iPads tablets entry devices . T. model enterprise become lot more user lead that's fundamentally important because need lead world incumbents generally win because existing relationship with . T. organization with C. . O. with spending power within company any user model uses bringing in own technology bring into that down sales seem bring it in in marketing team ring it in finance and can build software that around user which means can bring technology and can sell enterprise when want better control better security better scalability still same business model traditional enterprise opera company but waiting in company now through end user those qualitative factors changes couple quantitative factors changes on this nearly 2000000 smartphones on planet on that changes on every single . T. model on planet because it used be 10 years ago were managing technology enterprise 're manage computers on network that work inside your building but now with with billions mobile phones fundamentally after will manage network and computing gonna be anywhere and anytime on any network and that creates nice opportunity several companies because incumbent built technology stack sorry boys printing and new incumbent built technology stack towers this next generation work and enterprise using your data that creates opportunity there's nearly 3000000000 people online that means that every single enterprise equally changing 're going get own products customers which means that every industry changes and there really only 2 more times early moment opportunity where technology revolution will happen in enterprise first raw materials change because computing goes down and it's better centralize and people use on demand second major change that very customers that these enterprises go after need new experiences working with those enterprises products give example know when go off campus brought Hoover lift example were in transportation business 're in shipping business and logistic business represents massive change your industry can't existing its own without understanding implications implications instant card implications left business model in world where enterprises dealing with that change 're gonna need new technology help them business models and adapt this disruption and in every industry and this why it's amazing time even build vertical",
243      "recording_transcription_org": "we've heard of all of it so okay area to be okay thank you stop stop music okay cool can you put in the position that you we've got the most public thing that ever happens enterprise software so addresses are down hill from here so favorite intro that well rehearsed intro thank you confirming the facts as you're saying them very good so why I mayor levy CEO and co founder of box on welcome to this edition of of how to build enterprise opera company has managing this is the course that you're taking right is that correct cat so here's here's my job today I'm my job is to try and convince you that everybody else who speaks throughout this sort of old classes wrong that you actually want to build enterprise opera company and so hopefully we'll be able to kind of work through this and you have a good sense of why it's super cool to be in the enterprise and why a lot of this sort of perceptions of going to the whole consumer space words it is so much fun and everything why that's wrong and what you want to do enterprise software who wants to build an enterprise opera company good all right thank you very much hopefully we'll do a vote at the end and will hopefully that will not have shrunk so that's a that's really actually the only goal I have at this point so well we're talking 3 things today I'm the first is the quick background and and cut history of box because when we started a company we didn't know that we wanted to enterprise software and I want to kind of get through a little bit about why we decided to go after the enterprise and what we do today but talk a little about what are the major kind of factors that have changed in enterprise software that makes it possible to do a start up today in this category and finally we'll talk a little about some some patterns on that you can kind of exploit in some ways to recognize and and ways actually go build enterprise offer company yourself and that's that's hopefully they'll be some practical useful advice on just to the fore warning by my voice is I've been speaking on past couple days so hopefully we'll all be able to get that third part of the vice actual talk on so we'll we'll see how we make it but would be down in a lot of water so I apologize for that so so going for the enterprise this is we're talk about so just quick cut it I will stop the box with that 240000 business is the is the product they're over 27000000 users on that that that brought box into their organization and use it as individuals and there's worried about 99 percent of the the fortune 500 and force that last one percent is really just Microsoft and they don't seem to want to those who want to buy from us is so we we have to we have to work on that a little bit time but certainly I'm you know just on a scale of users that have brought box into enterprise environments these are some of the large organizations that are they're using a product so very wide range of industries everything for manufacturing and consumer products to companies like General Electric via Stanford healthcare actually use the product for collaboration within the the hospital environments of the research but between health care media manufacturing and these are the the sort of range of industries that that we serve so how do we get here because we we really start the company to try and go build an enterprise software company even though that is how things ended up happening so when we started the product on so we launched the company in 2005 we got the idea actually in college back in 2004 and so on was anybody using internet back in 2004 okay great so but so basically I don't know if if for a little ideals use the internet so back then sorry okay no worries jokes are yours point so that doesn't for you might remember that there was a lot to do on the internet is a kind of boring right believe this is before Facebook this is certainly before Snapchat I'm so not a lot of things that you could go to you can send people 15 second messages and photos that disappeared because he didn't have a phone to send in photos so so in the internet in 2 of the Ford there was a lot going on on this is basically the internet look like now I'm sort of a barren desert landscape and this was the internet and just to clarify on that happy cables Google in the sack cables Yahoo on now is that was effectively this was the internet and this is accurate time this is the internet in 2004 Yahoo is is done a lot better since then but but back in the middle 2000 their trip certainly try to find their way in Google was sort of you know can taking over the world but this was the entire this is the extent of the world so what we've noticed in 2004 in college was it was for some reason and this isn't so much the case today but back and just before it was really hard to share files and a symbol of an idea as it is now on here you go back 10 years and it was either really expensive or is really hard to move data through different corporate networks on so I had an internship at the time and in the in the internship most of my job using data was actually just to to copy it about printed out pages and put them in cabinets that's also that's what you do is it as an intern and if you're not as a computer science student so I was like really really good copping paper and but forcing a skill that has really been useful today but I was really our share files and then getting classroom environments closely working with lots of other people it is also hard to share files we're about it I went to USC USC gave you 15 megabytes of online storage space in your email account rights so you basically for about one file and with auto delete every 6 months so so basically I don't know who is running idea of the time but it's related by hard drives so there was just like really really hard to store and share files and so we said well why don't we make it really easy to store and share files from anywhere and so we got this idea for another time is called box.net and what we noticed was there were a bunch of factors that had changed in the software world first was the cost of storage was sort of dropping dramatically so in our business on basically every year or 2 you can double the amount of data and stores it goes into a hard drive so what become what was uneconomical 2 or 3 years ago all of a sudden becomes feasible because the cost of computing the cost of storage is dropped we had more powerful browsers and networks so Firefox was just emerging people were using the much faster internet in both their homes in the classroom and then people had more locations and they wanted to store and share information from and so we had these sort of 3 factors that all of a sudden we're merging and I'm gonna I'm gonna soak pull these factors back later when I went to get some kind of tackle vice but it's sort of the first point to remember is always sort of look for these changing technology factors because any market that has a a significant change in the underlying either raw materials or enabling factors is a is a vitamin that's about to change in a very significant way and so we were very fortunate that basically the need for data in the cloud was was growing in and not importance and the cost and the feasibility of doing it was also improving rapidly and so we decided to put together this really quick version of box will answer this box.net the idea was let's make it really easy to share files and it turned out that the idea clicked we we got angel funding from this guy anymore Cuban on and and this would be for shark tank but it was very similar time and so we we got this funding and we decided that okay this is gonna be super exciting we are going to drop out of college we're gonna move to the bay area this could be totally awesome and and and when you know when you drop out of college anybody drop out of college yet okay could stay in school so we need when you drop out of college like everyone sort of pictures that it's just going to being you know incredible like Bill Gates dropped out of college you'll be like Bill Gates or or Michael dell dropped out of college and then to be you know super tight like Michael dell or Steve Jobs struggle because of this what people imagine but nobody ever remembers that this guy dropped out of college also so it's not really a guarantee obviously that that it's going to be successful but but it's it's what you do and actually funny if I don't even know if it's got on the college but on it just sort of looks like he had to say I don't he's related to me it's just a funny picture on the internet so so basically we decided we would drop out of college we moved up to you first Berkeley by and then we moved to Powell also a little bit there after and we decided that we're gonna open the product for free we got hundreds of thousands of people that would sign up for the product every single month so with a free version of the the protocol that if you're going to want to box I know you have got a free one gigabyte of files for space which is again quite a quite a bit back in 2006 at this point but we were getting so many users and we were trying to figure out to and what we ran into was a common problem that really any sort of runs into but was really pronounced by our business model which was it for consumers we had built a very robust a very comprehensive product and for enterprises we actually build too assertive insignificant of a product so for consumers what we're running into was we had all these features that you could pay for but a lot of the consumers didn't need all those features and for enterprises we don't really have enough about security and we don't have enough capabilities around how enterprises one user data so we we basically had more functionality than what a consumer wanted in last enterprise one and so we found ourselves at this juncture it we found ourselves basically in this in this period where a difficult to figure out what we want to go deal with the business so we had a good choice right and so we're at this past where there were were basically we we just had to choose where a juncture where we had to choose which path to go down this was back in early mid 2006 up to wait 2006 so I was I think 23 the time the company was was 22 our founding team was was even younger with we all dropped out of college and so what we can back in 2006 and 7 we imagine you know the beast to pop as and and sort of the world were very very different like when you do a consumer start up it's basically just lots of fun and you know there's you have parties all the time and it's just super exciting and then an enterprise you basically are battling these just large incumbents on it's a fairly thankless it a model because you know people just generally hate enterprise software so that was sort of how we imagine that that you pass was was we had to choose you know one of these 2 worlds and as we look at that we said okay we'll consumer looks really fun enterprise which really hard and there's a lot of competition at the same time in the consumer space you are always fighting this issue of how do you monetize how do you actually get people to pay for products and in the consumer space is really only to sort of business models that you can do you can have people pay for your application or you can provide advertising on the application and so just to give you a little bit of perspective this is these are today's numbers just give you a sense of the scale difference in the consumer world under the 30 $5000000000 spent on mobile apps every year pretty big number right 130 $5000000000 that's that's a lot of money being spent a mobile apps today in for advertising the global digital advertising market is 130 $5000000000 so it basically combined most consumer companies are going after if you're not doing a commerce going after about $170000000000 of either sort of purchasing power on applications or global advertising around these kinds of services so helpers lot of opportunity there however in the enterprise there's actually 3.$7000000000000 spent on enterprise IT every single year so these are the servers the infrastructure software the networking services all of that stack of technology equates to a few $0 spent every single year and and so what we realized was okay there's a pretty wide delta between these 2 markets we're gonna be fighting over trying to consumers to pay a few dollars a month and Google and Microsoft and apple will probably try and make this product be free over time and they were sort of rumors that Google drive was coming out in these kind of products that eventually happen we're gonna come out but in the enterprise on it's not so much about trigger that that that they are trying to always save money on ice either actually training increased productivity trying to get higher performance from the businesses to the value equation is very different brain a consumer we have a limited amount of money that we want to actually you know make sure we can serve on for a few things as possible respond in the enterprise it's a little bit of a different shape for you try to think about actually looking to get out of technology to help them much value is that for me so that was a really important data point however the problem was that enterprise software was really really on sexy right so again very competitive very difficult to build a business or was it something they really you should a shot out of bed in the morning and said okay I'm super excited to fill in a price offer company and the reason for that is actually what was actually pretty straight for the time being the way that your bills offer was very slow so if you had a very slow because you're in couldn't break anything for customers but the sales process was very slow because customers like a long time to purchase technology so I think everyone's pretty used to this because of that you know usually when you try and sell at a price offered a company can take up to a couple years for that actually just by the software and then they can take a couple more years other than that offer them even implement the technology in the first place so a lot of companies are around for a few years without having their technology even using the enterprise that felt like like a huge problem and a not like something we wanted to be a part of the technology itself is really complex so the user experience I mean you'll have to use both at rice operate surely really complicated you fighters of asking why you didn't god's name designer for 47 buttons on the page that you can't even understand it and the reason is so we will get into the second but basically there's just no love or care for the design and user experience this offer is really complex and then finally if that wasn't bad enough all the sudden you have to think about how do you actually sell the software and for anybody who loves the power of the internet this notion of having a sort of sales intermediary to get your customer seems like really unappealing like you're gonna have to go hire a bunch of people that are gonna be everywhere in the country and they're going to be the only interface you have your customer you're not to hire these guys in shock and it shocks get a lawyer with a briefcase and he's going to just try and so on lots enterprise software to because we're just so we're clear the so it chocolates like and and that was it this sales process to make you an enterprise that you would really some action in our head and I mean Chuck was a happy guy but but he's still an intermediary to getting your software we were saying well why can't we take the power of the internet and actually get our technology out to people directly white what should we have to go through this sales intermediary as we as we scale the business now I'll get into it in a minute why we were wrong about about the sales process but this was the sort of fear that we had at the time and then if that wasn't hard enough we had investors in 2000 say 7 saying basically there's no way you're gonna make it in the enterprise you basically are again the founding team of of early 20 roles you don't have anybody on your team that has been in the enterprise V. Microsoft and Google and all these things are definitely not Google with the likes of him see oracle IBM these companies are going to stop on you as can be very very hard to actually succeed and to be fair they were right on in a number of areas right so we were very inexperienced team on this is this is a you know stage we're still early in our careers Michael Viner princes looked like he was 13 years old so I'm just not really it just to be clear on this would look like so so it's sort of made sense right this is this is him as our CFO at I think this is a 29 but on it looks like we're gonna go run off with the money go to Disneyland so so I totally can appreciate why they didn't think we would be able to pull it off I can't imagine giving him money so basically we we decided okay well we still have to go do we have to just give us our best shot we're gonna take leave this sort of scale the consumer experience the DNA or company receive we can bring this into the enterprise the we're very fortunate were actually we had an investor who is equally early in his career and made a bet on us because sort of with the belief that there was something publicly change what the enterprise that we would be able to take advantage of and so we decided that if we're gonna do the enterprise bring Gordon a prize that we would have to play by a very different set of rules so what about the complexity of software can change in this new era what about the fact that the sales process is very slow can change in this area era how do we move and go directly to the user into the customer as opposed to having this very sort of indirect process of getting our technology out there how do we build in design for that user as opposed to just for the sale and sort of for the RFP process that a customer is going to go through and so we looked at all the factors that were true the enterprise we said we're gonna do maybe not all cases the opposite but we're going to find what is changed by the technology world where we can take advantage of that shift and building a better in a newer enterprise software company so that was the decision that we were parked on this is the path we work on about 8 years ago and that is why we've been focused on the enterprise and so today again we have a 240000 businesses that use the product and the reason is we we architected the the business model we architect of the software we are committed to the solution to working in a sort of one specific version of the world and it turned out that way version ended up being the with the sort of the one that that that happened and it'll go into a little bit about what is change about the world that we sort of built our company around what I'm I would highly recommend you on if you're building a price over company make sure to to to orient your technology and solution around so so that was sort of why we made the decision kind of how we started to to take on the problem now talk like to talk a little bit about what is change rugby enterprise that makes it sort of still possible to enter it today better and more seamlessly than ever before so everything about the enterprise and then by definition the software that enterprise uses has changed just in the past 5 years this is probably the most magical time if there could ever be a magical time to build enterprise opera company now is absolutely a time just in terms of how much change is is going on within organizations so let's just go through a couple of these things so the first is that most application categories or moving to the cloud and the big difference is this idea of it but if you were going to start a customer relationship management software company or business intelligence software company or even a content management company 1015 years ago you basically had to go have your technology implemented every single customer location no matter how many customers you sold to the matter what reason is there in every single spread to put that in their data center now is the fall of on premise computing was they were repeating all of this work they were recruiting so much redundancy and it was it was then slowing down the entire process of delivering or same thing with an application game is on said why does that make any sense today when we can just put together thousands to tens of thousands hundreds of thousands of servers and make it available on demand and you just use what you want when you need that and that was that's obviously definition call computing what is happening there was finally CIO's and large enterprises are taking advantage of this so it's it seems obvious for everyone in this room because it would never build a company by buying your own servers it wouldn't start on Amazon or Google act or rash or whatever but to an enterprise there are decades literally decades of investment in infrastructure but now I have to move to the cloud and so that's obviously a massive shift that is finally happening thanks to a world of cheaper low cost on demand computing from the world of expensive computing the benefit to building a start up is it customers don't have the same kind of friction when they're gonna go adopt new technology right as soon as the computing is so much cheaper it becomes easier to adopt new solutions which means that they're barrier for having a conversation their burial for introducing them into into their enterprise is a lot lower which creates a massive opportunity for start ups we're going for a world of customized software to really standardized platforms so used to mean you have to build custom integrations and all of the customer experience is on top of the software itself and our customers are realizing that actually they want open platforms making customizable layer above the the product it used to be that when you were building a price offer company you can only really sell to the top 5 or 10000 companies in the world because only those companies had the where with all the talent the infrastructure and the budget to deploy your technology into the enterprise today literally a 2 person company can sign up for box as well as we work with General Electric which has over 300000 employees so the fact that you can now serve a small business anywhere in the world as well as some of the largest companies on the planet means that there's much larger market so you can go after which makes it obviously even a better economical economic proposition to to go out for the enterprise the plot from themselves are becoming more global so our customers were international literally within the first couple weeks of starting a company it would have been usually if you don enterprise offer the traditional way that would have taken years to actually be able to go international and then finally and probably the most profound shift of all is that because of mobile devices it all iPhones iPads tablets entry devices I. T. model of the enterprise has become a lot more user lead that's fundamentally important because I need to lead world incumbents generally win because they have the existing relationship with the I. T. organization with the C. I. O. with the spending power within a company any user let model uses are bringing in their own technology bring into that down the sales seem to bring it in in the marketing team the ring it is in finance and you can build software that around the user which means they can bring the technology and then you can sell to the enterprise when they want to have better control better security better scalability so you still have the same business model as a traditional enterprise opera company but the waiting in the company is now through the end user okay so those are qualitative factors changes just a couple quantitative factors changes on this over a nearly 2000000 smartphones on the planet on that changes on every single I. T. model on the planet because it used to be 10 years ago if you were managing technology for enterprise you're just had to manage the computers on the network that work inside of your building but now with the with billions of mobile phones fundamentally after will manage the network and computing is gonna be anywhere and anytime on any network and that creates a nice opportunity for several companies because no incumbent has built the technology stack sorry for my boys printing and so new incumbent as built a technology stack the towers this next generation of of work and how enterprise are using your data so that creates a sort of opportunity there's nearly 3000000000 people online what that means is that every single enterprise is equally changing how they're going to get their own products to their customers which means that every industry changes and so there are really only 2 more times early to moment of opportunity where a technology revolution will happen in the enterprise the first is if the raw materials change so because of computing goes down and then it's better to centralize and let people use on demand the second major change is that the very customers that these enterprises have to go after need new experiences of working with those enterprises products we give an example if you know what when you go off campus you brought you something like Hoover or lift as an example the if you were in the transportation business if you're in the shipping business and the logistic business over represents a massive change to your industry so you can't just what over existing do its own thing without understanding what are the implications of over what are the implications of instant card what implications of left to my business model is so in a world where enterprises are dealing with that kind of change they're gonna need new technology to help them of all of their business models and how they adapt to this disruption and so in every industry and this is why it's an amazing time even build vertical so",
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262      "recording_transcription": "operate higher classes and would assume that 've already hired relentlessly resourceful people able product least people love probably raise capital and now 're trying build company your your product and got fortune company 40 couple much more difficult and your product basic reason people rational probably know this either your parents your significant other your brother sister your teacher somebody life irrational companies basically taking original people know in one building and living within 12:00 hours day least it's very challenging others techniques coping with that and people get get out and people but that's really operating about basically 're doing when build company your building engine first drying on white board and your architecting it looks very conceptually clean and beautiful and pretty but when start actually translate practice actually it looks more this 're holding it together with duct tape and takes lot her 2 people actually hold it together one people work 8000 hours week isn't corrode efforts actually necessary keep this together because actually polished metal in place allegedly want construct high performance machine machine that actually almost nobody really worry about every hour every minute and know wish joke about eBay that it's Martians took eBay would take 6 months world notice that's where actually which one got 2 words weren't office says know build company that correct eventually will this want basically performance machine that it Inspiron leader your real job your role strictly speaking there's only 1 book ever written that actually explains this it's little strange in 1982 Andy Grove quite famous quite successful and definition your job maximize output organization your organization 're responsible CEOs everything into V. P. would be organization and organizations around actually responsible performance product team where marketing team because influence there this measure people and want focus on output input old adage about measuring 3 motion confusing out with progress 're measuring only progress it cell fancy glamorous maybe people get excited about managing large organization be responsible output this feature learn today hopefully that it's more about ordering studies teacher receptionist answer phone properly serving $10 hour tells Robert your employees 's talk about that first start company everything's gonna feel mass it really should too much process too much predictability 're probably in meeting sponsored off and creatively enough it should feel every day there's new problem and 're doing fundamentally triage will look problem there actually colds 're going go away somebody's annoyed about this that that may be cold in Houston stress about intrusion allocate on your country others present themselves colds but in emergency room 're diagnosed properly actually can become fatal 'm gonna try help give framework thinking about which cold 're sayings potentially fatal one most important learned it square actually concept editing and this best metaphor ever seen in 14 years running stop about your job it's natural natural metaphor it's easy take with every day actually it's easy transmit teacher airplanes that can figure out whether 're editing writing it's natural construct generally know when someone asks and 'm more writing work and in editor days best metaphor your job ever talk about specific 're doing in editing first it advertising probably this experience in school submit paper check your draft your friends foreseen editor does stay take red pen guarantees go online and start striking basically eliminating most important aspen editors simplify simplify simplify it usually means meeting that's your job clarify in simple fine everybody on your team more simplify better people will perform people cannot understand keep track complicated set initiatives 've got distill it down 12 3 and use framework that can repeat repeat without thinking about groupie friends repeat night accept excuse complexity lot people will tell that well this challenge too complicated well know other people simple 5 but me this complicated business wrong can change world 840 characters can build most important companies in history in very simple describe concept can market products in less than about 50 characters there's reason why can't build your company same way force yourself simplify every initiative every product every marketing every everything into basically take out that read it started limiting second it does ask clarifying questions when present paper somebody usually find ambiguity somewhere and say really need this mean that example this that's your job in meeting gonna look and real actually ask lot questions and can be simple basic questions should try this 7 days week 6 states can be quite battle questions where's our competitive advantage try this actually investors investors will ask questions about 1000000000 and diligence forever try narrow down 1 12 34 that actually matter this company and only focus on those it allows us be more decisive and can make decisions rapidly allows us distract from your day job which actually build company and still get higher fidelity highest fidelity answers these extra extraneous pieces details and data that's hard study practice but when good good it every step eliminating any girl estimated that can improve performance 30 50 percent next allocate resources editing construct this editors time take editor's from Mideast covering Mideast Silicon Valley Silicon Valley now more interesting rules sports section because want compete on basis sports with other journals other publications second top down take allocate resources people say 're now going really compete on this basis and next month next quarter next year 'd well that least coverage skateboarding bland get anymore 's go check else working bottom up journalists mostly come up with own stories people who work with generally should be coming up with own initiatives reporter will generally who covers Google come up with interesting stories that 're hearing there propose one 2 that editor approval selling editors saying go cover Google and this angle want once in while that but that's that date date meditators journalist everyday goal time actually use last reading every day one way measuring well 're doing in communicating your colleagues about 's important 's why important much reading 're pulling out every day it's bad day in writings place but it's reading next month more that was last month and exporters morning this measure yourself much reading other that's very important that actually isn't intuitive taught people job editors ensure consistent voice any read economist can tell that there's one consistent voice any articles published in economist deals this run same person ideally your company should feel on your website your PR release on your packaging its physical product anywhere in your recruiting pages should feel was written one person that's extremely difficult first can be tempted that yourself which failure that herself initially time want be doing consistent voice editing yourself your train people can recognize difference invoice this website page it looks very different in recruiting page start asking questions why that reporting that stop was one leaders 're really understanding boys company got fix that time but want start with objective everything should feel exactly same quite quite difficult practice almost every company least one piece organization that isn't exactly on same voice apple which our tortilla understood understood regime which with Tories getting this 're awesome work apple talk them about internal tools about recruiting really feel apple products them will tell know never 100 percent but want get close can that's complicated topic delegated other about metaphor editing writers most work in world editors actually writing most content in any publication that's actually trigger company going most work shouldn't be doing most work and way get out doing most work actually delegate that problem with delegating actually responsible everything says CEO founder there excuse there's outside department there this person there screwed up 're always responsible every single especially when go wrong doable delegate but Kate it's pretty tricky challenging both savings delegate can advocate micromanage sociable since many give couple techniques solving this first this actually comes from high output management any ground 's nice house role that maturity fancy phrase basically person ever done this before it's really simple mature this person doing and more done exact same tops before war rope 're gonna give them and last in more trying new more 're going actually instruct them consistently constantly regularly monitor basic concept but it's worth keeping in back your brain interesting application and it pretty radical that any executive inicio should one management style your management style actually needs be dictated your employee with one particular person much micro manager because 're quite low on scale and with another person maybe delegating lot because 're actually quite mature on scale it's actually good reference checks on somebody and half people call state micro manager other half say actually give me lot responsibility that's actually that's that's feature bug understand that first used get befuddled when people would reference checks on me come back but it's complicated was act and that it basically finally figured out that media actually doing job correctly taught other people this point 'm dancer though that 've came up with make decisions and delegating first doing it yourself want it yourself too often well casing Lee bar from Peter spec first 2 2 matrix ever in life please tell me least basically your own level connection about decision on great extremely high extremely low there's times when know 's mistake there's times where would it that way but real idea weather whether it's wrong answer and there's consequence mention that make wrong decision actually catastrophic your company and will fail there that already low impact that really end day aren't going make big difference least initially and basically believe it that where there's low consequences and low cost your own opinion actually delegate delegate completely people make mistakes and learn on other side obviously were consequences extremely dramatic and 're extremely high conviction that 're 're actually can't your junior colleague make mistake your old only responsible that mistake it's really important 've can't allow that happen that best way that actually splaine 're thinking white hot it's easy short cut when get busy explaining why world but it's very important trying it linked in colleague who quite quite talented Casey get in latest didn't exactly agree with about opinion on and it's been lot time trying persuade him why always making decision certain way and wild card card will truly call out can quite persuade it was 're boss and admits me was burning lot social capital every time said that knew was really creating thin line and that pulls away that was going backfire did that too often short track times that 're doing that example this squares one favorite people in world in second higher first marketing higher this program wanted run called inner square which basically allowed people give out server get tether squares called it's measure truck outside put 10 squares on counter and people could grab them and it's great also marketing program squares which says spreads worst other people extent book it was on brand didn't catastrophic consequences into these tents coursing cost that much money financially can afford it but that time 10 years experience said there's way this going work in meaningful enough scale move our metrics and off and actually before this because was excited about this that decided him it learns that actually measure this it's says it doesn't create NASA value company it did require fair about operational complexity ship squares people figure out get them squares etcetera allow him be excited about job and learn filter future ideas it's worth money make quote unquote mistake in most possibly most important actually team these people that work with and nobody's gonna perfect team and usually gonna start that way 'm gonna try maximize probability success in editing team this idea barrels nomination most companies once again hiring but it's simply used that while but once that hire lot people and expected expected add people 're tripling your force power your Avalos 're shipping going increase turns out it doesn't work that way usually when hire more engineers actually get out much more don actually sometimes get lost on hardware designers get more done get lost on per day talk about why but died reason why that most people most great people even actually mean issue 's your name your company barrels only through number 8 barrels that's velocity your company increase adding barrels and your stock them with ammunition and can lot go one barrel company which mostly start our company get choice and everything's done per day per week per quarter US 3 girls great 4 girls also really difficult find when them give lots equity promote take them dinner every week because it virtually 'm 're replaceable because 're also very culturally specific barrel one company may be about another company because one ways that definition barrel can take idea from conception way through shipping imploring people without and that's very culturally specific opportunity specific skill set rather 2 questions probably our current use figure out who's barrel start actually with very small set responsibilities it can be fairly trivial it could be want reward engineers in office 9:00 night every night with nice cold fresh sweetie this actually real example was frustrated our engineers working really hard square and know maybe 20 percent 30 percent would stay very late into evening and wanted Iranian serving dinner but want give cool reward them could about alcohol but it's little complicated service with these were probably better than pizza which drains your energy but nobody can get smitteez in office shop 9:00 sharp were cold that tasted good liver place that engineers would find them this simple but in fact it back college get this badly injured man interns started on second day was explaining this problem and said well direct looking it there's way manager fell system fell who actually pretty good this it going happen and blow that night show up on time coal deliver place and first instinct was great nothing but this with this but now can actually give more important consequential complicated that's actually want it every single employee every single day expand scope responsibilities told breaks it will break everybody couldn't run world everybody level complexity that can handle and want keep expanding it into where breaks and that's role that should stay that level sophistication but people will surprise there will be people who expect without with different backgrounds without lot experience that can handle enormously complicated tasks kid tested out pushing envelope got signal look when hire someone with open office watcher goes up other people's desks particularly people that report people start going your gas someone individual employees gas reports that it's sign that believe that person can help them that consistently does your barrels promote them give them more opportunity fast can other question everybody else about people when hire somebody about somebody and when mentor somebody when need replace somebody and way that way about this every company its own growth rate every individual our growth rate companies that very successful sailing team did was use very linear company it never went this example joined Clinton in 2 months after launched in only 1.5000000 users which in social product very small number and when joined was 20 seventh employee when left 2.5 years later later only 57 employs contrast when tried squares twentieth from 40 2 years later 5500 employees each company its own velocity on this curve company's going this can only keep people in roles that own personal learning curve going this and company's going this anybody who's learning curves faster than that can keep giving them same role always track individual slope unemployed and company's growth rate your barrels it identifies your pick out people that can really take idea about your head scope it out run with that make it happen ship it that's perfect were in these girls 'm gonna argue that really need spend lot time focusing people this there were computer actually Houston system pay pal every single person can only exactly one every single person comparable this idea and on natural it's different every other company where people want multiple especially get more senior want multiple and 're feel insulting be asked one that Peter would force this pretty strictly basically say will talk about anything else except this one on site want hear about great 're doing shut up run away and focusing conquer this one problem and insight behind this that most people will solve problems that understand sell speaking will solve people's problems instead plus problems aplus problems high impact calls company but 're difficult wake up in morning with solution tend procrastinate them imagine wake up in morning create list today because usually plus one top list but never get around it excuse second and third and out entire company hundreds people that cascades company that's always clothes which does mean grow does mean about Dolly but never really create that brings want spending 100 percent type banging her head against wall every day until solve and highly recommend version god can be less stringent could be can get free work on but would still track least concept would happen only gave everybody one prioritize because can't make decisions want be making these decisions yourself create tools that enable people make decisions same level ideally fidelity that would make them yourself create scale leverage first 'd recommend building dashboard this old square dashboard actually looks pretty presentable even today construct dashboard personal should be drafted sound it basically simple find value proposition in company's metrics success on white board other people build dashboard actually care about that but need draw it out does business success looks us and key in place says and someone create that very intuitive every single person in company including customer support teams and kid metric whether succeeded fraction your employees use that dashboard every day it's actually useful it should be close 100 percent it's gonna be probably 100 percent but want measure it out quality scores your other kid guys with users Josh born be intuitive it eyes your product users other wait hold on 's go back one second another concept transparency and people will often that's weird transferred people talk lot about it's goal that everybody ascribes but when push comes shove very few people actually it walk through transparency in different stages transparency Patrick first steps everybody company absolutely should access every single that's going on other was that take your board Jackson get more formal vortex will get more complicated and actually review every single slide with every single employee after board meeting can strip out compensation information really want but every other slide should go through entire employee base and explained it and can remember got got from your board that's really cool pounce on another did square come skills everybody's talking about it every meeting but 're gonna want go every wage scale that create notes every meeting and send it entire company tree created notes Ellie S. every single meeting more than 2 people someone would write does it send it entire company people felt company added employees can continue monitor track was interesting was going on never felt excluded hopefully other even details around conference rooms every call square glass walls position regular walls people wonder 's going on it's amazing it can who's actually in beating and meeting with when start with worry nearly much 's going on behind those closed doors straight may seen blog post patch credit about know transparency about actually allowing everybody access email that's pretty far out there but it's actually got interesting get certain merit strip call tactics that read about about minimal Bible transparency actually can push envelope lot more Steve Jobs tried set next actually tried tried Kerr compensation actually although still extremely well it wasn't real reason wasn't because that experiment around compensation transparency and there's lot marriage that and yet critique compensation transparencies often well people be teammates work together and collaborate and look in sports world though where people actually teammates and collaborate conversations completely public in fact each us can look up anybody's compensation in sports world get it exactly accurate somehow it seems work 'm bought into idea that need keep transferred back compensation finally metrics want measure on your neighbor 'll push inputs and again should dictate this yourself should drop dashboard tell us together water pouring concept known parametric indicators which measure one only one companies stopped and sat and often expense else that's important classic example in payments financial services around risk it's really easy give risk team objective and say want lower our fraud great sounds great it's start treating every single user in this audience suspect user because want lower Fabri require each call them up on phone and give them more supplemental information facts and and lowest price in world also worst know customer satisfaction score want measure same time your primary false positive rate that forces team actually invade similarly can give recruiters measure tried hiring and guess 'll lot people coming through interviews but 're talking quality hires maybe very unhappy with quality people 're interviewing people getting offers Joe's watch create opposite indication immeasurable and people were responsible that team it'd be measured up finally around that tracks one inside out career want look anomalies want look expected behavior that famous example was paid none top 10 markets that company was planning go after included but one day someone noticed that 54 power sellers actually hand written into eBay listings please pay with PayPal and brought city attention second team time first actually exactly same hell's going on 's kick them out system that's our focus fortunately David socks came back next day found our market but it's actually build tools these power sellers instead forcing him write into listing page HTML button that can insert started work and said well 're actually why make them inserted twice make them answered time when automatically inserted them can insert once in every single listing maybe forever this automatically appear there that became 6 house pick up similarly that house dead S. that made sense me thank this was different back 25 percent clicks maybe 30 percent clicks from page where people going own profile any sense whatsoever mean say it was settings got link on margin vital link and 25 30 percent every single click add scale and this nonstop any sense whatsoever never never seen could go that lives when around weeks trying figure this out but it's someone very smart guy suspect selection said me and was 's it's bad people looking themselves in mirror that's pretty good answer 6 were editing profile that nobody every day low profile but actually were look themselves in mirror every 6 minutes can actually test that hypothesis will buy more content look myself that often turns out did get more drawer space it yourself and more often turns out did actually figured out always actually underneath utilitarian product products and thought were building was actually lot emotional Vanity exactly translate into best possible future Papon sample which can use crippling city more pain today know on homepage probably work perfectly never really took off way pick on simple did but really clarified user users product really wanted everyone fell now without looking almost data final topic on talk about details enters into side reading great book really but bill Walsh call score takes care itself and basic points book that get details worry about build billion dollar business hundred million dollars in revenue billion users that's product getting details every day be actually example talks about book that really resonated with me was took forty Niners in nineteen seventy nine 're worst team in football believe were two and fourteen year before was really got this go football in next ten years and was transported Stevens NFL's bounced one three super bowls and 's first did start going from terrible team dust team ever in many ways actually top receptionist answer phone properly three page memo about actually answer phone that may sound absurd but point was organization does everything exactly way receivers example start running",
263      "recording_transcription_org": "how to operate like some of the higher classes and I would assume that you've already sort of hired a bunch a relentlessly resourceful people able to product at least some people love the probably raise some capital and now you're trying to build a company so your for your product and I got a fortune company are you 40 a couple is much more difficult and for your product basic reason is people are rational so you probably all know this either your parents your significant other or your brother or sister your teacher somebody or life is irrational their companies basically taking all the original people you know in one building and living within 12:00 hours a day at least so it's very challenging others techniques for coping with that and some people get get out and some people don't but that's really what operating is about so basically what you're doing when you build a company is your building an engine at first you have a drying clearly on a white board and your architecting as it looks very conceptually clean and beautiful and pretty but when you start actually translate to practice actually it looks more like this you're holding it together with duct tape and takes a lot of her okay for 2 people to actually hold it together as one people work 8000 hours a week isn't corrode efforts actually necessary to keep this thing together because you don't actually how polished metal in place allegedly want to construct a high performance machine machine that actually almost nobody really has to worry about every hour every minute and you know as we wish to joke about eBay that it's Martians took over eBay you would take like 6 months for the world to notice that's where they actually which one I got 2 words weren't office says you know build a company that is correct eventually they will so this is what you want to basically a performance machine that it Inspiron as a leader what is your real job what your role strictly speaking there's only 1 book ever written that actually explains how to do this it's a little strange in 1982 by Andy Grove is quite famous quite successful and his definition of what your job is is to maximize the output of an organization your organization you're responsible for CEOs everything into V. P. would be organization and organizations around you he actually are responsible for the performance of the product team to where the marketing team because influence there this is how you measure people and you want to focus on the output not the input the old adage about measuring 3 motion confusing out with progress you're measuring only progress is it a cell like a fancy glamorous thing to do maybe people get excited about managing a whole large organization to be responsible for the output this feature to learn today hopefully is that it's more about things like ordering studies teacher receptionist how to answer the phone properly serving as a $10 an hour tells Robert for your employees let's talk about that so first we start a company everything's gonna feel like a mass it really should if you have too much process too much predictability you're probably not in a meeting sponsored off and creatively enough so it should feel like every day there's a new problem and what you're doing is fundamentally triage so some things will look like a problem there actually are colds they're just going to go away so somebody's annoyed about this or that that may be a cold in Houston stress about intrusion allocate on your country as others are to present themselves as colds but just like in the emergency room if they're not diagnosed properly they actually can become fatal so I'm gonna try to do is help give you a framework for thinking about which things are cold we're sayings are potentially fatal so one of the most important things I learned it square is actually concept of editing and this is I think the best metaphor of ever seen in my 14 years of running a stop of how to think about your job it's natural to natural metaphor so it's easy to take with you every day actually it's easy to transmit teacher airplanes so that they can figure out whether they're editing a writing it's a natural construct you generally know when someone asks you to do something and I'm more writing or my work and so in editor days is the best metaphor for your job ever talk about the specific things you're doing in editing the first thing it advertising you probably all had this experience in school if you submit a paper to check your draft your friends foreseen editor does stay take a red pen or guarantees you go online and I start striking things basically eliminating things the most important aspen editors to simplify simplify simplify it usually means meeting things so that's your job to is to clarify in simple fine for everybody on your team the more you simplify the better people will perform people cannot understand keep track of a complicated set of initiatives you've got to distill it down to 12 or 3 things and use a framework that they can repeat repeat without thinking about the groupie to their friends repeat at night don't accept the excuse of complexity a lot of people will tell you that well this is to challenge is too complicated well I know other people simple 5 but not so for me this is a complicated business the wrong you can change the world 840 characters you can build the most important companies in history in a very simple to describe concept you can market products in less than about 50 characters there's no reason why you can't build your company the same way so force yourself to simplify every initiative every product to every marketing every everything into basically take out that read it started limiting stuff second thing is what it does do is ask you clarifying questions so when you present a paper to somebody what they usually do they they find some ambiguity somewhere and they say what do you really need this to mean that you have example this that's what your job is in a meeting gonna look to you and the real thing you do is you actually ask a lot of questions and they can be simple basic questions like should we try this for 7 days a week or 6 states they can be quite a battle questions like where's our competitive advantage here we try to do this actually as investors to some investors will ask you questions about 1000000000 things and all have you do diligence forever we try to narrow down to 1 of 12 or 34 things that actually matter for this company and only focus on those things so it allows us to be more decisive and we can make decisions rapidly allows us not to distract you from your day job which is actually build their company and I think we still get to the higher fidelity highest fidelity answers we don't have all these extra extraneous pieces of details and data that's hard to study how to practice but when you good good at it every step eliminating any girl estimated that you can improve performance by 30 to 50 percent the next thing you do is allocate resources so the editing construct this what editors do all the time they take editor's from the Mideast covering the Mideast Silicon Valley Silicon Valley is not now more interesting or the rules for sports section because they want to compete on the basis of sports with other journals other publications second top down right take a bunch of allocate resources people say we're now going over here really compete on this basis and then next month next quarter next year I'd like well that at least coverage skateboarding a bland we don't get anymore let's go check or something else working the bottom up just like journalists mostly come up with their own stories the people who work with you generally should be coming up with their own initiatives so reporter will generally who covers Google come up with interesting stories that they're hearing is there propose one or 2 that are editor for approval by selling the editors saying go cover Google and this is the angle I want once in a while they do that but that's not that date the date meditators or journalist as everyday goal over time is to actually use last reading every day so one way of measuring how well you're doing in communicating your colleagues about what's important what's not what why something is important something is or not is how much reading you're pulling out every day it's okay if you have a bad day in the writings all over the place but it's not okay for reading next month is more that was last month and exporters morning this to measure yourself of how much reading the other thing that's very important that actually isn't as intuitive taught people is the job of an editors to ensure a consistent voice so if any of you read the economist you can tell that there's one consistent voice any articles published in the economist if deals like this run by the same person ideally your company should feel like on your website your PR release on your packaging of its physical product anywhere in your recruiting pages should feel like was written by one person that's extremely difficult to do at first you can be tempted to do that yourself which is okay for failure to do that herself initially over time you do not want to be doing all of the consistent voice editing by yourself your train people so they can recognize the difference is invoice so if you see this website page it looks very different in their recruiting page start asking questions why is that is reporting that stop was one of the leaders of you're not really understanding the boys the company so you got to you have to fix that over time but you want to start with the objective of everything should feel exactly the same quite quite difficult to practice almost every company has at least one piece of the organization that isn't exactly on the same voice apple which is our tortilla understood understood his regime which with the Tories for getting this right if you're awesome to work at apple talk to them about the internal tools about recruiting they really feel like apple products all of them will tell you know so you never 100 percent but you definitely want to get as close as you can that's complicated topic is delegated to just like the other thing I like about the metaphor of editing is writers do most of the work in the world editors are not actually writing most of the content in any publication so that's actually trigger company you are not going to do most of the work you shouldn't be doing most of the work and the way you get out of doing most of the work is actually delegate that the problem with delegating is actually responsible for everything says CEO founder there is no excuse there's no like outside department over there this person over there screwed up you're always responsible for every single thing especially when things go wrong so how doable delegate but not how to Kate it's a pretty tricky challenging both their savings like if you over delegate or you can you advocate or you micromanage sociable since so many give you a couple techniques for solving this first this actually comes from high output management any ground is what's nice house role that maturity a fancy phrase for basically has person ever done this before it's really simple how mature is this person doing something and the more they done the exact same tops before the war sort of rope you're gonna give them and the last in the more the trying something new the more you're going to actually instruct them consistently constantly regularly monitor just have the basic concept but it's worth keeping in the back of your brain interesting application and it is a pretty radical is that any executive inicio should not have one management style your management style actually needs to be dictated by your employee so with one particular person much of micro manager because they're quite low on the scale and with another person maybe delegating a lot because they're actually quite mature on the scale so it's actually a good thing if you reference checks on somebody and half the people you call state or micro manager the other half say they actually give me a lot of responsibility that's actually not a that's a that's a feature not a bug I don't understand that at first at all like I used to get befuddled when people would do reference checks on me come back but it's like complicated was act and that it basically finally figured out that the media is actually doing my job correctly so then of course taught other people at this point I'm a dancer though that I've sort of came up with is how how do you make decisions and delegating first doing it yourself you don't want to do it yourself too often so well casing Lee bar from Peter spec first 2 by 2 matrix ever in my life please tell me something at least is basically sort of your own level of connection about a decision on a great extremely high extremely low there's times when you know something's mistake there's times where you would do it that way but you have no real idea what the weather whether it's the right or wrong answer and then there's a consequence to mention things that if you make the wrong decision are actually catastrophic your company and you will fail there are things that are already low impact that really at the end of the day aren't going to make a big difference at least initially so and I basically believe it is that where there's low consequences and you have a low cost is your own opinion is actually delegate delegate completely let people make mistakes and learn on the other side obviously were the consequences are extremely dramatic and you're at extremely high conviction that you're right you're actually can't like your junior colleague like make a mistake your old only responsible for that mistake if it's really important you've just can't allow that to happen that the best way to do that is actually splaine you're thinking the white hot it's easy to short cut when you get busy explaining why the world but it's very important trying as it linked in I had a colleague who is quite quite talented Casey we get in the latest if I didn't exactly agree with is about opinion on something and so it's been a lot of time trying to persuade him why always making a decision a certain way and his wild card the card you will truly call out if I can quite persuade it was just like okay you're the boss and admits to me like I was burning a lot of social capital every time he said that I knew I was like really creating a thin line and that pulls away that was going to backfire if I did that too often short track the times that you're doing that example this is squares one my favorite people in the world in my second higher first marketing higher this program you wanted to run called inner square which basically allowed people to give out server just to get a tether squares to their called it's a measure for truck outside put a 10 squares on the counter and people could just grab them and it's great yes we also marketing program squares which says spreads worst other people to some extent the book it was on brand so didn't have catastrophic consequences into these tents coursing cost that much money so financially we can afford to do it but at that time my 10 years of experience said there's just no way this is going to work in a meaningful enough scale to move our metrics and off and actually before we don't not do this because I was so excited about this that I decided to just let him do it he learns that actually measure this thing it's not not says it doesn't create like NASA value for the company it did require fair about operational complexity to ship all the squares people figure out how to get them squares etcetera allow him to be excited about his job and to learn how to filter future ideas so it's totally worth money to make the quote unquote mistake yes in most possibly most important thing you do is actually at the team so these are people that you work with and nobody's gonna have a perfect team and usually not gonna start that way so what I'm gonna try to do is maximize the probability for success in editing the team so I like this idea of barrels nomination so most companies once again hiring but it's simply not used to for that for a while but once you do that just hire a lot of people and like expected expected as you add people you're tripling your force power your Avalos you're shipping things is going to increase turns out it doesn't work that way usually when you hire more engineers you actually don't get out much more don you actually sometimes get lost on the hardware designers you definitely don't get more done you get lost on per day we talk about why but died so the reason why is that most people most great people even are actually I mean issue what's your name your company or barrels only sure through the number of 8 barrels you have so that's how the velocity of your company increase by adding barrels and then your stock them with ammunition and you can do a lot so if you go for one barrel company which is mostly how you start to to our company so they get choice and everything's done per day per week per quarter of US 3 girls great if you have 4 girls also really difficult to find when you have them like give the lots equity promote then take them to dinner every week because it the virtually I'm like you you're replaceable because they're also very culturally specific to a barrel at one company may not be about another company because one of the ways that the definition of a barrel is they can take an idea from conception all the way through shipping imploring people without and that's a very culturally specific opportunity I specific skill set rather 2 questions probably our current use how do you figure out who's a barrel is not what is you start actually with a very small set of responsibilities it can be fairly trivial it could be something like I want to reward the engineers are in my office at 9:00 at night every night with a nice cold fresh sweetie this actually real example I was frustrated our engineers working really hard square and you know maybe 20 percent to 30 percent would stay very late into the evening and I wanted to sort of Iranian serving dinner but want to give something cool to reward them you could think about alcohol but it's a little complicated service with these were probably a little bit better than the pizza which drains your energy but nobody can get smitteez in my office to shop at 9:00 sharp they were cold that tasted good liver to the right place that engineers would find them you think this is simple but in fact it back to college to get this right so badly injured man interns started I think on the second day I was explaining this problem and he said well direct as like looking at it like there's no way his manager fell my system fell all who are actually pretty good this is it going to happen and then blow the whole that night they show up on time coal to deliver the right place and my first instinct was great not not nothing but this with this but okay now I can actually give something more important consequential complicated to do that's what you actually want to do it every single employee every single day is expand the scope of the responsibilities told breaks it will break everybody like I couldn't run the world like everybody has like some level of complexity that they can handle and what you want to do is keep expanding it into you see where breaks and that's the role that they should stay at that level sophistication but some people will surprise you there will be people who don't expect without with different backgrounds without a lot of experience that just can handle enormously complicated tasks as a kid tested out of pushing the envelope got a signal to look for is when you hire someone is with an open office just watcher goes up to other people's desks particularly people that they don't report to people start going to your gas someone individual employees gas they don't reports that it's a sign that they believe that a person can help them so if you see that consistently does your barrels just promote them give them more opportunity as fast as you can the other question everybody else about people is when you hire somebody about somebody and when do you sort of mentor somebody or when you need to replace somebody and the way that the way to think about this is every company has its own growth rate every individual has our growth rate just some companies that are very successful at sailing team we did was we use a very linear company it never went like this so for example I joined Clinton in the 2 months after we launched in we had only 1.5000000 users which in a social product is very small number and when I joined I was the 20 seventh employee when I left 2.5 years later later we only had 57 employs a contrast when I tried squares the twentieth from 40 2 years later we had like 5500 employees each company has its own velocity on this curve at the company's going like this you can only keep people in the roles that their own personal learning curve is going like this and the company's going like this anybody who's learning curves faster than that you can keep giving them the same role to do so always track like the individual slope of unemployed and the company's growth rate you have your barrels it identifies your pick out the people that can really take an idea you have about your head scope it out run with that make it happen ship it that's perfect were you in these girls so I'm gonna argue that you really need to spend a lot of time focusing people this so there were computer to actually Houston system pay pal every single person can only do exactly one thing we all over every single person a comparable to this idea and so on natural it's so different at every other company where people want to do multiple things especially get more senior definitely want to do multiple things and you're like you feel like insulting to be asked to do just one thing that Peter would force this pretty strictly he basically say I will not talk to you about anything else except this one thing on the site you I want to hear about how great you're doing over here just shut up run away and then focusing so you conquer this one problem and the insight behind this is that most people will solve problems that they understand how to sell the speaking they will solve people's problems instead of a plus problems aplus problems are high impact calls for company but they're difficult to wake up in the morning with a solution to tend to procrastinate them so imagine you wake up in the morning you create a list of things to do today because usually the a plus one of the top of the list but you never get around to it excuse all the second and third and out over entire company of hundreds of people that just cascades she have a company that's always all the clothes things which does mean you grow does mean about Dolly but you never really create that brings I want to spending 100 percent type banging her head against the wall every day until they solve and I highly recommend some version of god you can be less stringent you could be like you can get free things to work on but I would still track at least the concept of what would happen if you only gave everybody one thing to prioritize because you can't make decisions I don't want to be making all these decisions yourself you have to create tools that enable people to make decisions at the same level ideally a fidelity that you would make them yourself so how do you create scale leverage first thing I'd recommend is building a dashboard this is an old square dashboard actually looks pretty presentable even today the the construct of a dashboard personal should be drafted by the sound it sure basically simple find the value proposition in the company's metrics for success on a white board you have other people build the dashboard I don't actually care about that but you need to draw it out like what does business success looks to us and what are the key in place says and then have someone create something that is very intuitive for every single person in the company including customer support teams and then the kid metric of whether you succeeded is what fraction of your employees use that dashboard every day if it's actually useful it should be close to 100 percent it's not gonna be probably 100 percent but you want to measure it out just like you have quality scores for all your other kid guys with users Josh born is to be as intuitive as it is eyes your product is for users the other thing is wait hold on let's go back one second another concept is transparency and people will often that's weird okay transferred to people talk a lot about it's kind of a a goal that everybody ascribes to but when push comes to shove very few people actually here to it so let me walk through a little bit of transparency in different stages transparency Patrick sort of first steps to everybody or company absolutely should access to every single thing that's going on other thing was that I like to do are take your board Jackson as you get more formal the vortex will get more complicated and actually review every single slide with every single employee after the board meeting you can strip out the compensation information if you really want to but every other slide you should go through the entire employee base and explained it and if you can remember some of you got you got from your board that's really cool to pounce on another thing we did a square as you come the skills everybody's talking about it every meeting but they're gonna want to go to every wage scale that is you create notes for every meeting and send it to the entire company tree created notes Ellie S. for every single meeting of all the more than 2 people someone would write does it send it to the entire company so people felt like as the company added employees they can continue to monitor track what was interesting what was going on I never felt excluded hopefully the other thing is like even the details around conference rooms every call for sure square has glass walls position as you have regular walls people wonder what's going on it's amazing like it they can see who's actually in the beating and his meeting with you when they don't start with they don't worry nearly as much as what's going on behind those closed doors straight you may have seen a blog post by the patch or credit about you know transparency about actually allowing everybody have access to email that's pretty far out there but it's actually got an interesting you get a certain merit strip all call the tactics that you read about here about a sort of minimal Bible transparency actually think you can push the envelope a lot more Steve Jobs tried to set next actually tried tried Kerr compensation I actually think although not still do extremely well it wasn't the right the real reason wasn't because of that experiment around compensation transparency and there's a lot of marriage that and yet the critique of like compensation transparencies often well what people to be teammates to work together and collaborate and if you look in the sports world though where people are actually teammates and they do have to collaborate all of their conversations completely public in fact each of us can look up anybody's compensation in the sports world to get it exactly accurate somehow it seems to work so I'm not totally bought into the idea that you need to keep transferred back compensation finally metrics so you want to measure things on your neighbor I'll push the inputs and again you should dictate this yourself you should drop the dashboard to tell us all together water pouring concept or what is known as parametric indicators which is a measure one thing only one thing the companies had stopped and I sat and often at the expense of something else that's important a classic example in payments to financial services around risk it's really easy to give the risk team the objective and say we want to lower our fraud great sounds great it's all they start treating every single user in this audience as a suspect user because they want to lower the Fabri see require each of you to call them up on the phone and give them more supplemental information facts and things and you have the lowest price in the world you also have the worst you know sort of customer satisfaction score so what you want to measure at the same time as your primary is a false positive rate that forces the team to actually invade similarly you can give recruiters measure tried hiring and guess what you'll have a lot of people coming through interviews but you're not talking the quality of hires maybe very unhappy with the quality people you're interviewing people are getting offers to Joe's watch create the opposite as indication immeasurable and people were responsible for that team it'd be measured up all finally around that tracks one inside out had over my career is what you I don't want to look for the anomalies you want to look for the expected behavior so that a famous example was I paid how none of the top 10 markets that the company was planning to go after included but one day someone noticed that 54 power sellers actually we hand written into their eBay listings please pay with PayPal and brought the city attention of the second team at the time the first actually exactly the same as what the hell's going on let's kick them out of the system that's our focus fortunately I I think David socks came back the next day so I think we found our market but it's actually build tools for these power sellers instead of forcing him to write into their listing page we have an HTML button that they can just insert what I started to work and then he said well we're actually why do we make them inserted by twice to make them answered all the time when we just automatically inserted for them so you can insert a once in every single listing maybe they have forever this automatically appear there so that became the 6 house for pick up similarly that house of the dead S. all the stuff that made no sense to me thank you I have this I was a little bit different back then by 25 percent of all clicks maybe 30 percent of all clicks from the whole page where people going to their own profile any no sense whatsoever I mean they just say it was a settings like got a link on the right margin vital link and is 25 to 30 percent of every single click add scale and so this is like just a nonstop any no sense whatsoever never never seen like you I could go for that lives when around for weeks trying to figure this out but it's someone very smart guy I suspect selection said something to me and I was like he's like it's bad I like people are looking at themselves in the mirror that's pretty good answer 6 they were editing their profile that nobody has like something to at every day low profile but they actually were just look at themselves in the mirror every 6 minutes okay you can actually test that hypothesis they will buy more content do I look at myself that are often turns out you did get more drawer space to do it yourself and are more often turns out you did she actually figured out like always actually underneath utilitarian product to the products and thought they were building was actually a lot of emotional Vanity exactly translate into the best possible future like the Papon sample which you can use a crippling city more pain today you know on the homepage are probably not work perfectly so never really like took off the way to pick on simple did but really clarified what the user what users of the product really wanted everyone to fell now without looking for an almost data the final topic on talk about his details enters into my side reading is a great book I really like but bill Walsh call the score takes care of itself and the basic points of the book is that if you get all the details right you don't worry about how to build a billion dollar business how to have a hundred million dollars in revenue how to have a billion users that's a by product of getting all the details of what you do every day to be actually so the example he talks about the book that really resonated with me was he took over the forty Niners in nineteen seventy nine they're the worst team in football I believe they were two and fourteen the year before was really got this you don't go football in the next ten years and I was transported Stevens the NFL's bounced one three super bowls and what's the first thing he did to start going from a terrible team to dust team ever in many ways actually top the receptionist how to answer the phone properly three page memo about how to actually answer the phone that may sound absurd but his point was if the organization as a whole does everything exactly the right way then receivers for example start running their",
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276      "recording_transcription": "thank god most respected businessman in world because 've made great deal money but because 've done it with enormous integrity and humility and people tonight with enormous sense humor and in addition being business person that everybody quarters fire be in recent years become with Bill Gates Melinda gates largest philanthropists in world net worth might be in excess higher than it's $50000000000 more 10 more last and 's committed give 99 percent that away and 's in process doing thank on behalf country and everybody else your background pretty well known but people may know that actually spent much your formative years in Washington DC your father was elected Congress moved went Alice deal junior high school got lot season diesel understand and went Woodrow Wilson high school finished sixteenth in your class but were 17 might add well your working were doing were paid delivering papers in morning and evening and forth and question really begin that many people grow up in Washington love living and want stay hope aspire be head lobbying firm someday congressional staffer ever any regrets that might been medic neighbor make yourself stayed well 'm still young David 'm may come back want deal today first time 'd been there 65 years and and met principle wonder Wilson also day but but LOC tried get record expunged but lot told me earlier today that lived in Spring Valley 40 ninth street between venison tomorrow up and today with camera crew knocked on door person was living your house that person say well good time mean house seem shrug but chase was was very wonderful woman 's lived in house 30 plus years and and got along and retrace paper on when were growing up watching were already business person well thought didn't get lot public recognition such but but were making money understand it file your first tax return when were 14 years old was that it was year when was 13 and finally when was 14 and tax rates 2 hi Dan it more in those days did dark bicycle and watch business expenses and and only because statute limitations blind eye commit entire 'd never use bicycle pleasure watch never looked watch except after graduated from Woodrow Wilson went actually university Pennsylvania year point 5 and transferred back university Nebraska why did leave hand it was great business school why did leave that fellow with mean want quit after one year be honest answer father talked me into going college in first place and talked me into going second year but said want second year that could could drop out and know about going around that when got out college in 3 years and spent hangs up and plan live in Nebraska when graduate universe brass get applied Harvard Business School and were rejected that's true harbored ever now that regretted that this well development officer rejected Harper went Columbia slow and met man who really idolize Ben Graham and when took class was great thought was going be really was only only taught one semester one class and came up from Wall Street and taught this class that's reason went Columbia and know would be really read books and everything but it was inspirational be around them and with it it it made real difference in life when graduated want go work him and firm and rejected interesting reason in those days understand were Jewish firms and non Jewish firms and was Jewish firm and weren't Jewish said because weren't didn't that that's true ease and and and was ready convert thank 're going feel little 40 time but it was it was true that there were very few firms on Wall Street that would hire Jews that time and only employed 5 6 people but told me extent that 're able employ 5 6 people really felt that Jews could get and most jobs on Wall Street and date were gonna get boy only choose name was Ben Graham but actually real name was grows it eyes does that ring same day got son named Howard Graham Buffett named after bad and and 's very glad beds changes name moved back while Nebraska but old me change mind and went work Ben Graham kept pestering posted myself in in those years did aspire aspire become very wealthy person would want be buying US stocks with one companies was your inspiration those early days love love analyzing securities bent hours and hours and hours kept turning pages movies which settling internet that also 2 sources information moody's and standard and poor's on and happen these sets mood were about in aggregate probably about 8000 pages 5 different manuals and went through those page page ends mama's make siding and it's little strange mean actually went Amazon go and found old 1951 moody's everybody else going there playboy magazine but 'm 's straight guy well when were working in New York were intractable companies been Graham was involved with which was geico capsules understand came down knock on door geico and started talking with them and it was it was really lucky day went went was Colombian reverse library and looked up down and who's who in America and but it's German government employees insurance company asked librarian can learn more about this never take any courses in insurance and said well there's this big bass manual read that can find out about company there was one page on roadways insurance that Saturday got on first train and came down Washington and went that quarters was called government employees insurance add total surprise place was locked mean people didn't work and that will work on Saturday work on Saturday kept pounding on door and finally janitor came and said janitor said there anybody can talk accept know didn't seem get offended particular introductions that there's follow up on on those 6 floor hand that 's only one and it was man named former Davidson and armor Davis and change life in big way was wonderful wonderful man and talked with me maybe 4:00 hours on Saturday and gave me education never got in school and it much eventually bought company and it's one those it took few years when were starting your investment partnership started around 1956 partnership that's correct and understand it somebody put $10000 in in 1956 and it stayed with and and kept that stock that could gotten when look on partnership's 10000 be worth roughly $500000000 today that's about while those people very grateful who did that was grateful that mean were betting on 25 year old know who looked about 20 and after about 12 and and know that that and actually were mostly relatives 'm father in law and sister and and and her husband hand and your investment partnership started started buying companies and buying stocks and 1 companies bought was Berkshire Hathaway and know your company now very famous its name Berkshire Hathaway that was 1 your best investments wasn't it was really dumb mean it was it was call 6 usually call Graham's approach on buying very cheap stocks that were very good companies cigar box because there would be walking down street and finding cigar but there was one puff left and it didn't cost anything it was discussing anything Bircher halfway with that company and it wasn't much problem either know your company's name Berkshire Hathaway 've sold company many years ago did ever changing name now now much that when started ritual were buying stocks pick stocks but started buying companies was different skill set and did learn buy and operate these companies well when buy 100 shares X. Y. Z. company look it buying company and 've always looked buying stocks buying businesses it really wasn't different situation out couldn't reseller and couldn't that buy on stock couldn't change management which could own company but it was basically same approach 'm better investor because 'm on business person and 'm better business person because 'm investor and in crossover today Berkshire Hathaway many different companies that part about 75 but those more companies it 75 companies about 310000 720 7000 boys manage very small office many people in your office managing although 're now up 2414 're never really 1 floor higher people want but 're really 1 want people sitting on line and go through it know would sit in your office looking new ideas companies that read lot read lot read newspapers and read kinds financial information and and basically 'm looking one that idea and people send letters transom any there's ideas ever work occasionally but very often but only need one year 've that day but want help me out well couple comes this on pay high prices but in your office computer in your office that in office but but other people in office 7 know 're famous technology person but iPad internet internet love internet mean internet it's it's fascinating me because probably affected life know almost much say Bill Gates it one bill appear together sometimes use trick question aside from email which one us on on computer more and dancers make because play bridge and every every every night 'd spend couple hours night and after these years doing champion now 'm even close 've good time every though it it's it's most interesting game found people know that 're playing with know name T. bone and that's it's got around that people used put age 103 did dumb people was safer guy honored 3 bad but met years Bill Gates first meet bill did first meet him met him and 7/5/1991 Meg greenfield loops on people probably know house out in and Bainbridge island out there in Seattle and called me in late eighties and said worn door love Seattle enough money buy second place and said make anybody calls me and asks does that 1 ones that call bought this house and wanted show it me that in 1991 actually K. grandma Rollie Evans maybe 1 2 others went out there and and does it it may and making senior gazes called up bill senior and hearing aids and said 've got this crew out quickly dropped out and said fine and merry called up bill and said warm but was coming down and would come down home in common with that guy doesn't understand technology hopeless was very determined and said know 're gonna cop bill and negotiated while it finally got down where said come down hour and 27 minutes and came down and headed off still talking 10:00 hours later it became good friends but never came in shoe buy Microsoft stock technology companies didn't didn't try try get me use computer work eventually book when learned could play bridge on that got interested owners that happens with that though thought originally said would get most beautiful woman working Microsoft but was engaged Melinda didn't work got know bill better did influence your views on add make investments influence your views on philanthropy wouldn't say too much group maybe 50 people started getting together in 1968 when driver year dioramas tonight that that public group delay and and and that those meetings would talk about various subjects and philanthropy was important subjects it was maybe in 1993 that meeting was in Ireland that time and and actually brought along gospel wells everybody read discussed that but thinking involved together in way but ever regretted getting involved in giving away money earlier in your life wife that thought should feel idea getting both agreed on giving away money mean that that ones everything wanted really bad everything want and mean it it it know and surplus 12 utility tomatoes kinds tell me rest world used properly and agreed on that early would've liked idea giving away more it earlier and felt that was going be better compounding machine than than than most places and that there would be lot more get away later on told her piling up 'm now your father was very conservative Republican congressman well were probably Liberal Democrat sad affair well would but was was always very conservative back your conservative when was alive and later moved further laughter with your parents it's fair say your level Democrat knower 'm card that support certain Republicans and happen and actually this year get money Republican Congress and 've been come famous recently in Washington among other buffet rule which says that peoples guess tax rate should be least size secretaries that that in terms aggregate payroll and and income taxes couldn't get disease named after me settle tax any your friends suggested that compensate your secretary in capital gains could pay lower rate 's been suggesting that but 's always on phone with tax advisor. interesting people speculate about much money made but tax rate actually above $106000 most people goes out going payroll and income taxes because most regressive and quits that point and actually between say 100 and 62 water in most cases would be down your financial Ackermans pretty well known that now in our country 15 half $0 debt in our federal government and 1000000000000 year adding up would were able wave wand and try fix our debt problem deficit problem well would it everybody in this room it mean ask everybody much federal government should be raising annually aggregate next 10 years answers would come in somewhere between 18 and half and 19.5 percent which close 's been situation since World War 2 fashion much government should be spending that put him in 21 percent from ,nd 28 after 21 there's incident that can 2 percentage point deficit relative GDP ad and debt GDP will grow in fact it probably will shrink touch can couple percent deficit every and",
277      "recording_transcription_org": "I thank god the most respected businessman in the world are not just because you've made a great deal of money but because you've done it with enormous integrity and humility and as people see tonight with enormous sense of humor and in addition to being a business person that everybody quarters fire to be he has in recent years become the with Bill Gates to Melinda gates the largest philanthropists in the world I think his net worth might be in a an excess little bit higher than mine it's a $50000000000 more 10 more last and he's committed to give 99 percent of that away and he's in the process of doing so thank you on behalf of the country and everybody else right your background is pretty well known but some people may not know that you actually spent much of your formative years in Washington DC your father was elected to the Congress so you moved here you went to Alice deal junior high school got a lot of season diesel I understand and then you went to Woodrow Wilson high school finished sixteenth in your class but you were 17 we might add right well you had your working you were doing you were paid delivering papers in the morning and the evening and so forth and my question really to begin is that many people grow up in Washington love living here and they want to stay here so they hope to aspire to be the head of a lobbying firm someday or had a congressional staffer something do you ever have any regrets that you might have been medic neighbor make something of yourself have you stayed here well I'm still young David I'm I may come back all right I want a deal today first time I'd been there is 65 years and and I met the principle I wonder Wilson also the day but but an LOC I tried to get my record expunged but a lot you told me earlier today that you lived in Spring Valley the the the the 40 ninth street between venison for tomorrow the up and so today with a camera crew you knocked on the door the person was living your house what that person say well we had a good time I mean the house seem to shrug but chase she was she was very wonderful woman she's lived in the house for 30 plus years and and we got along very well and then we retrace my paper on so when you were growing up watching you were already a business person well I thought so I didn't get a lot of public recognition to such but but so you were making money as I understand it you file your first tax return when you were 14 years old I was for the that it was for the year when I was 13 and I finally when I was 14 okay and if you think the tax rates for 2 hi Dan it is more in those days I I did the dark my bicycle and my watch as as business expenses and and only because the statute of limitations has a blind eye to commit the entire right I'd never use my bicycle for pleasure or my watch I never looked at my watch except the so after you graduated from Woodrow Wilson you then went to actually university Pennsylvania for a year point 5 and then you transferred back to the university of Nebraska why did you leave hand it was a great business school why did you leave I just I that fellow with I mean I want to quit after one year to be honest answer I my father talked me into going to college in the first place and they talked me into going a second year but he said if I want a second year that I could I could drop out and so they know about going around so that when I got out of college in 3 years and so I had spent hangs up and I plan to live in Nebraska so when you graduate of the universe the brass get you applied to Harvard Business School and were rejected that's true has harbored ever now is that they regretted that this well the the development officer so you rejected by Harper you went to Columbia slow and then you met the man who you really idolize Ben Graham and when you took his class was he as great as you had thought he was going to be really was the only he only taught one semester one class and they came up from Wall Street and taught this class that's the reason I went to Columbia and if he I know would be I don't I don't really read all the books and everything so I but it was inspirational has to be around them and I I with it it it made a real difference in my life so when you graduated you want to go work for him and his firm and then he rejected you for an interesting reason in those days I understand they were Jewish firms and non Jewish firms and his was a Jewish firm and you weren't Jewish so he said because you weren't sure she didn't that right that's true ease and and and I I was ready to convert thank I think they're going to feel a little 40 of the time I but it was it was true that there were very few firms on Wall Street that would hire Jews at that time and then only employed 5 or 6 people but he told me to the extent that they had we're able to employ 5 or 6 people I really felt that the Jews could not get and most jobs on Wall Street and the date they were gonna get boy only choose what his name was Ben Graham but actually his real name was grows by what it is is is the eyes does that ring a same day I got my my son is named Howard Graham Buffett named after bad and and he's very glad the beds for changes name so you moved back for a while to Nebraska but then the old me change his mind and you went to work for Ben Graham I kept pestering posted myself in in those years what did you aspire to do what you do you aspire to become a very wealthy person would you want to be buying US stocks with one of my companies what was your inspiration those early days I I love I love just analyzing securities I just bent hours and hours and hours just I kept turning the pages of movies which for settling the no internet that are they also had 2 sources of information moody's and standard and poor's on and we happen to have these sets the mood is they were about in aggregate probably about 8000 pages 5 different manuals and I went through those page by page ends mama's make siding and it's a little strange I mean I I I actually went to Amazon to go and I found an old 1951 moody's not everybody else is going there for playboy magazine but I'm he's a straight guy here well when you were working in New York you were intractable of the companies have been Graham was involved with which was geico capsules I understand you came down the knock on the door what geico and you just started talking with them and it was it was really a lucky day I went I went I was of the Colombian reverse the library and I looked up down and who's who in America and then have a whole bunch of things but it's a German government employees insurance company so I asked the librarian how can I learn more about this I never take any courses in insurance and he said well there's this big bass manual if you read that you can find out about the company there was a one page on the roadways insurance so that Saturday I got on the first train and I came down to to Washington and I went to the that quarters of what was then called government employees insurance add to my total surprise the place was locked I mean people didn't work and that they will all work on Saturday the work on Saturday so I kept pounding on the door and finally a janitor came and I said to the janitor I said is there anybody here I can talk to accept you know he didn't seem to get offended particular introductions or is that there's a follow up on the on those I think 6 floor hand that he's the only one here and it was a man named former Davidson and armor Davis and change my life in a big way was a wonderful wonderful man and he talked with me for maybe 4:00 hours on a Saturday and gave me an education like I never got in school and so you like it so much you eventually bought the whole company and it's one of those it took a few years so when you were starting your investment partnership I think you started around 1956 for the partnership that's correct right and as I understand it if somebody put $10000 in in 1956 and it stayed with you and and kept that stock that they could have gotten when you look what is on the partnership's at 10000 be worth roughly $500000000 today that's about right while so those people are very grateful to you who did that right I was grateful that I mean they they were betting on a 25 year old you know who looked about 20 and after about 12 and and so I know that that and actually they were mostly relatives I'm is my father in law and sister and and and her husband my hand and so your investment partnership started you started buying companies and buying stocks and 1 of the companies you bought was Berkshire Hathaway and you don't know your company is now very famous its name Berkshire Hathaway that was not 1 of your best investments wasn't it was really dumb not I mean it was it was what I call a 6 I usually call Graham's approach on buying very cheap stocks that were very good companies a cigar box because you there would be like walking down the street and finding a cigar but there was one puff left and it didn't cost anything it was kind of discussing anything I don't Bircher halfway with that kind of a company and it wasn't much of a problem either so if you know your company's name Berkshire Hathaway you've sold the company many years ago did you ever think of changing the name now now I don't I don't do much of that so when you started the ritual you were buying stocks to pick stocks but then you started buying whole companies was at a different skill set and how did you learn to buy and operate these companies well when I buy 100 shares of X. Y. Z. company I I I look at it is buying the whole company and so I've always looked at buying stocks is buying businesses so it really wasn't a different situation out I couldn't reseller and I couldn't that the buy on the stock I couldn't change management which I could if I own the whole company but it was basically the same approach I'm a better investor because I'm on a business person and I'm a better business person because I'm an investor and in the crossover today Berkshire Hathaway as how many different companies that are part of the the the kind of about 75 but some of those or more companies so it is a 75 companies you have about the 310000 720 7000 boys how do you manage all you have a very small office how many people you have in your office managing although what we're now up to 2414 we're never really 1 floor I I don't think a higher all the people I want but we're not really 1 for so they want people sitting on the line and go through it you know so what would you do you sit in your office they looking at new ideas for companies is that how you I like to read a lot so I read a lot I read newspapers and I read all kinds of financial information and and basically I'm looking for one that idea here and do people send you letters over the transom is any there's ideas ever work occasionally but not very often but I only need one a year I've so that the day but if you want to help me out well we have a couple comes we like this on the you don't pay high prices but so in your office you have a computer in your office that you in my office but but other people in the office 7 so I know you're not a famous technology person but do you have an iPad or do you do all internet things I do internet things I I love the internet I mean the internet it's it's fascinating to me because is probably affected my life you know almost as much as say Bill Gates it we have a one bill I appear together sometimes we we use a trick question of aside from email which one of us is on as as is on the computer more and dancers make because you play bridge and every every every night you'd spend couple hours a night and after all these years of doing are you champion now I'm not even close I've I just have a good time every though it it's it's the most interesting game I found the people know that they're playing with you over the you know the name T. bone and that's it's got around that I am people I used to put my age is 103 so I did something dumb people was safer guy honored 3 is not bad but so you met over the years Bill Gates first meet bill what did you first meet him I met him and 7/5/1991 Meg greenfield loops on the people are probably know had a had a house out in and I Bainbridge island out right there in Seattle and she called me in the late eighties and she said worn door I love Seattle do I have enough money to buy a second place and I said make anybody calls me and asks does that 1 of the ones that don't call so she bought this house and she wanted to show it to me that in 1991 so actually K. grandma Rollie Evans maybe 1 or 2 others went out there and and does it it may and then making to the senior gazes so she called up bill senior and hearing aids and said I've got this crew out here quickly dropped out and had said fine and then merry called up bill and said warm but was coming down and would you like to come down is at home what do I have in common with that guy he doesn't understand technology is hopeless at he was very determined and she said you know you're gonna cop bill and so they negotiated a while it finally got down to where he said he come down for an hour and 27 minutes right some and he came down and we headed off to still talking 10:00 hours later it became good friends but he never came in shoe to buy Microsoft stock or by technology companies he didn't he didn't try to try to get me to use a computer at work eventually book when I learned I could play bridge on that I got interested owners that what happens with that though I thought he originally said I would get the most beautiful woman working at Microsoft but he was engaged to so Melinda didn't work so as you got to know bill better did he influence your views on how to add make investments or influence your views on philanthropy I wouldn't say too much we we we have a group of maybe 50 people what started getting together in 1968 when the driver of the year dioramas here tonight is is that that the public group delay and and and at that at those meetings we would talk about various subjects and philanthropy was an important subjects so I think it was maybe in 1993 or something like that we had a meeting thing was in Ireland at that time and and actually brought along the gospel of wells for everybody read we discussed at that but so are thinking sort of involved together in a way but have you ever regretted not getting involved in giving away money earlier in your life for my my wife that she thought I should feel like the idea of getting what we both agreed on giving away all the money I mean that that the ones we had everything we wanted really bad everything we want and I mean it it it you know and the surplus 12 I have has no utility tomatoes all kinds you tell me the rest of the world if used properly so and we agreed on that early she would've liked the idea of giving away more of it earlier and I I felt that I was going to be a better compounding machine than than than most places and that there would be a whole lot more to get away later on so I told her all piling up at you I'm right now your father was a very conservative Republican congressman well you were probably a Liberal Democrat sad affair well I would but I was I was always very conservative back your conservative are when he was alive and later moved further the laughter with your parents it's fair to say your level Democrat knower of I'm not a card that I support certain Republicans and I happen and actually this year I get some money to a Republican Congress and you've been come famous recently in Washington for among other things the buffet rule which says that peoples I guess tax rate should be at least a size or secretaries that that the in terms of the aggregate a payroll and and an income taxes I I couldn't get a disease named after me so I just settle for a tax have any of your friends suggested that you compensate your secretary in capital gains kind of thing so she could pay a lower rate she's been suggesting that but right she's always on the phone with some tax advisor. the interesting thing is people speculate about how much money she made but the tax rate actually above $106000 for most people goes out if you think they are going to payroll and income taxes at the because the the so the most regressive all and quits at that point and so actually between say 100 and 62 water in most cases the right would be down by your financial Ackermans pretty well known so that we now have in our country 15 a half $0 of debt in our federal government and 1000000000000 a year so adding up what would you do if you were able to wave a wand and try to fix our debt problem or deficit problem well I I think I would do it everybody in this room to do it I mean if if you ask everybody here how much the federal government should be raising annually over an aggregate over the next 10 years the answers would come in somewhere between 18 and a half and 19.5 percent which is close to what's been the situation since World War 2 fashion how much the government should be spending that they put him in a 21 percent from a,nd 28 after 21 have there's an incident that you can have a 2 percentage point deficit relative to GDP ad and the debt to GDP will not grow in fact it probably will shrink just a touch so you can have a couple percent deficit every and",
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356      "recording_transcription": "took crash figured worse comes worse go back Wall Street in front know me lose anything but time would make same decision again maybe same guy again same decision now Sonny well saw in time when meet men women our age JPMorgan today leadership characteristics looking in them and identify and bring those people through next generation bald when 're young it's hard say leadership characteristics but sufficient basic other people who know lot people walk into your office and said know know about strategy company didn't bother read chairman's wrote which 3040 pages long people walk in and say know push about doing better digital services but look ones that other people walk in and know everything and conversation action against in your life opposed way around character business sinner Quan non and character also mean that tell truth nothing but truth shave truth say same that said could second people doing different in that go on list me after interest time that night 1 which and people who good relate well people and when look finances often people concentrate on competitive leadership characteristics that GST real focus on collaborative balance between capacity collaborative try recite company inside now why look that destroyed companies folks bureaucracy and politics and your show and know side summarize our can't many times know got make simpler got make this better know gotta kill our musical longer stand regulation sometimes regular native it said 're gonna re imagine these way should be way today and 's take crack killing bureaucracies grown up recently and dogs hardware memo and 'll 'll pre reach meetings put your chart pre reach expected your homework get now system though and ported up with beforehand walk why went B. and C. Babs focused person was white speak this person means canceled go that first and come back with joint recommendation disagree and 'll talk about specifically why disagree about anyway bureaucracy in pre restored same bureaucracies initially condition output complex businesses operate combat global environment it's true privacy kills privacy drives good people drive innovation it makes personally next competitor and collaborator and really bad idea inside company it's compete with ideas was really bad idea 're competing with person next create politics and look which killed companies years it was practicing and look fortune 500 did 1950969798 look coming 2 failed it was because were dumb bureaucratic backward and political and ocean noble out and and yet mean normal normal course allow it and 've seen lot public companies and boards allow boards can created way absolute collaboration collaboration does mean that agree collaboration does mean go along get along because that's coming 's good guy and basically know walk in me and say 'm gonna be loyal would question that means because should be loyal institution which belong customers loads principal try stand but be loyal me using music and defend decision whether agree and which it's mistake will learn having very candid and open and forthright style communication spree should about Warren Buffett says loves which analyzes 'm 'll appreciate it was it that led develop style communication early on well 'm 'm one those who your change much 've been 8 and know got when got Harvard Business School advice got was graduating was Jamie go corporate America won't survive and resent but it was true that was little too outspoken and go corporation etcetera know part it was warm buffet read when was in high school college actually read partnership letters and were and would say 'll speak 're might smart sister who doesn't know where and know go out would explain it and your business that complicated school explain it always felt exactly same way was filled up matter principle inside company allow spinning public were going spend me and know earnings numbers were doing and say same that say board say shareholders say employee say customer there difference might phrase it differently talk difficult people insurance claim yourself but there difference and that that clarity helps company know was trying accomplish time and 'm know 'm gonna read annual letters gobbledygook in lottery might respect Kobe drops know and and got be very specific because it say well customer most important in customer customer will be beaten in Argentina mission me specific actually read customer complaints and about it opposed put customer first lot people say that mean it in any way shape form actions it would actually support statement that's 'm mean transmission small career advice everyone whether tech extremely sexy now less today posted today would opportunity in career in finance and audience maybe on seeing your first month about tech tech driven it's different than it was before it true driven change throughout history go and start technology from actual know from chips internet but also know printing your energy institutions know schools churches desert dissemination morality that's wished always change side and know and it's always route root changes in businesses rule changes and and company own copy well it actually critical person Silicon Valley got free ride with Obama in White House know pander pander him pandered and now seem little flip side that big companies success wants find out which 've known long time big more government's gonna get inside and want impose on and several standards and sometimes good sometimes good but financial services technology actually wonderful professors huge user technology spend $9000000000 year 're know 're 're bleeding edge but 're damn close in terms spend money on our our data center capabilities more about digital moving your move $6000000000000 on world every day digitally crypto currency but close it because because it digital know and being 50000000 people in our households in online bill but mean online investing mobile investor always very link into our accounts huge users that also obviously use advertising on Facebook and Google Kateryna but financial services always going be interesting business because it's it's most important but it nexus our Kappa society functions party's been wheel and 'm when say France program know private equity venture capital activists would me bangs non banks individual investors lot companies that individually that helped change world but that it's always gonna be this feel that more money gets invested ideas come together get executed capital gets executed globally it's always fascinating it'll always be well paid know somebody's folks in DC it be well paid but can't it know with dumb people making dumb decisions it actually running good economy that it always be our high tech user and always be complex in global fights nature know and it's fascinating business when wake up in morning but read paper there's very little in paper 'm reading about effects our clients factor companies it affects our risk effects exposure should be doing about it any article because business in your well 100 countries know and with help but every country in every shop well fine it's fasting field me when get into it 're different parts got decide want wanted want get into that one set up which really hired top notch people investment banking and sales and trading will go better schools world those people now same general management about 8 9 10 year could need people run damn joined and want same quality and move around company keep eye on them and know but point want be global want move around and want learn manage and run same compensation investment bankers same 5 openness senior people can get that and it's there your vest being can't move in management your sales and trading but this want more management financial services mentioned crypto currency know said wanna talk about corn annual your Stanford almost student loan money into it and 'll ask anyway and why believe government's regulators call allow existence global currency very nice because was going spokesman because care about because could give **** tell truth promised myself wouldn't talk about next day and did therefore really quickly blockchain Israel technology can be public private me 5 people be 59 going work when already use in law test case that were supporter worry about security because said most extreme dollars day real time quite efficiently effectively and secure before replace that can can it 3 crypto currencies 3 types 3 separate types one icy hours and and studied these but 're paying token allows use service which very different than currency but that's people call crypto currencies and maybe maybe 3 ms shows idea know about give cloud services even vesting services that's one type second type can use crypto currency fiat currency that works because it use different technology move money around basically keep your money digitally anyway and keep different files different way and distributed ledgers that would work fine voice vote bit coin currency and store value any payment mechanism that governments and this exit this belief that may be wrong 'm saying can't grow $0 that governments going crush one day 3 reasons one one terrorist activities it'll happen it's matter time go back bit coin and also DOJ United States government these people in Washington profess love technology and your novel Cupid corner change mind number 2 when lot little ladies who our money know because specular vehicles allowed exist United States government know indigo lose money in big town should done about it and number 3 most important government when ever government forms itself go any country in world pull out currency look date that's fear cartridge that government with central bank because covers control currency know who it worse going why going when it went shatter and now would be Quentin novelties $100000000000 in add and $1000000000 day trades hands obviously mostly speculation Kay and obviously there's real use case 'm make joke Venezuela Cuba North Korea criminal drug money always be true always use case it's valuable someone because better in those countries that that that currency cared money in bank because gums take that go Argentina factory savings accounts government when it took it took it and know want bank granted mean country basically collapse but didn't go that's reason why in which gonna get bigger and bigger than one controller it same fiat currency your currency government says take this legal tender and par affected be cash par know end always worth part and know why could go dollar would ever be that know it stored value be worse than crypto up in court there view and know may be wrong and check out 've been wrong before though 'm wrong also care very much reflect life because write bankers defending stop factually untrue know big quite work court will that control when when seeking organs big investor books in technology assisting from queen most interesting applications blockchain gonna be off on blockchain it's it's faster chip euro Disney video GPUs and that because when get certain technologies feel system and allow differently everywhere more database and know more read different natural language processing this base code use case big corn it it'll be deployed use case case when using it move money inside bank 30 40 percent $620 removed between JPMorgan chase accounts merry area from General Motors when your vendors both accounts moved between our own accounts know basically loans Kate loan alone Dockery trade paperwork detail most Asian older older confidence in be kept in place where 'll same files kept up date know who owns know who doesn't own it 'll be one equity trading know but queen takes 10 minutes finish 1000 trades but seconds equities maybe too late use equity train maybe end day settlement it use case but use cash can go through one one still work may work there and but again got write code effective write coach with me from one topic another 're part president trump's business advisory boards should been disbanded and where that ministration also can play out will joined council but keep in mind when joined council president asked him Schwartzman called up actually into present join counsel patriot love United States America Kerry and it's free want help your country still gonna help country help me god that's 'm gonna whether will president trump and and your member help presidents and prime ministers around world them revise them be given this and want help people that country and that part your job know bank individual try help make world better place joined council did get one very long well written L. again nasty letter from daughter 've basically basically could dad 'm 2 doors point did and wife told me many her friends explained it but but member these old liberal feat new Yorkers in opinion said 'm patriot doesn't agree with everything man says way man himself it's about 20 helping write these remarkable council met twice these council truth aren't particularly effective know there was one out near was second meeting that this there was lot first rate talk about infrastructure with this in president's that's ridiculous get better this true but 1.that 're gonna be gone in detail in agency's goes around table know telling that know it takes too long build bridge in this regulation urgently need this in capital markets effect it come down time and after know short films last drop negatives going up most us really believe in diversity L. G. B. T. docker programs were pro immigrant were know when wouldn't justify in any way shape form know Nazism white supremacy that know found ourselves having explain our own people way because press was always calling up saying did say want press calling up and saying up go public Everytime risible vomited press really extremely biased and about it but old bison way but know displayed crossing night conference call Steve Schwarzman was chairman ran it went out better Klay everyone on conference call said this spend there were 2 said issue tables good etcetera etcetera and beyond that Schwartzman told president and that came out was president agreed standard know which wasn't exactly case but but but but everyone in that room still working with people should be working with helping ISIS government proper need help out decision be probably wash without help business won't and 're doing our own way and obviously lot with new chin in Cologne and know other people it other day other agencies exciter but isn't coming up try help and know it's it's because presence in bad idea become 2 knee jerk our politics and and know me should be willing help your name was 'm sorry 'm sorry your your name turn around lot potential sexual treasury that didn't happen but say wake up tomorrow secretary Watters tax formal economic policy on sections on and know well want secretary treasury but tell people this poor this country best hand ever dealt with any country planet and most people fully understand never make list always problem make list and go through really matters and 'm gonna quickly food one engine need lab tech in Pacific but our founding fathers realize powerful defend this country from wars in Asia wars in Europe best military world's ever seen that be true long period time and could say compared China but it respectfully China does food borne energy and its neighbors happen be Philippines Japan North Korea South Korea Indonesia Vietnam Pakistan Afghanistan India and Russia and it border skirmishes awards with 5 6 those last 40 years in tough part world those leadership other same god need food need access our bottom certain commodities need army protect ourselves from billions people that surround them that aren't that nested happy with them ice also and 'm gonna business going from Japan Japan Japan Japan Japan Japan and now than was bricks Brazil Russia India China does Mexico into mist that's going need South Africa Turkey but none them from about say universe rule law low corruption widest deepest most transparent financial market world's ever seen public and private again 'm on banks and was vibrant businesses small large and innovation rose never saying 'm much Silicon Valley up about go any company America and believe me again Procter be up percent somewhere and dispersal that India China this most European countries last school ended mean people that that's best hand but went wrong and and left behind huge step that secular society 10000000 people left work force 're trying come back in 20000000 people felons which lot large amount should be found know tell people know will quarters on **** did be fell into and and can't get job after that snow most companies Yankee job J. more law most jobs go buy regulatory rules and requirements guy opioid crisis did there maybe blame trade immigration technology but that's really reason but summons rust belt town left behind our inner city school kids 50 percent graduated Kate and motion in court in city school but 50 percent graduate mostly poor mostly minorities in this land opportunity 6 man open job today good jobs that can get out high school welding construction electrical bar coding automotive more jobs everywhere aviation and when train kids and know that's why that's also 's going chairman round table it question always shows fix that and in reality fix actually hard part getting through Congress but know quite competitive tax reform be done and it shocks me democratic friends which made state gonna change wages on day one top corporate tax reform Vester measure happened last time that's measure it measure should counter factual competitive taxes system 10 years ago there were probably been $3000000000000 retained companies and capital 5000 companies been bought 4 copies because it's advantageous them own American company now well our government toiled on these inversions 5000 because required Ford next business day came about know why that would been retained corporate headquarters and know damage ourselves permanent and that trade overseas four trillion someone's been reinvested hard your heart equipment implant and companies but 're still training cash that's why there because 's coming your moral because it's much more advantageous stop there Microsoft built research center in Vancouver because can hire same kids in Seattle your immigration laws and show know these held back America and",
357      "recording_transcription_org": "hello are I took the crash I figured worse comes to worse I go back to Wall Street right in front of you know me to lose anything but time I would yes I make the same decision again maybe not the same guy again for the same decision now Sonny well see saw something in you at the time when you meet men women our age at JPMorgan today what leadership characteristics are you looking for in them and how do you identify and bring those people through as the next generation bald when you're young it's hard to say leadership characteristics but they are certainly the sufficient basic stuff the other people are who know a lot just as some people walk into your office and said you know I like to know about the strategy the company they didn't bother to read the chairman's what I wrote which is like 3040 pages long people walk in and say you know you push the thing about doing better digital services but they look at the ones we do do that other people walk in and they know everything and so they have a conversation action against in your life as opposed to the way around so the character business is a is a sinner Quan non and by character I also mean that they tell the whole truth nothing but the truth they don't shave the truth they say the same thing to you that they said you could the second I see people doing some different in that you just go on a list to me after I have no interest I don't have time for that night 1 of which is and people who are good here relate well to people so of right of things and I think when we look at finances often people concentrate on the competitive leadership characteristics they see that the GST we have a real focus on the collaborative how do you see the balance between capacity collaborative try to recite a company inside now why look I think the things that destroyed companies folks or bureaucracy and politics and your show and you know I we had no side to summarize our yes can't many times are you know we got to make the simpler we got make this better you know we gotta kill our musical longer we stand by regulation sometimes a regular native do it I said no we're gonna re imagine all these things the way they should be not the way they are today and let's take a crack at killing some of bureaucracies grown up recently and dogs hardware memo for and we'll we'll do pre reach my meetings you don't put your chart is all pre reach expected do your homework get the now system though and ported up with you beforehand so you don't walk is a why I went to a B. and C. Babs focused person I was a white you speak this person the means canceled go to that first and then come back with a joint recommendation or do you disagree and we'll talk about how we are specifically why you disagree about something anyway yes the bureaucracy in the pre restored by same bureaucracies initially condition output of complex businesses operate combat global environment it's just not true privacy kills privacy drives are good people drive innovation if it makes the personally what is next to you the competitor and not a collaborator and as a really bad idea inside a company no it's okay to compete with ideas was a really bad idea you're competing with the person next to you we create politics and if you look at which killed companies over the years it was practicing and look at the fortune 500 you did a 1950969798 look at the coming 2 failed it was because they were dumb bureaucratic backward and political and see ocean noble out and stuff and yet they do I mean the normal normal course they allow it and you've seen a lot of public companies and boards allow boards can created by the way so we are so absolute collaboration collaboration does not mean that we have to agree collaboration does not mean you go along to get along because that's very well for coming by he's a good guy and basically just you know if you walk in to me and say I'm gonna be loyal to you I would question what that means because you should be loyal to the institution which belong to the customers loads the principal for try stand but be loyal to me using music and defend my decision whether or not you agree and which I I just think it's a mistake you will learn for having a very candid and open and forthright style of communication spree should about Warren Buffett he says he loves which analyzes I'm we'll see appreciate it here what was it that led you to develop the style of communication early on well I'm I'm one of those who don't your change much as I've been 8 and you know what I got so when I got to Harvard Business School some advice I got was graduating was whatever you do Jamie don't go to corporate America you won't survive and I I resent but it was true to that I was a little too outspoken and go over some corporation etcetera no I know part of it was warm buffet so I read when I was in high school or college I actually read his partnership letters and they were and he would say I'll speak to you is if you're might smart sister who doesn't know where and I know so I have to go out my would explain it to you and your business is not that complicated we school explain it so I always felt exactly the same way I was filled up as a matter of principle inside a company if I allow spinning to the public you were going to spend to me and think of you know earnings numbers are how we were doing or not and so I say the same thing to you that I say to my board they say to my shareholders say to my employee I say to my customer there is no difference I might phrase it differently to talk a difficult people insurance claim yourself but there is no difference and that that clarity I think helps the company know was trying to accomplish all the time and I'm you know I'm gonna read annual letters is all gobbledygook in the lottery I might my respect for Kobe drops a little bit you know and then and then you got to be very specific because it all say well the customer is the most important thing in the customer the customer will be beaten in Argentina mission me some specific like do you actually read customer complaints and then you do something about it as opposed to we put the customer first lot of people say that they don't mean it in any way shape or form to do no actions it would actually support the statement so that's what I'm for I mean a transmission small career advice I think everyone here is whether tech is extremely sexy right now what you think is a little bit less so today posted today what would you think is the opportunity in a career in finance and some of the audience maybe on seeing so for your first of the month about tech tech is driven I don't think it's different than it was before it is true driven change throughout all of history go and start over is for the technology from the actual you know from chips to internet but also you know printing your energy institutions you know schools are the churches the desert dissemination morality are that's wished always change the side and you know and I think it's always at the route is at the root of changes in businesses as the rule changes and and what company to own a copy don't do well so it is actually critical I person is Silicon Valley kind of got a free ride with Obama in the White House you know they they they pander to pander to him he pandered to you and now you seem a little flip side of that so the big companies the success wants to find out which I've known a long time the big you are the more the government's gonna get inside you what you do and want to impose you on you and several standards and sometimes for good sometimes not for good but so financial services I think technology actually wonderful thing professors is for the we are a huge user technology we spend $9000000000 a year so we're you know we're we're not the bleeding edge but we're damn close in terms of what we spend money on what we do or our our data center capabilities are more about digital moving your we move $6000000000000 on the world every day digitally are crypto currency but close to it because because it is digital you know and we we being 50000000 people in our households in sure have online bill but not I mean online investing or mobile investor always very things to link into our accounts so we we are huge users of that kind of stuff we also obviously use the advertising on Facebook and Google Kateryna but financial services is always going to be an interesting business because it's it's not the most important is but it is at the nexus of our over how a Kappa society functions party's been wheel and I'm when I say France or the program all you know private equity venture capital activists would you like me not bangs non banks individual investors a lot of companies that do things individually that helped change the world a little bit but that it's always gonna be this feel that more money gets invested ideas come together things get executed capital gets executed globally so it's always fascinating it'll always be well paid whatever you know somebody's folks in DC it has to be well paid but you can't do it you know with dumb people making dumb decisions if you think it actually running good economy or something like that it always be our high tech user and always be complex in global fights nature you know and so it's a fascinating business when you wake up in the morning but I read the paper there's very little in the paper I'm not reading thing about effects our clients factor companies it affects our risk effects are exposure we should be doing something about it I just any article because we do business in your well over 100 countries you know and with help just but every country in every shop well fine so it's a fasting field me when you get into it they're all different parts to you got to decide how you want to if you wanted to I want to get into that one of things we set up which I really like is we hired top notch people for investment banking okay and sales and trading so we will go to better schools the world we are some of those people we now do the same thing for general management about 8 or 9 or 10 year could we need people to run the damn joined to and I want the same quality and we move around the company kind of keep an eye on them and you know but the point is they want to be global they want to move around and they want to learn how to manage and run something so same kind of compensation investment bankers same 5 openness to senior people so we can get that and it's not there if your vest being can't move in management or your sales and trading but this is you want to more management financial services so you you mentioned crypto currency I know you said you wanna talk about the corn annual your Stanford almost all student loan money into it and I'll have to ask you anyway and why do you believe the government's regulators call allow the existence of a global currency very nice because I was going to spokesman just because I don't I don't care about because I could give a **** to tell the truth I I I I promised myself I wouldn't talk about the next day and I did therefore things really quickly blockchain Israel technology can be public or private me for 5 people to be for 59 is going to work when you already use in law test case stuff like that you were a supporter I do worry a little bit about the security because like I said we most extreme dollars day real time quite efficiently effectively and secure before you replace that you can you can do it right 3 crypto currencies okay 3 types 3 separate types one is icy hours I see over and and I haven't studied these things but you're paying for token allows you to use a service which is very different than a currency but that's what people call crypto currencies and maybe just maybe 3 is ms I shows I have no idea you know about some give you cloud services or something even vesting services that's one type the second type you can use crypto currency for fiat currency all that works because it just use a different technology to move money around we basically keep your money digitally anyway and if you just keep different files a different way and distributed ledgers that would work fine by voice vote a bit coin as a currency and the store value any payment mechanism is that governments and this exit this is my belief that I may be wrong I'm not saying you can't grow $0 that governments are going to crush one day for 3 reasons one is one is yours for terrorist activities okay it'll happen it's matter time to go back to a bit coin and also the DOJ United States government all these people in Washington profess to love technology and your novel Cupid corner change their mind number 2 when a lot of little ladies who is our money you know because the specular vehicles allowed to exist by United States government you know indigo lose their money in a big town you should have done something about it and number 3 is the most important government when ever a government forms itself you go to any country in the world pull out the currency look at the date that's fear cartridge for by that government with the central bank because covers like to control their currency like to know who has it worse going why is going when it went to shatter and right now would be Quentin novelties $100000000000 in order to add and $1000000000 a day trades hands obviously mostly speculation Kay and obviously there's a real use case I'm not make is a joke Venezuela Cuba North Korea criminal no drug money don't always be true to always have a use case it's valuable to someone because the better in those countries to do something to have that that that currency or cared for money in the bank because gums they take that to have you go to Argentina if they had a factory savings accounts the government just when it took it they just took it and you know of course I want to do whatever bank granted I mean the country basically collapse but so we didn't go so that's the reason why in which is gonna get bigger and bigger than the one controller it is not the same as a fiat currency if your currency the government says you must take this is legal tender and at par affected be cash at par you know end is always worth part and I don't know why you could go dollar would ever be something that you know it as stored value be worse than a crypto up in court so there is my view and I know I may be wrong and check out I've been wrong before though so if I'm wrong I also care very much to reflect my life is not because they write for the bankers defending their stop factually untrue you know if the big quite work so we have to do some of the court will do that to control when when the seeking organs a big investor books in technology assisting from the queen the what you think the most interesting applications of blockchain gonna be off on a blockchain think think of is it's it's not like a faster chip or euro Disney video GPUs and stuff like that because when you get certain technologies they just feel to the whole system and allow you to do things differently everywhere like just more database and you know more read different natural language processing this at the base of the right code have a use case for big corn I think it is it'll be deployed use case by his case when using it to move money inside the bank something like 30 or 40 percent of the $620 removed is just between JPMorgan chase accounts okay so merry area from General Motors to when your vendors we have both the accounts we have moved between our own accounts you know basically what loans Kate loan alone Dockery to trade all the paperwork detail most Asian older older confidence in order to be kept in a place where you'll have the same files all kept up to date you know who owns you know who doesn't own it so I'll be one equity trading I don't know but the queen takes 10 minutes to finish no we do 1000 trades but seconds equities for maybe too late to use for equity train maybe okay for end of day settlement stuff so it is all just use case but use cash can go through one by one is still work here may not work there and but the again you got kind of write the code we are effective we write to coach so with me from one topic to another you're part of president trump's business advisory boards should have been disbanded and where is that all over the ministration also can play out so so what will I joined the council but just keep in mind when I joined the council the president asked him to Schwartzman called up actually into the present like you to join his counsel I am a patriot I love the United States for America Kerry and it's free you want to help your country I still am gonna help my country so help me god that's what I'm gonna do whether or not you will like president trump and and your member we help presidents and prime ministers all around the world I see them we revise them be given this and we want to help the people of that country to and that is part of your job is you know as a bank as an individual to try to help make the world a better place I joined the council I did get one very long well written L. again nasty letter from my daughter I've basically basically how could you dad I'm 2 doors right to the point did and my wife told me how many of her friends had explained it to but but member these old liberal a feat new Yorkers in my opinion I said I'm a patriot doesn't agree with everything the man says or the way the man is himself it's about 20 helping write these remarkable the council met twice so think of these council the truth is they aren't particularly effective you know there I was at one out of near was the second meeting that I think this there was a lot like the first rate so we talk about the infrastructure to with this in the president's like that's ridiculous get better this all true but 1.that we're gonna be gone in detail in the agency's okay not by a bunch of she goes around the table you know telling you that you know it takes too long to build a bridge in this regulation urgently need this in capital markets so the effect it has come down over time and then after you know short films the last drop of the negatives are going up no most of us really believe in diversity L. G. B. T. docker programs were pro immigrant were you know when we certainly wouldn't justify in any way shape or form you know Nazism or or white supremacy or stuff like that so you know we found ourselves having to explain to our own people by the way because the press was always calling up saying did you say something I don't want the press calling up and saying up to go public Everytime I just risible vomited for the press really is extremely biased and they they have to do something about it but not all of the old bison way but you know have displayed a crossing over over just a night we had a conference call Steve Schwarzman was the chairman he ran it we went out for better Klay everyone on the conference call said this just to spend there were 2 said don't have issue tables a good thing etcetera etcetera and we just beyond that of course Schwartzman told the president and the thing that came out was the president agreed to the standard you know which wasn't exactly case but but but but everyone in that room is still working with the people they should be working with helping ISIS government do proper things they need help if you just think some out things decision to be a probably wash without the help of business they won't and so we're all doing our own way and obviously I do a lot with the new chin in Cologne and you know other people do it the other day other agencies exciter but isn't coming up you try to help and you know it's it's just because you don't like a presence in the bad idea I think we become for 2 knee jerk our politics and and you know to me you should be willing to help your name was I'm sorry I'm sorry your your name is turn around a lot as a potential sexual treasury that didn't happen but say you wake up tomorrow as the secretary Watters tax for formal economic policy like on the sections on and you know so well I don't want you secretary treasury by but we we have no I tell people this is a poor this country has the best hand ever dealt with any country the planet and most people don't fully understand if they never make the list always we have a problem make a list and go through what really matters and I'm gonna do is quickly we have all the food one engine we need we have the lab tech in the Pacific but she our founding fathers realize how powerful to defend this country from wars in Asia wars in Europe we have the best military the world's ever seen that to be true for a long period of time and I could I say compared to China but do it respectfully China does not have the food borne energy okay and its neighbors happen to be Philippines Japan North Korea South Korea Indonesia Vietnam Pakistan Afghanistan India and Russia and it had border skirmishes awards with like 5 or 6 of those last 40 years they are in a tough part of the world so they those leadership the other same god we need food need access to our bottom certain commodities we need we do we have to have an army to protect ourselves from the billions of people that surround them that aren't that have nested happy with them so the ice is also has and I'm not gonna business going from a Japan Japan Japan Japan Japan Japan and now than was bricks Brazil Russia India China does Mexico into the mist that's going to need to South Africa Turkey but none of them have from about to say the universe is we do the rule of law like we do low corruption like we do the widest deepest most transparent financial market the world's ever seen public and private again I'm not on the banks here okay and all right bye she was a vibrant businesses small to large and innovation like rose never saying I'm not so much a Silicon Valley up for about you go to any company America and believe me again Procter be up to percent somewhere okay and we are we are not the dispersal have that India China okay this is most European countries have the whole last school haven't ended I mean so people don't that that's the best hand but something went wrong and and I do think we left behind a huge step that is secular society 10000000 people left the work force I think they're trying to come back in 20000000 people are felons which a lot of a large amount should be found you know what I tell people you know you will quarters on the **** you did you be fell into and and you can't get a job after that or the snow most companies Yankee job J. more by law for most the jobs we go we buy regulatory rules and requirements guy we have the opioid crisis we have a we did there are some maybe blame trade immigration technology but that's not really the reason but we have the summons rust belt town left behind our inner city school kids 50 percent don't graduated Kate and motion in court in the city school but 50 percent graduate the mostly poor mostly minorities in this land of opportunity their 6 man open job today good jobs that you can get out of high school welding construction electrical bar coding automotive or more jobs everywhere aviation and all when I train the kids and you know so that's why that's also what's going to chairman of his round table so do it the question always shows how do you fix that stuff and in reality I think the fix is actually no I think the hard part getting through Congress but you know quite competitive tax reform has to be done we and I I it shocks me to my democratic friends which made the state are you gonna change wages on day one of the top corporate tax reform Vester measure what happened last time that's their measure it measure you should have is the counter factual had you had competitive taxes the system 10 years ago there were probably been $3000000000000 retained here companies and capital 5000 companies have been bought by 4 copies because it's advantageous for them to own an American company now so well our government toiled on these inversions 5000 because required by Ford for his next business day came about you know why that would have been retained here think of corporate headquarters and you know we damage ourselves as permanent and that for trade overseas as four trillion someone's been reinvested hard your heart equipment implant and companies but they're still to have training cash that's why is there is not because he's coming your moral is because it's so much more advantageous to stop over there Microsoft built a research center in Vancouver because they can hire the same kids in Seattle your immigration laws and show you know these things are held back America and I am at",
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370      "recording_transcription": "this call Kelly various that deal CNBC brand efficient got more friends and every day lot people CNBC your familiar with but explain it average one other person interested in discussing company way that about it there really 2 kinds companies around world there disruptors and there disrupted and increasingly it's really crucial be able understand who disruptors and also implications 're building that understand fix disrupted and reason why that's important that know too often now go lowest common denominator this dystopian world where robots and cyborgs jobs in rest us know trundling from one random task another and it doesn't be that way and me 'm trying build organization that invests in these restrictive technologies but channels than in productive ways that creates new class jobs that allows people be trained in those jobs that allows us economically vibrant fabric but same time learns from those companies that would otherwise be considered part disrupted class and help them frankly more sustainable 's it going would say that it's early days know one saw when Facebook in 2011 start social capital actually drove myself 50 year plan and 15 years 50 years was know was in mid thirties time and said well know knock on wood with good health care and and good health 'll be productive into eighties and nineties hopefully ever drunk yourself 15 year plan college that that took me through be honest didn't exist even 15 minute but know benefit ability really mapped out wanted with life on own terms and that's first time 'd really ever that know way that grew up it was that was very much chasing and living day day particular frankly and thought wanted be around that thought were secular in nature that when look back on them decades from now would seem obvious and want be around those and when drew this plan up myself said first step building capability creating lot these disruptive technologies identifying them being around them and me that was probably going take first 15 years this 50 year plan be able identify them get good it repeatable adding know it's it's anything else it's take professional sports people that best ones that practice it and divorced result from practice and ACT because actual product scoring happens in kinds random ways but act purposeful practice and preparation gets that moment say that partial owner garden state warriors acting that was that that that knew before watching Steph curry and others practice your knowledge that deep in being up close that organization it's it's it's great question it's very much latter it's know people want clean narratives describe really grandiose that happen in world whether it's winning championships whether it's starting and building great companies and actual facts underneath much more complicated and new ones there's kinds tension physical emotional mental that go into creating excellent and know when will said first 15 first goal was being good 1 which identify and incubated nurture disruptive technologies would say actually know gave myself 15 your target and that in first 7 years 've come place where high confidence that know that and now in many ways next chapter starts and it chapter 27 didn't twice time expected and half time thought it would be 15 year and know your 7 good handle on that part business and anyways now chapter 2 started and in chapter 2 it's about now being able take those technologies and apply them constructively change markets better but same time take knowledge that learn from them and apply it legacy businesses and can improve those well and reason why that's important true knowledge will come from understanding both sets kinds sets companies meaning know sometimes people want be very dismissive been done in other cases people want be very dismissive new ways doing neither way maximal impacted success mean that there many that know when was Facebook that did that were pioneering frankly there many that did that 're copies that were tried tested and true and knowledge fact that that nuances doing anything great will rely on both sides information and knowledge and me when when 'm trying say on one hand can build next great chip machine learning but on other hand only actually help company that employs hundreds thousands people in world leverage that technology keep those employees fully employed that's great challenge and and answer those questions will allow us both profit from being seat creating this risk disruptive technologies but frankly also make that allocated into main unethical ways it sounds 're saying 've isolated genetic code DNA disruption in sense and that Jay correct cracking run simplified that would give confidence take social capital public in essence and say can can now this scale lots different types companies in many ways mean look lot this frankly re hash that did Facebook and but team and did there it's very simplest essence was collect lots data were able invalidate lot lore and anecdotes and replace it with fact based decision making unemotional nominally reasonably sounding decisions sounds simple but 20 catch your point it it's very hard because emotions and ego can be really destructive force inside companies especially when know social capital organization built up on got level decision making know this idea that know went off someplace and occasion know people always talk about these visions people described visionaries in reality best people that these that 've seen that changed our older than it's quietly iterated but that's again elegant narrative that society society wants hear about antidote one very precise intuition on that turned out be massively 's that scene in princess bride with and powder it that's sport know it spoiler this point but basically building up immunity overtime diet came it really allows win that were were in these situations where article in technology because few people really understand it want believe in this idea divine intervention and it's true and lot our success Facebook was about diligence working every day again back process practice outcome and when started this organization lot it was about green building that infrastructure and capability very unemotional fact based decision making and that manifests that whenever invest in company idea about starting company try implement tools and systems that allow us understand 's really happening on ground meaning actual atomic level data that business generating while it's trying trying example know family riddled with diabetes and myself and 2 other people started diabetes business 7 years ago that helps large populations manage disease and about its success actually data from call letters themselves and when it it allows us realize that can predict when somebody about happen hi pool hypoglycemic events and with those insights can now been nurse diabetes educator endocrinologist entire support system within hospital intervene on behalf patient and make that suffer from debilitating effects diabetes that wasn't divine intervention that's being able collect ground truth data being able apply in that case kinds interesting machine learning and being able take that and product ties it and sell it into organization who desperately wanted solution and chipping away and chipping away and chipping away and that took 7 years and company almost went out business but now know it manages 1.2000000 patients lives and saw that in port that this past week find myself dad died disease started it in large part in reaction helplessness that felt around family 11 ally 17 aunts and uncles applications glaucoma before and know dad isn't but myself because 're kid me who dad him call maybe now edges probably closer living and dying that feels really great and got that point was know going top mountain and coming up with know idea that came because it was chipping away chipping away chipping away in on celebrated manner but but having discipline and that and connected keep doing it great into Canada age 616 down from only about your family origin and and store did did guys end up moving fly father came from pretty intellectual class writers and thinkers but economically successful and Sri Lanka predominately put country 90 odd percent but but very much India and every other way very deeply entrenched caspase system lot hierarchy Amman came from much more commercially successful family and may met later in life in mid thirties doesn't tell me that know can imagine in sixties and Southeast Asia that's people got married in early twenties quite honestly in any event date got married mom was nurse dad was civil servant and mom's brother help get dad relocated work high commission in Canada that controversial and relationship that age and being from different backgrounds know it's funny mean 've never actually told anyone this but found out school me and father died been married once before that never know know complexity life quite honestly it it again in that culture those were never shared with little knew him was know preceding getting married mom was very headstrong willful person who largely sacrificed education and path in favor brother who went college became lawyer who became quite strange in any event dad was younger brother older brother older brother and and dad was with smart guy but in any event threw benefit relationship with mom's brother cut cut stationed in Ottawa Ontario Canada working high commission there and went myself and sister and another sister born in Canada and were there full duration 10 year but in that civil war between Buddhist majority us and panel Hindu minority really really escalated and during that period filed refugee status stay in Canada because because felt it was safer father particularly return and part reason was in this really weird twisted fate only was streaming single majority fighting channels in minority 're also fighting Nix cream nationalist wing players who also felt there should be 0 tolerance this insurrection and caught in middle being attacked both sides and Canada acceptance accepted refugees and know and it's pretty typical hardscrabble story that mean many many many others on means that worst it but know need give mom became housekeeper never really became nurse became interstate eventually know dad stumbled from job job working copy store know sold encyclopedias sold containers take tried survive and and basically told me and 2 sisters Hey better know get your **** together because there's there soft landing gear did internalize that time mean many many children immigrant families absolutely focused in on studies and say Hey apparent sacrifice this me can it up close lives me it wasn't words it's actions and it's good actions but it's negative actions know dad became pretty dependent on alcohol it became way getting pain less frustration but that also created really turbulent wife inside house yet be really vigilant and aware was happening times know those negative positive were that know would find money music lessons and psych did that in hindsight know but learned play piano learned play violin exposed us art and culture but that when 're know living on welfare that's takes unique personality it takes unique vision felt that know didn't bedroom habit that mattress and used keep it in closet hallway take it out sleep in living room take put it back in and in it and it comes in stark contrast where went school because high school was going best high school that was public school called Liz group collegiate in auto and everybody thought there was clinical rich and Canadian center know successful stable families and was it hyper aware was it in way that made uncomfortable internalize much your uniqueness and wish set out that it didn't matter that would last less about maybe special was but wanted but daughter 0 way where was and didn't begrudge them lives that lives that were living but wanted it well know never went on vacations never learn that cost money in scheme but that was fine with me but wanted understand that was and wanted be around could and also because know want but but never put that back on parents because knew that were it was visible were grinding and know own sets issues and was know 'd 'll 'll try take care this myself on this when chance was your escape your favorite subject favorite activity that really 3 now mean be honest know ran little casino during lunch hour because these rich kids know want play blackjack was pretty obvious that make more money be house and was was in combat anywhere from 25 cents 50 cents Buck know may take that money during week and would go these charity casinos and play blackjack was card counter back and 'd be spending up money was working Burger King time and mean mean 're listen mean 's say it was good kid but was little sheet know Burger King figured out everything on menu cost with tax and least 10 percent population most people know this who live extremely precise labor when come and 're 'd know Whopper combo and say $5125.12 literally take off $5 because that's that's need being caused guy in back him make water and put it in detail know come up with these little because edges would make us feel more power extra 5 Bucks made that made difference us back that's kid was was know that great in school reasonably clever when it came risk and know card counting NASA was quite good and trundling along and riots in Los Angeles happened and that was huge moment in life and 1091 would been 91 king riots and this why it's great be Canadian know nothing happening California nothing out in America know but in Canada took notice and in Ontario government said any minority kids who can get job will subsidize and pay 's get these kids working and applied job through this program it was called jobs Ontario youth jail why join and know typically would happen would place would Kmart Sears and said and dad been applying jobs life and literally huge binder hundreds rejection letters and started first one start calling them this and there's this called jobs Ontario youth and know it helps minority kids get jobs and and know pay anything and 'm hard working kid on smart and someone said and and got job place called Newbridge networks which high flying telecommunications company and know it was test will because it across town and it literally mean it does sound cliche it took hour bus together really mean really did take hour nap and was grinding this job and that's really pay 10 Bucks hour and it and it grew up because know met this guy who lived maybe about 2 miles away better and much nicer part town controller new bridge and could that was struggling take bus every day and this and stopped one day names can't come on your ride drove me them that that summer and would listen this guy and it's well this because in Sam and this guy's this real person and when 're around success that place because it was high flying telco stock back in nineties and this wealth being created people driving around it BMW's and and 're oh god this about and that's when it when guy conclude into know there's escape hearing technology that could be really profound and should be paying attention and such couple computer science classes result in high school never released was that low level tried get in weeds and and write code house was great any means and Frank passion it but passion it meant build companies that because it sounds quite interesting were studying science destruction now but it's interesting me come from land disrupted in way around where blackberry and went work well early running messenger which now mean it's officially being end life write that end this year did learn anything in particular from being in those places that deal in retrospect everything mean everything that appliance success learned in failure hardship problem with success that it's easy conflate luck and skill really know whether it was weather was timing whether it's moment and unfortunately that really corrosive because it gets into your mind it drives your ego and it defines know your sense self worth and in in way that's sustainable accurate resin failure happens 're in 're basically 0 and really on was was moment and really decide it these moments clarity where can really figure out your powers and 're really good and where can effect change in otherwise difficult circumstance and when internalize that become really powerful when did that long and did end up Facebook well know that mean after graduated from college actually took very traditional job those addresses trader even though went electrical engineering know managed get that job and reason that job again it's plate on desire take risks know quote unquote Campbell although realized later on that this know calculated decision making and gambling look really similar on outside and even though 're same leave that job because felt was gonna get trapped money trapped trap money because was poor and needed job and needed money and needed there in perspective on making lot money meant and incumbents that it came with with respect your behavior your personality with respect can and can't would become slave in in gilded cage and want that wanted be wanted be emancipated wanted find own path be able subject man and working in bank it seems that pass me side move Silicon Valley and work company that small company that bought called Winamp ever and know that was it was crazy because it was in moment in time where it was part lot music group ale was trying get very complicated merger with Time Warner done there's this anti trust could be around music space and were handcuffed there's many couldn't that's there these that try near nobody knows this but created first 99 cent download store and were able that because these credit cards on file from customers AOL and it performed beautifully but when try go powers that be within animal infrastructure and convince them launch 99 cent dollar store said political reasons deal with this failure none it made any sense but become really resilient and figure out get great ideas when and get great ideas market because wanted them win thought moment 're gonna become really resentful but said was really know honestly 'm pretty much 'm bitter person know there's it's 90 years 's because your mind because god blesses be on nineteenth but take 90 years and divided that's numerator and denominator length universe which 0 years that's this us time be better life too short be class half full glass half empty it know 'm less anything it's too short man there's water in that class somebody drinking and want it and go it and 've last having that mental baggage didn't didn't get resentful got more resilient got more creative try figure out different ways telling story who became great communicator because needed divorce myself from emotion from politics tried present facts know became great time it's know telling returns understanding consumer desire because this practice that can moment was able practice it because was looking data will put product were trying build and trying articulate it powers that be and know chip away kinds reasons say and and it's never happened and know remember getting this call in 2000 and it was 3 4 where somebody said oh Steve Jobs functioning double story well there go that's that's brutal but but it was in that process that got really good trying figure out mattered and try tell people choose in retrospect this experience failure never did get them run with was great idea 've internalized learning exercise that charge be much better communicator communicator motivator lead verses manage adversity that was great training ground always amazing friend on other that which much more practical mentor and person who took me under wing in this Kevin Conroy runs fix father and GM now and came house mean up and down every day know that was when was afraid him used keep phone bedside and call 6 in morning 9:00 eastern but 6:00 Pacific and and train myself and could pick up that phone 6 in morning deep in sleep and was was called Eric but taught me be disciplined market and know in return loyalty it's reasonable worked on taking shot and that's lot people it's shot and got shot and that's when promoted me run aim and ICQ and know was in late twenties that 2627 go and know 18 months that control that try best can before left Facebook was gonna say meanwhile in dorm room Harvard did end up Facebook known guy who was time founding president John Parker and Parker and know each other in that 2000 2005 6 times when got Silicon Valley know was running business called Castro when was win and know were on same circles none us made it and brought market himself Washington DC where lot was headquartered dollars Virginia actually outside Washington DC meeting with them and went and told him that because remember those who who now runs vox media but time when it was obvious because said should really try buy this company and know that because that there's chance in hell can buy this business because can't capitalization structure Time Warner time and know downward pressure on stock and it was very turbulent time people getting fired time there's lot management churn and in that moment know sheen and Kevin said there's operating deal be done and did dealer integrated Facebook unnamed together and very quickly thereafter Sean exited Facebook and mom called me online deal and end that process said know should really about working and met other senior guys and said 's take shot why because ever worked really small outfit before mean went into this procedure that technology company in Canada country keep 're going live forever this train bank decided was going get your soul wouldn't continue work there but it was big know well which was huge time gave guts go with this little company run this team mean maybe it wasn't teenager anymore know decision few that works actually know it was it was it was about risk management remember thinking myself know left lot time and will create work in venture me feel and was getting paid felt me money in world time appetite 2050 0 Bucks huge amount money me this was line sight know getting completely out student debt getting parents completely into situation where can afford house know help subsidizing sisters and been know paycheck every year until that every year was going back family it's even was able celebrate any trappings because take salary divided 2 taxes and divided 2 again that was check this out in any event remember thinking myself well know 's expected value it may field next 5 years and said distribution outcomes Facebook and basically most scenarios were less than that but there few scenarios where could make case that it could be want would make it may fielder before your period and and that very very small number cases will be in excess and said mathematical answer that it's probably easier stay where and said myself but can go there and this does fail meaning come in one those equivalent worse situations will still and said myself because will met smartest people in world and 'll be in game and will learned about myself whether can really early stage scale and weather can this on own and know been trained out ready execute and took shot from most those reasons that was funny time was actually offer somebody was recruiting me be CEO business justice tax on internet business can't quite honestly remember remember getting called thinking myself well maybe could be know chief first Indian and but when spend time with team face but was wow this this 5 and nobody knows 're doing and thought that's probably place were can learn and even it fails giving lesson from when 'm when Abigail well experience sometimes learned from failure important winning calculator which would learn Facebook and also there was 've 've never really been around that succeeded mean know feel your feels it feels it's life threatening life goes on can hear try work doesn't know your subject market conditions 're subject internal politics and 've become relatively resilient and thought much worse could be even back and was popular lot it seems mean it seemed it was next arc after humanize cute me because been deep in that business where could tell there's that Facebook was scratching surface on especially in world post myspace impose Friendster that was really unique it would started figure out experiments always makes and there was enough surface material there were was 'm gonna learn ton and it's know saw this former catalog card counting teenager former derivatives trader always been comfortable with numbers calculating risks and in this position with Facebook which biggest data problems post Google absolutely generation and end up in position chief growth hacker 're tackling kinds problems having with people and out comes technology worlds never really never wrestled with and in fact 're learning now complicated in new wants these issues really know when created girls team said basically wanted was tell Smarty pants Ivy League graduates who work with that know were talking about and took great pride in that and use data and basically call them balance and it shot up one those Smarty pants Ivy League people was mark Zuckerberg himself although credit really wasn't because dropped out after 9 round bread and was actually open truth more in way anybody that 've ever seen loves truth but again know can success get lot people complete luck and skill in early days Facebook there many those people part it was decapitated political social capital which happens telling truth but in that but figured out was know your point much it system once and mean that that much believe where individuals act within range outcomes that frankly can be modeled mathematically and be highly predictive and it's different than know yourself sometimes when go Google and start typing in few letters and it instantly knows and yourself that same search result that everybody else gets in answer and yourself well creepy it that Google knew was thinking in answers well probably get many other subtle ways told realized 're counting cards in search behavior now and reduced lot theoretical complexity that simple inside which that humans telling in passive and active ways every day 's in heart mind and when collect those signals and learn can become really good giving them want but also become really good understanding behavior and now unfortunately in know rare edge cases in manipulating well one would hope 're rare in manipulating behaviors well with know this fake news was going ask about that that that grand it's been long time since 're Facebook but outfits 're set up anticipate now know fundamental that want make it's clear everybody know technology design deterministic in following way which that can be done and possible will be done and need moral and ethical discussions around provide broad implications technology can be used in positive ways but in ways that poorly understood saying it's impossible anticipate everything absolutely can 'll give simple example know helped start cancer genomics business 7 years ago which doing incredibly well helping people manage fundamental problems cancer care with precision around specific genetic makeup it stands reason that within next 10 years will be able take that profile and make up who genetically and precisely start target that can make us sick and eventually someone will say well about that could make sick in future well 's difference between that could make sick in future versus that could frankly be optimized in future it's very slippery slope type gene editing technology that people experimenting with today know same future will be used radic hitting disease that's fantastically positive it seems it seems almost dangerous be able say on one hand it's possible crack code growth that this technology can spread global around world in touch everybody but it's impossible anticipate worst uses up that can use this network testament it's almost Frankenstein's monster situation and and look again want be clear making lot this up go along and anybody that pretends that know pretends that now future fundamentally either lying stupid 're absolutely going cover kinds unintended consequences that built again know it uses genetic example it will start with curing diseases that and quickly migrate diseases that may get end value that want check and eventually government whether it's us will take decision well know want create super human side that citizens country that know 're these issues that grapple with around technology that that only starting scratch surface on now and come back this idea building never thought possible which be honest there were also probly well equipped realize full breadth implications should regulate that someone be now question and know this where get this intersection governance in politics and technology that 've never contend with form in last 30 years been about unbounded games where technology largely allowed be cheaper faster better with aggregate value creation was undeniable with very very few consequences now that changed and 're gonna really grapple with that and that's going higher level conversation between governments between companies populations and it global discussion it cannot happen national level because it's relevant happens in any one country that's why frankly current political climate be really with skepticism but also with great because know sticking your head in sand 'm saying country can figure this out going solve because playing lockable other country can decide go other way and it's about creating moral framework that everybody agrees with hope one day in your 15 year plan can cracked code social disruption and hopefully can mean eventually that's that chapter 5 'm glad it's play Tremont thank much except Hey there checking out ABC on be subscribe stay up date on day's biggest stories can also click on any videos around me watch latest from CNBC watching when save and invest with RBC will start down path towards clearer financial future U. 're about become investment solutions and award winning advice experienced RBC difference cash back said infinite card 9 percent cashback on eligible purchases first 3 months officer thoughts on there's relationships with our customers and that's longest term problem in that business which other than know Disney theme parks where actually come in and come out reality 're living in world now where these people understanding customer first name last name can't figure out real intentions and that's really biggest problem when compare that Netflix compare that any other subscription business online it's really different media consumption model 's question that relates introduce messenger app it'll founder it was original member basements mapping team and also owns worst ask one question about this and want talk about that on issue Disney and fox there's been questions about concentration in these markets but one arguments been actually that 've seen this ring them wrong because really should compare them Google interface Hauser who direct access would say direct relation customer and where most that where where Disney might ways in 18 T. 4 time winner actually 18 would replace it Time Warner would about market really traditional broadcast media businesses again with with due respect least relevant 've ever been quite honestly it was month ago that Google released data that's it too 1.7000000000 monthly visitors yesterday Facebook did reorganization and person that runs core apps now manages oversight 5000000000 users touches 5000000000 unique users point that there entire magnitude 2 orders magnitude increase in distribution that's occurred and those folks that really now control pipes and Swilly shape our ideas and thoughts regulars regulators wrong looking in wrong direction but part it that regulators generation where those systems used be that were relied upon and unless get enough data and taught quite honestly new happened 're going reflexively go back 're most comfortable with which was world where know these regulators were were literally only 3 channels on this particular deal because 've been Amazon fan very long time happy sad that missed out on this damage shot in India happens actually invested in on chairman one largest payment processors in India Amazon customer Flipkart actually customer and 've been seeing this battle unfold on ground now 7 years and 'll tell it's from starting stand still and one cards were head head and in any given month Amazon typically full card point it's 2 headed race domination incredibly rich market that's great getting out say it's great Amazon that it's in hands Walmart because now Walmart management figure out keep these incredibly talented engineers and one 'll tell about investing in India that labor market there even more cut throat in labor market in Silicon Valley in that there's lot job hopping there's tremendous amounts trend these towns engineers believe companies even faster rates and valley and suspect happens post acquisition when talented engineer decision work Walmart before color Facebook Google Amazon going be very difficult Walmart retain those people and suspect happened using Walmart shares instead Amazon shares mean would rather quite honestly and happens it's great foothold Walmart it probably stop bleeding in short term on equity but reality it probably makes it almost critical plea that Amazon links and 've been your view about way though about Walmart with large given jet acquisition given this acquisition 've done in digital side transformation that 're trying undertake it's really courageous and Canary in coal rest S. and P. 500 which vis stalwart legacy companies fundamentally on heels now and figure out use your balance sheet use your stock and acquire aggressively try be in these next generation way businesses that's argument 1 more it's done 'm saying that's why it stops bleeding kids in opinion these catalysts 2030 percent increases on predictable basis in equity but it catalyst say well maybe stops going down your dog Millan other other out there either in U. S. elsewhere and would would want be investing in US would want be doing it international actually going international advantages large companies Walmart first that can actually different business model together going into asset business vertically integrated maybe owning payments business maybe owning payment rails those better businesses but better margins that Walmart can frankly integrate into business much easier and secondarily these businesses much cheaper abroad than in United States get lot advantages actually trying implement strategy outside U. S. when about fact that Walmart decided go in with full car with someone was already established opposed trying go and go it own way build everything from scratch on own this way it internationally your Walmart it's only way it frankly anywhere because again go back same existential problem which that 're going try anything need this unit human capital which engineer and those still quite rare and 're hard get hard find it hard keep and it's easier typically start ups that because can pay them with equity and it's much better Walmart sit on sidelines wait get scale use our balance sheet and 've done that masterfully now question Walmart but look these other companies back Disney know Disney buying assets from fox may value but maybe should really be thinking about use balance sheet aggressively buy internet business switch topics up moment because been big bowl on big goin down folks people know on our show really this week back was home want show say got roll tape on bitcoin Mr Munger and Mr Buffett asset selfish creating outside it's scramble activity would shorted there was easy way it there it your bill gates Warren Buffett Charlie Munger calling it scramble activity other saying that Bill Gates saying was short this could and 're saying 're wrong death explain will look everybody time and acknowledge that biases and look on disciple Buffy Munger and one that said years which",
371      "recording_transcription_org": "this call Kelly all the various things that we deal like a CNBC brand efficient we just got more friends and every day so a lot of people certainly the CNBC if your familiar with what do you do but explain it for he average one other person is interested in discussing company I think the way that I think about it is there really 2 kinds of companies around the world there are the disruptors and then they are there are disrupted and increasingly it's really crucial to be able to understand who the disruptors are and then also the implications of what they're building so that you understand how to fix the disrupted and the reason why I think that's important is that you know too often now we go to the lowest common denominator of this like a dystopian world where the robots and cyborgs all have jobs in the rest of us are kind of you know trundling from one random task to another and it doesn't have to be that way and so for me what I'm trying to build is an organization that invests in some of these restrictive technologies but channels than in productive ways that creates new class of jobs that allows people to be trained in those jobs that allows us to have an economically vibrant fabric but at the same time learns from those companies that would otherwise be considered part of the disrupted class and to help them frankly the more sustainable how's it going I would say that it's early days you know the one I saw when I like Facebook in 2011 to start social capital I actually drove myself a 50 year plan and 15 years 50 years I was kind of you know I was in my mid thirties at the time and I said well you know knock on wood with good health care and and good health I'll be productive into my eighties and nineties hopefully have you ever drunk yourself like a 15 year plan college that that took me through to be honest I didn't exist I don't even have a 15 minute but you know I had I had the benefit of the ability to sort of really mapped out what I wanted to do with my life on my own terms and that's the first time I'd really ever had that you know the way that I grew up it was not that I was very much chasing and living day to day particular frankly and so I thought I just wanted to be around things that I thought were so secular in nature that when you look back on them decades from now they would seem obvious and then I want to be around those things and so when I drew this plan up for myself I said the first step is building the capability of creating a lot of these disruptive technologies or identifying them or being around them and to me that was probably going to take the first 15 years of this 50 year plan just to be able to identify them just to get good at it repeatable adding you know it's like it's like anything else right it's like if you take professional sports like the people that are the best are the ones that practice at it and divorced the result from the practice and the ACT because the the the the actual product of scoring happens in all kinds of random ways but the act of purposeful practice and preparation is what gets you to that moment you say that like a partial owner of the garden state warriors acting I do see that was that is that something that you knew before watching how Steph curry and others practice or something your knowledge that is deep in by being up close to that organization it's a it's a it's a great question I think it's very much the latter it's you know people want clean narratives to describe really grandiose things that happen in the world whether it's winning championships or whether it's starting and building great companies and the actual facts underneath a much more complicated and new ones there's all kinds of tension physical emotional mental that go into creating something excellent and so you know when I will like I said the first 15 the first goal was being good at 1 thing which is to identify and incubated nurture disruptive technologies what I would say is actually you know I gave myself a 15 your target and I think that in the first 7 years we've come to a place where I have high confidence that we know how to do that and so now in many ways the next chapter starts and it chapter 27 you didn't twice the time expected and half the time I I I I thought it would be like a 15 year thing and I think you know by your 7 I think we have a good handle on how to do that part of the business and so anyways now chapter 2 is started and in chapter 2 what it's about is now being able to take those technologies and apply them constructively to change markets for the better but at the same time take all the knowledge that you learn from them and apply it to some of the legacy businesses and see if you can improve those as well and the reason why that's important is I think like true knowledge will come from understanding both sets of kinds sets of companies meaning you know sometimes people want to be very dismissive of how things have been done in other cases people want to be very dismissive of new ways of doing things neither are the way they do have maximal impacted success so what I mean by that is there are many things that you know when I was a Facebook that we did that were pioneering frankly there are many things that we did that we're just copies of things that were tried tested and true and so knowledge of the fact that that the the nuances of of doing anything great will rely on both sides of information and knowledge and so for me when I when I'm trying to do is say okay on the one hand can we build the next great chip for machine learning yes but on the other hand only actually help the company that employs hundreds of thousands of people in the world how to leverage that technology to keep those employees fully employed that's a great challenge and and I think the answer to those questions will allow us to both profit from being at the seat of creating this risk disruptive technologies but frankly also make sure that their allocated into main unethical ways it sounds like you're saying you you've isolated the genetic code the DNA for disruption in a sense and is that what Jay if you correct cracking run over simplified is that would give you the confidence to take social capital public in essence and say okay we can we can now do this at scale for lots of different types of companies in many ways yes I mean like look a lot of this frankly is a re hash of the things that we did a Facebook and but my team and I did there as it's very simplest essence was collect lots of data we were able to invalidate a lot of lore and anecdotes and replace it with a fact based decision making unemotional nominally reasonably sounding decisions sounds simple but 20 catch your point like it it's a very hard thing to do because emotions and ego can be a really destructive force inside of companies especially when you know the social capital of an organization is built up on got level decision making you know this idea that you know you went off someplace and you had occasion you know people always talk about these visions people are described as visionaries in reality what the best people that these that I've seen that have changed our older than it's just quietly iterated but that's not again an elegant narrative that society like society wants to hear about is the antidote for one very precise intuition on something that turned out to be massively right let's see that scene in the princess bride with I okay and powder right like what it not that's a sport I don't know if it spoiler at this point but basically building up an immunity overtime diet came for it really allows you to win so so I I just think that were were in these situations where article in technology because so few people really understand it they want to believe in this idea of divine intervention and it's just not true and so a lot of our success of Facebook was about the the diligence of working every day again back to the process practice not the outcome and so when I started this organization a lot of it was about green building that kind of infrastructure and the capability to have very unemotional fact based decision making and so how that manifests is that whenever we invest in a company or we have an idea about starting a company we try to implement tools and systems that allow us to understand what's really happening on the ground meaning the actual atomic level data that the business is generating while it's trying to do whatever is trying to do so for example you know my family is riddled with diabetes and so myself and 2 other people started to diabetes business 7 years ago that helps large populations manage the disease and how we think about its success is actually the the the data from the call letters themselves and when you have it what it allows us to do is realize that you can predict when somebody is about to happen hi pool hypoglycemic events and with those insights then you can now have been a nurse a diabetes educator an endocrinologist an entire support system within a hospital intervene on behalf of the patient and make sure that they don't suffer from the debilitating effects of diabetes that wasn't divine intervention that's just being able to collect ground truth data being able to apply in that case all kinds of interesting machine learning and being able to take that and product ties it and then sell it into an organization who desperately wanted a solution and just chipping away and chipping away and chipping away and that took 7 years and the company almost went out of business but now you know it manages 1.2000000 patients lives and I saw that in a port that just this past week I find myself my dad died of the disease so I started it in a large part in reaction to the helplessness that I felt around my whole family 11 ally 17 aunts and uncles had applications glaucoma before things and so you know my dad isn't here but I think to myself because you're a kid like me who has a dad like him call maybe now at the edges probably closer to living and dying that feels really great and how we got to that point was not you know going to the top of the mountain and coming up with some you know idea that just came because it was just chipping away chipping away chipping away in on celebrated manner but but having the the discipline and all that and connected to keep doing it great into Canada at age 616 down from only about your family of origin and and the store how did how did you guys end up moving to fly my father came from pretty intellectual class of writers and thinkers but economically not successful and Sri Lanka is predominately put his country 90 some odd percent but is but very much like India and every other way very deeply entrenched caspase system a lot of hierarchy Amman came from how much more commercially successful family and they may they met later in life in their mid thirties doesn't tell me like that you know you can imagine in the sixties and Southeast Asia that's not what people do they got married in their early twenties quite honestly in any event date of they got married my mom was a nurse my dad was a civil servant and my mom's brother help get my dad relocated to work at the high commission is in Canada that controversial and all their relationship at that age and being from different backgrounds you know it's so funny like I mean I've never actually told anyone this but I found out some school me and my father died like he had been married once before all the stuff that I never know so I don't know the complexity of his life quite honestly it it again in that culture is not the things those are things were never shared with you right so what little I knew of him was you know preceding getting married to my mom was just a very headstrong willful person who largely sacrificed his education and his path in favor of his brother who went to college became a lawyer who then they became quite a strange in any event so my dad was younger brother older brother older brother and and my dad was like with smart guy but in any event he threw the benefit of a relationship with my mom's brother cut cut stationed in Ottawa Ontario Canada working for the high commission there and we all went over myself and my sister and then we had another sister born in Canada and then we were there for the full duration of his 10 year but in that the civil war between the Buddhist majority us and the panel Hindu minority really really escalated and during that period we filed for refugee status to stay in Canada because because we just felt like it was safer for my father particularly to return and part of the reason was in this really weird kind of twisted fate not only was the streaming single is majority fighting the channels in the minority they're also fighting Nix cream nationalist wing of the players who also felt like there should be 0 tolerance of this insurrection and so if you are caught in the middle you are being attacked by both sides and so Canada acceptance as accepted as refugees and you know and then it's a kind of a pretty typical hardscrabble story at that I mean sure many many many others on so I by no means that I have the worst of it but you know you you do what you need to do is give you my mom became a housekeeper she never really became a nurse she became interstate eventually you know my dad kind of stumbled from job to job working for a copy store you know sold encyclopedias sold I containers just take whatever they are they tried to kind of survive and and then basically told me and my 2 sisters like Hey you better you know get your **** together because there's there is not the soft landing gear did you internalize that at the time I mean so so many so many children of immigrant families do absolutely focused in on studies and say Hey my apparent sacrifice all this for me I can see it up close lives by me like like it wasn't the words it's the actions and it's not just the good actions but it's the negative actions you know my dad became pretty dependent on alcohol it became a way to kind of like getting the pain I think less of his frustration but that also created really turbulent wife inside the house is yet to be really vigilant and aware what was happening at all times you know those are the the negative things the positive things were that you know they would find money for music lessons and psych how did they do that in hindsight I don't know but like I learned to play the piano I learned to play the violin exposed us to art and culture but to do that when you're sort of like you know living on welfare is like that's takes a unique personality it takes a unique kind of vision so so I I I felt that you know I I didn't have a bedroom habit that I had a mattress and we used to keep it in the closet of the kind of like a hallway to take it out sleep in the living room take put it back in okay and in it and it comes in stark contrast to where I went to school because like my high school I was going to the best high school that was a public school called Liz group collegiate in auto and everybody thought there was no clinical rich and Canadian center you know successful stable families and so I was it hyper aware was it in a way that made you uncomfortable for you internalize so much your uniqueness and what you wish you had set out to do that it didn't matter that I would last less about how maybe special I was but I wanted but they had a daughter is 0 some way where I was and I didn't begrudge them the lives that they had the lives that they were living but I just wanted it is well you know like we never went on vacations we never learn to do some of the things that cost money in the scheme or whatever but that was fine with me but I wanted to understand what that was like and I wanted to be around if I could and also because you know you kind of want but you don't have sure but I never put that back on my parents because I knew that they were it was visible like they were grinding and you know they had their own sets of issues and so I was like you know I'd like I'll just I'll just try to take care of this for myself on this when I have a chance what was your escape what your favorite subject favorite activity that you really 3 or so now I mean to be honest like you know I I ran a little casino during the lunch hour because all these rich kids you know want to play blackjack was pretty obvious that you make more money be the house and so I was I was in a combat anywhere from 25 cents for 50 cents to a Buck you know so I may take that money during the week and I would kind of go to these charity casinos and play blackjack I was a card counter back then and so I'd be spending up my money I was working at Burger King at the time to and I mean I mean if you're just listen like I mean I don't I don't I let's say it was a good kid but I was kind of like a little sheet like you know Burger King I figured out what everything on the menu cost with tax and you have at least 10 percent of the population most people don't know this who live an extremely precise labor when they come and they're like I'd like a you know a Whopper combo and you say $5125.12 they literally take off $5 because that's that's all I need to do is being caused to the guy in the back for him to make the water and you don't put it in detail you know so like we come up with all these little things because like at the edges you would just make us feel a little bit more like a power like an extra 5 Bucks made that made a difference for us back that's kind of like the kid I was I was kind of like you know not that great in school reasonably clever when it came to like risk and you know things like card counting NASA was quite good and just kind of trundling along and then the riots in Los Angeles happened and that was a huge moment in my life and 1091 I would have been 91 by the king riots and this is why it's so great to be Canadian you know nothing happening California nothing out in America you know but in Canada we took notice and in Ontario the government said any minority kids who can get a job we will subsidize and pay for let's get these kids working and so I applied for a job through this program it was called jobs Ontario youth jail why join and you know typically what would happen is they would place you would like a Kmart Sears or something and I said no and my dad had been applying for jobs his whole life and he has literally like a huge binder of like hundreds of rejection letters and just started the first one I start calling them as of this and there's this thing called jobs Ontario youth and you know it helps minority kids get jobs and and you know you don't have to pay anything and I'm a hard working kid on smart and someone said okay and and so I got a job at a at a place called Newbridge networks which is a high flying telecommunications company and you know it was kind of like a test of my will because it is an across town and it literally to mean it does not sound like a cliche it took an hour by bus together really I mean really did take an hour nap and so I was just grinding this job and that's really what the pay 10 Bucks an hour and it and it grew up because you know I met this guy who lived maybe about 2 miles away better and a much nicer part of town is the controller of new bridge and he could see that I was struggling to take the bus every day and this and he stopped one day names I can't come on all of your ride he drove me for like them that that whole summer and so like I would just listen to this guy and it's like well this because we as in Sam like and this guy's I think this is a real person and then when you're around the success of that place because it was a kind of high flying telco stock back in the nineties and you see all this wealth being created people driving around it BMW's and stuff and you're like oh my god what is all this about and so that's when it when I kind of kind of guy conclude into you know there's an escape hearing technology that could be really profound and so I should be paying attention and such a couple computer science classes as a result in high school never released stuff like I was just not that low level like I tried to get in the weeds and and write code house okay was great by any means and Frank I do have a passion for it but I had a passion then for what it meant to build companies like that because it sounds quite interesting you were studying the science of destruction now but it's interesting to me you come from the land of the disrupted in a way right around where blackberry sure okay and then you went to work for a well early running is the messenger which is now I mean it's like officially being end of life to write that the end of this year did you learn anything in particular from being in those places that you don't deal in retrospect everything I mean everything I had that I think I appliance success I learned in failure or hardship the problem with like success is that it's so easy to conflate luck and skill don't really know whether it was you weather was timing whether it's the moment and then unfortunately that stuff is really corrosive because it gets into your mind it drives your ego and it defines you know your sense of self worth and in a in a way that's just not sustainable are accurate resin failure what happens is you just like you're in you're basically like a 0 and you have to really on what was you what was the moment and then you have a really if you decide to do it have these moments of clarity where you can really figure out what your powers are and what you're really good at and where you can effect change in an otherwise difficult circumstance and when you internalize that you become really powerful when did you do that for a long and how did you end up a Facebook well you know that so I mean I after I graduated from college I actually took a very traditional job those addresses trader I had kind of even though I went to electrical engineering I had kind of you know managed to get that job and the reason I like that job again it's kind of like the plate on my desire to take risks you know quote unquote Campbell although I I realized later on that this you know calculated decision making and gambling look really similar on the outside and even though they're not the same thing I had to leave that job because I just felt like I was gonna get trapped by money trapped by my trap the money because I was poor and I needed the job and I needed the money and then I needed there in perspective on what making a lot of money meant and all of the incumbents is that it came with with respect to your behavior your personality with respect to sort of like the things you can do and can't do I would just become a slave in a in a gilded cage and I don't want that I I wanted to be if I wanted to be emancipated I wanted like find my own path to like be able to like not have to the subject of the man and working in a bank just it just seems that pass for me so side I move to Silicon Valley and I work for a company that small company that they all had bought called Winamp ever whatever and you know that was like it was crazy because it was in a moment in time where it was part of a lot music group ale was trying to get a very complicated merger with Time Warner done there's all this anti trust could be around the music space and so we were handcuffed there's many things we couldn't do that's definitely there are all these things that we try to do so near nobody knows this but like we created the first 99 cent download store and we were able to do that because we had all these credit cards on file from all of the customers at AOL and it performed beautifully but then when you try to go to the to the powers that be within the animal infrastructure and convince them to launch a 99 cent dollar store they all said no for political reasons so you deal with this failure none of it made any sense but then you become really resilient and then you figure out how to get great ideas to when and how to get great ideas to market because you wanted them to win I I thought for a moment you're gonna see become really resentful but you said was really you know honestly like I'm pretty much like I'm not a bitter person like you know there's like it's just like we all have like 90 years okay let's just because your mind is because god blesses so be on the nineteenth but take 90 years and divided by that's the numerator and the denominator is the length of the universe which is what some are 0 years so like that's this is us so I just don't have time to be better I like like life is just too short to be like class half full glass half empty whatever it is you know I'm less of anything it's too short like like a man there's water in that class somebody drinking and so I just like I just want to do it and go for it and I just like I've last by not having that mental baggage so I didn't I didn't get resentful I got more resilient I got more creative I try to figure out different ways of telling my story who became a great communicator because I needed to divorce myself from the emotion from the politics I tried to present facts you know I became great at the time it's like you know telling the returns understanding to sort of like consumer desire because this practice that what can the moment I was able to practice it because I was looking at the data will put the product they were trying to build and then trying to articulate it to the powers that be and you know kind of chip away at all kinds of reasons to say no and and it's never happened and then you know I remember getting this call in 2000 and I think it was 3 or 4 where somebody said oh Steve Jobs is functioning as a double story well there you go that's that's just brutal but but it was in that process that I just got really good at just trying to figure out what mattered and then try to tell people to choose so in retrospect this experience of failure you never did get them to run with what was a great idea you've internalized as a learning exercise that charge you to be much better communicator communicator no motivator how to sort of like lead verses do how to manage to adversity that was a great training ground a always amazing friend on the other thing that I had which is much more practical as I had a mentor and a person who took me under his wing is in this Kevin Conroy he runs fix father and GM now and he came to my house I mean up and down every day you know that was when I was so afraid of him I used to keep my phone by my bedside and he just call at 6 in the morning 9:00 AM eastern but at 6:00 AM Pacific and I just and I just like train myself and I could pick up that phone at 6 in the morning deep in sleep and I was I was so called Eric but he taught me how to think how to how to be disciplined how to market and then you know in return for my loyalty I think it's reasonable worked on taking a shot and that's what a lot of people it's just a shot and I got a shot and that's when he promoted me to run aim and ICQ and you know I was in my late twenties that 2627 is like go and you know for the 18 months that I had control that thing I try to do the best I can before I left for Facebook I was gonna say meanwhile in a dorm room at Harvard so how how did you end up at Facebook I had known a guy who was at the time the founding president John Parker and Parker and I know each other in the kind of that 2000 to 2005 or 6 times when you got to Silicon Valley you know he was running a business called Castro when I was a win and you know we were on the same circles none of us had made it right and he brought to market himself to Washington DC where a lot was headquartered dollars Virginia actually just outside Washington DC had a meeting with them and I went and I told him that because I remember those who who now runs vox media but at the time when it was obvious because as I said we should really try to buy this company and you know that because that there's just no chance in hell you can buy this business because just can't the capitalization structure they all Time Warner at the time and you know just a downward pressure on the stock and it was a very turbulent time people getting fired all the time there's a lot of management churn and so in that moment you know sheen and then Kevin said don't see if there's an operating deal to be done and we did a dealer we integrated Facebook unnamed together and then very quickly thereafter Sean exited Facebook and mom called me to online the deal and at the end of that process he said you know you should really think about working and then I kind of met the other senior guys and I said let's take a shot why because you haven't ever worked for really small outfit before I mean you went into this procedure is that technology company in Canada country keep their you're going to live forever this train for a bank decided I was going to get your soul so you wouldn't continue to work there but it was big you know well which was huge at the time what gave you the guts to go with this little company run by this team I mean maybe it wasn't a teenager anymore I don't know decision the few that works no actually you know it was it was it was about risk management I remember thinking to myself you know I had left a lot of the time and I will create to work in a venture for me feel and I was getting paid what felt to me like all the money in the world at the time appetite 2050 0 Bucks here huge amount of money for me this was like a line of sight to you know getting completely out of student debt getting my parents completely sort of like into a situation where they can afford a house you know help subsidizing so my sisters and I have been you know have a paycheck every year until that every year was going back to my family so it's not like I even was able to celebrate any the trappings of a because take my salary divided by 2 for taxes and divided by 2 again that was my check this out so in any event I remember thinking myself okay well you know here's what my expected value is it may field over the next 5 years and I said what is the distribution of outcomes of Facebook and I basically like most of the scenarios were less than that but there are a few scenarios where I could make a case that it could be I want to what I would make it may fielder before your period and and that is very very small number of cases will be in excess and I said okay the the mathematical answer is that it's probably easier to just stay where I am and I said to myself but if I can go there and if this thing does fail so meaning how come is in one of those kind of like equivalent or worse situations what will I still have and what I said to myself because I will have met some of the smartest people in the world and I'll be in the game and I will have learned something about myself of whether I can do something at a really early stage scale and weather can I do this on my own and I had sort of like you know had I been trained out of a ready to execute and so I took the shot from most of those reasons that what was funny at the time was I actually had an offer or somebody was recruiting me to be CEO of a business what kind of justice tax on internet business I can't quite honestly remember remember like getting called thinking to myself well maybe I could be like you know the chief first as the Indian and but when I spend time with the team to face but I was like wow this is like this kind of like 5 and nobody knows what they're doing and I thought that's probably place were like I can learn something and so even if it fails giving a lesson from the whole when I'm when Abigail well experience sometimes what you learned from the failure is just as important as winning a calculator which would learn to Facebook and also there was like I've I've never really been around something that has succeeded so I mean I know what feel your feels like it feels okay it's not life threatening like life goes on I can hear you try some stuff some work some doesn't you know your subject to market conditions you're subject to internal politics and I've kind of become relatively resilient and I thought how much worse could be even back and so I was like popular a lot it seems like I mean it seemed like it was the next arc after humanize you cute to me right because like I had been so deep in that business where I could tell like there's something that Facebook was scratching the surface on especially in a world post myspace impose Friendster that was really unique it would just started to figure out how to experiments always makes you and so there was enough surface material there were I was like I'm gonna learn a ton and it's just you know I I just saw this former catalog card counting teenager former derivatives trader always been comfortable with numbers of calculating risks and in this position with Facebook which is the biggest data problems they had a post Google of absolutely generation and you end up in the position of chief growth hacker you're tackling the kinds of problems having to do with people and out comes the technology worlds never really never wrestled with no and in fact I think what we're learning now is how complicated in new wants these issues really are you know when I created the girls team I said okay basically what I wanted to do was tell a bunch a Smarty pants Ivy League graduates who I work with that they know what they were talking about and I took great pride in that and they just use data and just basically just to call them to balance and it shot up to one of those Smarty pants Ivy League people was mark Zuckerberg himself although to his credit he really wasn't because he dropped out after 9 round bread and he was actually open to the truth more so in a way of anybody that I've ever seen he loves the truth but again like you know can success you get a lot of people to complete luck and skill in the early days of Facebook there are many of those people so part of it was just decapitated their political social capital which happens by just telling the truth but in that but we figured out was you know to your point how much of it system at once and what I mean by that is that as much as we all believe where individuals we are we all act within a range of outcomes that frankly can be modeled mathematically and be highly predictive and it's no different than you know you must think yourself sometimes when you go to Google and you start typing in a few letters and it instantly knows and you think yourself what is that the same search result that everybody else gets in the answer is no and then you must think yourself well how creepy is it that Google knew what I was thinking in the answers well you probably get a whole bunch of many other subtle ways told the you just realized I like how you're counting the cards in my search behavior right now right and so I think we reduced a lot of theoretical complexity to that simple inside which is that humans are telling you in passive and active ways every day what's in their heart mind and when you collect those signals and you learn you can become really good at giving them what they want but then you also become really good at understanding their behavior and now unfortunately in some you know rare edge cases in manipulating well one would hope they're rare in manipulating their behaviors well with you know this whole fake news stuff I was just going to ask you about that is that the sort of thing that grand it's been a long time since you're at Facebook but outfits like yours we're set up to anticipate now you know the fundamental thing that I want to make sure it's clear to everybody is you know technology by design is deterministic in the following way which is that whatever can be done and whatever is possible will be done and what we need to do is have the moral and ethical discussions around how we provide the broad implications of how technology can be used not just in positive ways but in ways that are poorly understood a saying it's impossible to anticipate everything absolutely I can I'll give you a simple example you know I helped start a cancer genomics business 7 years ago which is doing incredibly well helping people manage the fundamental problems of cancer care with precision around their specific genetic makeup it stands to reason that within the next 10 years will be able to take that profile and make up of who we are genetically and precisely start to target things that can make us sick and then eventually someone will say well what about the things that could make a sick in the future well what's the difference between something that could make you sick in the future versus something that could frankly just be optimized for you in the future it's a very slippery slope so the type of gene editing technology that people are experimenting with today for the you know for same future will be used at a radic hitting disease that's a fantastically positive it seems it seems almost dangerous to be able to say on the one hand it's possible to crack the code for growth so that this technology can spread global around the world in touch everybody but it's impossible to anticipate some of the worst uses up at that then can use this network testament if you like it's almost like a Frankenstein's monster situation and and look again the thing is I want to be clear like we are making a lot of this stuff up as we go along and anybody that pretends that they know pretends that thing now the future is fundamentally either lying or stupid so you're absolutely right like we are going to cover all kinds of unintended consequences for the things that we built so again you know it uses genetic example it will start with curing diseases that you have and quickly migrate to diseases that you may get an end to things of value that you just want to check and then eventually some government whether it's us or not will take the decision well you know what I just want to create a super human side for that are citizens of my country what do you do that so you know they're all of these issues that I think we have to grapple with around to technology that that we are only starting to scratch the surface on now and they all come back to this idea we are building things we never thought possible which have to be honest there were also probly not well equipped to realize the full breadth of implications so should we regulate that as someone has to be now the question is how and you know this is where I think like you get this to the intersection of governance in politics and technology that we've never had to contend with the form in the last 30 years have been about unbounded games where technology has largely allowed things to be cheaper faster better with the aggregate value creation was undeniable with very very few consequences now I think of that has changed and so we're gonna have to really grapple with that and that's going to a higher level conversation between governments between companies populations and it is a global discussion it cannot happen at a national level because it's relevant what happens in any one country that's why frankly the current political climate has to be really with skepticism but also with some great because you know sticking your head in the sand I'm just saying we as a country can figure this out is not going to solve because whatever we do is like playing lockable some other country can decide to go the other way and so it's about creating a moral framework that everybody agrees with I hope one day in your 15 year plan you can cracked the code for social disruption and hopefully we can I mean eventually that's that is chapter 5 okay so I'm glad it's the play Tremont thank you so much for except Hey there thanks for checking out the ABC on you to be sure to subscribe to stay up to date on all of the day's biggest stories you can also click on any of the videos around me to watch the latest from CNBC thanks for watching when you save and invest with RBC will start you down a path towards a clearer financial future for the U. you're about to become investment solutions and award winning advice experienced the RBC difference cash back she said infinite card 9 percent cashback on eligible purchases for the first 3 months officer you have thoughts on there's no relationships with our customers and that's I think the longest term problem in that business which other than you know Disney theme parks where you actually come in and come out the reality is like you're living in a world now where these people have no understanding of the customer is not the first name not their last name they can't figure out what the real intentions are and I think that's really the biggest problem so when you compare that to Netflix compare that to any other subscription business online it's just a really different media consumption model okay so here's a question that relates to introduce a the messenger app it'll founder it was original member of the basements mapping team and also owns is the worst I let me just ask you one question about this and I want to talk about some of the stuff that all on the issue of Disney and fox all there's been questions about concentration in these markets but one of the arguments have been actually that we've seen this ring them wrong because we really should do is compare them to Google interface Hauser who have direct access as you would say direct relation to the customer and where is most of that where where is the Disney might not ways in 18 T. or a 4 time winner actually 18 he would have to replace it Time Warner would not how do you think about the whole market I really think the traditional broadcast media businesses again with with all due respect or the least relevant they've ever been quite honestly so I think it was a month ago that Google released some data that's it you too has 1.7000000000 monthly visitors yesterday Facebook did a reorganization and the person that runs their core apps now manages oversight over 5000000000 users or touches 5000000000 unique users so I think the point is that there is just an entire order of magnitude or 2 orders of magnitude increase in distribution that's occurred and so those are the folks that really now control the pipes and Swilly shape our ideas and thoughts as are the regulars are the regulators wrong are they looking in the wrong direction but I think part of it is that the regulators are of a generation where those systems used to be the things that were relied upon and unless they get enough data and are taught quite honestly something new has happened they're going to reflexively go back to what they're most comfortable with which was a world where you know for some of these regulators were they were literally only 3 channels on this particular deal because you you've been an Amazon fan a very long time are you happy sad that they missed out on this do you think the damage shot in India we what happens here so we actually invested in on the chairman of one of the largest payment processors in India Amazon as a customer Flipkart is actually customer and so we've been seeing this battle unfold on the ground now for 7 years and what I'll tell you it's from a starting stand still and is one of the cards were head to head and in any given month Amazon is I typically the full card so the point is I think it's a 2 headed race for domination of what is an incredibly rich market so that's great getting out to say is I think it's great for Amazon that it's in the hands of Walmart because now Walmart management has to figure out how to keep these incredibly talented engineers and one thing I'll tell you about investing in India is that the labor market there is even more cut throat in the labor market in Silicon Valley in that there's a lot of job hopping there's a tremendous amounts of trend these towns engineers believe companies are even faster rates and they do the valley and so I suspect what happens is post an acquisition when a talented engineer has a decision to work for Walmart before color for Facebook Google Amazon is going to be very difficult for Walmart to retain those people and so then I suspect what happened using Walmart shares instead of Amazon shares as as or I mean what would you rather have quite honestly and so I I just think what happens is it's a great foothold for Walmart it probably stop some of the bleeding in the short term on the equity but the reality is I think it probably makes it almost a critical plea that Amazon links and I've been is your view about the way how do you think though just about Walmart with large given the jet acquisition given this acquisition what they've done in the digital side the transformation that they're trying to undertake here I think it's for really courageous and I think they are the Canary in the coal mine for the rest of the S. and P. 500 which is vis stalwart legacy companies are fundamentally on their heels now and what we have to figure out is how do they have to so you have to use your balance sheet you have to use your stock and you have to acquire aggressively to try to be in these next generation way businesses that's an argument for what 1 more it's just done is what I'm saying is that's why I think it stops the bleeding so kids in my opinion are these catalysts to see 2030 percent increases on a predictable basis in the equity I don't think so but it is a catalyst to say well maybe stops going down if your dog Millan other other things out there either in the U. S. or elsewhere and would you would you want to be investing in the US or would you want to be doing it all international no I actually think going international has to advantages to large companies like Walmart the first is that you can actually have a different kind of business model all together so going into an asset like business or vertically integrated maybe owning a payments business maybe owning payment rails those are better businesses but better margins that Walmart can frankly integrate into their business much easier and then secondarily these businesses are much cheaper abroad than they are in the United States so you get a lot of advantages by actually trying to implement the strategy outside the U. S. when you think about the fact that Walmart decided to go in with full car with someone I was already established as opposed to trying to go and go it their own way build everything from scratch on their own is this the way to do it internationally if your Walmart it's the only way to do it frankly anywhere because the again we go back to the same existential problem which is that if you're going to try to anything you need this unit of human capital which is the engineer and those are still quite rare and they're hard to get the hard to find it hard to keep and so it's easier typically for start ups to do that because they can pay them with equity and so it's much better for Walmart to sit on the sidelines wait for something to get to scale use our balance sheet by and I think they've done that masterfully so now the question is not just for Walmart but look at all of these other companies so back to Disney right you know what do you do for Disney buying assets from fox may have some value but maybe what we should really be thinking about is how do I use a balance sheet aggressively to buy an internet business or switch topics up for a moment because you have been a big bowl on big goin down we had some folks some people know on our show really this week back he was at home I want to show you what they had to say if we got to roll the tape on bitcoin for Mr Munger and Mr Buffett the asset is selfish creating outside I think it's a scramble activity I would shorted if there was an easy way to do it so there you have it your bill gates Warren Buffett Charlie Munger things calling it a scramble activity the other saying that Bill Gates saying he was short this thing if you could and you're saying they're all wrong death explain will look not everybody is right all the time and I think we have to acknowledge that we all have biases and look on a disciple of Buffy Munger and one of the things that they have said for years which I",
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390      "recording_transcription": "flights midnight was table doing slides start with about myself unless get somewhat cynical view this entire space it means be call back be offended about being hacked thinking touched upon this actually why graduated from EE and in midst trying find way ended up working in investment bank your trading derivatives it was probably most insipid idiotic use time and biggest that realize was that bankers smart enough be greedy but smart enough be useful quit and applied these jobs online and got one it Winamp accidentally and actually build really cool but that learned and happened Elvis ties together apologize rambling but actually one most important early consumer platforms available which was extraction built lot people customize our product build scans your bill plugins and it actually did was start refine understanding when develop that appeal specific sets consumers start get this operational leveraging your product were 7 people and that did 7 person group pretty impressive back in day under 0 users impressive it today it was back when internet was lot smaller but it was still quite interesting product and really find lot characteristics actually approach when was that Facebook when it was acquired AOL and AOL high bumble belonging different jobs and ultimately was able run aim and ICQ which instant messaging products and take away from that were 2 one and 'll get this later most people in most companies really **** and task that was manifested in large degree in while learned one and that was probably 90 percent learnings be quite honest with and 10 percent was reinforcing that learned in Winamp which really about core product value and it means create real connection with someone now euphemistically call it there aha moment with consumer but also power these communication networks when develop create real entrenched musician scale and these can dramatically accelerate adoption engagement and and lastly spend much time that Facebook Facebook stories actually really interesting and 'll tell it's inter leave it go through rest life spend most time investing in playing poker be quite honest with big ones that was fairly large stakeholder and played on camera which sold about 2000000000 combined value large investor boxing talent and very small companies now which will act co founder somewhere down know lot people out every return that on blog blog use Twitter but record pretty good dad 2 kids another one on way in January play lot poker and ate on warriors that's mean baller people use your petitioner across everyone asking because this topic your it's everyone wants know was secret it's almost know where NSA and 've develop and nobody knows know secret back room negotiations between us and governments and it's none that **** did 3 really hobby brain dead and reality was lacked enough self awareness and go frankly continue these very simple and and again repetitively monotonously point where every time used move in one direction another would either keep doing them stop doing them and second guess yourself head help people know look actually look lot data measured lot tested lot and tried lot now that masks lot more nuanced understanding but extremely high level that's really get and 's shocking me when lot products out there it's unbelievable me that people trying shroud products in this veneer complexity that makes themselves seem good and smart and know on this **** hipster and 'm writing beauty in San Francisco and look long green tea that get any clear know look these rip tight skinny jeans bought it it's gotta get yourself measure **** try **** test more **** focused doesn't work it's that complicated would apple after after that but get inundated and when try did even spent 8 seconds using your old clock it's unbelievable lack don footing that happens and most people when about growth it convoluted where 're trying generate these know extra normal behaviors and people and that's it's about it's about very simple elegant understanding product value in consumer behavior and when shore out yourself and bullshit veneer and this single biggest problem in valley today will miss mark and problem 're in this massive long tail where 7 old huge successes occur and now these people who 2 choices and 're extremely difficult choices choice number one independent external feedback would tells and choice number 2 read about and get know credit it but people tell was interesting and that second class destroys products and it destroys people's ability build interesting and it doesn't matter good your job that specific set values isn't imbued in 're building will fail and it doesn't matter and now that one most important that 're gonna leave away with because it's believe hype and bullshit that 're in now get this even come up with this framework guy work me because was literally 9 times going fire stubs call anyone who came me that 're even this spring even this 2000 only can learn from K. and said well this framework use that eBay and tweak it and realized was gosh know there this massive amount complexity when expressed in simplicity can be extremely useful and tweaks that basin different product and even now wonderful company doing really really well last class created framework in which apply those 3 very simple principles measuring testing and trying and said biggest risk that this week alienate people that trust us today and use coupon and when alienate someone happens it's actually palatable generally and top level metrics but there's this extremely long tail anecdotally can look companies and know know 's pick on H. B. example but look each signaling me 10 minutes 10 minutes left Jesus Christ and ask yourself know and know make with and 's actually really great CEO happened well there's product innovation now figure out where growth comes from Wall when trace that back well it's decision that was made maybe 5 6 years ago when it was about cutting costs and optimizing dramatic realize well that's long tail that's long it takes these manifest similarly biggest fear was spammer users and treat them and it will alienate these people will it today but 'll it in 3 years from our 4 years from now and it accelerates when compound that with competitor who actually build better product that doesn't most important that did against our framework was tease W. rowdy and say cannot it talk about it touch it want give me any plants that burn revolve around this idea morality and want hear it want hear about 3 most difficult and heart problems that any consumer product deal get people front door get into aha moment quickly possible and hive deliver core product value often possible after that said and done only can proposed me going get people get more people that single decision about even allowing conversation revolve around this last in opinion was most important that did and when looked again in landscape that scale understand that principle whether it's explicitly and that and also that this amazingly steep price and fall off cliff and there really visible examples that today also ignore that principle and it's disappointing optimized that gives shortest and most immediate one because that never sustainable that allows build when well that up most important high level take always that and after this was got eliminated ego any ego manifest itself every day talked about earlier gets eagle basically living lifestyle and vision and Twitter stream and it actually living life entrepreneur building good product and try deliver core product value that takes eagle meaning be comfortable being rewarded in short term and second invalidate lord in any given product there's always people who strut around office know this gut feeling it's about gut feeling gut feeling **** morons know 're talking about lived on gut feeling can look happens when live on gut feeling look financial markets but government works these industries completely broken feel useful because most people can't predict correctly know this one most important that did was in validate lord much didn't did was cruel random anecdotal nonsense filter around company well it's people usually want 're and know where pulled it out and can wanted it go back and know reinforce sense ego and lot people culture within company that allows these 2 happen and can't beat extremely clinical and extremely emotionally detached from that 're building will make massive mistakes and will grow because understand 's happened it takes really special type person believe bullshit and even more special person conflate luck and skill global be 're in this type job in opinion relatively cynical and can be confident can be matter but can't leave your own PS because when start Kapelle these massively structural mistakes that again expose core product value and allow real engagement and real product value emerge listen consumers because it's about your got bother doing any traditional straight forward obvious that would allow answer very straightforward obvious questions and lose yourself people unfortunately know 're talking hate this letter dumbest letter in in office that people doing more when focus on this ruin internet entire human race talk about this anymore this talk about being in weeds and understanding 're doing errors context when talk about this none whatsoever your spammers having fabric and ruins experience it never talked about this once never came up once little guy know tickling ivories on Israel expel spreadsheet telling me can use were on with tell me much able tell me 're doing getting them aha moment and tell me cordage give me these low level traction that allow validate short get short term results in our lives mean focus on that destroy long term 9 give me that allows trick yourself into thinking know 're talking about 'd rather say know 'd rather us figure out together but want happen culture where take short term start working on it absence contacts reached your prices and massive trying fall off and everyone's looking around with her hands in pockets thinking well happened thought was doing really great job really great job optimizer very out there maybe somebody on your team that should be doing that but it should be doing that contacts much more but can also destroyed lot value when extract way that high level goals ridiculously stupid 'm raining on everybody's great today can tell really elusive and most products any actually fundamentally believe them but also believe that most products can value when put those 2 together again go back discipline really know 're building and why and really understand marry that maybe non intuitive people but important that people need everyone were watching and Asia created team history Facebook very quickly started Facebook team watch baseball platform success than know this big deal Microsoft generally raise huge round and know tail end that round 're gonna watch add products validate this valuation and know 're gonna this and now team because believe build 3 products can can talk about conflating luck and skill these people our best guys working on this product with me which call social lives beacon and another doing sponsor stories that another team focused on on cell service most resources in chair none resources in chair people best engineers product managers people today revenue billions dollars scaling inordinately lawsuits FTC suing us know people telling me on New York times lied about help site scripting were alive on prostate scripting during your times New York times really that's little guys stupid Hey goes show up that point were saying this looked monotonically negative growth and 're 0 god 's happening 2539 people cannot say 're gonna focus on growth and went team part that said 're getting international ones 'll watch 're gonna go everywhere world and use began with dog food on product and use Facebook 've talked create this crowd sourcing translation which was really successful long story short get Japan Korea and it's it's constant refrain know go around valley talked folks done this before guys Iago know guy's Google guys anybody get sense about it and these people same answer well take these MBAs really want live our next package out there and 're last other hands her cell phone know first did was hired only native people in those data markets these guys know putting in harbor know really want spend time on get **** out office gonna be eight.com take get out face 're going travel on company dime but hire these people this amazing guy that heard in Japan great studies that know it's really important actually specific elements profile be different because in Japan and call attic different said well 's that mean and said well maybe it means know putting your blood type 're that makes sense US but it makes sense him and know develop this flexibility where were well maybe connections were trying make it up market our little loosen this product that works didn't any context and would say well Facebook product value but time get and having courage reset and redefine it means in any given market takes lot courage and got it and now it's massive these killings and sudden off light bulb goes off 're oh gosh it's know know and every single market people react differently behave differently speak different languages spanning guess Spanish Spanish maybe know that 5 minutes got and 'm on point even when works it probably doesn't work everyone and finding frame up that allows actually restructure and reorganize that 're doing expose value in different ways different people in different situations extremely important again goes back live in world where 're willing redefine and reset that independent that short term feedback loop telling it's very difficult proposition knew were going be space 20 45000000 users 115000000 knew used that wasn't always celebrated celebrated 459 was high 5 's get back work and reason was because started enough where could now understood were doing after testing reading this know single biggest realized getting any individual 7 friends in 10 days that was it want that was our keystone much more complexity than that there's entire team now hundreds people that helped wrap this product 1000000000 users based on that one simple rule looking lot complexity could give it were able reframe entire experience around that one simple premise very simple elegant statement it was both capture core product value define it meant be able onboarding tool product allied communicate get into network find density and basically get arrayed around them and get that company was talked about nothing else every Q. NA every hands nothing was spoken about other than this monetization didn't really come up form came up but again in secondary tertiary context but it was single sole focus because find it in this very elegant way that expressed that function product value it was that everyone could intrinsically wrap arms around again another reason why focusing on know obstructing rolls down these low level person that runs growth on any team be strategic and capable enough engage on poor strategy pot because allow yourself up level conversation and it becomes most important framework in which organized in tire company equity given expenses generated focused on who gets hired who gets fired but when understand product value and can basically pivot around it and create these loops that expose that and and again this becomes most important and obvious and few companies that help now with this context when that and this co founder were living about world and living in this context 've consistently systematically every single one its successful every single one 've also lot people who ask these questions and know 're Hey know and love really and meet them in cut banks and 're know way quantitation way passive aggressive in little agro and it reminds me that's actually again lot more Burton short term ability people focus on short term results which in this battle between culture and capability culture wins every time and your values really 's which even when these companies again today that these massive apexes rocket ship growth and now know summer public and now 're going unbelievable retching got wrenching change negatives spiraling charmed hours realize that's growth problem although it seems numerically growth problem that product value and culture problem and when 're focused on again K. K. K. K. K. K. K. K. K. K. K. reason why case that's mean use 3 time 're racist Jesus but point that's type that always comes back and it gets such short term optimization it never works work backwards from that people AHA moment that want why can give that them fast possible measuring that 8 days unrealistic measuring getting ours unrealistic measuring it in minutes necessary but sufficient but get that second study about hundreds milliseconds that's win and can understand does optimizing this time it it creates case really back crappy companies that spam and destroy internet this really want leave with which probably X.",
391      "recording_transcription_org": "flights you at like midnight I was at the table doing the slides okay so to start with a little bit about myself unless you get a somewhat cynical view of this entire space of what it means to be a call back so don't be offended a little bit about being hacked thinking I just touched upon this actually why I graduated from EE and in the midst of trying to find my way I ended up working in an investment bank for your trading derivatives it was probably the most insipid idiotic use of my time and the biggest thing that I realize was that bankers are like smart enough to be greedy but not smart enough to be useful so I quit and then I applied to all these jobs online and I got one it Winamp accidentally and we actually build something really cool but the thing that I learned and what happened Elvis ties together so apologize rambling but we actually had one of the most important an early consumer platforms available which was the sort of extraction so we have built a lot of people customize our product you build scans your bill plugins and what it actually did was start to refine my understanding of sort of how when you develop sort of things that appeal to specific sets of consumers you start to get this operational leveraging your product we were 7 people and the things that we did as a 7 person group for pretty impressive back in the day under 0 users not as impressive as it is today as it was back then when the internet was a lot smaller but it was still quite an interesting product and really to find a lot of characteristics of how I actually approach things when I was that Facebook when it was acquired by AOL and at AOL high bumble belonging to a bunch of different jobs and ultimately was able to run aim and ICQ which is instant messaging products and the take away from that were 2 things one and I'll get to this a little bit later most people in most companies are really **** and task that was manifested in large degree in a while so I learned all the things not to do one and that was probably 90 percent of my learnings to be quite honest with you and then 10 percent was reinforcing some things that I learned in Winamp which is really about core product value and what it means to sort of create a real connection with someone I think now we all kind of euphemistically call it there the aha moment with the consumer but also the power of how these communication networks when they develop create real entrenched musician scale and how these things can just dramatically accelerate adoption engagement and and then lastly I spend much time that Facebook so the Facebook stories actually really interesting and I'll tell it's sort of inter leave it as I go through the rest of his life I spend most of my time investing in playing poker to be quite honest with you some of the big ones that I was fairly large stakeholder and played on camera which we sold for about 2000000000 a combined value for a large investor boxing talent here and a bunch of very small companies now some of which will act as a co founder somewhere down you know a lot of people like to out every return that they have on their blog I don't blog or use the Twitter but record here is pretty good dad I have 2 kids another one on the way in January I play a lot of poker and I ate on the warriors that's what I mean baller for all you people don't use your petitioner just right across everyone asking because this is like the topic to your it's what everyone wants to know what was a secret it's like almost as if like you know where the NSA and we've like develop something and like nobody knows are like you know some secret back room negotiations between us and governments and it's like none of that **** we did 3 really hobby is brain dead things and the reality was we lacked enough self awareness and you go to frankly just continue to do these very simple things over and over and over again repetitively monotonously to a point where every time we used to see things move in one direction or another we would either keep doing them or stop doing them and not second guess yourself head so I I kind of help people you know look we actually just look at a lot of data we measured a lot of stuff we tested a lot of stuff and we tried a lot of stuff now that masks over a lot of more nuanced understanding but an extremely high level that's really what we get and what's shocking to me is when I see like a lot of products out there it's unbelievable to me that people are trying to shroud products in this veneer of complexity that makes themselves seem like so good and so smart and you know on this **** hipster and I'm writing the beauty in San Francisco and look at my long green tea that I don't get any clear you know look at these rip tight skinny jeans I bought it it's like you gotta get over yourself like measure some **** try some **** test some more **** focused doesn't work it's not that complicated I would like to see apple after after that but I get inundated and when I don't I try to like did you even spent 8 seconds using your old clock it's unbelievable the lack of don footing that happens and so most people when they think about growth they think it is convoluted thing where you're trying to generate these you know extra normal behaviors and people and that's not what it's about what it's about is a very simple elegant understanding a product value in consumer behavior and when you shore out yourself and all the bullshit veneer and this is the single biggest problem in the valley today you will miss the mark and the problem is is we're in this massive long tail where you have the 7 old huge successes occur and now you have all these people who have 2 choices and they're extremely difficult choices choice number one is you do what you think is right independent of what the external feedback would tells you and choice number 2 is you do what you read about and what you get you know credit for it but people tell you was interesting and that second class of things destroys products and it destroys people's ability to build something interesting and it doesn't matter how good you are your job if that specific set of values isn't imbued in what you're building you will fail and it doesn't matter and right now that is the one most important thing that if you're gonna leave away with because it's just don't believe the hype and the bullshit that we're in right now how do we get this we don't even come up with this framework a guy I work for me okay what is because I was literally like 9 times as going to fire the stubs call anyone who came to me is that you're not even a we had this spring or even this is 2000 only what can I learn from K. and he said well we have this framework we use that eBay and we tweak it a little bit and then what I realized was my gosh you know there is this massive amount of complexity when expressed in simplicity can be extremely useful and if the tweaks that we have AT basin different product and even now is a wonderful company doing really really well the last class what we sort of created a framework in which we apply those 3 very simple principles of measuring testing and trying things and we said okay the biggest risk that we had this week alienate the people that trust us today and use coupon and when you alienate someone what happens is it's actually not palatable generally and top level metrics but there's just this extremely long tail so like anecdotally you can look at companies and you know you know let's like not to pick on H. B. as an example but you look at each of the signaling me 10 minutes I 10 minutes left Jesus Christ okay and you ask yourself you know and I know make with and she's actually really great CEO so what happened well there's no product innovation right now they have to figure out where their growth comes from Wall when you trace that thing back well it's a decision that was made maybe 5 or 6 years ago when it was all about cutting costs and optimizing for dramatic SO you realize okay well that's the long tail that's how long it takes these things to manifest similarly my biggest fear was we spammer users and we treat them and it will alienate these people you will see it today but you'll see it in 3 years from our 4 years from now and it accelerates when you compound that with a competitor who actually build a better product that doesn't so the most important thing that we did against our framework was I tease W. rowdy and say you cannot do it don't talk about it don't touch it I don't want you to give me any kind of plants that burn revolve around this idea of morality and want to hear it what I want to hear about is the 3 most difficult and heart problems that any consumer product has to deal how to get people the front door how to get into an aha moment as quickly as possible and hive you deliver core product value as often as possible after all of that is said and done only then can you proposed to me how you are going to get people to get more people at that single decision about not even allowing the conversation to revolve around this last thing in my opinion was the most important thing that we did and when I looked again in the landscape things that scale understand that principle whether it's explicitly or to have and things that don't and also things that have this amazingly steep price and then fall off a cliff and there are really visible examples of that today also ignore that principle and it's disappointing not optimized for the thing that gives you the shortest and most immediate are a one because that is never the sustainable thing that allows you to build something is so when you well that all up the most important to high level take always that we had and after all of this stuff was you got eliminated ego any ego manifest itself every day so I talked about earlier gets the eagle of basically living a lifestyle and a vision and like a Twitter stream and it is actually like living the life of an entrepreneur building good product and try to deliver core product value that takes eagle meaning you have to be comfortable not being rewarded in the short term and the second is to invalidate all the lord in any given product there's always people who strut around the office like you know I have this gut feeling it's all about gut feeling gut feeling are **** morons they don't know what they're talking about they just don't if we lived on gut feeling you can look at what happens when you live on gut feeling look at the financial markets but government works okay how all these industries are completely broken feel is not useful because most people can't predict correctly we know this so one of the most important things that we did was just in validate all of the lord as much as we didn't do stuff all we did was just cruel of all of the random anecdotal nonsense the filter around the company well I think it's people are usually I want to we're and you know where they pulled it out and they just what can I wanted to do it to go back and you know reinforce a sense of ego and a lot of people don't have a culture within a company that allows these 2 things to happen and if you can't beat extremely clinical and extremely emotionally detached from the thing that you're building you will make a massive mistakes and things will grow because you don't understand what's happened it takes really a special type of person to not believe the bullshit and even more special person to not conflate luck and skill global you have to be if you're in this type of job in my opinion relatively cynical and you can be confident you can be here okay matter but you can't leave your own PS because when you do you start Kapelle these massively structural mistakes that again don't expose core product value and then don't allow real engagement and real product value to emerge you don't listen to consumers because you think it's all about your got you don't bother doing any of the traditional straight forward obvious things that would allow you to answer very straightforward obvious questions and you lose yourself all people unfortunately I just don't know what they're talking I hate this letter what are the dumbest letter in the in the office that you people are doing more when you focus on this to ruin the internet for the entire human race don't talk about this anymore this is talk about being in the weeds and not understanding what you're doing errors don't context when you talk about this none whatsoever your spammers as having is a fabric and ruins the experience you don't do it we never talked about this once never came up once I have some little guy you know tickling the ivories on Israel expel spreadsheet telling me what can I use were on with tell me how much are you able tell me how we're doing getting them to their aha moment and tell me cordage don't give me these low level of traction that allow you to validate short get short term results in our lives don't mean don't focus on things that destroy long term 9 don't give me stuff that allows you to trick yourself into thinking you know what you're talking about I'd rather you say you don't know I'd rather us figure stuff out together but I don't want to have happen is a culture where you take the short term things you start working on it absence of contacts you have reached your prices and what you have is massive trying to fall off and everyone's looking around with her hands in the pockets thinking well what just happened I thought I was doing a really great job really great job optimizer very out there maybe somebody on your team that should be doing that but it should be doing that contacts or something much more but they can also you destroyed a lot of value when you extract the way that high level goals to something so ridiculously stupid like I'm like raining on everybody's great today what I can tell you is really elusive and most products don't have any I actually fundamentally believe them but I also believe that most products can have some value so when you put those 2 things together again you go back to the discipline do you really know what you're building and why and you really understand how to marry things that maybe non intuitive for people but they are the important things that people need so everyone we were watching and Asia we created a team so the history of Facebook right just very quickly so I started Facebook my team watch baseball platform here success than you know we do this big deal at Microsoft we generally raise a huge round and you know at the tail end of that round is like over we're gonna watch a bunch of add products to validate this valuation and you know we're gonna do all this stuff and now my team because I believe we build 3 products I can I can talk about conflating luck and skill all these people all of our best guys working on this product with me which we call the social lives beacon and we had another thing doing sponsor stories that we had another team focused on on my cell service at most of the resources in my chair none of the resources in my chair people are best engineers product managers to people as for today all of the revenue billions of dollars scaling inordinately lawsuits FTC suing us you know people telling me on the New York times I lied about help site scripting were alive on prostate scripting during your times New York times okay I really like that's a little I do you guys not so stupid Hey just goes to show you up at that point we were saying this like what looked like monotonically negative growth and we're like 0 my god what's happening is like 2539 people so we cannot say okay we're gonna focus on growth and we went to the team as part of that we said we're getting international ones we'll watch we're just gonna go everywhere all over the world and so we use began with dog food on product and we use Facebook I've talked to create this crowd sourcing translation which was really successful long story short we get to Japan Korea and it's the it's a constant refrain you know I go around the valley I talked to some folks have done this before you guys Iago you know the guy's a Google the guys anybody just to get a sense of like how do you think about it and all these people have the same answer well we take these MBAs really want to live our next package out there and you're just like okay last other hands her cell phone so you know first thing we did was we hired only native people in those data markets these guys you know putting in harbor you know I I really want to spend time on like get the **** out of my office gonna be eight.com by take a get out of my face what you're not going to travel on the company dime so but you hire all these people they do so we have this amazing guy that we heard in Japan great studies that you know it's really important to actually have specific elements of the profile be different because in Japan and the call for the attic is different as we said well what's that mean to you and he said well maybe it means you know putting your blood type you're like that makes no sense the US but it makes sense to him and so you know we develop this flexibility where were like okay well maybe the connections were trying to make it up market our little to loosen this product that works here just didn't have any context you and so you would say well Facebook has product value but if you had a time to get and so having the courage to sort of like reset and redefine what it means in any given market takes a lot of courage and we got it and now it's a massive these killings and then all of a sudden the off the light bulb goes off you're like oh my gosh it's like we don't know what we don't know and every single market people react differently they behave differently they speak different languages spanning guess what Spanish is not Spanish maybe they know that 5 minutes I got and I'm on so the point is even when you think something works it probably doesn't work for everyone and finding a frame up that allows you to actually restructure and reorganize the things that you're doing to expose value in different ways to different people in different situations is extremely important thing again goes back to how do you live in a world where you're willing to redefine and reset the things that you do independent of what that short term feedback loop is telling you it's very difficult proposition we knew we were going to be my space 20 had like 45000000 users like 115000000 we just knew we used to just like that wasn't always celebrated we celebrated at a 459 I was kind of like a high 5 like all right let's get back to work and the reason was because we had started to do enough things right where we could just see now we understood what we were doing after all the testing all the reading all of this stuff you know the single biggest thing realized getting any individual to 7 friends in 10 days that was it you want all that was our keystone much more complexity than that there's an entire team now hundreds of people that have helped wrap this product to 1000000000 users based on that one simple rule so if you are looking for a lot of complexity I could give it to you we were able to reframe the entire experience around that one simple premise very simple elegant statement of what it was to both capture core product value to define what it meant to be able to onboarding tool product allied to communicate to get into a network to find density and then to basically get arrayed around them and then what we get at that company was we talked about nothing else every Q. NA every all hands nothing was spoken about other than this monetization didn't really come up I form came up but again in a secondary or tertiary context but it was the single sole focus because we have to find it in this very elegant way that expressed that as a function of product value it was something that everyone could intrinsically wrap their arms around again another reason why focusing on you know obstructing rolls down to these low level things is not right so the person that runs growth on any team has to be strategic and capable enough to engage on the poor strategy of the pot because then you allow yourself to up level the conversation and have it becomes the most important framework in which you organized in a tire company how equity is given how expenses are generated how things are focused on who gets hired who gets fired but when you understand the product value and then you can basically pivot around it and create these loops that expose that over and over and over again this becomes the most important and obvious thing to do and the few companies that I help now with this context when they do that and what is this you or what is the co founder were living about world and living in this context they've consistently systematically every single one of its successful every single one of I've also had a lot of people who ask all these questions and you know they're like Hey you know and love to really and I meet them in their cut the banks and they're like you know way to quantitation like way to like kind of like passive aggressive in a little agro and it reminds me of something that's actually again a lot more Burton then the short term ability for people to focus on short term results which is in this battle between culture and capability culture wins every time and what your values really what's which even so when you see these companies again today that had these massive apexes of like rocket ship growth and now you know summer public and now we're going to just unbelievable retching got wrenching change negatives spiraling charmed hours what you realize is that's not a growth problem although it seems numerically a growth problem what that is is a product value and culture problem and when you're focused on again K. K. K. K. K. K. K. I K. K. K. K. the reason why case that's right I mean use a 3 time you're racist like Jesus but the point is that's the type of stuff that always comes back and it gets you such a short term optimization it never works you have to work backwards from what is the thing that people are here to do what is the AHA moment that they want why can I not give that to them as fast as possible measuring that 8 days is unrealistic measuring getting ours is unrealistic measuring it in minutes is necessary but not sufficient but like how do you get that the second study about the hundreds of milliseconds that's how you win and if you can understand what the thing does optimizing all of this stuff over time I think it just it just creates case really back crappy companies that all they do is just spam and destroy the internet so this is really what I want to leave you with which is you probably X.",
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404      "recording_transcription": "can fit into 3 these athletes that and can give examples mean can case studies can 've actually got these cases this one can want visuals and everything already this can bring these and and tell this same in different phases need about these and and when real segment pond way communications on every channel social media coverage out there will be can get almost on daily basis basically reach out but got please one second because 'm always result post because sometimes one that both ways will because everything was believe that's remember does it well there's lot know ma' our content examples may save shall examples last week that that ought get high sometimes question using your own name generator content will be situation called should recommend somebody get caught was able use because it's old decide actually very because know it every day seem slightly surprised lot people 's out show that walk Eurovision giving them that was outline that introduce tragedy give practical case studies show customer getting cannot exercise wall talk about making decisions on technologies platform should be using and talk about once may get apps next 's say made out and your customer facing business put it on app nothing happens yep that's need back and say it plan in phone lining up decisions band because will usually be break sometimes Levin else always on and one and after lunch break table that was 130 also show want continue long chalice enough channel after lunch 'll take 1 more hour lot mean need more discussions mean 's mean but know will get that's easy outline 'm also flexible enough player this year sometimes know depending get off will go that and could and it always know file that condition in got quick it's because question area actually very want soul can tell will us when get lot and also thought good refresh illegal seems know about it because these business but people may actually even though wasn't but talk about that souls comment us it looks number that will demo these guys make your name know anything beating that will go 's because used use pay somebody know that and this already know little that can high achieving website visible tell people doing doing exactly were can book that's good place maybe subordinate mean make it starting point can give this outline and could come down when 're talking on getting these ideas these again can be held in many and put down and say know in these pas could also put in this this this but can also look Josh and 'll take away 're talking about truck can pay being and be really really useful but this was reason tell me 's talk about it looks searched that teaching job great seats and small them said got one that always idea in meantime but it would be absolutely well show got and did get in trouble because me knowing 've done book go on double shot pressing gonna be pulling any materials printed be honest 20 people can get hell take this well because printers 're usually ones use morning evening and 'm going bring bring old 5 years ago mean 'm trying reduce dependencies because this price out that's why 'm trying say know mean but need be referred well can send them out that can both thinking because when there's that there might be which might say 's cheat because there's effective on screen and say open page 5 'll ask that's it with few notes want trying make it bit more but more on interesting and hopefully get involved hold people get bored and this make companies happened that this classes big data be many set that because stuck it out outside Georgia that's why need that extra time mean because mind that 'm trying might take bit time us figure out needs be there want make that plan that even after people it online people go consuming graphics and because can get design this helping me out those lines and everything matches that's 'm thinking living end 'm saying that need our help that's one reason that V. actually because would wanted capture can be be production looking late on next time bring out got quiet us that somebody complained exam it 2 maybe week least know mean that moved this acid ready can him again and 'm can take look lot sick once 's got little nothing and First Lady understand buffet know want be in situation where still that money again and get it truck Wesley state 10:00 usually brief oral arguments mean because keep it that only number last in talking about one one doesn't either 'd be lunch in teen idol and on this happened tightening 66 say states but meet did write that there will be nothing it and know it's in in that one maybe 2 more juice now maybe Alice because law because once future US because fight that go on high committing until day maybe need 3 race one big break in middle and smaller ray that's bit much yep throughout day cynical stay this decision your lunch break time 1:00 and ending but well 1030 W. T. break and 'll be usually 1 that was actually first break actually quite small part it because it give any them about already that with suffering replies with goal after that last phrase 1 want them come back yet did tell them that say 145 because such it does look this will be 51 half hours before Yeahs roughly 1.1.5 hours cannot say because will come back with people that having and decide sounds good closer home than maybe 'll dropped out can keep it flexible that can wrestle with it and that's available gender and soon can little rough 'd maybe subway can get design in mountain want any supporting documents route that such big scripture that should be E. 13 pretty managers in mixing any idea much this wanna give up win in end which means in terms time goal everyone's time limit can effective win in end mean open ceiling light in there with lot B. during sessions and that's day well from that make know 'll 'll 'll figure out was it before that that's concern look need be more focus on topic but it'll even writing it maybe 'm thinking this second session more hands on this and 'll be good time more hands on session well because it part day and queue and can be part that session being more conversation people saw wanted reach it costumes file want 're carrying them up quite bit type",
405      "recording_transcription_org": "can fit into all 3 of these athletes is that right and then you can give examples I mean we can for my case studies we can we've actually got these cases are like this one we can we want visuals and everything already for this so we can bring these and and tell this is how the same thing in different phases you need to think about these and if and when I think for real segment the pond way communications on every channel to social media coverage out there will be something we can get almost on a daily basis is basically how to reach out but what I got please one second because I'm always result of post because sometimes the one thing that both ways will because everything was I believe that's the I don't remember what does it what what well there's a lot you know ma'am our content examples of may save you we shall examples of last week the thing that that ought to get high sometimes the question is not using your own name generator content will have to be a situation I do what he called then I should recommend somebody if you get caught I was able to use because it's old decide actually very very well because I think we all know it every day we seem slightly so what are you surprised a lot people do not so he's out of things like the show that walk Eurovision giving them a kind of thing so the so I think that was the outline that I had my introduce tragedy give some practical case studies show customer getting I cannot we do an exercise wall talk about making decisions on what technologies what platform you should be using and then talk about okay once you may get apps what next like let's say you made out and your customer facing business he put it on the app so nothing happens yep that's something you need to back and say it right here okay so plan in my phone lining up decisions by band because they will usually be a break sometimes Levin or else always on and see one and after the lunch break table you that was 130 also show you want to continue how how long do you think chalice enough for channel after lunch you'll just take 1 more hour lot mean I I I need to have more discussions like okay I mean I he's a mean but don't know you will get a I think that's easy to do outline I'm also a flexible enough player this year sometimes for you know depending you get off you will go for that and we could and it is always you know file that yes condition in the I just got a quick it's not because you see the question is the area is actually very what you want soul I can tell you you will for us when we get a lot and also something you thought okay the good refresh illegal he seems to know about it because these business but the people they may not actually even though he wasn't but things like we talk about I see something that souls comment to us what it looks like the the number that we will have a demo for these guys make your name you don't know anything the beating that will go he's because what they used to use the pay somebody you know that do the at and this of already know little things that what you can do you all do high achieving a website visible I tell people doing doing exactly the right so you were you can book I think that's a good place to maybe for a subordinate I mean just to make it a starting point I can give you this outline and I could come down like some of the things is when you're talking on getting these ideas these again can be held in so many have and put down things and say you know in these pas I could also put in this this is not this but then you can also look at Josh and then I'll take away the things you're talking about a truck you can pay something like being and be really really useful but this was a reason you must tell me something like okay let's talk about what it looks like you searched my things that you must have a teaching job great seats and a small all of them I think they said not mine so if you got a the one that always an idea in the meantime but it would be absolutely just like how well we do show I got and I did you get you in trouble because of me knowing what you've done to book we don't go on the double shot okay so I think the pressing thing then is just gonna be pulling any materials printed right yes I to be honest is 20 people we can just get the hell take the this as well because the printers they're usually the ones we use morning evening and stuff so I'm just going by if you bring I bring old 5 years ago I mean just I'm just trying to reduce the the dependencies because this is a price out that's why I'm just trying to say you know what I mean but you need to be referred to as well you can just send them out so that we can have both I just thinking because when there's a thing that there might be something which we might say here's a cheat because there's no effective I had on the screen and say if you open page 5 I'll ask then yes that's what it is with a few notes so you don't want to just just trying to make it a bit more but more on interesting and hopefully they get involved hold a people do get bored and this I think of how to make all right okay companies just like what happened is that if this is the classes big data had to be many set so that I because we we stuck it out to outside of Georgia so that's why we need that extra time I think I mean because I don't mind the that I I'm just trying to think like might take a bit of time for us to figure out what needs to be there then I just want to make sure that whatever plan that is so even after the people it online people go like consuming for graphics and stuff just because I can get a design this is not helping me out for those lines and everything matches that's how I'm thinking living at the end of the no I'm just saying that if you need our help that's one reason is that the V. actually because we would have wanted to capture so we can be be all the production so if you are looking for a late on next time to bring out so we just got quiet us that okay somebody complained to the exam as I see it of 2 for maybe a week at least you know so I mean I think then the the thing is that we just moved to as this acid is ready then we can see him again and I'm here or we can take a look a lot like a sick once he's got a little to nothing and the First Lady I understand the buffet is all you know want to be in a situation where you still that money then again and kind of get the so it is a truck to Wesley state 10:00 AM usually is a brief oral arguments I mean because they keep it is that the only number you don't last in talking about one one okay doesn't let you either something we'd be a lunch is he in okay teen idol and the what on this is what happened tightening the 66 okay say states but you meet you did write that no I think there will be nothing I just sort of thing to it and so you know it's like in the in that one maybe 2 more juice something are you now okay maybe Alice because by law because once you future over not by US so we don't think so because I fight that you go on high committing the right until the day we maybe need 3 race one big break in the middle and smaller ray or something that's a bit much yep right throughout the day cynical stay okay so this decision of your lunch break at whatever time the 1:00 and ending but well 1030 W. T. break and then we'll be all for usually the 1 that was actually the first break is actually quite small I part of it because it give any kind of them about the stuff is already here so is that okay with their suffering replies with a goal after that last phrase 1 so you want them to come back yet yes I did tell them that they say 145 because such it does look like this like what will be 51 half hours before Yeahs roughly 1.1.5 hours if you cannot then like they say because like how will you come back with the people that I think just having a little bit as we have and decide sounds good closer to home than maybe I'll just dropped out like we can just keep it flexible so that we can just wrestle with it and see if that's available gender and as soon as we can I have a little rough I'd like maybe a subway can get the design or something in the mountain the if we want to have any supporting documents for like the route so that such a big scripture I think that should be E. 13 pretty managers in the mixing of any idea how much this stuff so if you wanna give up you win in the end which means in terms of time goal of everyone's time limit can effective if you have to win in the end like for I mean just like an open the ceiling light in there with a lot of B. during the sessions and like that's all the day as well like from the things that make you know we'll we'll we'll figure out the what was it before that that's my concern is what do we look so we need to be more of a focus on the topic but it'll even writing it right maybe I'm thinking if this if I second session is more hands on this and I'll be a good time to have a more hands on session as well because then it part of the day and queue and they can be part of that session is being more of a conversation okay people I saw how he wanted to reach is it like costumes file all you want like if you're carrying them up quite a bit what type of",
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429      "recording_transcription": "this best our technology work top interviews from this week in tech coming out our exclusive interview with Microsoft CEO Satya Nadella take on data privacy and security and competition with Amazon in cloud red cyber threat new report reveals targeted and persistent intrusion attempt Chinese hackers on rise chief technology officer outlines sectors most under attack it's starting television keep teens talk about social networks pushing original programming and whether it will pay off first our top story and our exclusive sit down with Microsoft CEO Satya Nadella on Wednesday from Naval Academy in Annapolis this week Microsoft boasted it will obtain top federal security authorization early next year bolster company's position in Pentagon's winner take competition multi $0 cloud computing deal della sat down with our own Caroline hi extended interview Wednesday spoke about race Pentagon deal artificial intelligence and topic on everyone's mind data privacy and mark this off our existence always Barbara defenses customer and many other federal agencies in fact tomorrow hired on government costs on that want talk about everything be doing from department labor department agriculture female and that Veterans Affairs insulin because can be broad be investing in our competitive differentiation bringing cloud technology adds dollar age technology which more more relevant more more our taxpayer dollars being spent well that can get more efficiencies out IT infrastructure that needs power these institutions real well very know should say focused on making bring best technology and compete in any these contracts that get put out competitive bid does it in with focus on security which be in front mind when 're setting anything federally whether 7 government much there focus moment enough focus on security and interview company managed find mid term election potential attacks coming from likes Russia looking cyber security insuring that were cutting edge and it tackle bullet month that best work that 're doing when it comes even used really helped with cyber security posture mean always this which most important that company can and asset our cyber security operational security posture 6.5000000000000 security events be seen 15000000000 Loggins mom across our properties 2 devices scan maybe couple 0 now where inspect that be converted into operational security and operational security health our customers and good example that happened with strong dear basically saw that that attack group was attacking on folks in Senate did actually 2 groups Republican Party ad but phishing attacks and realize that know need get hold those domains and this where it about technology but it's even policy work did it in with working with legal lead structure be able transfer those domains advancing cold traffic another example in fact cyber criminals being very precise know arches in targeting small businesses and that's big issue because smart consumers and small businesses suffer malls when it comes cyber attacks and this out group called sniff attack sniff which was attacking AJ and enjoy small businesses in Johnson City Tennessee and were able detect this and know get rid it on slow side which really one big challenges high and 're doing work that well . O. T. because next big security attacks going come from your conventional email being compromised computer and point it's going come from 8 track system 9000000000 micro controllers ship in world and really it via silicon design well security was in secure operating system that help us in short that crew controllers going forward can be secure talking that about soft laugh issues and hardware issues and safety issues 've seen mean business week piece which up about this concerns supply chain strength this that fully secure when look Microsoft and can be going forward when such strength taxes saving keep making up on it comes operational security including 'll call it could supply chain software supply chain it's about every day being in gym and practicing and in our case in this particular incident know 're very confident that exposure but constantly 've got lot people dedicated lot technology dedicated lot return process dedicated ensuring our supply chooses that both silicon inside software ought be secure 's up with cyber security conversation that from C. legislative agenda where it should be regulations where it needs be when it comes privacy individual states that when it comes security company data it's great questions but already living in world where example secular movement around individual data that should privacy human rights and GDP already your up in sense legislates that and done lot work implementing gotten out products and 've taken up with rights from G. P. automated available globally and that this that United States will look out know California's looked it hope that there's more national privacy law because know want increased transaction costs that in fact want haul more small businesses and large companies Microsoft but really want level playing field ha having legislative framework that refuses transactional costs and even causes new well spin your studio adopt it on very important other one out sees cloud act United States 'm very pleased us because after go Supreme Court and fight our own government on this case multiple times but did it in bipartisan way work with legislature mention god bodies get calcloud act passed it's fantastic because that really creates new equilibrium missions can balance need know privacy on one end and national security on other end and this that 'm hoping lobby bilateral deals between United Kingdom and United States and other governments which great needed new and fascinating company because it on 40 years old on stage talking about it it's been it's education prices its look regulators years it's involved it's make that it's now still one most valuable companies and while cutting on $1000000000000 look other big technology got giants that according US and seen them having bowl and catch up in ways charges and humans and indeed reservations path finding possible experiences can give them checking that will deal with it in way samples know mean know can only speak our own experience and 're trying add it up tech industry say this items competition between us off when look back in our own history retreats in $1975 technology and its importance in our societies in our economies well sea change tech industry itself 5 percent our GDP and yet its influence on rest 95 percent far greater than it ever been in our history and therefore us including Microsoft starting with us and be comfortable knowing that will be held different standard and that's about Microsoft and know everything from 's our operational security posture our ethics going in sense even go and ask regulation where it'll create more room on and frame work us make progress especially liberal democracies that these places where that needs be level maturity read beyond due competition Microsoft CEO Satya Nadella speaking exclusively with Bloomberg's Caroline 'd still ahead in best technology fresh evidence in Bloomberg's China hacking scoop spy hardware discovered on servers and in major US telecom company those servers were removed month ago details and look check this out radio listed on Bloomberg apple were.com and in wasn't series accent this Bloomberg 'll be Tuesday new evidence revealed major US telecommunications company it was latest caught up in Chinese computer hack revealed Bloomberg businessweek company discover manipulated hardware from super micro Quitman in its network and removed it in August liver tech executive editor 'll talk time Giles explained supply chain remains under threat there that Chinese ways getting out dean components that end up in our data centers in U. S. data centers in this instance researchers working on behalf this telecom company founded this it's it's slightly different type manipulation but again hardware was manipulated hardware that originated in China that made its way into US know into U. S. supply chain been manipulated school its origin in China and and and it was found out and it's been removed it it does it indicates that know again parts and supply chain remain remain vulnerable and in this case researcher who come forward it names in this story talked about putting reputation on line 's talked about found happened when reach conclusions that came 've seen documents 've run other people who security wonder know who understand this works and know indicated us approach makes sense now was different in terms this hardware was compromised from previous report previously this this with Ethernet connection this use connect telecommunications network that's was different in this case but 's 's similar its supply chain region in line and it with hardware and and super micro once again company hard now in and know your seams instance Applebaum other researcher 's super micro victim and says that used reikers only one that used conduit 're pursuing those angles super micro continues tonight correct even this latest story saying security our customers and integrity our products core our business and our company values take care secure integrity our products throughout manufacturing process and supply chain security important topic discussion our industry knowledge any unauthorized components been informed any customer that such components been found apple Amazon continuing 9 original story US and U. K. government officials weighing in and saying there's reason doubt company sent companies and talked about involvement 've said that didn't discover these chips networks again 've weigh that against 've been told multitude sources 17 unnamed sources and now and eighteenth names although 's talking directly about Amazon apple be clear stuck denials and 're very 're very detailed and take them very seriously DHS come out were also said in our stories were it's it's possible that were that aren't involved that oversight there was those agencies that involved in in in investigation that talked about 've written about why telecom industry been targeted in could consequences that be well mean know it's it's telecommunications industry it's high know it's this where this these networks which can our communications our emails phone calls traveling it would seem me logical target someone who wanted understand communications know sensitive communications and know wanted eavesdrop on on . P. 're clear exactly intent was less clear than were before which was very much . P. and sensor in communications traveling networks less clear in this instance motivation would been but again it's know it's telecommunications that works pretty central know communications that were that traveling networks well know and your team continuing pour pour out story staying tuned any developments tax time Giles much should know that Bloomberg LP been super Michael customer but found evidence suggest that Bloomberg been affected hardware issues raised in article meantime new report from cyber security firm crowd strike reveals China pose largest cyber threat last 6 months company's watch report reveals Chinese adversaries me targeted and persistent intrusion attempts multiple sectors economy from biotech and descends pharma and transportation thought crowd strike chief technology officer Dimitri chin asked him about both pressing matters big headline from report really that China back when look last couple years actually saw precipitous decline in Chinese nation state sponsored intrusion activity against commercial sector in 2016 after Obama administration struck that agreement with president xi that both countries would stop conducting industrial espionage against each other and Chinese largely that agreement time but and last year point 5 start pick up activity and now 're seeing lot intrusions in sectors economy whether it's biotech pharmaceuticals exact professional services hospitality insurance and mining types sectors where Chinese breaking in and stealing intellectual property and now opposed before it's mostly ministry state security there civilian intelligence on that's doing most this activity versus people's Liberation Army military that was doing lot that activity before 2015 now extensive investigation that found that Chinese in plant in spite chips on mother board super micro servers and ended up 30 west companies and UK and US governments 's your reaction this report 've also got news story out today that in similar situation was found U. S. telecom well supply chain always been concern and 're actually seeing China and Russia and others leveraging software supply chain and tax where compromises software and leveraging updates that software actually introduce malicious code into environments 'm personally seen any hardware based attacks ones those stories talking about there's about hardware forces physical someone can actually physically look it and wrap verify whether there's implant on those systems there's lot more learn still story's unfolding now should mention that companies involved denied this U. K. and US government officials said there's reason doubt denials but that sad this was it within scope that Chinese capable it's possible this this seems very expensive and very difficult effort go through achieve that objective knowing that 're able suicide compromise software supply chains direct intrusions into companies 're seeing now it's out own possibilities but there's lot questions be answered reporting most concerned about talk about relationship between nation states government arms and criminal counterparts within those nation states and that 're continuing blurring these lines that's 're seeing increasingly criminal groups adopting nation state techniques nation state tools and trade craft in break ins organizations increasingly nation states coming up with lot innovation lot new exploits and and discover new vulnerabilities very very quickly that dissipates into criminal underground and those criminals and using those techniques break into companies biggest threat companies destructive attacks wanna cry taxes paid attacks seen from North Korea and Russia respectively in last year and those types attacks can take down organizations weeks time worked on number cases around those attacks last year and companies that suffered literally tens millions dollars hundreds millions dollars in damage because them 've got mid term election coming up in United States concerned about security in integrity those elections well in general election systems remain quite vulnerable candidates in particular still on focusing much should be on security and security campaigns very difficult problem given distributed nature these campaigns and often times that in tears working off personal devices however were yet seen any major interference efforts in this election cycle and mid terms but it's always concern science mean 's best defense this point well this because US government White House come out with cyber strategy in last couple weeks that outlines fact that deterrence needs be big focus going forward deterring nation states Russia China Iran and North Korea from conducting these activities in first place that can focus on defense alone actually need find pressure points against those nation states which us out be cyber can be economic can be diplomatic leverage and really full tool kit US power along with our allies pressure this nation states stop orchestrating these attacks against us also document increased targeting biotech industry know successful those attacks bin and consequences well this been big focus China last year point 5 're seeing lot intrusions into varies tech start ups and more stylish companies and this part Chinese made in China 2025 plan that 're working towards where want China being major combat on global stage in this sector well other sectors want domestic industry thrive in those sectors and 're doing that apart steal our intellectual property in short cuts that time understand mistakes make and where place bets know it's clear that China these ambitions that close it's clear that China threat 's well detailed mean response from U. S. companies add and and US and UK governments should be sent move supply chain know divert these these products that being made in China other countries well there's question that operate in China your manufacturing in China were developing in China absolutely worry about compromise our supply chain got worry about intrusions from Chinese competitors and sometimes even Chinese partners into networks that stealing our intellectual property and there needs be done more confront China and Chinese government on these issues trump administration started towards that with report that US trade administration released early this spring outlining and almost 300 pages that Chinese doing steal intellectual property and that's that needs be continued focus going forward cannot allow them take our intellectual property really richness this country that drives our innovation and steel out wholesale crowd chant chief technology officer and co founder Dmitriy up heritage there coming up in best technology shares soared Tuesday after query joined bulls say company on track reach profitability it time talk about it this Facebook going head head with Amazon and Google with its first ever smart speaker unveiled Monday called portal and it comes with display optimized video chat portal and it's larger alternative portal plus designed simplify video chatting contract and follow your movement move out camera rather than constantly adjusting phone tablet portal automatically identifies people in room and keep them in frame consumers bought into similar devices Amazon echo show but with Facebook's recent privacy scandal full portal be considered creepy convenience vice president pornographic Margot joined us answer that question it's great speaker great video player rise and it also incorporates selects off us and general home system but this vice your home privacy paramount in very important missing from ground up fact that build hardware and software really change way people communicate allowed us actually put privacy in every letter star Facebook vice president Rafah comarca next another bullish call 'm shares boost this week Catholic turn around technologies similar where can check us out technology and be follow our global breaking news network kicked out on Twitter this Bloomberg one welcome back best our technology and Emily Chang Tesla shares soared Tuesday after query joined bulls saying company on track reach profitability it time talk about test turn around Cory senior analyst meter joined us explain call most important really that that that mosque really focus on building model threes and getting deliveries out there anything that really gets that focus down that actually very positive James Murdoch's one who can actually rein him in and know prevent that tweets going out and focus really comes back deliveries which really fundamentals business 'll end up being very positive company well question can James Murdoch wait minute meeting product been on board and asks behavior been it been mean reigning in going come from on himself and and because larger than life profile extent which know personality defined test lab believe in this company were hoping that want and self will light that know SEC board member someone else gonna that me and and anything learn anything last few months that that want even even when Tesla been doing various reasons 's still been willing know be on person and mean that chairmanship important it's important milestone company but that alone going bring much change came your conclusion that this buy and in face know staunch opposition know from bears know mentioned know and and earlier analysts believe actually touch shares gonna go in opposite direction big call really 're taking angle looking sector really from disruptive perspective and from technology angle which 've covered past 20 years and lot people talk about electric autonomous really being disruptors look it really enablers and this going enable platform ecosystem about developers building applications directly on top car and 'll turn that car into application download press button and turn that vehicle into ride sharing vehicle download different app and it turned into delivery vehicle and ultimately reason why 're bullish on Tesla because actually look commercial technology that's already built into car lot those platform ecosystem technology already there and that's makes really positive on long term story Tesla now know that production numbers last several weeks looks good but know it's tax that can sustain that level production next few weeks optimistic believe that production numbers will look good believe Tesla will reach profitability but happen in that happen in your view 're absolutely our outperforms predicated on near term and being able generate cash 've done lot work around 0 emission vehicle credits and in back half this year can generate somewhere in neighborhood around $500000000 remember there's cost associated with this this going be poor cash flow which helps in addition free cash flow generation 'll get going third and into fourth quarter and also that unused commitments that can also tap which will be more than enough cover debt commitments coming up next 3 quarters now Max 're getting new information that test closing in on $145000000 plot its China factory obviously trying huge part Tesla's potential does this mean mean this big deal it Chinese Chinese market electric cars know massive it it's Hassler really made much progress there and tussle able know get into market and really sell cars know that know that that will go long way improving its bottom line and and generating huge amounts revenue with China know especially in Donald Trump era 're always regulatory hurdles know being able find location this factory know that's important know cut first step in terms building factory query senior analyst Maynard on Wednesday up next now putting TV in your pocket with slew new original productions will look strategy in moment and ones this report paints grim picture in battle against global warming can tack play role in saving planet this Snapple relation doesn't original series on its mobile app social network bets on new entertainment lineup maintain its grip on teen users and give it edge Instagram with Raymond James internet analyst Erin castle Wednesday and Bloomberg Texeira 5 cover snap on whether plate will be success this completely new slate programming while 've really encourage outside content partners make media snap and that and build brands it in separate channels on company's discover page now 're doing it themselves in house and that really want demonstrate that can show that's very mobile first that goes directly that younger audience that snap known reaching question whether it will really attract users in growth down line shows shot vertically one them called and last summer successor MTV's Laguna beach Erin that this sneak secret snaps future that's be big question man far steps limited traction with fluids within content offerings look discover site most time spent on snap still within messaging part that after waiting back used be case problem that messaging circuit mind well it's amante there discover side with more content with more original programming that's big question and and and and and that that's only one going out this year face spoke with watch tad Instagram announced Instagram TV recently well policy Netflix Amazon prime get lot fragmentation on content side but snap well and get more out dollars 're gonna show more traction in these type offerings well and executives come out saying that shows been raving success in that multi millions viewers know many people actually watching show matters many people watching individual shows but whether that number grows snap last quarter announced line in daily users first time and that because know it's shock wave through markets thinking that maybe this company going get size big enough compete with Facebook singles in world advertising dollars really prove that bad side that media aspects ads can be big money maker down line and there isn't enough public information on those shows doing really instill confidence in in Wall Street too excited about shows stock down today hovering below $7 before first time original content aside optimistic that snap can continue grow mean 're losing high profile executives in know redesign been blast Evan Spiegel said get back your roots which roots which about communicating quickly but know it enough get back growth it's good question seen it yet 're still cautious on snap overall while getting back roots communication between occasion fast messaging fast sharing photos important them that doesn't really generate revenues new speed does Facebook that's promising solve can't it both ways can't be great messaging gap same time make lot money on advertising was great user experience know both still would more product innovation originals can help on that but far there staff about 1 about 2025 percent users goods discover side apps on daily basis that's pretty low percentage that using these content services from snap Evan Spiegel recently released very long memo employees where talked about company lost guess it get back its roots know folks making fun use word know which code name this redesign didn't back away from cheetah entirely but said it wasn't working far but that everyone consolation prize would be getting cheetah themed sweatshirt know make this memo investors about this memo well spent lot time with Adam Spiegel earlier this year in metal act out lot same but was trying get across me which that company sees itself differently than other social media plan because even themselves really social media companies Mormon messaging company within media components and and that want allow people experience world differently while and trying communicate more directly its employees and address issues with clarity around company's direction know out 15 page memo always best way get that across and well people thought that this good guy into house Spiegel other people but know it was it was little rambling little concerning and that 's still 's still in that place where prove that know visionary leader next era snap otherwise know annals yesterday said may raise money on there may be 8 on line and this next quarter going be crucial company's future know 'm many these tax io's that know love speaking press but know now mark Zuckerberg mature in this memo people talk about feels awkward even walking around office and talking employees doesn't love speaking press but know this point this many years into being public company grow up 's still person be know leading this company that's good question mean it's less important really speaking press more about company execution and far executed mean look shelter letter talked lot about competitive modes but same time becoming compared most also losing lot users Instagram it appears and talk about compared most being speed delivery although really heard users compliance your face but that 're getting pictures tax center fast enough it's little confusing natural letter investors working peers that's why stock and really rally off that letter Raymond James Aaron Kessler along with protects our fire there can and it gives world one decade get handle on global warning 'll look tax could be part solution next this Lamar when lady's report from United Nations paints grim picture world teetering on edge failure when it comes containing global warming and solution comes cost intergovernmental panel on climate change says world invest 2.$4000000000000 into clean energy every year 2035 and cut use coal fired power almost nothing 2050 avoid catastrophic damage from climate change report notes atmosphere already 1°C warmer than it was start industrial revolution and predicts that will rise 3 degrees 20 100 that double pace targeted in 2015 Paris climate accord will technology be able save planet on Monday spoke Bloomberg news same ability editor Eric Rosten and Emily Mazda karate who expert in climate adaptation and resilience and founder and CEO 427 provider market intelligence on climate change this report that was commissioned U. and 2 years ago after Paris accords and it doesn't deliver great news it presents very strict timeline reduce global emissions before 2030 suggest that on on 55 60 percent cuts in global emissions below last year levels 2030 and zeroing out emissions 2050 that that huge challenge and represents ambition yet seen even from nations that were supportive Paris agreement 3 years ago and only check on these numbers well technology there reduce emissions but been deploying it scale been investing enough and report points out well that keep emissions under level that would be limits impacts climate change need capture lot carbon emissions and this technology that's ready scale talk us about get there mean 's it gonna take that technology be ready well technology be useful someone needs turn it on and nobody turned on technology this point skill that needed political will in U. once but even in other countries it's moving fast enough and investments follow suit technology there carbon free energy reducing emissions across number activities and also preparing in adapting climate change 're using it turn it on mean hopeful people can make this happen and companies that can make this happen UV sensors government governance may be there yet there's lot going on in private sector and there's husband amount mobilization from investors and from corporations invest that needs come with regular triple can be old one because companies that pushing this type effort still minority compared broader set corporations out there likelihood that big tax big business could this on own already really hopeful stories from around world enormous investment in technologies that matured in ways faster than than even close watchers space wouldn't believe correctly and solar and wind power in electrification automobiles 'd echo Emily's point about carbon capture technologies these very interesting projects that getting lot attention and money up but one that that's worth considering also saw it today awarding 2018 Nobel Prize in economics William nor house Yale University and spent most last 3 4 decades trying understand relationship between cost pollution appropriate price ton emissions with consequent reduction in emissions and many economists will tell that people respond prices people respond incentives and having price on carbon economists will tell in many experiments around world may be needed get these technologies up and running in time meet challenges outlined today in report and only 1 consequences this doesn't happen know well difference between know 1°C and 3°C 're already seeing consequences having done our homework before and 're seeing it today 're seeing it with extreme weather events in your hurricane barreling down Florida Japan 9 typhoons in best season which insane when it impacts ready 're 're only going get worse and highest degree difference between 1 and half since degree 2040 2 degrees make tremendous difference this average across entire earth and imagine amount changes that need happen move needle half degree global in and that means more extreme weather events that means water scarcity that means more wild fires that means silver rising losing our coastlines that means tremendous amount impact that 're currently adequately prepared meantime 've got big tech companies Google Microsoft Amazon teaming up develop 'd identify intending fanon talk was about this works that was it's very interesting project that was announced today those those particular tech leaders and goal that project look natural and social metrics that when when certain alarm bells go off and among each them it may be overall early warning signal could be interpreted overall early warning signal famine one that's interesting and and gets lost in in in our luminous talk every day about about big data in that climate and weather 're in original big data topics going back 19 sixties pattern recognition in in machine learning and in ways cut teeth very early on these topics and 5 decades later now 're seeing this really interesting marriage highly sophisticated highly advanced cutting edges being applied less cutting edge clue Gee know government supported models that involved last few weeks decades and and combination these this old approach modeling with these new . . tools producing really interesting start ups aid exactly time 're going need most Palmer said rusted and 27 CEO and lean muscle karate should note Michael Bloomberg founder and majority owner Bloomberg news and its parent company Bloomberg L. P. easy and special envoy climate action but one way phase out fossil fuels quickly push electric cars on that note Audi unveiled its Tesla challenger and E. tron and one most interesting bits glitzy lunch was its approach plugging car in Audi teamed up with tech giant Amazon which will arrange installing home Chargers each one buyers Bullard analyst Bloomberg any apps and contributor Bloomberg opinion waiting Amazon going it's called it's home services division installation these Chargers home services one that actually confess 've ever used before because it's one these infrequent big purchases might only once twice in our homes and lifetime refrigerator washing machine home charger this doing removing quite bit friction out doing that that often it's intriguing way simplify process might know charges want in fact 'm that would would preferred set Chargers that's there any given each front purchaser there's simplifies process getting somebody in home having them take care paperwork and having them connection significance this Amazon assuming this only teeny tiny little sliver that business and tests lot know which this huge part business it's it's good question cast part first protest about 'm going give little talk about this last week big conference in London it was ascension existential this chicken and egg problem can build great cars without network can't really charge mop and without Chargers 're going sell lot cars task but it isn't built network first in Amazon this far far different from that in sense that doubt this will be materially significant even in any given decade in future but it's intriguing me that it's getting Amazon into home in yet another way it's going come much bigger business Amazon went with little thought experiment on it myself which was know last week couple weeks ago rather Amazon released slew new Mexican acted gadgets and one them was microwave which struck me about that that it simplifies process that full menu options opaque attempts replace it would IMAX there's slice pizza and heated up me and thinking was electric charging another very similar that it's got lot weight and it in sense got time involved decisions might need make optimize probably want and thinking was 's say that Amazon rolls out its own charge in future 's say drive in plug in and say Amazon 'm going out 'm going out tonight charge me up and 's imagine further that it say want charging part your prime account that valid analyst Bloomberg any asked and contributor Bloomberg opinion and that does it this edition best our technology will bring latest in tech throughout week in everyday 5:00 PM in York 2:00 PM in San Francisco and lower technology live streaming on Twitter check us out technology and be follow our global breaking news network talk this Hyundai Tucson it quit 3 new adventure thank first our top story another day another new escalation in ongoing US China trade dispute this time White House threatening impose new 10 percent tariffs on $200000000000 worth Chinese made products list this time includes tech goods televisions electric car batteries one big ticket item missing this round smart phones made US companies apple that assembled plants in China while your future iPhone may be spared now consumer tech might soon price hikes spoke with vertex marker men on Wednesday who covers both apple and consumer technology first notice now it doesn't appear that apple products iPhone iPad in apple watch affected why there's lot different reasons why but one biggest point emphasis that apple California company basically added states Donald Trump and know Tim cook CEO apple talked about this many times could be said that doesn't that these terrorists solution problem US administration saying out there and there's other facets it products designed in U. S. another manufacturing China that apple sells world it's unclear hit it would get on these terrorists but there's lot stake about components that go into sons and pass in look components that on list terrorist it's big amount components in eye . phones that increasingly made stainless steel different types models 're seeing steals in aluminum on terrace it's unclear percentage phones actually impacted and there's actually going need be price on iPhone because margins up already gets could be switched other components necessary would this phones sold in US and China different but look tussle total stock down today because cobalt battery technology actually on today's list $200000000000 new and that core batteries that power electric vehicles chart in Jeannie library that TV's from China may be getting lot more expensive 's gonna happen that's that's that's really interesting problem why it's it's big big deal because there's very few very high end China based TV manufacturers that sell TV's in United States many TV United States made Sony and Sam sung does our companies necessarily affected terrorists actual impact than any on consumers should be worried about should be worried local batteries more electric cars happening but outside U. S. really focus on retaliatory terrace trying going about this and that's where apple really can be affected 20 percent about 20 percent apple's sales across 2017 were in China China slaps growing terrace on US selling iPhones in China that could be home apple in region there be decisions being made apple can't get away with being company affected U. S. terrorist in being affected China's 're still going be effective from 1 side other be seen which side 're affected it it's either know saw now working towards opening plant in China been going on awhile but it goes against trump's direction one other solutions these companies get more solutions home grown manufacturing different components building coal balls in United States look apple building device United States bringing up metals and other technologies in United States but that also far from consumers because know products built and developed in United States anything with made in USA stop on it traditionally more expensive because labor cost building products in US still far higher than in China mark Fuhrman lower tax always keeping us posted meantime president trump embarked on European tour with sequence high profile events starting with NATO summit in Brussels 's get Blue Ridge Caroline hide in London with more Caroline it was quite dramatic and remarkable day walk us through day's events mean extraordinary and in ways tech was involved because lot these arguments seem come out via Twitter tribes phase it favorite mode communication and took Twitter ahead NATO arriving in Brussels really heading out defense spending 18 saying it wasn't high enough was complaining about trade deficit that need this called tariffs and barriers entry complain about it such Twitter tirade spots other Keene Donald that and 're eighteenth president 's president European Council saying that's Donald tusk KK back saying U. S. doesn't house would better ally than E. didn't 60 state U. S. Mike Pompeii saying wonderful institution tables which mean it's extraordinary that even on old psychiatry state because John candy saying 's never seen anything strange counterproductive water's been going on intensive president trump's reaction apps NATO road but really hitting out aggressively 'm gonna MacColl's Germany saying that Germany rely on Russian energy on Russian gas mean unprecedented NATO meeting was there any agreement between these fraying allies also question and even always seen Donald Trump Corning from great spending anyone's other allies other nations double that commitment defense spending that's real bright but that does seem be that walking towards and it's actually involving Tackett cyber security did get key announcement press conference coming from engine stolen but 's nature general section saying agreed our investment in called called hybrid will fast 7 showing that protected against cyber attacks red man interweaves with with armies on ground couldn't use live operations center be announced it's going be touring men missed this capability that was agreement that but notably awful lot tension Caroline hi there inland well can't regulators may find Facebook $664000 Cambridge analytica scandal social networks failed prevent user data from falling into hands political consulting firm that worked on trump campaign regulators say that data belonging many 87000000 Facebook users and friends may been 've discussed misty can shown me calls company new species different from any other tech company on globe but investors buying it and later this hour president trump Supreme Court nominee making rounds on Capitol Hill tech cases might come before him will discuss this this needs but know this this ticket members first and only global news network Twitter interjected reporting that can trust curated comments that provide insight tick tock 5 live 247 news streaming live on Twitter San Francisco lot transactions top stories this morning in DC want coming down Saudi Arabia welcome first word Asian it was cogs biggest coming out party in 2 years shall be made its public debut this week jamming market value now in region $50000000000 making it world's third biggest publicly traded smartphone maker bluebirds chief north Asia correspondent Stephen angle more from Hong Kong show me shares fell out gates on its IPO in Hong Kong stock exchange lot uncertainty about this company and its lofty valuations that put it more than apple more than Facebook more than tens and also true nature its business it more low margin handset manufacturer it chairman lei jun says broader internet services company and also there's backdrop growing trade war between China and United States that dampened sentiment in Hong Kong company says it's tough one pigeon hole and 're actually new species internet company that can called US and hall well same time there's anything us in market well on one hand shall me now $50000000000 company third largest in world 4 handset manufacturers but it's far cry earlier estimate last year valuation upwards $100000000000 size ideal also really scaled back down about 3.1000000000 US dollars from initial estimate came about $10000000000 one dampening prospect was elimination corresponding listing in China in Shanghai CD that's China depository receipt even regulator in China shared similar concerns investors in Hong Kong about its lofty valuations and true nature its business Stephen angle Bloomberg news Hong Kong and debut from every angle Monday with harbored managing partner and state capital Beijing based venture fund along with Bloomberg tax marker meant and Shelly venture lot prove now 're very localized China and more developing markets India doing in both India and China but that's one portion world there's obviously in trade war tension now and ability Chinese harbor makers get devices in US and Europe becoming increasingly difficult problem and also joining us now from Hong from New York our tech reporter was normally based in Hong Kong Shelley much disappointment this it's big disappointment because much expectations were fills up Shenmue would come market and know were it was big accomplishment 've been able 8 years in existence and becoming know one world's biggest smart phone companies didn't rest that instead saying this who and this make said know 're actually this $0 company that know internet services business and that's where this mismatch lies man one point out later in founder show me investor in your phone",
430      "recording_transcription_org": "this is the best of our technology work for you all are top interviews from this week in tech coming out of our exclusive interview with Microsoft CEO Satya Nadella his take on data privacy and security and competition with Amazon in the cloud the red cyber threat a new report reveals the targeted and persistent intrusion attempt by Chinese hackers are on the rise thanks chief technology officer outlines the sectors most under attack it's not starting to television to keep teens we talk about the social networks pushing to original programming and whether it will pay off first our top story and our exclusive sit down with Microsoft CEO Satya Nadella on Wednesday from the Naval Academy in Annapolis this week Microsoft boasted it will obtain top federal security authorization early next year bolster the company's position in the Pentagon's winner take all competition for a multi $0 cloud computing deal della sat down with our own Caroline hi for an extended interview Wednesday they spoke about the race for the Pentagon deal artificial intelligence and of course I topic on everyone's mind data privacy and mark this off all all all of our existence you always had to Barbara defenses a customer and many other federal agencies are in fact tomorrow we have hired on government costs on that we we want to talk about everything to be doing from the department of labor to the department of agriculture to female and that the Veterans Affairs insulin so because I can be a broad be investing in what is our competitive differentiation of bringing cloud technology adds dollar age technology which I think is a more more relevant to more more of our taxpayer dollars being spent well so that we can get more efficiencies out of the IT infrastructure that needs to power all of these institutions are real well we are very you know what should I say focused on making sure we bring the best technology and compete in any of these contracts that get put out for competitive bid does it have a in with a focus on security which must be in front of mind when you're setting anything federally whether 7 the government how much do you think there is a focus at the moment enough of the focus on security and then what interview as a company have managed to find mid term election potential attacks coming from the likes of Russia how are you looking at cyber security how you insuring that you were at the cutting edge and is it tackle bullet my month I think that some of the best work that you're doing when it comes to even they all I used to have really helped with the cyber security posture I mean if I always see this which is the most important thing that we as a company can do and have as an asset is our cyber security or operational security posture we all have something like a 6.5000000000000 security events to be seen for over 15000000000 Loggins a mom across all of our properties 2 devices we scan are maybe a couple of 0 now where we inspect so all that has to be converted into operational security and operational security health for our customers and a good example of that is what happened with strong dear basically we saw that that attack a group was attacking on some of the some of the folks in the Senate did some of the actually 2 groups of the Republican Party ad but phishing attacks and so we realize that you know we need to get a hold of those domains and this is where it is not just about the technology but it's even the policy work we did it in with the working with the the legal lead for structure to be able to transfer those domains advancing cold the traffic another example is in fact not a cyber criminals are being very precise you know what arches in targeting small businesses and that's a big issue because smart consumers and small businesses suffer the malls when it comes to cyber attacks and this is out of a group called or sniff are an attack order sniff which was attacking AJ and I enjoy a small businesses in Johnson City Tennessee and we were able to detect this and you know get rid of it on the slow side which is really one of the big challenges of a high and so we're doing work that as well as an I. O. T. because the next big security attacks are going to come from your conventional email being compromised or a computer and point it's going to come from the 8 track system SO 9000000000 micro controllers a ship in the world and we are really not have it I just via a silicon design as well as a security so I was in a secure operating system that help us in short that all my crew controllers going forward can be secure talking that about soft laugh issues and hardware issues and safety issues we've of course seen I mean by business week piece which is up to about this concerns of supply chain strength is this something that you think is fully secure when you look at Microsoft and can be going forward when we have such strength of the taxes you saving keep making up on it comes to operational security including I'll call it so they could supply chain all software supply chain it's all about every day being in the gym and practicing and in our case in this particular incident do you know we're very confident that we have no exposure but we are constantly we've got a lot of people dedicated to a lot of technology dedicated to a lot of return process dedicated to ensuring our supply chooses that both silicon inside software ought to be secure what's up with cyber security conversation is that from the C. do you think the legislative agenda is where it should be regulations where it needs to be when it comes to privacy of individual states that when it comes to the security of company data it's a great sort of questions but we already living in a world where for example I think the secular movement around individual data is that you should think of privacy as a human rights and GDP are already your up in some sense legislates that and so we have you done a lot of work implementing gotten out products and you've taken up with some of the rights from G. P. automated available globally and so I think that this is something that the United States will look out I know California's looked at it we hope that there's more of a national privacy law because I think you know we don't want increased transaction costs that in fact I want to haul more of the small businesses and large companies like Microsoft but if you really want a level playing field ha I think having a legislative framework that refuses transactional costs and even causes new well spin your studio to adopt it on as a very important thing the other one out sees cloud act I think the United States I'm very pleased to see us because after all we have to go to the Supreme Court and fight our own government on this case multiple times but we did it in a bipartisan way work with the legislature mention of god bodies to get calcloud act passed it's fantastic because I think that really creates a new equilibrium of how missions can balance the need for you know privacy on one end and national security on the other end and this is something that I'm hoping they lobby bilateral deals between the United Kingdom and the United States and other governments which I think is great needed new hello and a fascinating company because it is on the 40 years old as you on stage talking about it it's been for you it's education prices its look to regulators over the years it's involved it's make sure that it's now still one of the most valuable companies and while cutting on $1000000000000 how do you look at some of the other big technology got giants that according to US and seen them having to a bowl and catch up in some ways to some of the the charges and all humans and indeed reservations the path finding a possible experiences can give to them checking that will deal with it in the right way samples you know I mean you know I can only speak for our own experience and what we're trying to do is add I think we as it all up tech industry I don't say this to as sort of some kind of items of competition between us I think all off when I look back in our own history retreats in $1975 technology and its importance in our societies in our economies as well to a sea change the tech industry itself is just 5 percent of our GDP and yet I think its influence on the rest of the 95 percent is far greater than it ever has been in our history and so therefore I think all of us including Microsoft starting with us and is to be comfortable knowing that we will be held to a different standard and that's what I think about as Microsoft and how we know everything from a what's our operational security posture to what is our ethics how are we going to in some sense even go and ask for regulation where I think it'll create more of room all on and the frame work for us to make progress especially liberal democracies so I think that these are all of the places where that needs to be a level of maturity read beyond I think due to the competition Microsoft CEO Satya Nadella speaking exclusively with Bloomberg's Caroline I'd still ahead in the best technology fresh evidence in Bloomberg's China hacking scoop spy hardware discovered on the servers and in major US telecom company those servers were removed just a month ago details and if you look over his check this out of the radio listed on the Bloomberg apple were.com and in the wasn't series accent this is Bloomberg we'll be right on Tuesday new evidence revealed a major US telecommunications company it was the latest caught up in the Chinese computer hack revealed by Bloomberg businessweek the company discover the manipulated hardware from super micro Quitman in its network and removed it in August liver tech executive editor for what we'll talk time Giles explained the supply chain remains under threat there that the Chinese do have ways of getting out dean components that end up in our data centers in U. S. data centers in this instance researchers working on behalf of this telecom company founded this it's it's a slightly different type of manipulation but again a hardware was manipulated hardware that originated in China that made its way into US you know into the U. S. supply chain had been manipulated had at school at its origin in China and and and it was found out and it's been removed so what it what it does is it indicates that you know again parts and supply chain do remain remain vulnerable and in this case you have a researcher who has come forward it right names right in this story talked about putting right his reputation on the line here he's talked about what they found what happened when they we all kind of how they reach the conclusions that they came to we've seen the documents we've run the by other people who do security I wonder you know who understand how this works and they have you know indicated to us to his approach makes sense now what was different in terms of how this hardware was compromised from the previous report previously this is this has to do with the Ethernet connection so this is what we use to connect to telecommunications network that's was different in this case but what's what's similar is its supply chain region in line and it has to do with hardware and and super micro once again is the company at the hard now in his and you know your seams instance Applebaum other researcher he's a super micro is a victim here and he says that used to reikers not the only one that is used as a conduit so we're definitely pursuing all of those angles super micro continues tonight correct even this latest story saying the security of our customers and the integrity of our products are core to our business and our company values we take care to secure the integrity of our products throughout the manufacturing process and supply chain security is an important topic of discussion for our industry we have no knowledge of any unauthorized components have not been informed by any customer that such components have been found you have apple Amazon continuing to 9 the original story you have US and U. K. government officials weighing in and saying there's no reason to doubt the company at the sent right companies and talked about their involvement right they've said that we didn't discover these chips are networks so again we've had to weigh that against what we've been told by a multitude of sources 17 unnamed sources and now right and eighteenth names right although he's not talking directly about Amazon apple to be clear they have stuck to their denials and they're very they're very detailed and we take them very seriously DHS is come out were also as we said in our stories were not it's it's possible that they were that they aren't involved that they don't have oversight over there was those agencies that are involved in in in the investigation that we talked about the we've written about why my the telecom industry have been targeted in what could the consequences of that be well I mean you know it's the it's a telecommunications industry it's the high you know it's a this is where this is these are the networks over which can all of our communications are our emails or phone calls are traveling so it would seem to me a logical target of someone who wanted to understand communications you know sensitive communications and or or you know wanted to eavesdrop on on I. P. we're not clear exactly what the intent was here a little bit less clear than we were before which was very much I. P. and whatever sensor in communications or traveling over the networks less clear he in this instance what the motivation would have been but again it's you know it's the telecommunications that works so pretty central to you know all the communications that were at that are traveling over networks all right well I know you and your team are continuing to pour pour out the story we are staying tuned for any developments over tax time Giles thanks so much we should know that Bloomberg LP has been a super Michael customer but has found no evidence to suggest that Bloomberg has been affected by the hardware issues raised in the article meantime a new report from cyber security firm crowd strike reveals China pose the largest cyber threat over the last 6 months the company's over watch report reveals Chinese adversaries of me targeted and persistent intrusion attempts at multiple sectors of the economy from biotech and descends to pharma and transportation I thought the crowd strike chief technology officer Dimitri apparently chin asked him about both pressing matters the big headline from the report really is that China is back when you look at the last couple of years we actually saw a precipitous decline in Chinese nation state sponsored intrusion activity against the commercial sector in 2016 right after the Obama administration struck that agreement with president xi that both countries would stop conducting industrial espionage against each other and the the Chinese largely by a by that agreement for for the time but then and last year point 5 we start to see pick up an activity and now we're just seeing a lot of intrusions in all sectors of the economy whether it's biotech pharmaceuticals exact professional services hospitality insurance and mining all types of sectors where the Chinese are breaking in and stealing intellectual property and now as opposed to before it's mostly the ministry of state security there civilian intelligence on that's doing most of this activity versus the people's Liberation Army the military that was doing a lot of that activity before 2015 now extensive investigation that found that the Chinese in plant in spite chips on the mother board as a super micro servers and then ended up at some 30 west companies and the UK and US governments what's your reaction to this report we've also got a news story out today that in a similar situation was found at a U. S. telecom well supply chain has always been a concern and we're actually seeing China and Russia and others leveraging the software supply chain and their tax where the compromises software and leveraging the updates for that software to actually introduce malicious code into environments we I'm personally seen any hardware based attacks like the ones of the those stories are talking about there's something about hardware forces physical someone can actually physically look at it and wrap verify whether there's an implant on those systems are not so I think there's a lot more to learn still as the story's unfolding now I I should mention that the companies involved have denied this U. K. and US government officials have said there's no reason to doubt the denials but that sad is this was it within the scope of of something that the Chinese are capable of it's certainly possible this this is seems like a very expensive and very difficult effort to go through to to achieve that objective knowing of course that they're able to do the suicide of a compromise a software supply chains or just direct intrusions into companies like what we're seeing now so it's not out of their own possibilities but I think there's a lot of questions to be answered here reporting what are you most concerned about you talk about the relationship between nation states government arms and their criminal counterparts within those nation states and that you're continuing to see a blurring of these lines that's right we're seeing increasingly criminal groups adopting nation state techniques nation state tools and trade craft in order to break ins organizations so increasingly as nation states are coming up with a lot of the innovation a lot of the new exploits and and discover new vulnerabilities very very quickly that dissipates into the criminal underground and those criminals and are using those techniques to break into companies the biggest threat to companies of course is destructive attacks like the wanna cry taxes not paid to attacks we had seen from North Korea and Russia respectively in last year and those types of attacks can take down organizations for weeks at a time we worked on a number of cases around those attacks last year and companies that suffered literally tens of millions of dollars some some hundreds of millions of dollars in damage because of them we've got a mid term election coming up here in the United States how concerned are you about the security in the integrity of those elections well in general election systems remain quite vulnerable candidates in particular are still on not focusing as much as they should be on their security and the security of their campaigns is a very difficult problem given the distributed nature of these campaigns and often times that they have all in tears working off personal devices however were not yet seen any major interference efforts in this election cycle and the mid terms but it's always a concern science I mean what's the best defense at this point well this is because the US government the White House has come out with their cyber strategy in last couple weeks that outlines the fact that deterrence needs to be a big focus going forward deterring nation states like Russia China Iran and North Korea from conducting these activities in the first place that we can just focus on defense alone we actually need to find pressure points against those nation states which don't us all out to be cyber they can be economic they can be diplomatic leverage and really the full tool kit of the US power along with our allies to pressure this nation states to stop orchestrating these attacks against us you also document increased targeting of the biotech industry you know how successful have those attacks bin and then what are the consequences well this is been a big focus for China last year point 5 we're seeing a lot of intrusions into varies by a tech start ups and more stylish companies and this is all part of the Chinese made in China 2025 plan that they're working towards where they want to see China being a major combat or on the global stage in this sector as well as other sectors they want to see domestic industry for thrive in those sectors and they're doing that apart by steal our intellectual property in order to short cuts that time for the understand what what mistakes not to make and where to place their bets you know it's clear that China has these ambitions that close it's clear that China is a threat as he's so well detailed mean do you think the response from at U. S. companies add and and US and UK governments should be sent to move the supply chain or to you know sort of divert some of these these products that are being made in China to other countries well there's no question that if you operate in China if your manufacturing things in China if you were a developing in China you absolutely have to worry about the compromise our supply chain got to worry about intrusions from Chinese competitors and sometimes even Chinese partners into networks that are stealing our intellectual property and there needs to be done more to confront China and the Chinese government on these issues the trump administration I started towards that with the report that the US trade administration released early this spring outlining and almost 300 pages all the things that the Chinese are doing to steal intellectual property and that's something that needs to be a continued focus going forward we cannot allow them to take our intellectual property really the the richness of this country that drives our innovation and steel out wholesale crowd chant chief technology officer and co founder Dmitriy up heritage there coming up in the best technology shares soared Tuesday after the query joined the bulls say the company is on track to reach profitability is it time to talk about it this is Facebook is going head to head with Amazon and Google with its first ever smart speaker unveiled Monday is called portal and it comes with a display optimized for video chat portal and it's larger alternative portal plus are designed to simplify video chatting a contract and follow your movement so if you move out of the camera rather than constantly adjusting a phone or tablet portal automatically identifies people in the room and keep them in the frame consumers have bought into similar devices like the Amazon echo show but with Facebook's recent privacy scandal full portal be considered creepy or convenience vice president of pornographic Margot joined us to answer that question so it's a great speaker is a great video player the rise and it also incorporates selects off for us and general home system but this is how the vice for your home so privacy is paramount in very important missing from the ground up the the fact that we have to build the hardware and the software to really change the way people communicate allowed us actually to put privacy in every letter of the star Facebook vice president Rafah comarca their next another bullish call I'm like a shares a boost this week Catholic turn around just to have technologies like similar to where you can check us out technology and be sure to follow our global breaking news network kicked out on Twitter this is Bloomberg one welcome back to the best of our technology and Emily Chang Tesla shares soared Tuesday after the query joined the bulls saying the company is on track to reach profitability so is it time to talk about a test the turn around Cory senior analyst meter I joined us to explain his call I think the most important thing really is is that that the that you are mosque is really just focus on building model threes and getting deliveries out there anything that really just gets that focus down to that I think is actually a very positive things so if James Murdoch's the one who can actually rein him in and you know prevent some of that the tweets going out and the focus really comes back to the deliveries which is really the fundamentals of the business I think I'll end up being a very positive for the company well the question is can James Murdoch wait a minute meeting product has been on the board and asks behavior has been as it has been no I mean I think the the reigning in is going to have to come from you on himself and and just because of the the sort of his larger than life profile the extent to which kind of he is you know for personality has defined test lab I think if you believe in this company what you were hoping for is that you want and self will see the light not that you know not to the SEC or board member or someone else is gonna do that for me and and I think if we if we see anything we learn anything over the last few months is that is that you want even even when Tesla has been doing for various reasons he's still been willing to you know kind of be is on person and so so I mean I think that the the chairmanship is important it's an important milestone for the company but I I don't think that alone is going to bring much change so how you came to your conclusion that this is a buy and in the face of you know some staunch opposition you know from the bears I just you know mentioned you know and and earlier analysts to believe actually touch the shares are gonna go in the opposite direction so my big call here really is we're taking an angle of looking at the sector really from a disruptive perspective and from a technology angle which I've covered for the past 20 years and a lot of people talk about electric an autonomous is really kind of being the disruptors we look at it as really kind of the enablers and I think this is going to enable a platform ecosystem so think about developers building applications directly on top of the car and I'll turn that car into an application so you download something you press a button and then you turn that vehicle into a ride sharing vehicle or you download a different app and it turned into a delivery vehicle and ultimately the reason why we're so bullish on Tesla is because if you actually look at the commercial technology that's already built into the car a lot of those platform ecosystem technology is already there and that's what makes is really positive on the long term story for for Tesla now we know that production numbers over the last several weeks have looks good but what we don't know if it's a tax that can sustain that level of production over the next few weeks you are optimistic you believe that production numbers will look good you believe Tesla will reach profitability but what has to happen in order for that to happen in your view so you're absolutely right our outperforms definitely predicated on the near term and then being able to generate cash we've done a lot of work around 0 emission vehicle credits and we think in the back half of this year they can generate somewhere in the neighborhood of around $500000000 remember there's no cost associated with this so this is going to be poor cash flow which I think helps in addition to the free cash flow generation I think they'll get going to the third and into the fourth quarter and I also think that they have some unused at commitments that they can also tap which will be more than enough to cover the debt commitments are coming up over the next 3 quarters now Max we're getting some new information that test is closing in on $145000000 plot for its China factory obviously trying to huge part of of Tesla's potential what does this mean I mean this is a big deal it Chinese the Chinese market for electric cars is you know massive it it's Hassler really hasn't made much progress there at at all and if tussle is able to you know to get into the market and really sell some cars you know that you know that that will go a long way to sort of improving its bottom line and and just generating huge amounts revenue of course with China you know especially in the Donald Trump era they're always regulatory hurdles so you know being able to find a location for this factory you know that's an important you know cut first step in terms of building a factory query senior analyst Maynard on Wednesday up next now putting TV in your pocket with a slew of new original productions will look at the strategy in just a moment and the ones like this kind of report paints a grim picture in the battle against global warming can tack play a role in saving the planet this is Snapple relation doesn't original series on its mobile app as a social network bets on a new entertainment lineup to maintain its grip on teen users and give it an edge over Instagram with Raymond James internet analyst Erin castle Wednesday and Bloomberg Texeira 5 cover snap on whether the plate will be a success this is a completely new slate of programming for a while they've really encourage outside content partners to make media for snap and that and then sort of build their brands it in separate channels on the company's discover page now they're doing it themselves in house and I think that they really want to demonstrate that they can do what kind of show that's very mobile first that goes directly to that younger audience that snap is known for reaching the question is whether it will really attract users in growth of down the line all the shows are shot vertically one of them is called and last summer as successor to MTV's Laguna beach Erin that is this the sneak secret to snaps future I think that's a be a big question a man so far steps had limited traction with fluids within content offerings if you look at the discover site most the time spent on snap is still within kind of the messaging part of that after waiting back used to be the case the problem is that as messaging circuit not mind has as well so it's amante there how to do things like to discover side with more content with more original programming that's a big question and and and and and that that's not the only one going out this year face spoke with the watch tad Instagram just announced kind Instagram TV recently as well policy at Netflix Amazon prime so you get a lot of fragmentation on the content side but I think for a snap to do well and to get more out of dollars they're gonna have to show more traction in these type of offerings well and executives have come out saying that the shows have been a raving success in that they have multi millions of viewers you know how many people are actually watching the show what matters is not just how many people are watching individual shows but whether that number grows a snap last quarter announced line in daily users for the first time and that is because you know it's a shock wave through the markets thinking that maybe this company is not going to get to a size big enough to compete with the Facebook singles in the world for advertising dollars so what they really have to do is prove that bad side that media aspects of the ads can be a big money maker down the line and you there just isn't enough public information on how those shows are doing to really instill confidence in in certainly Wall Street is is not too excited about the shows the stock is down today hovering below $7 before for the first time original content aside how optimistic are you that snap can continue to grow I mean they're losing high profile executives in the you know the redesign has been a blast Evan Spiegel has said they have to get back to your roots which is their roots which is about communicating quickly but you know is it all enough to get back to growth it's a good question we haven't seen it yet we're still cautious on snap overall while getting back to the roots of communication between occasion fast messaging fast by sharing of photos is important for them that doesn't really generate revenues like new speed does the Facebook so that's a promising to solve you can't have it both ways you can't just be a great messaging gap at the same time make a lot of money on advertising so I was a great user experience you know a little bit of both we still would like to see more product innovation I think originals can help on that but so far I think there is a staff about 1 about 2025 percent of users goods like the discover side of the apps on a daily basis that's a pretty low percentage that are not using kind of these content services from snap Evan Spiegel recently released a very long memo to employees where he talked about how the company had lost guess how it has to get back to its roots you know some folks are making fun of his use of the word she know which is the code name for this redesign he he didn't back away from cheetah entirely but said certainly it wasn't working so far but that everyone as a consolation prize would be getting a cheetah themed sweatshirt you know what do you make of this memo what do investors think about this memo well I spent a lot of time with Adam Spiegel earlier this year in the metal act out a lot of the same thing but he was trying to get across to me then which is that the company sees itself differently than the other social media plan because of the they don't even see themselves really as a social media companies Mormon messaging company within media components and and that they want to allow people to experience the world differently while and then is trying to communicate more directly to its employees and an address some issues with clarity around the company's direction you know out of 15 page memo is not always the best way to get that across and certainly well some people thought that this is a good guy into house Spiegel things other people but you know it was it was a little rambling a little concerning and so I think that he's still he's still in that place where he has to prove that he is a you know the visionary leader for the next era of snap otherwise you know annals yesterday said they may have to raise money on there may be an 8 on the line and he has this next quarter is going to be so crucial for the company's future you know what I I'm sure many of these tax io's that you know don't love speaking to the press but you know now they do we see mark Zuckerberg mature in this memo as people talk about how he feels awkward even walking around the office and talking to employees he doesn't love speaking to the press but you know at this point this many years into being a public company do you think he has to grow up I do think he's still the right person to be you know leading this company that's a good question I mean I think it's less important really speaking to the press is more about company execution and so far they haven't executed mean if you look at the shelter letter talked a lot about the competitive modes but the same time becoming compared to most also losing a lot of users to Instagram it appears so and they talk about compared most being their speed of delivery although you really haven't heard of users compliance your face but that they're not getting pictures or tax center fast enough so it's a little confusing natural letter think investors working peers I think that's why the stock and not really rally off of that letter Raymond James Aaron Kessler along with protects our fire there can you and it gives the world just one decade to get a handle on global warning we'll look at how tax could be part of the solution next this is Lamar when the lady's kind of report from the United Nations paints a grim picture the world is teetering on the edge of failure when it comes to containing global warming and the solution comes at a cost the intergovernmental panel on climate change says the world must invest 2.$4000000000000 into clean energy every year for 2035 and cut the use of coal fired power to almost nothing by 2050 just to avoid catastrophic damage from climate change the report notes the atmosphere is already 1°C warmer than it was at the start of the industrial revolution and predicts that will rise to 3 degrees by 20 100 that is double the pace targeted in the 2015 Paris climate accord will technology be able to save the planet on Monday we spoke to Bloomberg news the same ability editor Eric Rosten and Emily Mazda karate who is an expert in climate adaptation and resilience and the founder and CEO of 427 a provider of market intelligence on climate change this is the report that was commissioned by the U. and 2 years ago after the Paris accords and it doesn't deliver great news it presents a very strict timeline so we have to reduce global emissions before 2030 they suggest that on something on the order of 55 or 60 percent cuts in global emissions below last year levels by 2030 and then zeroing out emissions by 2050 so that is that is a huge challenge and represents ambition we have not yet seen even from the nations that were so supportive of the Paris agreement 3 years ago and only check on these numbers well the technology is there to reduce emissions but we haven't been deploying it at scale we haven't been investing enough and what the report points out as well is that to keep emissions under at level that would be limits the impacts of climate change we need to capture a lot of carbon emissions and this is technology that's not ready at scale so talk to us about how we get there I mean what's it gonna take for that technology to be ready well for technology to be useful someone needs to turn it on and nobody has turned on the technology at this point to the skill that is needed we don't have the political will certainly not in the U. once but even in other countries it's not moving fast enough and we don't have the investments to follow suit the technology is there for carbon free energy for reducing emissions across a number of activities and also for preparing in adapting to climate change we're just not using it to turn it on I mean hopeful are the people can make this happen and the companies that can make this happen right so the UV sensors government governance may not be there yet so there's a lot going on in the private sector and there's a husband amount of mobilization from investors and from corporations to invest that needs to come with a regular triple she can just be old one because the companies that are pushing this type of effort are still a minority compared to the broader set of corporations out there right likelihood that big tax or or or big business could do some of this on their own we already see really hopeful stories from around the world of enormous investment in technologies that have matured in some ways faster than the than even close watchers of the space wouldn't believe correctly and solar and wind power in the electrification of automobiles I'd like to echo Emily's point about the the carbon capture technologies these are very interesting projects that are getting a lot of attention and some money up but I do one thing that that's worth considering we also saw it today the awarding of the 2018 Nobel Prize in economics to William nor house of Yale University and she spent most of the last 3 or 4 decades trying to understand the relationship between what cost of pollution is what what is the appropriate price for a ton of emissions with the consequent reduction in emissions and so many economists will tell you that people respond to prices people respond to incentives and having a price on carbon economists will tell you in their many experiments around the world may be needed to get these technologies up and running in time to meet the challenges outlined today in the report and only 1 of the consequences if this stuff doesn't happen you know well what is the difference between you know 1°C and 3°C we're already seeing the consequences of not having done our homework before and we're seeing it today we're seeing it with extreme weather events in your hurricane barreling down to Florida Japan just had 9 typhoons in the best season which is insane when you think of it so the impacts are ready they're they're only going to get worse and the highest degree difference between 1 and a half since his degree by 2040 or 2 degrees make a tremendous difference this is the average across the entire earth and so you have to imagine the amount of changes that need to happen to move the needle by half a degree global in and that means more extreme weather events that means water scarcity that means more wild fires that means silver rising losing our coastlines that means a tremendous amount of impact that we're not currently adequately prepared for meantime we've got some big tech companies Google Microsoft Amazon teaming up to develop a I'd to identify intending fanon talk was about how this works that was it's very interesting project that was announced today by those those particular tech leaders and the the goal of that project is to look for natural and social metrics that when when certain alarm bells go off and among each of them it may be an overall early warning signal could be interpreted as an overall early warning signal for famine one thing that's interesting and and gets lost in in the in our is sort of luminous talk every day about about big data in a I is that climate and weather we're sort of in the original big data topics going back to the 19 sixties pattern recognition in in machine learning and in some ways cut their teeth very early on these topics and so for 5 decades later now what we're seeing is this really interesting marriage of of highly sophisticated highly advanced cutting edges by being applied to sort of less cutting edge sort of clue Gee you know government supported models that involved over the last few weeks decades and and not combination these this old approach to modeling with these new A. I. tools is producing some really interesting start ups aid at exactly the time we're going to need the most Palmer said rusted and for 27 CEO and lean muscle karate we should note Michael Bloomberg founder and majority owner of Bloomberg news and its parent company Bloomberg L. P. easy you and special envoy for climate action but one way to phase out fossil fuels quickly is the push to electric cars on that note Audi just unveiled its Tesla challenger and the E. tron and one of the most interesting bits of the glitzy lunch was its approach to plugging the car in Audi has teamed up with tech giant Amazon which will arrange installing home Chargers for each one buyers not Bullard analyst for Bloomberg any apps and contributor to Bloomberg opinion waiting Amazon is is going is what it's called it's home services division to do installation of these Chargers at home services is one that actually if I confess I've not ever used before because it's one of these things for infrequent big purchases things you might only do once or twice in our homes and lifetime like a refrigerator or washing machine for home charger so what this is doing is removing quite a bit of the friction out of doing something that you don't do that often so it's an intriguing way to just simplify the process you might know what charges you want in fact I'm sure that I would he would have a preferred set of Chargers that's there for any given each front purchaser there's just simplifies the process of getting somebody in the home having them take care of the paperwork and having them do all the connection for you significance of this for Amazon assuming this is only a teeny tiny little sliver of that their business and for tests a lot you know for which this is a huge part of their business so it's a it's a good question I think the cast the part first to protest about I'm going to give a little talk about this last week at a big conference in London it was ascension the existential right you had this chicken and egg problem you can build great cars without a network you can't really charge the mop and without a bunch of Chargers you're not going to sell a lot of cars so what task but it isn't we built a network first in for Amazon this is far far different from that in the sense that I doubt this will be materially significant even in any given decade in the future but what it's intriguing for to me is that it's sort of getting Amazon into the home in yet another way you don't think it's going to come a much bigger business for Amazon so I I went with a little thought experiment on it myself which was you know the last week or a couple weeks ago rather Amazon released a whole slew of new a Mexican acted gadgets and one of them was a microwave which struck me about that is that it simplifies the process that is full of menu options opaque attempts to do something to replace it would just IMAX there's a slice of pizza and their heated up for me and my thinking was electric charging is another thing very similar to that it's got a lot of weight and see it in the sense you got some time involved is a bunch of decisions you might need to make optimize what you probably don't want to do and my thinking was let's say that Amazon rolls out its own charge in the future let's say you just drive in their plug in and say Amazon I'm not going out or not so I'm not going out tonight charge me up and then let's imagine further that it say all you want charging just as part your prime account or something like that not valid analyst for Bloomberg any asked and contributor to Bloomberg opinion and that does it for this edition of the best of our technology we will bring you all the latest in tech throughout the week we do in everyday 5:00 PM in York 2:00 PM in San Francisco and lower technology is a live streaming on Twitter check us out at technology and be sure to follow our global breaking news network to talk this is the Hyundai Tucson it quit 3 new adventure thank you first our top story another day another new escalation in the ongoing US China trade dispute this time the White House is threatening to impose new 10 percent tariffs on $200000000000 worth of Chinese made products the list this time includes tech goods like televisions an electric car batteries one big ticket item missing this round the smart phones made by US companies like apple that are assembled at plants in China so while your future iPhone may be spared for now consumer tech might soon see some price hikes we spoke with the vertex marker men on Wednesday who covers both apple and consumer technology first thing I notice right now it doesn't appear that apple products like the iPhone the iPad in the apple watch are affected why there's a lot of different reasons why but one of the biggest point of emphasis is that apple is a California company they are basically added states Donald Trump and you know Tim cook CEO of apple they have talked about this many times could be said that he doesn't think that these terrorists are the solution to the problem of the US administration is saying is out there and there's other facets to it the products are designed in the U. S. another manufacturing China that apple sells all over the world so it's unclear what kind of hit it would get on these terrorists but there's a lot at stake here what about the components that go into my sons and I pass right in so if you look at the components that are on the list of terrorist it's not a big amount of components are in the eye for the I. phones that are increasingly made of stainless steel different types of models what we're seeing is some steals in some aluminum is on the terrace it's unclear what percentage of the phones actually impacted and if there's actually going to need to be a price like on the iPhone because the margins up already gets could be switched to other components if necessary would they do this just for phones sold in the US and China different things here but if you look at tussle total stock is down today because cobalt battery technology is actually on today's list of $200000000000 of new stuff and that is the core of the batteries that power electric vehicles I do have a chart in my Jeannie library that TV's from China may be getting a lot more expensive what's gonna happen that's that's that's really interesting the the problem is why I don't think it's a it's a big big deal is because there's very few very high end China based TV manufacturers that sell their TV's in the United States many of the TV so the United States are made by Sony and Sam sung does our companies are not necessarily affected at by the terrorists what is the actual impact than any on consumers what should we be worried about what should we be worried the local batteries as we see more electric cars happening but I think outside of the U. S. really we have to focus on the retaliatory terrace what is trying to going to do about this and that's where apple really can be affected 20 percent about 20 percent of apple's sales across 2017 were in China China slaps growing terrace on the US for selling iPhones in China then that could be a home for apple in the region there has to be decisions being made apple can't get away with not being the company affected by U. S. terrorist in not being affected by China's they're still going to be effective from 1 side or the other is to be seen which side they're affected by it it's either so you know we saw now working towards opening a plant in China has been going on for awhile but it certainly goes against trump's direction right here one or some other solutions for these companies get more solutions are to have a home grown manufacturing of different components building coal balls in the United States if you look at apple building the device is the United States bringing up metals and other technologies in the United States but that also has a far from consumers to because as we know products built and developed in the United States anything with a made in the USA stop on it are traditionally more expensive because the labor cost of building products in the US are still far higher than they are in China all right mark Fuhrman lower tax as always thanks for keeping us posted meantime president trump has embarked on a European tour with the sequence of high profile events starting with the NATO summit in Brussels let's get to Blue Ridge Caroline hide in London with more Caroline it was quite a dramatic and remarkable day walk us through the the day's events I mean just extraordinary and in some ways tech was involved because a lot of these arguments seem to come out via Twitter of course tribes phase it favorite mode of communication and he took to Twitter ahead of the NATO as he is arriving in Brussels really heading out to the defense spending of the 18 saying it wasn't high enough he was complaining about the trade deficit is that he has need this so called tariffs and barriers to entry to complain about it they had such a Twitter tirade spots the other Keene Donald that we have here and you're at the eighteenth president he's president of the European Council saying that's Donald tusk KK back saying the U. S. doesn't house I would have a better ally than the E. you didn't have the 60 state for the U. S. Mike Pompeii is saying what a wonderful institution they tables which I mean it's extraordinary that even on the old psychiatry is state because John candy saying he's never seen anything so strange counterproductive the water's been going on intensive the president trump's reaction apps NATO road to but he really hitting out aggressively AT I'm gonna MacColl's Germany saying that Germany is to rely on Russian energy on Russian gas so I mean just unprecedented NATO meeting was there any agreement between these seemingly fraying allies you have to also question and even always seen Donald Trump Corning from great to spending anyone's the other allies the other nations to double that commitment to defense spending that's his real bright but that does seem to be something that they all walking towards and it's actually involving Tackett cyber security we did get a key announcement press conference coming from the engine stolen but he's the nature general section saying yes we have agreed to all our investment in the so called what they called hybrid will fast 7 showing that protected against cyber attacks the red man interweaves with with the armies on the ground he couldn't use live operations center to be announced it's going to be touring all men missed like this capability so that was a some agreement that but notably at an awful lot of tension Caroline hi there inland well you can't regulators may find Facebook $664000 over the Cambridge analytica scandal social networks failed to prevent user data from falling into the hands of the political consulting firm that worked on the trump campaign regulators say that data belonging to as many as 87000000 Facebook users and their friends may have been as we've discussed misty can I have shown me is I DO calls the company new species different from any other tech company on the globe but are investors buying it and later this hour president trump Supreme Court nominee is making the rounds on Capitol Hill what tech cases might come before him will discuss this is this needs but not as you know this this ticket members the first and only global news network for Twitter interjected reporting that you can trust curated comments that provide insight tick tock 5 live 247 news streaming live on Twitter San Francisco all lot of transactions are top stories this morning in DC we want to coming down Saudi Arabia welcome to the first word Asian we it was all cogs biggest coming out party in 2 years I shall be made its public debut this week jamming market value is now in the region of $50000000000 making it the world's third biggest publicly traded smartphone maker bluebirds chief north Asia correspondent Stephen angle has more from Hong Kong show me shares fell right out of the gates here on its IPO in the Hong Kong stock exchange lot of uncertainty about this company and its lofty valuations that put it more than apple more than Facebook more than tens and also the true nature of its business is it of more of a low margin handset manufacturer for is it like the chairman lei jun says a broader internet services company and also there's a backdrop the growing trade war between China and the United States that is dampened sentiment here in Hong Kong the company says it's a tough one to pigeon hole and they're actually a new species we are an internet company that can do if you called US and hall right well at the same time I don't think there's anything like us in the market as well on the one hand shall me is now a $50000000000 company the third largest in the world 4 handset manufacturers but it's a far cry of an earlier estimate last year of the valuation upwards of $100000000000 the size of the ideal also really scaled back down to about 3.1000000000 US dollars from an initial estimate what came about $10000000000 one dampening prospect was the elimination of a corresponding listing in China in Shanghai of a CD are that's a China depository receipt even the regulator in China shared similar concerns as investors here in Hong Kong about its lofty valuations and the true nature of its business Stephen angle Bloomberg news Hong Kong and we don't do the debut from every angle Monday with an harbored managing partner and the state capital of Beijing based venture fund along with Bloomberg tax marker meant and Shelly venture they have a lot to prove right now they're very localized to China and some of the more developing markets like India they are doing very well in both India and China but that's just one portion the world there's obviously the whole in a trade war tension right now and the ability for Chinese harbor makers to get their devices in the US and Europe is becoming increasingly difficult problem and also joining us now from Hong from New York our tech reporter was normally based in Hong Kong Shelley how much of a disappointment is this I think it's a big disappointment just because of how much expectations were fills up think of Shenmue would have come to the market and at you know as they were it was a big accomplishment for what they've been able to do 8 years in existence and becoming you know one of the world's biggest smart phone companies they didn't just rest at that instead of saying no this is who we are and this is what we make they said you know we're actually this $0 company that you know is an internet services business and so that's kind of where this mismatch lies man just one point out later in the founder of show me is an investor in your phone",
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443      "recording_transcription": "Hey everyone thank having me 'm gonna more than talk about investor meetings lot talk about who investors that 're gonna be raising money from maybe one day and motivates them because in good meeting need know 're doing and achieve that goal cell about investor meetings question when need them need them west actually get meetings and actually meetings might seem weird but meeting isn't walking into room and sitting across table from someone staring into each other's eyes need actually talk need make points and need know points today and Christy ran through day mechanics fundraising actually means blower actually get money from somebody usually know who track them down find them convince them meet with convince them give money and get money in bank it's lot steps that come up ahead time this going this this talk your magical planned automatically raise money follow these steps one will ever say note it's your fault first figuring out when actually need raise money every business needs money male champ famously never raised dollar outside financing and worth billions dollars before about whether before about meeting with investors raise money first need answer question actually need raise money and there's different steps this can raise money when 're idea stage can raise money prototype can raise money when users in fact it gets easier and easier each these because 're demonstrations progress but need money when actually need it grow your business and figuring out whether need money grow your business very particular decision about your company about this about raising money continual nothing and understanding would spend money it try raise money it's waste time instead focus on building your product and building your company get little further along your idea your prototype start actually little more money 'd be able X. Y. Z. which would make me go faster now flip yourself into mind investor and about well 'm investor why giving this person money reason and reason because expected be very very very large one day but also expect them be able use this money appropriately there uses that good money and uses that would say back first people always say about why need raise money need hire employees this very attractive because companies love talk about many employees it's great metric when revenue actual progress but truth it because building start ups which hopefully leverage software need hire far fewer people than and in fact hiring single best way kill your company need it because people cost money and already hiring already need money whether your idea any good whether your ideas growing very careful about carefully about whether blocker between and next step growth actually hiring next people up say well need use requisition need spend money on Google ads this usually very bad way grow your business especially early start spending money on Google ads start looking your user numbers and say look our user numbers growing up need pour more money into it and many people especially it's first start up whether 're requiring people profitably customers profitably and whether 're doing that profitably on timeline that allows them recycle capital and keep growing before start spending money on user acquisition it probably makes sense start acquiring people free users who love your product tell friends about much love product and get free need raise money will need customer service your customers getting angry because 're doing enough make them happy 're answering questions that's actually pretty good reason raise money that actually one first limiting factors that lot companies hit and reason this good one because founders will be able deal with customer service quite long time and only stop being able that when enough users and customers that get overwhelmed and 's interesting that someone using product that free expectation customer service much lower which means can handle lot more and 're paying your customer service help level be higher but 're making more money can afford hire more people customer service before actually look outside capital reason 'm saying and and and warning actively against fundraising before 're ready earlier raise money more diluted that capital people aren't going give 5 $3000000 valuation $5000000 valuation $10000000 valuation unless show that every dollar raised more your equity in your eventual multi $0 business that 're giving away want that 's talk about types investors in your neighborhood first friends family there accelerators angels seed funds there VC funds and there's crowd funding there's many different ways raise money and many different places from which raise it but important in figuring out who these investors get meetings with them and convince them that should actually give money understanding about them motivates them and get in touch with them first 's talk about accelerators accelerators basically investors that education programs attached them YC accelerator take in 3 months work with companies try make them better and better and better and better and better teaching them know it's helping them avoid mistakes and launch them out into world and demo day and give community on other side now there thousands accelerators world applications from world and number accelerators proliferating faster than number startups least terrifies me because most people who were advising companies accelerators idea 're doing 've never worked start up 've never started start up 've never funded start up outside accelerator gotta ask yourself why on earth should take advice from this person who's never done any that 're telling me should never gotten never seen any these work and actually notice most accelerators actually hurt companies be very careful about going accelerator none need accelerator succeed company accelerators helpful that's great but it damages your company because word accelerate accelerator come out other side and 're same worse than were when started it didn't accelerate did it and every other investor that looks that 'll be will look and thank her that didn't work 's actually going take this accelerate this company it's probably money there be wrong with founders and it might be it might been accelerator that hurt be careful and very carefully and look track record that those accelerators half next up friends and family this probably most common source funding early stage startups earliest earliest stages friends and family moms dads rich uncles Grammy pop pop people hopefully extra money that can give because it feels good 's be honest your friends and family usually 're going build next Google great day love remember when were in diapers and 're basically giving money because conviction that can and want support and be nice take advantage that nice looks only take money from friends and family know that can afford lose every single dollar that give because 's be honest 're probably gonna lose every single dollar give that sink in most start ups that raise venture capital produce return be very thoughtful about whether take money from friends and family and make terms really really old arrests raise $50000 from your grandma $50000000 valuation it doesn't make any sense gonna get inheritance anyway doesn't work but seriously artificially set very high price this point in your life can probably set price because again 're being nice but that makes every other fundraising increasingly difficult because prices high when want money from friend family member treat it real meeting treat them 're real investors be respectful time going with actual pitch and actual understanding 're doing can please give me money now thank that really treat this important because it'll help train next stage raising money which usually angles angels basically rich people with little too much time and money on hands invest mostly sport ever noticed on Twitter angels will often say oh $0 company this $0 company that it's basically trophy hunting idea much money invested in those companies whether actually made money whether money that made meaningful them but really invest in new companies and actually lot reasons especially about driving and it lot angels who invest because really want new technologies exist because when were new founders someone gave them chance and want pay it forward angels usually pretty easy get in front because were professional angels easy get in front want invest exciting new interesting companies and spend time with founders who make them feel interested and teach them email them and seem really really busy can usually network them pretty quickly especially local city 're in pretty much around world least few angels one last would say about angels that should be careful angel groups 're called but 're basically these groups angels that get together meals and grilled new founders and invest and sport ripping people apart because 're successful investors and want show good before take money from before go Chasin angel down research ahead time figure out whether actively invest that's signal made investment in last 6 months 12 months 5 years 10 years made investment in year probably investing actively probably good idea waste your time chasing them down next up capital stack seed funds seed funds super professional angels who raised amount outside capital investing usually investing on behalf angels who maybe enough money be LP's in really big phones these usually in network but professional investors were trying learn ropes 're offering great there often recent founders probably pretty aggressive about finding good deals quick process sees because know move quickly research on them job meet new founders who want talk and invest in email them mails these people fine get warm email great but should reach out sea funds entire job meeting with can invest amber that investing return that can raise next fought 're interested in that going produce small return 're interested in lifestyle businesses which angel might be interested in investing in there's cash flow need return capital there's VC funds these obviously big deal in fundraising VC funds that run gamut V. C. funds that invest $0 checks and V. C. funds that invest $0 checks know need your stage capital almost multiple L. P.'s which limited partners will give money and say Hey need produce X. percent return on annual basis called our our target and these people these L. keys looking across venture funds in world and saying where can allocate money and 're looking different alternative asset managers and saying 're going allocate money and 're looking across investable assets and saying 're going allocate money form VC partner from G. P. only be one better sees return more better risk that anything else this investor could put money into me get that LP capital when 're looking need return 5 10 X. 're looking every single investment saying will this investment return entire fault 're thinking about me with these people 've got about shoot when walk into that meeting can't pick small version 'm doing gotta big now sees when invest usually pretty specific structure and make decisions might be with partner first and partners in 5 partners and general partnership 're raising series earlier stages most bigger V. C. funds can make decision often meeting meeting with one single partner 're thinking about that first check probably even about these guys this comes later in process when 're rated raise lot money last investor that can crowdfunding websites there strange about when it comes say meeting getting in front that because split this crowd funding that can be done via syndicate where there's one person was angel who money from other people say Hey 're going invest in this that everyone follows come along were professional investors where 'll meet with them talk them 'll say Hey 're gonna back can put on this private syndicates in public and and public syndicates meet with every member syndicate in raise money in crowd funding site and there's also option crowd funding sites simply list your company subject few checks make 're committing fraud where 'll put up and people will send money your way without ever meeting anyone this good way raise money can't figure out another way it there's investors near want be bothered with time it's usually good way raise lots and lots and lots money because one it's usually there and it these individual tiny little investors on your cap table become nightmare manage carefully about this option and about it will and it can couple these investors mentioned susceptible open receiving cold emails actually everyone response receptive cold emails respond pretty much every cold email get can good ones and bad ones 's bad cold email dear Sir madam noticed in research on internet that investor in technology companies 'd introduce opportunity make money in this new and exciting field that come our office hour present with this opportunity sincerely Erin would take meeting with this person idea seem done any work understand 'm interested in who 've done in past and 're asking hour time in person that's lot time remember that professional investors short there meet with people day long but only that limits them time and want give that people who matter most about sending good cold email answers doing research most investors very happy tweet about that interest them companies 've invested in write blogs about ideas that in companies that want exists prolific profiles online based on companies that started in past should go and research every single investor that want talk and figure out way get in front them with custom introduction that relevant them and 's one could send Adora Adora building market place home cleaners novel approach this cleaners robots 've launched and starting grow 's stop second 've done research on it know that built market place home services know that this relevant her also might know thinks robots cool that's another good hawk tell her this stage that 're launched and starting grow now launched great because it proves that 're actually doing starting grow intriguing because it makes me want ask much starting grow fast measuring growth these work 'd be great investor us because your experience with home joy 've solved unit economics and reliability can discuss this 15 minutes happy email that's better sincerely Erin different that good 've only asked 15 minutes time that's easy and can be done phone also offer it email fedora happens be busy traveling can deal with first set questions email love this always good email first and someone really gives good email responses and thoughtful and asks good questions 'm much more inclined meet them 'd be happy with meeting them walking meeting with positive understanding 're doing and context understand entire conversation that's that's prepared mind 're thinking doing reference her past with joy end 'll know watch doors lectures and videos on Monday thinks lot about unit economics and reliability know that these important and 're saying 've solved these 2 key critical issues that important this slam dunk this cold email that likely get response whether know person 're emailing because it's specific it's same way sending lots email people necessarily know try convince them use your service there's big difference between spamming people and sending relevant email about relevant service that will find interesting spam investors it doesn't work immune it investors usually sitting around waiting email from someone 've never met introducing them investment opportunity waiting company that one else knows it secretly amazing that nobody else talked yet that connections that company that find it and it's actually good it seems that's one that makes money soon investor who gets cold email this good already starting oh crap this Google and one else knows about it better move fast meet them figure out 's going on give them money and help them IPO that's response want get out someone effects that that's want walk out every meeting with investor who's excited next steps move through meetings with investors there different meeting types that 'll navigate and different investors different kinds these meetings list them and 'll walk through more about first up there's intro meeting investors intro meetings except crowd funding sites done follow up pretty much investors this except angels who might decide invest in after that first meeting 've got decision meeting this really only professional investors this will be meeting with multiple partners core with that one partner but re",
444      "recording_transcription_org": "Hey everyone thank you for having me so I'm gonna do more than just talk about investor meetings as a lot of talk about who the investors are that you're gonna be raising money from maybe one day and what motivates them because in order to have a good meeting you need to know what you're doing and how to achieve that goal cell we think about investor meetings as a question of when you need them you need them west how to actually get the meetings and actually how to do the meetings might seem weird but meeting isn't just walking into a room and sitting across the table from someone staring into each other's eyes you need to actually talk you need to make points and you need to know what points today and Christy just ran you through the day at the the mechanics of what fundraising actually means blower actually get the money from somebody you usually have to know who they are track them down find them convince them to meet with you convince them to give you money and then get the money in the bank so it's a lot of steps that come up ahead of time so this is going this this talk is kind of your magical planned to automatically raise money you follow these steps no one will ever say note here if they do it's your fault all right so the first thing is figuring out when you actually need to raise money right not every business needs money male champ famously has never raised a dollar an outside financing and is worth billions of dollars so before you think about whether or not you or or before you think about meeting with investors to raise money you first need to answer the question of if you actually need to raise money and there's a bunch of different steps of this you can raise money when you're just at the idea stage you can raise money if you just have a prototype you can raise money when you have users in fact it gets easier and easier as you have each of these things because they're demonstrations of progress but you need money when you actually need it to grow your business and figuring out whether or not you need money to grow your business is a very particular decision about your company so if you think about this think about raising money as as a a continual right if you have nothing and no understanding of how you would spend money if you had it don't try to raise money it's a waste of time instead focus on building your product and building your company if you get a little further along you have your idea or your prototype you start to see if I actually had a little more money I'd be able to do X. Y. Z. which would make me go faster now flip yourself into the mind of the investor and think about okay well if I'm an investor why am I giving this person money I have to have a reason right and the reason is because I expected to be very very very large one day but I also expect them to be able to use this money appropriately there are some uses that are good for money and some uses that I would say are back the first thing people always say about why they need to raise money is they need to hire employees this is a very attractive because companies love to talk about how many employees they have it's a great metric when you don't have a revenue or actual progress but the truth it is because you are building start ups which hopefully leverage software you need to hire far fewer people than you think you do and in fact hiring is the single best way to kill your company if you don't need to do it because people cost money and so if you are already hiring you already need money whether or not your idea is any good whether or not your ideas growing so think very careful about carefully about whether or not the blocker between you and the next step of growth is actually hiring the next thing people up to say as well we need to do use requisition we need to spend money on Google ads this is usually a very bad way to grow your business especially early you start spending money on Google ads you start looking at your user numbers and say look our user numbers are growing up so we need to pour more money into it and what many people don't think especially if it's their first start up is whether or not they're requiring people profitably customers profitably and whether or not they're doing that profitably on a timeline that allows them to recycle capital and keep growing so before you start spending money on user acquisition it probably makes sense to start acquiring people for free at users who love your product to tell their friends about how much they love the product and then you get the for free you don't need to raise money then some of you will need customer service if your customers are getting angry because you're not doing enough to make them happy you're not answering their questions that's actually a pretty good reason to raise money that is actually one of the first limiting factors that a lot of companies hit and the reason this is a good one is because you as founders will be able to deal with customer service for quite a long time and you only stop being able to do that when you have enough users and customers that you get overwhelmed and what's interesting is that someone is using a product that is free their expectation of customer service is much lower which means you can handle a lot more and if they're paying you your customer service help level has to be higher but you're making more money so you can afford to hire more people to do customer service before you actually have to look for outside capital the reason I'm saying and and and warning so actively against fundraising before you're ready is the earlier you raise money the more diluted of that capital is right people aren't going to give you a 5 $3000000 valuation of $5000000 valuation a $10000000 valuation unless you have something to show that every dollar raised is more of your equity in your eventual multi $0 business that you're giving away you don't want to do that if you don't have to let's talk a little bit about the types of investors in your neighborhood first we have friends family then there are accelerators they are angels their seed funds there are VC funds and there's crowd funding there's so many different ways to raise money and so many different places from which to raise it but the important thing in figuring out who these investors are how to get meetings with them and how to convince them that they should actually give you money is understanding a little bit about them what motivates them and how to get in touch with them so first let's talk about accelerators accelerators are basically investors that have education programs attached to them YC is an accelerator right we take you in for 3 months we work with companies we try to make them better and better and better and better and better by teaching them what we know it's helping them avoid mistakes and then we launch them out into the world and demo day and give the community on the other side now there are thousands of accelerators all over the world we see applications from all over the world and I think the number of accelerators is proliferating faster than the number of startups at least terrifies me because most of the people who were advising companies accelerators have no idea what they're doing they've never worked at a start up they've never started to start up they've never funded a start up outside of the accelerator you gotta ask yourself why on earth should I take advice from this person who's never done any of the things that they're telling me I should do never gotten never seen any of these things work and actually what you notice is most accelerators actually hurt companies so be very careful about going to an accelerator none of you need an accelerator to succeed as a company if the accelerators helpful that's great but if not it damages your company because of the word accelerate if you do an accelerator come out the other side and you're the same or worse than you were when you started it didn't accelerate you very well did it and every other investor that looks that you'll be we will look at you and thank her that didn't work what's actually going to take to this accelerate this company it's probably not money there must be something wrong with the founders and it might not be you it might have been the accelerator right that hurt you so be careful and think very carefully and look at the track record that those accelerators half next up friends and family this is probably the most common source of funding for early stage startups at the earliest earliest stages friends and family are moms dads rich uncles Grammy a pop pop people have hopefully a little bit of extra money that they can give you because it feels good let's be honest your friends and family don't usually think you're going to build the next Google great day love you remember when you were in diapers and they're basically giving you money because you have conviction that you can do something and they want to support you and be nice don't take advantage of that nice looks only take money from friends and family if you know that they can afford to lose every single dollar that they give you because let's be honest you're probably gonna lose every single dollar they give you let that sink in most start ups that raise venture capital do not produce a return so be very thoughtful about whether or not you take money from friends and family and don't make the terms really really old arrests don't raise $50000 from your grandma at a $50000000 valuation it doesn't make any sense gonna get the inheritance anyway so just doesn't work but seriously if you artificially set a very high price at this point in your life you can probably set the price because again they're being nice but that makes every other fundraising you do increasingly difficult because the prices so high when you do want money from a friend or a family member treat it like a real meeting treat them as if they're real investors be respectful of their time going with an actual pitch and an actual understanding of what you're doing not just can you please give me money now thank you right don't do that really treat this as a as an important thing because it'll help train you for the next stage of raising money which is usually angles angels are basically rich people with a little too much time and money on their hands they invest mostly as a sport all right have you ever noticed on Twitter angels will often say oh my $0 company this my $0 company that it's basically trophy hunting right you have no idea how much money they invested in those companies or whether not they actually made money whether or not the money that they made is meaningful to them but they really like to invest in new companies and is actually a lot of reasons especially not just about driving and it is a lot of angels who invest because they really want to see new technologies exist or because when they were new founders someone gave them a chance and they want to pay it forward angels are usually pretty easy to get in front of because they were professional angels are easy to get in front of all they want to do is invest an exciting new interesting companies and spend time with founders who make them feel interested right and teach them things so email them and if they seem really really busy you can usually network to them pretty quickly especially if their local whatever city you're in pretty much around the world has at least a few angels the one last thing I would say about angels is that you should be careful of angel groups what they're called but they're basically these groups of angels that like to get together for meals and grilled new founders and then not invest and is the sport of ripping people apart because they're successful investors or something and they just want to show you how good they are so before you take money from or or before you go Chasin angel down do some research ahead of time to figure out whether or not they actively invest that's the signal how they made an investment in the last 6 months 12 months 5 years 10 years they haven't made an investment in a year to the probably not investing actively the probably not a good idea to waste your time chasing them down next up the capital stack is seed funds seed funds are kind of super professional angels who have raised some amount of outside capital if they are investing the usually investing on behalf of the angels who maybe don't have enough money to be LP's in really big phones these are usually in network but professional investors were trying to learn the ropes they're offering great there often recent founders the probably pretty aggressive about finding good deals they have quick process sees because they know they have to move quickly do research on them their whole job is to meet new founders who they want to talk to and invest in some email them all the mails to these people are fine if you get a warm email great but you should just reach out to sea funds their entire job is meeting with you to see if they can invest you amber that they are investing for a return so that they can raise their next fought so they're not interested in things that are just going to produce a small return they're not interested in lifestyle businesses which an angel might be interested in investing in if there's cash flow they need you to return capital then there's the VC funds these are obviously the the big deal in fundraising VC funds that run the gamut their V. C. funds that invest $0 checks and their V. C. funds that invest $0 checks know what you need for your stage of capital they all have almost all have multiple L. P.'s which are limited partners will give the money and say Hey we need you to produce X. percent return on an annual basis called the our our target and these people these L. keys are looking across all the venture funds in the world and saying where can I allocate money and then they're looking at all of the different alternative asset managers and saying we're going to allocate money and they're looking across all of investable assets and saying we're going to allocate money as a form of VC partner from the G. P. I have to think not only do I have to be one of the better he sees I have to return more at a better risk that anything else this investor could put money into for me to get that LP capital so when they're looking at you they don't just need you to return 5 or 10 X. they're looking at every single investment saying will this investment return my entire fault so you're thinking about how to me with these people right you've got to think about shoot when I walk into that meeting I can't just pick a small version of what I'm doing I gotta do something big here now if he sees when they invest usually have a pretty specific structure of what they do and how they make decisions you might be with a partner at first and then to partners in 5 partners and the whole general partnership if you're raising something like a series at the earlier stages most of the bigger V. C. funds can make a decision often meeting meeting with one single partner so if you're all thinking about sort of that first check probably don't even think about these guys this comes later in the process when you're rated to raise a lot of money the last kind of investor that I can think of is crowdfunding websites is there a little bit of a strange thing to think about when it comes to say meeting or getting in front of that because they split this crowd funding that can be done via syndicate where there's one person was kind of like an angel who has a bunch of money from other people to say Hey we're going to invest in this thing that everyone follows come along they were kind of like professional investors to where you'll meet with them I talk to them they'll say Hey we're gonna back you can we put you on this private syndicates in public and and public syndicates you do not have to meet with every member of a syndicate in order to raise money in a crowd funding site and there's also the option of a crowd funding sites to simply list your company subject to a few checks to make sure you're not committing fraud where they'll just put you up and then people will send money your way without ever meeting anyone this is a good way to raise money if you can't figure out another way to do it or there's no investors near you or you don't want to be bothered with the time it's usually not a good way to raise lots and lots and lots of money because one it's usually not there and to it if you have all of these individual tiny little investors on your cap table they become a nightmare to manage so think carefully about this option and think about what it will do for you and what it can do to you so a couple of these investors as I mentioned are susceptible or open to receiving cold emails actually everyone is response is is receptive to cold emails I think I respond to pretty much every cold email I get if I can what good ones and bad ones so here's a bad cold email dear Sir or madam I have noticed in my research on the internet that you are an investor in technology companies I'd like to introduce you to an opportunity to make money in this new and exciting field that come to our office for an hour to present you with this opportunity sincerely Erin I would not take a meeting with this person I have no idea what they do they don't seem to have done any work to understand what I'm interested in who I am what I've done in the past and they're asking for an hour of my time in person that's a lot of time remember that professional investors short there they meet with people all day long but the only thing that limits them is their time and so they want to give that to the people who matter most so how do you think about sending a good cold email answers by doing research most investors are very happy to tweet about things that interest them companies they've invested in they write blogs about ideas that they have in companies that they want to see exists they have prolific profiles online based on the companies that they started in the past you should go and research every single investor that you want to talk to and figure out a way to get in front of them with a custom introduction that is relevant to them and to you so here's one you could send to Adora Adora I building a market place for home cleaners I have a novel approach to this all of the cleaners are robots we've launched and are just starting to grow let's stop for a second if you've done research on it or a you know that she built a market place for home services so you know that this is relevant to her you also might know she thinks robots are cool so that's another good hawk you tell her at this stage that you're at launched and are just starting to grow now launched is great because it proves that you're actually doing things starting to grow is intriguing because it makes me want to ask how much are you starting to grow how fast what how are you measuring growth how do these things work I think I'd be a great investor for us because of your experience with home joy I think we've solved unit economics and reliability can we discuss this for 15 minutes happy email if that's better for you sincerely Erin just think of all the different things here that are good you've only asked for 15 minutes of time that's easy and can be done by the phone you also offer to do it over email fedora happens to be busy or is traveling she can just deal with the first set of questions over email I love to do this I always good email first and if someone really gives good email responses and is thoughtful and asks good questions I'm much more inclined to meet them I'd be happy with a meeting them walking to the meeting with a positive understanding of what they're doing and context to understand the entire conversation right that's a that's a prepared mind for what you're thinking of doing you reference her past with whole joy end you'll know if you watch some of the doors lectures and videos on Monday she thinks a lot about unit economics and reliability so you know that these things are important and you're saying we've solved these 2 key critical issues that are important to you this is a slam dunk right this is a cold email that is likely to get a response whether or not you know the person you're emailing because it's so specific it's the same thing by the way if you are sending lots of email to people you don't necessarily know to try to convince them to use your service there's a big difference between spamming people right and sending a relevant email about a relevant service that they will find interesting don't spam investors it doesn't work their immune to it investors are not usually sitting around waiting for an email from someone they've never met introducing them to an investment opportunity what they are waiting for is the company that no one else knows it is secretly amazing that nobody else has talked to yet that has no connections that is the company that if you find it and it's actually as good as it seems that's the one that makes you all of the money soon investor who gets a cold email this good is already starting to think oh crap this is my Google and no one else knows about it I better move fast meet them figure out what's going on give them a bunch of money and to help them IPO that's the response you want to get out of someone effects that that's what you want to walk out of every meeting with investor who's excited to move on to the next steps as you move through meetings with investors there are a whole bunch of different meeting types that you'll have to navigate and different investors to different kinds of these meetings so let me list them and then I'll walk through a little bit more about what they are first up there's the intro meeting all investors do intro meetings except the crowd funding sites done as a follow up pretty much all investors do this except some angels who might decide to invest in you after that first meeting then you've got the decision meeting this is really only professional investors this will be meeting with multiple partners core with that one partner but to re",
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457      "recording_transcription": "on this podcast talked successful launch bearers about strategy cheating massive scale but there's 1 scale that 've long admired talk about bases tires on single proven method method that works again and again that hero public broadcasting and it's winning nothing pledge drive about it there's indication that your customers will love your product them giving money when get product free anyway taking inspiration from this model present masters scale 2018 pledge drive it's your money want it your words it matches scale helped paid leaving review on apple podcast which helps new listeners find us our pledge target 1000 new reviews on apple podcast October 31 any good blood drive incentive our favorite review will choice between 2 amazing guests appreciation from me choice number 1 signed copy forthcoming book blitz scaling lodging October 9 choice number 28 track cassette tape collection volume 1 Nash's scale greatest hits green magic number match.com tweet review apple podcast act masters scale chance win reading reviews and sharing favorites make that pledge now and remember this podcast only possible listeners disclaimer prize number 28 track cassette tape collection reed Hoffman's greatest hits rare and sought after collector's item it therefore highly likely that it will be stolen ring international crime obsessive music aficionados before prize draw and will in fact be able and now on show where get explore theory with Daniel lack Spotify but episode starts out somewhere else entirely sky active and later this guy in front 60000 people once about 6570 miles hour it might come in about those water name Myles dasher professional parachutist Eagle Scout base jumper friend community hope your copy today because miles high energy in fact idea early morning pick me up climb top really high place and leave off in our sport role little tight were little hungry around wanna jump on this 'm ready this and that's pretty much about when drive around tall objects can jump off it there on corner perfect and look this landing area it's great awesome miles done 8500 skydive and 5000 base jobs but unlike ancient Greek tale Icarus miles humble when it comes own knowledge knows it humorous can lead downfall that could be literally deadly when 're flying Paris 're dust in wind got bad guy feeling about know that gut feeling got know that's made survive your life until now trust your instincts trust your gut and sometimes it's good back away from jobs it's own abilities that miles these absolute trusted but those jump partners in one episode web series called miles above miles in teammates and jump on plane in wings criss cross each other stakes sky high one wrong move one error judgment would cost calamity team 're basically trying take sports that next level change up where take our pilot Kirby Chambliss 540 world champion pilot loves comes guy with us too will take him and put him on back can swimsuit and came up next more high fiving Kirby it may look it's fun and games on videos where come in laughed and high fiving but it took lot get that place and skill that 've developed but immense level trust where trusting each teammate make decision and basically fly into and kill know develop that cast our level trust in fast paced world skydiving always luxury time miles rely on short cuts got make judgment calls know on moment's notice when meet somebody 're gonna fly your airplane around me while 'm flying wing suit and 've got trust hit me with this any part front your plane but know world champions know background good but trust eyes will only say give me space know and that's life that's that's everybody that's got 've been in flying well always say trustee because consistency plus time Lee often said trust consistency was that that go again name's read.Lee and was crushed equals consistency plus time consistency plus time that's good formula often man 's 's analyst figure that out thought analyze too much yellow white Nikki's always really lastly often about that formula honey 's figured it out good job man miles cool man whether 're spending new sky 10000 feet trying more grounded there will be times need build trust that's because trust fundamental component any functional relationship but also one most difficult build believe that quickly build foundations long term relationship find short cuts trust incredible talent every position there fires burning this masters scale and lucky MasterCard center inclusive growth partnering with us make show possible 's story want share with was thinking about grandmother who from India Indian people know that where does grant keeper cash full little ball and sticks it in inside her blouse that safest place on earth in grandma's blouse that's Broadmeadow 's executive director MasterCard center inclusive growth philanthropic arm MasterCard broad would argue that safest place cash actually grandma's blouse with bank account that very dangerous situation Graham IBM products grandma isn't only one keeping little cash under collar colleague should be missing heard stories migrant workers who collect savings under shirts until can send it home sometimes even fastened it skin when started doing research realize that would actually take money bodies who these workers who use bodies bank Ximena will share story later in show your company know build economies that work everyone MasterCard center inclusive growth wants talk 're looking partners among masters scale audience email them scale master card.com that scale that **** card.com read off founder linkedin investor Greylock and your host and believe quickly build foundations long term relationship find short cuts trust this especially true relationship in question rack with suspicion trust normally build upon simple foundation consistency time but problem anyone who hopes blitz scale slow moving blitz oxymoron who often can't wait trust develop its natural rate remove time from establishment trust find short cut it's tentative first dance beginning relationship transition awkward slow dance self assured quickstep without putting off your suitor needy really others intent your potential partner in it long term only take everything 've got soon your guard down when companies partner because same courtship but it's hard even get on dance floor when your partner sees mortal enemy in these cases need be able make sweeping gesture win that first dance dazzling and with your own in bit moves but making them look great test this theory whose news talked Daniel lack founder and CEO Spotify when Daniel founded Spotify in 2006 online music piracy was its peak in record industry was losing fight Daniel vision free legal streaming service that would put world music listeners finger tips it would trial piracy and would set music industry unfair that would give record companies and artists fair share music revenues but win Daniel would learn users away from pirated music which already free 'd persuade record companies set aside inherent mistrust digital and get free service blessing in both cases find short cuts win trust Daniel trust more than 5 letter word it's concept in culture grew up and there's called levels that's literally translation every minutes and this comes core switch instance own piece property people allowed walk your property property large enough actually even allow 2 tents your property 2004 hours every man's very Nordic notion social contract one that sounds crazy American years try imagine yourself walking on someone's property in U. S. H. in tent and proclaiming it amount read roast marshmallows open fire kilo that story but Swedes different conceptual framework can grow up in it fully understand it and this less than one about trust it different bass lines across different cultures in Sweden example everyone's tax returns publicly available this notion private versus public doesn't exist same extent income public in Sweden every single one that plus fact that it's such small society means that number one society built on this trust can't screw people honor your agreements Daniel sees this deep Swedish concept trust advantage and it's fair say sweetener thank Daniel's lifelong love affair with music it started with family it's one those weird families normal family will get college degree and that would be important really in our family in fact one college degree but having music education was super important but it's country make that child left music behind in in Sweden where grew up there's actually free music education which explains lot about music big in that country and why it's such big export us well get taken this place when 're about 4 5 years old and walk around and get sample every instrument can imagine walked around and saw people playing piano myself people into flutes saw people sorts sitar and this guy can speak and one rooms was this person was playing drums saw that it was holy **** this amazing really want play drums 5 year old Daniel was blown away possibilities but there was one inescapable reality parents because wasn't really that into music that time nor did really want it said can take any instrument want said want play drums this well any instrument want but drums because were living in apartment and didn't want get it fixed it Daniel turned cool older cousins advice told me that should pick guitar this guitar could actually shot with girls and 5 year old didn't know shop with girls actually meant thought was pretty cool guy set it up playing guitar and and that's story started picking up guitar and when did start picking up programming and was there any connection between music and programming that time it wasn't really any connection between 2 it was C. 64 C. 64 also known Commodore 64 it was 8 bit home computer popular in 19 eighties with cassette with cassette scene in and one day cassette broke actual player broke down started deconstructing player and figured out fix it next on computer broke down took it apart and put it back together again and fix that got bit confidence ask someone who was engineer 's hardest learn and person well plus plus probably hardest learn C. plus plus computer programming language it indeed one hardest learn age 9 thought Hey 'm gonna learn program plus plus and about 40 pages code later could construct mouse cursor moved around which felt lot work relatively simple 's talk about your first entrepreneurial venture probably 1997 people started talking about web pages in suite least that was craze that everyone should web based 1 day there was someone who asked me could create web page them know HTML and didn't know anything in design instinct was same note person kept coming back and asking me again can it and about third time person ask decided take absurd number that can make get rid person sigh well it 'll 'll it but want $5000 it and person said don and 'm 0 holy and actually learn this Daniel built those web pages and built well word spread more people sought him out raises price $10000 and agreed pay happened next 1 most audacious examples scale know especially teenager fast forward now in later stages in elementary school people in class that 're good math taught them HTML me and people that were really good sign thought photo shop was basically would running illegal sweatshop from when was 14 and that was start entrepreneurial career well wasn't much sweatshop because unlike know classic child labor which our working 12:00 hours day and forth this very high priced goods with skills that help them get entire careers later and forth know entrepreneurial side this cool would normally that when experience this much success early would keep doing it because go look this great 've got huge income coming in did that tunnel on was thinking started off doing was bought TV wanted bought guitarist that wanted and got computer that wanted and eventually ran out buy notice that among material possessions lists Daniel music that doesn't mention buying records CD's it's because love music died quite opposite Daniel was listen more music but most people across was buying less it aged music piracy begun and sweet was leading away government mandated brought country was way ahead rest world in terms internet speed music files it took hours download other countries be downloaded in Sweden in seconds can use vast free access stolen music and Daniel was exception did more than super sizes music library call pivotal moments when realized that wanted work with internet specifically and software developer was first time tried Napster Napster was file sharing service that launched in 1999 it was infamous allowing people illegally share huge amounts copyrighted music me it was really pace that up until that point theater that was mostly about Caxton maybe blinking gifts and sudden came this Napster which enabled get access entire world's music and someone who's really into music it was hi discovered much great music from its and when got shut down figured that can't put genie back in bottle it exist Daniel was genie was out there was going back despite best efforts record companies Napster may been sunk legal broadside in 2001 but others sprung up take its place genie granted every music fan wildest dream less than every ever recorded free record companies wanted desperate extremes stop it sued piracy services and even private individuals meanwhile artists from Britney spears Metallica railed against illegal downloaders saying it was bad shoplifting CD's musicians lost trust in our fans and fans lost trust musicians trust was time low across board and this was Daniel's opportunity thought long and hard about was passionate about and made me get into technology begin with finally enough took stand off few months and played guitar on road with Swedish artists was doing more soul searching than than anything else and came back me was add these 2 passions in life music and technology and started dawning upon myself why anyone fix this planet anyone made Napster work both consumers and work artists well from outsider perspective Daniel saw that music consumption become 0 sum game war between music fans and music companies one side win other side lose Daniel believe this could be fixed but get both sides trust each other least trust him 're lucky MasterCard center inclusive growth parting with us make show possible will give them next word 're back which should be same president MasterCard center inclusive growth was telling us about group workers who take cash bodies migrant workers living on outskirts Dubai there's about 4.7000000 migrant workers who come into country from other countries India Bangladesh surrounding areas these men mostly men and live usually 4 6 room and that basically live work eat in very small area know these laborers working in city that positively flourishing with financial services but those banks never reached dorms on fringes city migrant workers and many them lived in could call banking desert food desert's about food desert about grocery store does that 're less likely bank anywhere near those places and in absence bank workers improvised solution safe keeping that literally will take money and 're only doing construction in that heat 're working in fields and that heat with money strapped bodies might continued strapping cash bodies long were there MasterCard noticed safer place savings and it wasn't under shirt but in workers pockets should be in wheelchair that story and later in show and ideas help Monday can email center scale master card.com that scale and master card.com asked Daniel strategy when set out build Spotify and bring both musicians and fans table was your theory about that inclusion was that oh god this going be really hard actually in fact should be able this because this helps them get internet age well houses really naive be honest and and many other entrepreneurs didn't understand nearly enough it would take get this work really started with this know being your own customer in sense that this idea product that wanted in world and way articulated that team was can build that makes it feel worlds music on your hard drive can create that feeling would built that's much better than piracy 're going get people consume it's now second part that equation in docket shut down obviously it work artists Daniel was clear about product needed deliver but 'd misjudged depths mistrust and acrimony that were coursing through music industry and was about dive headfirst into this treacherous Riptide avoid being pulled under realized needed win trust consumers and record companies and would be Olympic effort remember Daniel said can create that feeling would built that's much better than piracy Daniel wasn't trust going build great build better than piracy music lovers already world music fingertips Daniel would build compelling that it was better than free create better than free one work speed was that excessively focused on those legal download free could be slow offer faster than piracy but wasn't satisfied being fast knew and focused on relentlessly that music lovers would be won lost in first few seconds crying product scratch that in first milliseconds 200 milliseconds be exact did anyone gap between user hitting play and music hitting user 0 be imperceptible reading this book that human brain takes about 200 milliseconds perceive anything said engineering team gotta get this down tune in milliseconds and that time 2006 that was considered crazy Daniel never gave up called crazy emphasis on speed pushed product team relentlessly until made Spotify fast it seem magic and any good magic trick it relied on timely misdirection never got it down 2 milliseconds consistently got it down about half second but when play with such know throb this robber animated symbol that indicates piece software working on and cognitively make it move even before it selves human brain perceives it be instant even though technically it was there's lot that could it got really into details there creating amazing experience that solved end goal but was very clear from beginning that this needed feel worlds music on your hard drive and meeting entrepreneurs today would say it's very rare that hear someone who can articulate and status that product that 're trying build and realize solve that that's gonna be huge one music lover who immediately fell under Spotify spell was Gustav suitor strong 's now Spotify's chief Oren D. officer bully first saw Spotify in 2009 hadn't yet joined company became instant fan me it was really there's loose and 'm did download entire internet computer this amazing it's it be trick know thought it was trick look behind computers this huge hard drive somewhere Gustav join Spotify delete rollout its mobile version 's now overseeing design technology data and engineering believes illusion fast download was sets Spotify apart from free music that was already available offering that consumers it wasn't legal and it was horrible craters but from consumer perspective it was fantastic and this day bars catalog wasn't bigger than any streaming music service question why on earth did Spotify work when people already this Spotify very distinct magic trick magic trick was illusion actually having our day downloaded your hard drive pirate bay website that allows people find and share media founded in Sweden in 2003 anti copyright organization song click that started playing in either now magic trick science fiction author Arthur C. Clarke put it best when said any sufficiently advanced technology indistinguishable from magic every truly great consumer products one magical feature gave it wow factor with test unbelievable acceleration which called with iPhone was multi touch screen Spotify its initial users in Sweden gave it start was this team made them believe speed was Daniel short cut users trust but cement long term relationship with users speed was enough Spotify would prove its worth day after day and hardcore music fans and casual listeners alike this spent helping them discover and share music playlists would be key about original Spotify it really was fantastic product music lovers but only really was it was search box and this playlist too could literally sound track your entire life with play this but be music aficionado few years later there was this company called me go that road in that state could use inside Spotify when set editors who actually created play lists different occasions add playlists dinner with friends barbecuing running back most uses playlisted longs onerous but play listed along use cases and masses now on inside actually saw data saw that while stories doing great these people really good playing this ended up acquiring this company putting them on inside and giving them access actual data where could number skips per song and music playlist form became very quickly world spice foremost data driven editorial team could really optimize engagement hand happened was machine learning wave started happen ask someone who love music this machine could never curate me into wouldn't happen but actually opposite happened analyzing massive amounts data and keeping human curation its core Spotify created approach play lists user's group trust casual listeners tuned in play list workout music tunes summer barbeque hardcore music lovers were shocked low Spotify predicted there takes trust Spotify respond was going succeed long term users trust them with more more time short term before made long term commitment instead pushing them pay Spotify used great free product short cut trust give free product and better that free product more use it more gonna come back this most gets people wanted this office one off line want that once because these which when about obvious but it felt that that 're free products should be good possible caps many people possible and make them engaged possible got someone in who was using music maybe once week didn't it was worth 99 that give them this great free product and started using music more and more more point used this every day easily with 99 instead assuming fine one people who already convinced this machine that creates music lovers worst most rest interceptor opposite 're saying frustrated use much possible 're gonna push them happens push them out Daniel fell short cuts trust with users kept building and building on those long term relationships those still important hurdle needed cross one it would be fatal plans failed clear it needed music industry onboard and this need trust him Daniel decided short cut time it would take get industry trust them offering pirates money offer record companies revenue was would jump on board thinking was well up until that point Napster and everyone else shared any revenues 'm can figure out fairly straightforward revenue share deal with music industry and 'll be happy because know get more than 're getting now obviously it turned out that it wasn't that easy straight deal doesn't cut it when 're negotiating with someone who believes your mortal enemy and that's 's interesting and unusual about Daniel story Daniels disruptor but most instructors actually work with industry's 're disrupting most these instructors reinvent push aside and create own closed loop doesn't work with taxi companies Airbnb doesn't work with tells go 're doing our own and adapt around us but Daniels plan depended upon industry's involvement get rights back catalog needed record industry's trust any needed it quickly in relationship prom Daniel make first dance gesture that would sweep record companies off feet offering revenue share was enough asked him ultimately got them on board go into that without getting know come licensing buy in from labels and artists scale possible it was really really tough socially told them Hey should really give away your music free and",
458      "recording_transcription_org": "on this podcast we talked a successful launch bearers about their strategy for cheating massive scale but there's 1 here a scale that I've long admired we have to talk about the bases of the tires on a single proven method a method that works again and again that hero is public broadcasting and it's winning nothing is the pledge drive think about it there's no indication that your customers will love your product them giving you money when they get the product for free anyway taking inspiration from this model I present to you the masters a scale 2018 pledge drive it's not your money we want it your words it matches the scale has helped you paid for by leaving a review on apple podcast which helps new listeners find us our pledge target is 1000 new reviews on apple podcast by October 31 like any good blood drive we have an incentive for you our favorite review will have the choice between 2 amazing guests of appreciation from me choice number 1 a signed copy of my forthcoming book blitz scaling lodging October 9 choice number 28 track cassette tape collection volume 1 of Nash's a scale greatest hits green is a magic number match.com okay tweet a review you right on apple podcast to act masters the scale for a chance to win all the reading the reviews and sharing my favorites here so make that pledge now and remember this podcast is only possible thanks to listeners like you disclaimer prize number 28 track cassette tape collection of reed Hoffman's greatest hits is a rare and sought after collector's item it is therefore highly likely that it will be stolen by a ring of international crime obsessive music aficionados before the prize draw and will in fact be able and now on to the show where you get to explore theory with Daniel lack of Spotify but the episode starts out somewhere else entirely sky active and later this guy in front of 60000 people once about 6570 miles an hour it might come in about those water my name is Myles dasher I am professional parachutist Eagle Scout base jumper friend of the community I hope you have your copy today because miles as high energy in fact his idea of an early morning pick me up is to climb to the top of the really high place and then leave right off in our sport role a little tight they were a little hungry is kind of like right around wanna jump on this I'm ready to do this and that's pretty much all we think about when we drive around tall objects we can jump off of it like over there on the corner perfect and look at this landing area it's great awesome miles is done over 8500 skydive and 5000 base jobs but unlike the ancient Greek tale Icarus miles humble when it comes to his own knowledge he knows it humorous can lead to a downfall that could be literally deadly when you're flying to Paris you you're just dust in the wind if you got a bad guy feeling about something you know that gut feeling got you here you know that's what made you survive your whole life until now so trust your instincts trust your gut and sometimes it's good to just back away from jobs it's not just his own abilities that miles these have absolute trusted but those of his jump partners in one episode of his web series called miles above miles in his teammates and jump on a plane in wings criss cross each other as the the stakes are sky high one wrong move one error of judgment would cost calamity as a team we're basically trying to take the sports that we do to the next level like what kind of change things up to where we take our pilot Kirby Chambliss at 540 world champion pilot he loves comes guy with us too will take him and put him on the back of a can for the swimsuit and we came up next to a more high fiving Kirby it may look like it's all fun and games on the videos where we come in we just laughed and high fiving but it took a lot to get to that place and not just like skill that we've developed but an immense level of trust where you are trusting each teammate to make the right decision and to not basically fly into you and kill you you know how do they develop that cast our level of trust in the fast paced world of skydiving is not always the luxury of time so miles has to rely on short cuts you got to make a judgment calls you know on a moment's notice when you just meet somebody okay you're gonna fly your airplane around me while I'm flying wing suit and I've got to trust you not to hit me with this any part of the front your plane so but you know the world champions you know their background is good but then if if I don't trust their eyes will only say give me some space you know and that's life that's that's for everybody that's not just got I've been in flying well as I always say trustee because consistency plus time Lee often said trust is the consistency of what was that how that go again the name's read.Lee and I was crushed equals consistency plus time consistency plus time that's a good formula we often man he's a he's an analyst you figure that stuff out I thought I analyze stuff too much yellow white Nikki's like you always over really stuff lastly often about that formula honey I think he's figured it out good job man thanks miles cool man whether you're spending new sky at 10000 feet or trying to do something more grounded there will be times you need to build trust that's because trust is a fundamental component of any functional relationship but is also one of the most difficult to build I believe that to quickly build the foundations of a long term relationship you have to find short cuts to trust you don't have incredible talent at every position there are fires burning this is a masters of scale and lucky to have the MasterCard center for inclusive growth partnering with us to make the show possible here's a story they want to share with you I was thinking about my grandmother who is from India all Indian people know that where does grant my keeper cash she full little ball and she sticks it in the inside of her blouse right that is the safest place on earth in grandma's blouse that's Broadmeadow he's the executive director of the MasterCard center for inclusive growth the philanthropic arm of MasterCard broad would argue that the safest place for cash is not actually his grandma's blouse with a bank account that is a very dangerous situation for Graham IBM products grandma isn't the only one keeping a little cash under the collar his colleague should be missing has heard stories of migrant workers who collect all their savings under their shirts until they can send it home sometimes they even fastened it to their skin when we started doing the research we realize that they would actually take the money to their bodies so who are these workers who use their bodies to bank Ximena will share their story later in the show if you or your company know how to build economies that work for everyone the MasterCard center for inclusive growth wants to talk to you they're looking for partners among the masters of scale audience email them at scale at master card.com that scale that **** card.com I read off founder of linkedin investor Greylock and your host and I believe the to quickly build the foundations of a long term relationship you have to find short cuts to trust this is especially true if the relationship in question is rack with suspicion trust is normally build upon the simple foundation consistency over time but is a problem for anyone who hopes the blitz scale a slow moving blitz is an oxymoron who often can't wait for trust to develop at its natural rate so how do you remove time from the establishment of trust you have to find a short cut it's like the tentative first dance at the beginning of a relationship you have to transition awkward slow dance to a self assured quickstep without putting off your suitor needy really sure of the others intent is your potential partner in it for the long term only take you for everything you've got as soon as your guard is down when companies partner because of the same kind of courtship but it's hard to even get on the dance floor when your partner sees you as a mortal enemy in these cases you need to be able to make a sweeping gesture to win that first dance dazzling and not just with your own in a bit of moves but by making them look great to test this theory whose news I talked to Daniel lack founder and CEO Spotify when Daniel founded Spotify in 2006 online music piracy was at its peak in the record industry was losing the fight Daniel had a vision for a free legal streaming service that would put the world music at listeners finger tips it would trial over piracy and would set the music industry unfair of course that would give record companies and artists their fair share of all my music revenues but to win Daniel would have to learn users away from pirated music which they already had for free he'd have to persuade record companies to set aside their inherent mistrust of all things digital and get his free service their blessing in both cases he had to find short cuts to win their trust for Daniel trust is more than a 5 letter word it's a concept in a culture he grew up and there's something called at all levels that's literally translation every minutes right and this comes at the core switch so for instance if you own a piece of property people are allowed to walk your property if the property is large enough to actually even allow 2 tents at your property for 2004 hours every man's right is a very Nordic notion of the social contract one that sounds kind of crazy to American years try to imagine yourself walking on a someone's property in the U. S. H. in a tent and proclaiming it sure all amount to read as you roast marshmallows over an open fire kilo how that story but the Swedes have a totally different conceptual framework you can grow up in it to fully understand it and this is less than one about trust it has different bass lines across different cultures in Sweden for example everyone's tax returns are publicly available this notion of private versus public just doesn't exist to the same extent like all income is public in Sweden like every single one so I think that plus the fact that it's such a small society means that the number one thing the whole society is built on this trust like you can't screw people over like you have to honor your agreements Daniel sees this deep Swedish concept of trust has an advantage and it's fair to say we sweetener thank for Daniel's lifelong love affair with music it started with his family it's one of those weird families like a normal family so you will get a college degree and that would be like the important thing not really in our family in fact no one had a college degree but having a music education was super important but it's country make sure that no child left music behind in in Sweden where I grew up there's actually free music education which I think explains a lot about how music is so big in that country and why it's such a big export for us as well you get taken to this place when you're about 4 or 5 years old and you walk around and you get the sample every instrument you can imagine so I walked around and I saw people playing piano myself people into flutes I saw people all sorts of things at the sitar and this is the guy can speak and then one of the rooms was this person was playing the drums I saw that it was like holy **** this is amazing I really want to play the drums 5 year old Daniel was blown away by the possibilities but there was one inescapable reality my parents because I wasn't really that into music at that time nor did I really want to do it they said you can take any instrument you want I said I want to play drums this so well any instrument you want but the drums because we were living in an apartment and we didn't want to get it fixed it Daniel turned to cool older cousins for advice he had told me that I should pick the guitar this is the guitar I could actually have a shot with the girls and as a 5 year old I didn't know how to shop with the girls actually meant I thought he was a pretty cool guy set it up playing guitar and and that's the story of how I started picking up the guitar and so when did you start picking up programming and then what what was there any connection between music and programming at that time no it wasn't really any connection between the 2 it was a C. 64 C. 64 is also known as the Commodore 64 it was an 8 bit home computer popular in the 19 eighties with a cassette yes with a cassette scene in the and then one day the cassette broke the actual player broke down so I started deconstructing the player and figured out how to fix it next on the computer broke down I I took it apart and then put it back together again and fix that got a bit over confidence so I ask someone who was an engineer what's the hardest thing to learn and the person so well see plus plus is probably the hardest thing to learn C. plus plus is a computer programming language it is indeed one of the hardest things to learn so by age 9 I thought Hey I'm gonna learn how to program see plus plus and about 40 pages of code later I could construct mouse cursor the moved around which felt like a lot of work for something relatively simple so let's talk about your first entrepreneurial venture probably like 1997 or so people started talking about web pages in suite at least that was kind of the craze that everyone should have a web based so 1 day there was someone who asked me if I could create a web page for them I don't know how to do HTML and I certainly didn't know how to do anything in design so my instinct was kind of the same note the person kept coming back and asking me again if I can do it and so about the third time the person ask I decided to just take an absurd number that I can think of just to make sure I get rid of the person sigh so well it sure I'll I'll do it but I want $5000 to do it and the person said don and I'm like 0 holy and I actually have to learn how to do this Daniel built those web pages and he built the well word spread more people sought him out he raises price the $10000 and they agreed to pay what happened next is 1 of the most audacious examples of scale I know of especially for a teenager fast forward now like in later stages in elementary school so I had like all the people in my class that we're good at math I taught them how to do HTML for me and the people that were really good at the sign I thought the photo shop so I was basically would like running an illegal sweatshop from when I was like 14 and that was the start of my entrepreneurial career well wasn't so much as a sweatshop because unlike you know classic child labor things which is like our working 12:00 hours a day and so forth this is very high priced goods with skills that help them get how the entire careers later and so forth so you know the entrepreneurial side of this is cool like what would normally think that when you experience this much success early you would just keep doing it so what because you kind of go look like this is great I've got a huge income coming in I did that tunnel on what what what was the thinking what I started off doing was I bought like the TV I wanted I had bought the guitarist that I wanted and I got the computer that I wanted and eventually I ran out of things to buy notice that among all the material possessions he lists Daniel the music that doesn't mention buying records for CD's it's not because his love of music has died quite the opposite Daniel was listen to more music whatever but like most people across we he was buying less of it aged music piracy had begun and sweet was leading away thanks to government mandated brought the country was way ahead of the rest of the world in terms of internet speed music files it took hours to download other countries to be downloaded in Sweden in seconds we can use the vast free access to stolen music and Daniel was no exception he did more than super sizes music library call the pivotal moments when I realized that I wanted to work with the internet specifically and not just the software developer was the first time I tried Napster Napster was a file sharing service that launched in 1999 it was infamous for allowing people to illegally share huge amounts of copyrighted music for me it was like really at a pace that he up until that point theater that was mostly about Caxton maybe some blinking gifts and all the sudden came this Napster thing which enabled you to get access to the entire world's music and for someone who's really into music it was hi discovered so much great music from its and when he got shut down I figured that you can't put the genie back in the bottle so something like it must exist Daniel was right the genie was out there was no going back despite the best efforts of record companies Napster may have been sunk by a legal broadside in 2001 but others sprung up to take its place the genie had granted every music fan the wildest dream no less than every ever recorded for free the record companies wanted desperate extremes to stop it they sued piracy services and even private individuals meanwhile artists from Britney spears to Metallica railed against the illegal downloaders saying it was as bad as shoplifting CD's musicians had lost trust in our fans and fans lost trust the musicians trust was an all time low across the board and this was Daniel's opportunity I thought long and hard about what I was passionate about and what made me get into technology to begin with finally enough I took a stand off for a few months and just played guitar like SO on the road with the Swedish artists so I was kind of like doing more soul searching than than anything else and we came back to me was like add these 2 passions in life music and technology and so they started dawning upon myself like why haven't anyone like fix this planet anyone made then Napster things work both for consumers and work for artists as well from his outsider perspective Daniel saw that music consumption had become a 0 sum game a war between music fans and music companies or one side had to win at the other side how to lose Daniel believe this could be fixed but have to get both sides to trust each other or at least to trust him we're lucky to have the MasterCard center for inclusive growth parting with us to make the show possible will give them the next word we're back which should be the same president of the MasterCard center for inclusive growth she was telling us about a group of workers who have to take cash to their bodies the migrant workers living on the outskirts of Dubai there's about 4.7000000 migrant workers who come into the country from other countries like India like Bangladesh surrounding areas these are men mostly men and they live usually 4 to 6 to a room and that basically live work eat in a very small area know these laborers are working in a city that is positively flourishing with financial services but those banks had never reached the dorms on the fringes of the city the migrant workers and many like them lived in what you could call a banking desert like food desert's we think about food desert think about grocery store does that you're less likely to have a bank anywhere near those places and so in the absence of a bank the workers improvised a solution for safe keeping that literally will take the money and so they're not only doing the construction in that heat or they're working in the fields and that heat with money strapped to their bodies they might have continued strapping cash to their bodies as long as they were there the MasterCard noticed a safer place for their savings and it wasn't under their shirt but in the workers pockets should be in a wheelchair that story and later in the show and if you have ideas to help you Monday you can email the center at scale at master card.com that scale and master card.com I asked Daniel by the strategy when he set out to build Spotify and bring both musicians and fans to the table what was your theory about that inclusion was that like oh god this is going to be really hard or actually in fact no we should be able to do this because this helps all of them get to the internet age as well houses really naive to be honest and and like many other entrepreneurs I didn't understand nearly enough what it would take to get this to work so really started with this just you know being your own customer in the sense that I had this idea of the kind of product that I wanted to see in the world and the way articulated that to my team was what if we can build something that makes it feel like you had all the worlds music on your hard drive if we can create that feeling we would have built something that's much better than piracy so we're going to get people to consume it's now the second part of that equation in order to docket shut down is obviously it has to work for artists Daniel was clear about what is product needed to deliver but he'd misjudged the depths of mistrust and acrimony that were coursing through the music industry and he was about to dive headfirst into this treacherous Riptide to avoid being pulled under he realized he needed to win the trust of the consumers and the record companies and would be Olympic effort remember what Daniel just said if we can create that feeling we would have built something that's much better than piracy Daniel wasn't trust going to build something great he had to build something better than piracy music lovers already had the world music at the fingertips Daniel would have to build something so compelling that it was better than free how do you create something better than free one work speed the thing was something that I excessively focused on all those legal download for free could be slow we offer something faster than piracy but he wasn't satisfied by just being fast what he knew and focused on relentlessly is that music lovers would be won or lost in the first few seconds of crying as product no scratch that in the first milliseconds 200 milliseconds to be exact did anyone of the gap between the user hitting play and the music hitting the user 0 to be imperceptible reading this book that the human brain takes about 200 milliseconds to perceive anything like at all so I said to the engineering team we gotta get this down to tune in milliseconds and at that time the 2006 that was considered crazy Daniel never gave up his so called crazy emphasis on speed he pushed his product team relentlessly until they made Spotify so fast it seem like magic and like any good magic trick it relied on some timely misdirection we never got it down to 2 or milliseconds consistently we got it down to about a half a second but when you play then with things such as you know the throb or this robber is the animated symbol that indicates a piece of software is working on something and you cognitively make it move even before it their selves the human brain perceives it to be instant even though technically it was so there's a lot of things that you could do it I got really into the details there of just creating an amazing experience that solved the end goal but I think I I was very clear from the beginning that this needed to feel like you had all the worlds music on your hard drive and then meeting entrepreneurs today I would say it's very rare that I hear someone who can articulate what the and status of that product that they're trying to build and we realize if you do solve that that's gonna be a huge thing one music lover who immediately fell under Spotify spell was Gustav suitor strong he's now Spotify's chief Oren D. officer bully first saw Spotify in 2009 he hadn't yet joined the company he became an instant fan so for me it was really there's a loose and I'm like how did they download the entire internet to my computer this is amazing it's it must be a trick you know I thought it was a trick look behind the computers like they have this huge hard drive somewhere right Gustav join Spotify delete the rollout of its mobile version he's now overseeing all design technology data and engineering he believes the illusion of fast download was what sets Spotify apart from the free music that was already available the offering that consumers had it wasn't legal and it was horrible for craters but from a consumer perspective it was fantastic and to this day the bars the catalog wasn't is bigger than any streaming music service so the right question is why on earth did Spotify work at all when people already had this right Spotify had a very distinct magic trick the magic trick was the illusion of actually having all of our day downloaded to your hard drive pirate bay is a website that allows people to find and share media founded in Sweden in 2003 by an anti copyright organization so whatever song you click that started playing in either now is the magic trick the science fiction author Arthur C. Clarke put it best when he said any sufficiently advanced technology is indistinguishable from magic every truly great consumer products AS one magical feature they gave it the wow factor with the test unbelievable acceleration which they called with the iPhone was the multi touch screen Spotify for its initial users in Sweden gave it start he was this team made them believe speed was Daniel short cut to his users trust but to cement a long term relationship with users speed was not enough Spotify would have to prove its worth day after day and for hardcore music fans and casual listeners alike this spent helping them discover and share music playlists would be key if you think about the original Spotify it really was a fantastic product for music lovers but only really was it was a search box and this playlist thing too so you could literally sound track your entire life with his play this but you had to be a music aficionado right a few years later there was this company called to me go that road in that state you could use inside Spotify when they had a set of editors who actually created play lists for different occasions so they add playlists for dinner with friends for barbecuing for running back then most uses playlisted longs onerous but they kind of play listed along use cases and kind of for the masses now we on the inside we actually saw the data we saw that while the stories are doing great these people are really good at playing this thing so ended up acquiring this company putting them on the inside and giving them access to the actual data where they could see the number of skips per song and how the music playlist a form as they became very quickly the world spice foremost data driven editorial team could really optimize for engagement hand what then happened was the whole machine learning wave started to happen if you ask someone who love music this a like a machine could never curate for me into a they wouldn't happen but actually the opposite happened by analyzing massive amounts of data and by keeping human curation at its core Spotify created an approach to play lists the user's group trust casual listeners tuned in for play list of workout music or tunes for a summer barbeque hardcore music lovers were shocked by how low Spotify predicted there takes okay trust Spotify respond if I was going to succeed over the long term users have to trust them with more more of their time over the short term before they made a long term commitment instead of pushing them to pay Spotify used a great free product as a short cut to trust we give you a free product and a better that free product as the more you use it the more you gonna come back to this the most thing gets people they wanted this office just a one off line they don't want that so once because all these things right which when you think about is kind of obvious but it felt something is that that you're free products should be as good as possible caps as many people as possible and make them as engaged as possible we got someone in who was using music maybe once a week or something they clearly didn't think it was worth by 99 that we give them this great free product and they started using music more and more more at some point they had like I used this thing every day easily with my 99 so instead of assuming a fine of one of the people who already convinced we have this machine that kind of creates music lovers worst most of the rest of the interceptor opposite they're saying like what if we frustrated for use as much as possible surely we're gonna push them over what happens is they push them out Daniel fell short cuts to trust with his users they kept building and building on those long term relationships those still important hurdle he needed to cross one it would be fatal to his plans of the failed to clear it he needed the music industry onboard and for this they need to trust him to Daniel decided to short cut the time it would take to get the industry to trust them by offering something the pirates had money if we offer the record companies some revenue he was sure they would jump on board my thinking was well up until that point just Napster and everyone else just haven't shared any of the revenues so I'm sure we can figure out a fairly straightforward revenue share deal with the music industry and they'll be happy because you know they get more than what they're getting now obviously it turned out that it wasn't that easy a straight for deal doesn't cut it when you're negotiating with someone who believes your mortal enemy and that's what's so interesting and unusual about Daniel story Daniels a disruptor but most instructors don't actually work with the industry's they're disrupting most these instructors just reinvent push things aside and create their own closed loop over doesn't work with taxi companies Airbnb doesn't work with tells they just kind of go we're doing our own thing and you have to adapt around us but Daniels plan depended upon the industry's involvement he had to get the rights to their back catalog he needed the record industry's trust any needed it quickly in the relationship prom Daniel had to make a first dance gesture that would sweep the record companies off their feet offering a revenue share was not enough I asked him how he ultimately got them on board don't go into that a little bit without getting the you know come of the licensing of the buy in from labels of by and for the artists scale not possible it was really really tough I socially told them like Hey you should really give away all your music for free over here and",
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477      "recording_transcription": "archiving across floor and 'm really listen prime minister's speech on start up India on Saturday 's this business and also us get good sense good gotta out was 'm gonna kick off with talking about talk about and that area and that's that's ready comfort zone and dedicated in sense that 've experienced that many many times and lot people get sense failure actually close back figure out know but know from that perspective your starting comments and would tell young people about failure and why need wait there's there's 2 parts this one S. . 'd probably start with call champion's mindset champion's mindset lot word champion famous sports star and it in US might Michael Jordan lebron James going and dumping on somebody it differently and it well when get on field put everything into it put every ounce energy on field leave nothing on field into when get knocked down because 're entrepreneur inevitably will be when hard times get knocked down get back up and keep putting everything got into it and keep getting back up when get knocked down it's almost impossible fail that's good sit in with rear view mirror and but basically risk taking bit capacity that's most people would in mind but there's second keys this which know failure can be state mind but there lack success 've situations where keep getting knocked down 6 years strictly keep getting back up everybody thinks 'm crazy and it's really about assess risk and know lot lot times people say oh when 're when 'm when 'm recruiting somebody into team early on and 're well know this going work out big risk me given 'm doing now and 'm 're really smart mama know roof your head family 're in pretty good situation keep food on table this doesn't work out there's 1000 other companies that will hire 's rest and when start up very similar which passionate about idea and that could magnificent beautiful and want make it real 're smart and way 're smart know should be know should be out print because but 're smart it doesn't work out there will be on other side that and will be way better and way smarter having tried that nobody else try and that's it and about risk differently and about failure differently and when when it scale and general prime minister really went there know can 1000000 problems but 1000000 great and real change can come lot people asked me 's your biggest failure and normally tell them that point in time it looks it's because failure and moment passes and 6 months later can laugh about it can from that point view ever referenced context where can identify your biggest failures it moving time first company got sued quarter $1000000000000 with that which that with GDP that time was G. P. S. with that time give 3 that was failure shut company down know hardest ones ones where where resources get tight that actually Oscar there actually definition failure lot people ask me when when when stop 're doing and say maybe this isn't working out and say well first believe in keep believing youre doing keep going but there's one other criteria keeping going means going severe physical mental damage yourself and should and last company got that point know 8 it was success me mean ultimately sold it large company out Boston called aka but was that point 7 years and it was really hard times and knew that kept going in this little blip success started that was Mirage knew would go would would start go crazy real failure people many us it it more when company fails it actually real failures when few fail because can differentiate that time that can make difference companies will fail ideas but failed make mad lot people going that scary when 're dressing 0 B. but need go but real fate when your conviction fails but 's your zip it depends one that failure when maybe when least feel failed when didn't put everything into problem really it goes back analogy needed beginning put it out there put everything got into solving problem that's failure in book that can make that get knocked down and still believe in 're doing and get knocked down and get back up because 're scared that me and other well sometimes because maybe it's say can bend reality but can't break but know there there's also when know that's failure guess it could be tried and it didn't work out and also when get that breaking point when can longer get back up young that 'm going switch know lot people coming and 'm good say there's bay area and that's said bay area this Beijing and there's back alone said it's 3 days 3 days our Indian innovation it's longer Silicon Valley that there will be Hobbs tech technology innovation Hobbs global hawks in world every city go library be next Silicon Valley on 're and except 3 days bay area Beijing and lower and that good statement that that 're saying because 're in India really believe actually that this point Banglore can get base city mean from very serious point mean took look many people graduate from this institution every year law account any many many dollars 4000 one best engineering institutions in world putting out that many that many heard 10000 but 'll call 50000 short and get it may there across country many great engineers in our our graduating every year may even be in hundreds thousands and that quality mines coming out engineering institutions phenomenal need start building start and 's happened that start up environment in ecosystems in India grown up last 10 years global funding environment well sorry start up funding and Martin Biron going global used depend on local people in your local community get funding but now literally global investors whose main investing in India but again critical about that addresses skeptics discovered but 's trigger innovation well mean this could happen in 19 nineties India grab in 2 thousands and now in 2016 why this time trigger that's missing still that happens in that area does instead there's lot fuss about bay area and it limited much drama because that goes generally look it look that it's been building up time and inflection point me was was in San Jose which in bay area was this 4 months ago and prime minister India general prime minister was was there speaking any speaking next C. O. Microsoft CEO Google CEO job and few others and these were sons India and went went U. S. make dreams reality but decades ago in in room could feel electricity that major hair stand up on back in reason why because those guys who India chasing dreams way more exciting and room was way more electric and even emotional because that dream was coming back and and me that's when knew that there was moment that it felt technology and innovation where India was about be on world stage and actually people who graduating from T. going be in main house and that's it and job always first future and better be entrepreneur else will lose that's one that say that's encouraging come on many us going stay back and innovation and maybe want go abroad and innovation well there's fair amount and still bit with that but that's fantastic that was know Austin that's changed that many years agree me that was that was eye opening me that was moment in time that will always remember about me realizing that innovation about go global in very big way and me that's exciting because that's texture that's that's that's worth living and in these countries celebrate hundreds cities and it's really awesome be part this hub innovation also hub engineering and else and were privy day with on start up conference that was there which would felt equal amount electricity and energy that plays there did in in valley Democrats also but felt that there too was amazing and your message out everyone especially engineering students many them want obviously be clear that want innovate and very different them want be on them them want change world and 's couple lines that can inspire them well know know it it really goes back it means be entrepreneur because once once go that direction it starts happen people say when did become Oscar Mike was born that way it's it's DNA saying it it comes down in way on screen actually about going looking world and finding problems it's actually 'll that's negative mindset but actually find it it's it's curious minds that 're out there looking problems looking that aren't way should be could be curiosity one there's fierceness go may find find upon that fall in love with and it's fierceness go solve and really push want it got question telling hurts because it's hurting and somebody else going push harder and 're going it and 're going be sitting there going wow that looks amazing and can be sitting on sidelines but it's constantly looking that makes somebody else go wow somebody else get excited and interested in idea that becomes real and once find that's hard that also make somebody go wow that green 'd damn that's awesome tapped into blood stream innovation there's lot people because when under pressure goes different level normal calling card most people 've got great idea know and everyone pauses thinks stop and listen because greater share and that's really challenges because from that comes grounding majority whether that because there's lot work that goes behind that 19 've seen that in places where been before your time 've been pioneering and there's small sliver genes that can happen there that sense that because got great idea and few people people anyway in rooms it's gonna really good idea 's up thought process on getting everyone's clarity because otherwise this bubbling center enthusiasm that got great idea everyone's got pause in this well mean know it's again it's got good idea look everybody's got good idea know now every idea only good idea but people good ideas look uber good idea push button and get ride know were first person ever that idea but first person it and and got it go it got get out there and go it it's easy idea straightforward but 've got enough guts go out there and try and that's that's way entrepreneur general assumption with everybody 're going great vision this long drawn out vision and got be very clear about that big idea in sense but get sense and this conversation between car that ideas need first get executed and need breed them need grow that perception very strong that most people feel 's your 's your grand vision and stated that investors come in and say 'm getting exactly 's your big idea 's big picture 's your sense on articulation high importance that articulated that outset 's your big vision well there's 2 situations can be and mean going on fund raising when 're when 're doing uber very different because 're that curb goes up into that's got me and it's strange get funding harder funding when that occur and 're trying convey that that curve exist without any proof that it does and become phenomenal story teller really get into guts makes idea good and can capture imagination your customer well well certified transitively your investor storytelling becomes big part that and that's important when 're getting going but it looks it's almost critical because and talk lot people when say actually communicating your idea whichever way can figure out way in which 're going be need be best up but need figure out gonna communicate your vision but storytelling comes up lot and that's part innovation lot people that says but 'm 'm inter but 'm good story does that mean 'm gonna give blow out there but always second ranked will be able raise amount funds well look can't communicate probably should get co founder case that's good one know that and know this call this one our cultural values Hoover's called always hustler come India talk team say say hostile entity and 're guys and now got this India motto always did got it know look even 're introvert got hustling better get co founder dice and know possible find co founder that's got hustle got it given problem it's gonna be tough got little hustle man gotta get out there does nice little go on in there and know make **** happen 9 need great idea need funding and need counselor taking ability and need go farther need get great communicator did did god either that will get your final that gets lot that will get working when maybe it's quite work in which way way entrepreneur limited resources and gotta make **** happen and it's going it's based on say it's know it's it's hours days it's minutes hours that got and 'm 'm gonna come that 've got it that's 10 use been using know know 'm **** it up but it's still fun and 're gonna questions later on many want send it send it with hashtag that says dog house doctor Dugard does that did become doctors would go through with but be on doctor guide us and our government it that's that that's where questions coming from end hope 'm 'm gonna come in and middle up after that that's really but know want put caution otherwise really good word which everyone in India this speaking that's possible rise came from India and and 've got another word that comes from India's was likely begun only but it actually means frugal innovation and it's true sets in there go out lot people in India interpretation sometimes sounds it's short cut and that's really where big challenges and that's strong message that needs it's it's say know in US say turn lemons into lemonade but 're always need got it Turkey Turkey make lemonade out there that got was noun made it above again got 1000 but knew apologize 'm going too far but 'm sorry it's going start did get it this amazing good conversation about scaled down and chat with acts in car decent conversation about fact that need big after country 1.3000000000 every problem that 're going solve good news going solve it scale bad news 're value driven country 're going US dollar equivalent one put in and anything else that one know but gonna big thank very much demand said that was really that essentially can come up there and stop planning with big and scary from that point view and got it happen thought that resonated with me very much but expand on fact lot people with thinking scale part 're getting into business now looks sometimes talk people in entrepreneurial world 're man 'm looking next big saying got this ID kinda know it's commerce cross was social but it's got this mole Twix hi talking about man best way this and this me look 'm biased this way doing it but best way follow up with idea fall in love with idea and go after it and when that winner lose know get knocked down get back up on happens put your into it it's it's worthwhile endeavor and gotta get smarter every day because fall in love with might be exactly it needs be aware but start there and journey becomes worthwhile because it's going be hard in it 're into journey fire it's it's E. commerce with social twist in that love it and 'll give up but got limited resources need evangelize need hire people gonna come him off vision than salaries because want get top salary that Klay and 've got love it's much easier than much easier younger that was going against Oscar that doesn't who really obvious who wins that one night in close call it's know 're in high school and well said can really bad now but will lot people general perception entrepreneurship and start ups about wouldn't needed new economy in E. commerce companies and general perception go out there your top line need but blow those companies and body that comes from invested talking come our topics invested but guess want communicate message 'm talk about when enough enough mean when look in organization company that says 'm gonna give free 'm alright discountable house come home when that balance growth versus profitability and when those intelligent conversations but more less when say enough enough yourself even before invest man wait your investor tell anything that worst ever tried building business playing chess that board 3 dimensional chess figured out exactly that but 're playing chess and should 're doing it 80 hours week and 's should know lay out board and should be 5 6 moves ahead in investor that comes in once month once quarter one wants give advice give very good listener but can't come in and look chessboard any friggin idea move because even play chess even show getting money even that blows but it's it's good play chess and 're coming in giving advice on next move should be and your job Oscar winner be expert chess player in move far that when get question from investor basically got that's interesting thought about it but 's 1800 reasons why it doesn't work move that 3650 reasons models and when explain full complexity other and it hour and 20 minutes 'll never get question from industry that's why need Obama that's going communication everybody that know that introvert in server can explain that that's from 18 hot this hustler co founder one that got investor in first place and coming back 45 first one only one which was when enough enough in business cycle when actually interest back on that mean look say subsidies when it comes cocking calmer subsidies and large burning cash Chinese invention and it's it's pretty interesting innovation one learn about know build profitable businesses but China fiercely competitive and because that put everything got and plus cash guys because well that upsides gonna be very huge and in ways India's become fiercely competitive well and that way and ask yourself well well first born entrepreneur that's used building profitable business that uncomfortable place and can try in compete it and try try contain irrational when try say well guess spend this much because competitors spending that much 'm gonna 'm gonna spend every single one those dollars say it was 10000000 100000000 0 it 'm gonna spend every single one those dollars every single one those movies and spend it more efficiently than other guy and that go in your make more cash than them ace and go and spend every dollar more efficiently in and world will become rash and say well much spend because other guy might spend lot more more quickly and about in terms well there's it's very complex game that gets played but essentially 're on your own and say much put in and and when stop and be there been investment pieces say going be on this investment capital which sounds very PC but game end day does give that need get funded and again because that's different cycle from travel different but want spend money that doesn't why end it 'm gonna put money on table know 'm gonna lose it lose percentage it and it's worth competing investment 're making doesn't positive wider than chance possible ask on demand button can committed $1000000000 India and would 're pretty much nearing end 's entrepreneur when finish that going double up 're gonna pull back and everyone else digest that and go forward could get full return spending 0.5000000000 instead 0 will can get access return spending 2000000000 instead sorry get could get 5 X. return spending 2000000000 instead one most well and constantly ask yourself nature chess game being played in one returns winning and likelihood winning and costly ask yourself that strategy 're going win and essentially going positive expected value that comes out it statistical probabilistic approach plus guys and vision and swell there talk about investors and know your your read your fashion run in with them reasons and 've been quite cryptic about saying 's put them 1.5 was given that tour 3000 reasons why one was lovely reasons why 18 and 3 and 3000 why this move will and that that would change that enough times your board meetings little become updates it's amazing 're much worse skeptics will say that's fine because 've reached certain success level can tell your investors stay bay but that's everybody else can across board but another move when 're getting started when board and aren't going well another and that still these still chessboard but because 're succeeding can't really drop line know mean this great it's amazing but still stock and when ask questions get email which question and move answer away sit on email 2 3 days almost point where forget and when remind me now and get in this learned this learns where it takes where basically start asking fewer and fewer questions 's worst can and literally in Silicon Valley really high profile CEOs that run multi $0 companies and 're having issues with board and 'm did this this one asking where respond away 'm because it's another question comes in another question and 're working 're explaining chest and 'm from that perspective that's good interesting experience with with Michael Ovitz and with mark Cuban different stages in your area and can buy cryptic about them in public auto know but now 're this stage life moves on point man when when in tough times Oscar our way harder than when it's 10 years ago one 10 years ago 'm got swagger 'm telling funny stories and it sounds great but when 're in it your sweat and know make it sound easy and fun but guys it's only fun after 5 years therapy say it it money does buy happiness but it will pay therapy everybody body told me that overs testing nap with helicopters with Airbus that that announcement that that that somehow got out there mean point know can push button and get ride one which why heck up when push button and get ride that's more fun mean it's 're beach ball out well maybe can blow it out and it's amazing but that come out need wear one your best needed get it and know that was that was Glen your honor that with area would it be hilarious push buttons 7 minutes later was in helicopter that would be pretty cool that was it it does start up anybody wants start go work 'd decrease this idea anyone can try that and it goes this push button and go Mars it's cool another anecdote and that was that 've got moved out written out scene in social networks there's one on one your one your proudest moments was that fun moment was that mind being written out who's did that happen and guys seen social network movie there's scene there's scene where Sean Parker's meetings covered restaurant Zuckerberg this when first meet soccer Berg co founder and Parker greens one friends girlfriends that and why was girl in early hours now saying and was and when was pretty girlfriend and while was there and and know mean basically met mess up when was still when was still in harbor it was only few weeks old it was done Facebook it was only few weeks old and yet time and girlfriend fine and and and would always talk about interesting ideas and this and didn't money moved in with girlfriend because didn't and didn't tell her that oh god saying C. mobile camera base it would send any money invest anything this does own would call out and told her left dinner and told her and said met this March 20 year old on planet 's girlfriend today 'll still vouch it sounds good too much information TMI 're gonna break out questions wanted chat on couple more one sense that lot people success plan plan that everything's going go that's your plan mean got be confident that your works and that it's going work plan success and cheese and sense that want your issue and that that sometimes need survival plan along with success and it's that balance off because success plan cost always stays cost room always come down and in way look that success plan versus survival plan look it 're playing chess there's different plans there's different strategic approach 'm gonna try this risky approach but it works can really kick **** 'm gonna try this one which conservative and 'll get out lot but know when talk about test ban it almost sounds 're master mind sitting there but build organization logic teams everyone going be in such with and your 300 people 0 people and more does that translate itself down because it's your chest plan but it's everybody that part chess match that part part part game there called 3 dimensional 6 dimensional chess but point problem that needs be solved everything's problem in these be solved and that's why 'm pro engineer because engineering curriculum about rate fault lines down and building it back up and master problem solvers and should be best entrepreneurs in world and usually exactly only remember one question that was that was but it's more success Lambesis survival on but deciding about questions and last one really on both phones because started advising it funny know that your first companies started 6 co founders internet moment in middle somewhere and there's 2 co founders 'm leading bald averages but 's way about it 6 co founders it on it would basically 6 hour meetings on color pain should be it was insane can co founder but it depends on your personal style it alone it will be in cruel radically lonely got be up that specially hard times can get one say me there's 2 3 but 6 should one co founder and 2 ideal because know still got 50 percent pretty good having co founder seems be pretty critical know it's necessary absolutely necessary depends on your style it depends on your personality it depends on it depends on lot but it's mostly about being lonely top it's mostly about hard times somebody jam with and that's helpful especially when it's small and it's hard times when it's big 're gonna lieutenants and whatnot that 're gonna really good relationship with but when it's small and it's tough that's when that really nice and it's in last company start with co founder but got little weird and it was me on own and and that was that got really hard in hardest moments and important culture in organization that and 've 've been checked with your colleagues say culture in brief conversation 've it itself completely with fascinating team did ever hear them and know 've been vocal about them too but important culture because most people it's concept when your 500 people strongly believe conscious that's ready when well it really about it's about whether talk about your culture when 're smaller when your date and were never talked about its culture when were small because 're on room talking each other it was there culture uber really about culture entrepreneur 'm saying now that live it because 'm trying create entrepreneurial culture place where even when get get still feel small because that's believe continue innovate that's that's believe that can that can adapt world changes and that's believe most fun when 're small talk about it's there in front but when get big talk about it because otherwise people will know it's be in that room with with 6 people and when get into it 'd say get into hundreds probably should get in thousands absolutely start talking about strong did that guess spent hundreds hours developing when call philosophy work and it's ends up it's philosophy creating and that's basically our cultural Eisenberg exact fundamentally lot people say actually got can determine success was great success can actually double value creation 'm talked about got in and D. . Angie know but our cultural values always be hustling that's one them and that's going get done and it's taken white space out it's already said about that and that's one 14 that's questions and lot got form fill in before came in been able take about 7 people that 're going stop with that send in farms and questions but there it was given list names and 'm gonna stop it can go first out rule on who wanted lead question hope 're role on because 'm pulling up about staying on and go ahead with question hi Terry this morning question today was role on real quick studying year 'm doing master's in management and it was graduation management when when graduate guys ready 2017 one drop out question 's little antsy question tonight this did make it into plan that now does that and know can know answered that in this discussion that wanted push button and get ride and that was initial idea and when first got started was me co founder and our 0 friends it wasn't even meant be big and it started becoming big really got passionate about uber in deep way when it was clear me that NASA matter that's when it mattered me and it became big brands because people wanted it's it turned out that lot people want same wanted push button and get ride and again find gets passionate know this may be exactly 're looking but finally catching passionate problem out there exist get passing that wow factor it solve it goes that and brand will take care itself and know want make it that respect and that world excited about that's part brand but focus on solving problem and and those bigger calm when it succeeds great location next one can get Mike out drive Rani 'm graduate student ID because this would drive it 2019 when 'm thinking dropping out want drop out 'm kidding feel said that was graduate guys know was drop out know faculty head Dr basement but 're having trouble when listen lost that's it again decent opportunity from 've read about well 've got test after this since now successfully stated be in India them major challenges any freeze but expansion India well this interesting 'll be know economy India really band flourishing in pretty big way 8 last 's call last decade this believe can reflection point feel there's much big growth ahead and growth that scale but it means that overcame in 13 in in 2013 and this issue people didn't cards didn't cars and 's was cars cards in front them and that though changing and those were big challenges that many people financial instruments many people smartphones where can car many people own vehicles that want with and those were big challenges said financial instruments one probably most challenging them and but those changing and 're changing rapidly and that's also that gives me much optimism about our business mean 're already doing really really well now but but opportunity job training in 161718 going be off charts 1000000000 people with phones 150000000 smartphones but guess 2019 2020 1000000000 smartphones and that's that that works that that Travis because lot that market place but today in India level optimism updated best capital them because use in India actually believes that tomorrow better than and that's going well agree but it in front him didn't know know first time was 8 years ago and changes 've seen even in those 8 years phenomenal it tell story that tell story our call 'll go first time in India and 'll get our questions but this awesome first time in India and guy was 6 person start up this in 19008 and could code from anywhere because 're 6 percent starters coding and got on plane flew Trivandrum and took standing room only busts our calling coated there month one most beautiful beaches in world and that's in sense adventure needed entrepreneurs that sense adventure this being into your work our city mentioned that curiosity in wow factor going code code from beach 've got question Nixon said that was about 30 got Mike go it running 'm voice in undergraduate student ID woman won last was said there never thought it would be in 60 plus countries in bus and that this your final 5 years would be next 5 years get get this question lot know short answer know way way describe Newburgh journey it's 're in car and 're driving down road pretty fast but it's far and now 're going fast and it's foggy and 're 're holding on steering wheel little tired anywhere before and it little little abuse coming down time look back and where were and can only far love driving car it's lot fun but can only far but big vision Hoover 's our mission today know where it's going be in 5 years but our mission today reliable transportation say transportation reliable running water everywhere everyone and super reliable that's aspiration push button and got long way go and that's look it cemetery actually on that 5 years back when everyone said 's your vision statement ideas include optically that saying 'm gonna be number one with today it's actually more kosher and and bigger vision say know could be because in front does that make sense it does and know can be entrepreneurial company uber and continuing innovate can innovation happen and where it goes now 're know made it clear were there direction there's there's wrenching today but who knows become well 's 9:00 've already got Mike and it's driver hate on me question Travis your 7 menu cations opposed graduate question said on many occasions that but started 're 're doing going change end Tony laser technologies would be doing this Christian woman restore read your fan that going that 've got bit echo did John didn't get this can pick bank little wave this going be get this because it 're getting echo from high would that hard hear it's beautiful arrest 'm gonna walk up on conversation and maybe maybe this come up come on up that's secret lets without question and can call up this nation selfie but got question when start your certifications that realize that it going impact many nice but could share with us moment instance where 've been which going that going change 's moment was moment mean that's once once say well this journey and it's foggy and can't head can't really look back know it's 're waking up every day and solving problems were when were 5 people and know there was moment 're hard moments in new Bruce know number know any members journey but there were know there's moment ago this that everybody know was it was moment getting out going going through rest days moment going out first country know now it's way it that 're 're always pushing me point which it hurts and when push that hard happens 're always and it should always earlier and your start your small start up 're always point and 'm and when that always feel small feel Dan ever get that moment because 're know and never them loneliness because 'm always pushing next and 'm always pushing place from maybe lighthouse contracts and know ray even today there's that moments guess answer there answer that question",
478      "recording_transcription_org": "archiving across the floor and I'm really listen to the prime minister's speech on start up India on Saturday okay let's see this business and also just just for us to get a good sense of good what we gotta do out here so I was I'm gonna kick off with talking about what I think we don't talk about and that area and that's something that's ready comfort zone and dedicated to you in the sense that I think you've experienced that many many times over and I think clearly for a lot of people get a sense of failure actually close the back to figure out what I don't know but I don't know from that perspective so just your sort of starting comments and what you would tell young people about failure and why they don't need to wait I think there's there's 2 parts of this one is the S. A. I'd probably just start with what I call the champion's mindset the champion's mindset I think a lot of the word champion they think of a famous sports star and I think of it in the US you might think of a Michael Jordan or lebron James going and dumping on somebody by we think of it differently and we think of it as well when you get on the field put everything you have into it put every ounce of energy you have on the field leave nothing on the field into when you get knocked down because if you're an entrepreneur you inevitably will be when you see hard times you get knocked down get back up and if you keep putting everything you got into it and you keep getting back up when you get knocked down it's almost impossible to fail so that's good to sit in a with the rear view mirror and mine but basically I don't have the risk taking a bit capacity so I think that's what most people would have in their mind but I so there's the second keys to this which is you know failure can be a state of mind but there certainly is a lack of success right so I've had situations where I keep getting knocked down for 6 years strictly a keep getting back up everybody thinks I'm crazy and so it's really about how you assess risk and if you you know a lot a lot of times people say oh like you when you're when I'm when I'm recruiting somebody into the team early on and they're like well I don't know is this going to work out is a big risk for me given what I'm doing right now and I'm like you're really smart mama you have a you know a roof over your head you have a family like you're in a pretty good situation you keep food on the table if this doesn't work out there's like 1000 other companies that will hire so what's the rest and I think when you do a start up is very similar which is if you are passionate about an idea and you think that he could do something magnificent to something beautiful and you want to make it real if you're smart and by the way if you're not smart I don't know if you should be you know you should be an out of print because but if you're smart if it doesn't work out there will be something on the other side of that and you will be way better and way smarter for having tried something that nobody else try and so that's just kind of how it is and I think we just have to think about risk differently and we have to think about failure differently and when you do when you do it scale and general prime minister really went there you know you can have 1000000 problems but you have 1000000 great mine yup and then real change can come so a lot of people have asked me like what's your biggest failure and I think what I normally tell them is at that point in time it looks like it's a because failure and then the moment passes and then 6 months later you can laugh about it or you can move on from that point of view so do you ever referenced a context where you can identify some of your biggest failures or is it a moving of time my first company I got sued for a quarter of $1000000000000 with that which I think is that with the GDP of that at the time was a G. P. S. with at that time to give you 3 so that was kind of a failure we we had to shut the company down so I know I think the hardest ones are ones where where resources get so tight that you actually I think I think as an Oscar there actually is a definition of failure a lot of people ask me when you move on when you when you stop what you're doing and say maybe this isn't working out and I like to say well first you have to believe in if you keep believing what youre doing keep going but there's one other criteria if keeping going means you are going to do severe physical or or mental damage to yourself and you should move on and my last company I sort of got to that point you know I 8 it was a success for me I mean I ultimately sold it to a a large company out of Boston called aka mine but I was at that point right on 7 years and it was really hard times and I knew that if I had kept going in this little blip of success we started to see if that was a Mirage I knew I would kind of go I would I would start to go crazy like for real so is failure for for you for people like many of us is it is it more when a company fails or is it actually the real failures when you few you fail because I think we can differentiate that over time that can make the difference companies will fail ideas but failed you make you mad let a lot of people going to think that scary when you're dressing 0 B. but you need to let go but the real fate is when your conviction fails but what's your zip it sort of depends I think one is that failure is when is maybe when at least I feel like I failed when I didn't put everything I had into a problem so really it goes back to the analogy I needed beginning is if you don't put it all out there if you don't put everything you got into solving the problem then that's failure in my book so that you can make sure that you get knocked down and you still believe in what you're doing and you get knocked down and don't get back up because you're scared that to me and then the other things are like well sometimes you just have to move on because maybe it's not the right thing I like to say you can bend reality but you can't break but I think you know there there's also just when I I don't know if that's failure not a I guess it could be you tried something and it didn't work out and I think also when you get to that breaking point when you can no longer get back up young is that right okay so I'm going to switch to you know a lot of people coming here and I think I'm a good to see say there's the bay area and I think that's something you said the bay area this Beijing and then there's back alone I said it's a 3 days 3 days so our Indian innovation it's no longer just a Silicon Valley that I think there will be Hobbs tech technology innovation Hobbs global hawks in the world every city I go to the library to be the next Silicon Valley on like no you're not and then except for the 3 days bay area Beijing and then lower right and so is that a good is the statement that that you're saying because you're in India or do you really believe actually that at this point Banglore can get to the base city I mean just from a very serious point of you I mean I I took a look how many people graduate from this institution every year a law account any how many how many dollars 4000 okay so one of the best engineering institutions in the world is putting out that many that many I think I heard 10000 but we'll just call 50000 for short and just get it okay how may I is are there across the country right how many great engineers are in our our graduating every year like we may even be in the hundreds of thousands and that quality of the mines coming out of the engineering institutions is phenomenal all we need to do is just start building stuff right just start and what's happened is is that the the start up environment in ecosystems in India has grown up over the last 10 years the global funding environment well the sorry the start up funding and Martin Biron is going global if you used to have to just depend on local people in your local community get funding but now you have literally global investors whose main thing is investing in India but again we sort of critical about that addresses the skeptics are discovered but what's the trigger for innovation what we think is not well I mean I think this could happen in the 19 nineties for India grab in the 2 thousands and now in 2016 why do we think this time what do you think is the trigger that's missing here still that happens in that area does not here instead of the I think there's a lot of fuss about the bay area and it is limited to much drama because that goes just generally if you look at it look at my whole thing is that it's been building up over time and we had an inflection point right so for me I was I was in San Jose which is in the bay area I was at this is 4 months ago and the prime minister of India so general prime minister was was there speaking any speaking next to the C. O. Microsoft CEO Google the CEO of a job and a few others and these were all the sons of India and they went to the you they went to the U. S. to make their dreams a reality but decades ago in in the room you could feel electricity that major hair stand up on the back in the reason why is because all of those guys who India chasing their dreams way more exciting and the room was way more electric and even emotional because that dream was coming back and and so for me that's when I knew that there was a moment that it felt like technology and innovation where India was about to be on the world stage and actually the people who are graduating from my T. are going to be in the main house and so that's how I see it and I think my job is always first to see the future and I better be right as an entrepreneur or else will I lose so that's one of my things that I say that's an encouraging come over on how many of us going to stay back here and to innovation and I maybe want to go abroad and to innovation well there's a fair amount and still a bit with that but that's a fantastic I think that was you know Austin that's changed over that of the many years no I agree I so for me that was that was eye opening for me that was a moment in time that I will always remember about me realizing that innovation is about to go global in a very big way and for me that's exciting because that's the texture that's the that's the stuff that's worth living for and of course is in all these countries we celebrate hundreds of cities and so it's really awesome to be a part of the so this is a hub of innovation is also a hub of engineering and whatever else and I think you were privy to the whole day with on the start up conference that was there which I think you would have felt equal amount of electricity and energy that plays there is you did in in the valley of the Democrats also but he felt that there too was amazing and so just your sort of message out to everyone here especially to the engineering students I think many of them want to obviously be clear that they want to innovate and do something very different some of them want to be on a some of them don't some of them want to change the world and what's a sort of a couple of or lines that can inspire them well I think you know you know it it really goes back to what it means to be an entrepreneur because once once you go that direction then it just starts to happen some people say when did you become an Oscar Mike I was born that way it's a it's a DNA saying it what it comes down to in the way of the on screen or is is actually about going looking at the world and finding problems it's actually so he'll think that's a negative mindset but actually I find it is like a it's a it's a curious minds that if you're out there looking for problems looking for things that aren't the way they should be or could be the curiosity is one then there's sort of like a fierceness to go may find find upon that you fall in love with and then it's a fierceness to go solve and really push you if you want to do it you got a question telling hurts because if it's not hurting and somebody else is going to push harder and they're going to do it and you're going to be sitting there going wow that looks amazing and you can be sitting on the sidelines but it's constantly looking for the thing that makes somebody else go wow like somebody else get excited and interested in an idea that becomes real and once you find something that's hard that also make somebody go wow like that green here I'd like damn that's awesome you then tapped into the blood stream of innovation I think there's a lot of people because I think when under pressure goes to a different level I think the normal calling card for most people is I've got a great idea you know and then everyone pauses thinks or what is to stop and listen because a I do have a greater share so and I think that's really some of the challenges because from that comes a little bit of grounding majority whether that is because there's a lot of work that goes behind that 19 you've seen that in the places where you been before your time we've been pioneering and there's a small sliver of genes that can happen there so just that sort of sense that okay just because you got a great idea and a few people people anyway in some rooms it's gonna have a really good idea what's up thought process on sort of getting everyone's clarity because otherwise this is bubbling center his enthusiasm that if I got a great idea everyone's got a pause in this well I mean you know it's again it's okay you got a good idea look everybody's got a good idea you know now the okay every has an idea not only has a good idea but I people have good ideas look uber is a good idea you push a button and get a ride I don't know if we were the first person ever think of that idea but we are the first person to do it and and so you got it just go do it you got to just get out there and go do it so it's easy to have the idea straightforward but then you've got to have enough guts to go out there and try and that's that's the way the entrepreneur so I think the general assumption with everybody is you're going to have a great vision you have this long drawn out vision and you got to be very clear about that big idea in some sense but I get the sense and we had this conversation between the car to that some of the ideas just need to first get executed and they need to breed them they need to grow so I think that perception is very strong that most people feel what's your what's your grand vision and you haven't stated that the investors come in and say I'm totally getting exactly what's your big idea what's the big picture what's your sense on the articulation of high importance that articulated that right at the outset what's your big vision well I think there's 2 situations you can be and I mean going on fund raising when you're when you're doing the uber thing is a very different thing because you're just like see that curb the goes up into the right that's got me and it's kind of strange or to get funding the harder funding is when you don't have that occur and you're trying to convey that that curve exist without any proof that it does right and so you have to then become a phenomenal story teller you have to really get into the guts of what makes the idea good and what can capture the imagination of your customer as well as well certified he transitively or your investor so storytelling becomes a big part of that and that's important when you're just getting going but it looks like it's almost critical because I think and I do talk to a lot of people when I say actually communicating your idea whichever way you can figure out a way in which you're going to be you don't need to be the best all right up but you need to figure out how you gonna communicate your vision but the storytelling comes up a lot and I think that's part of the innovation for a lot of people that says but I'm I'm an inter but I'm not a good story does that mean I'm not gonna give the blow out there but I always the second ranked will I not be able to raise the right amount of funds well look if you can't communicate you probably should get a co founder of the case okay that's a good one I know that right and so you know we have this thing we call we have this thing at the you one of our cultural values Hoover's called always the hustler right I come to India talk to my team say how do you say hostile entity and they're like you guys and so now we got a thing here this is the over India motto is always did you got it so so so I think you know look even if you're an introvert if you if you don't got hustling you you better get a co founder the dice and if you don't I don't know if possible find a co founder that's got hustle then you got it is given to you at a problem it's gonna be tough so you got to have a little hustle man you gotta get out there does a nice little to go on in there and you know make **** happen SO 9 need a great idea then you need some funding and you need the counselor is taking ability and you need to go farther all you need to get a great communicator did did you god either that will get your final right that gets you a lot of things that will get you something working when maybe it's not quite work in which by the way is the way of the entrepreneur is you have limited resources and you gotta make **** happen right and so it's going to it's based on like to say it's you know it's it's hours not days it's minutes not hours that she got right and I'm I'm gonna come to that you've got what it is that's 10 use been using I know I know I'm **** it up but it's still fun and we're gonna some questions later on so many don't want to send it send it to do with the hashtag that says I think dog house doctor Dugard does that did I just become doctors would not go through with the see if you are but just to be on a doctor to guide us and our government has to it so that's that that's where the questions are coming from at the end I think so I hope so I'm okay I'm gonna come in and some the middle right up after that that's really but you know if I want to put a little bit of caution to otherwise what is really a good word which everyone in India things we have this speaking that's as possible the rise came from India and and you've got is another word that comes from India's was likely begun only but it actually means frugal innovation and it's true sets in there you go out for a lot of people I think in India the interpretation sometimes sounds like it's a short cut to to something and I think that's really where the big challenges and I think that's a strong message that needs to it's it's I like to say you know in the US we say turn lemons into lemonade but if you're always need you got it Turkey Turkey you make lemonade out there I think that you got was a noun you just made it above all over again you got 1000 but I knew I I apologize if I'm going too far but I'm sorry all right so it's going to start did you get it this amazing okay so I think we had a good conversation about scaled down and I kind of chat with you acts in the car we had a decent conversation about the fact that we need to think big after over a country of 1.3000000000 yes every problem that we're going to solve the good news is going to solve it at scale the bad news is we're a value driven country so you're not going to have the US dollar equivalent of the one he put in and anything else that one you know but we gonna think big I thank you very much you demand said to that was really that essentially you can come up there and stop planning with the big and scary from that point of view and you got to let it happen I thought that sort of resonated with me very much but I just like you to expand on the fact for a lot of people here with thinking of scale as part of what they're getting into the business right now looks sometimes you talk to people in the entrepreneurial world they're like man I'm looking for my next big saying I got this ID kinda you know it's like he commerce cross was social but then it's got this mole Twix hi what are you talking about man so the best way to do this and this is me look I'm biased this is my way of doing it but I think the best way is follow up with an idea right fall in love with an idea and just go after it and when you do that winner lose you know get knocked down get back up on whatever happens if you put your all into it it's it's a worthwhile endeavor and you gotta get smarter every day because what you fall in love with might not be exactly what it needs to be aware but start there and then the the journey becomes something worthwhile because it's going to be hard in it if you're not into the journey a fire like it's like it's E. commerce with their social twist in that then you don't love it and you'll give up but I got limited resources I need to evangelize I need to hire people they gonna come him off my vision than for the salaries because I kind of want to get to the top salary that Klay and if you've got love then then it's much easier than if you don't much easier younger that was what they do going against the Oscar that doesn't who really obvious who wins that one night in a close call so it's like you know if you're in high school and well I said as can do really bad now but I will so I think for a lot of people here the general perception entrepreneurship and start ups is about then you wouldn't have needed the new economy in the E. commerce companies and I think the general perception here is go out there your top line do whatever you need to do but blow those companies and body of that comes from invested talking to come to our topics invested but I guess what I want to sort of communicate as a message here I'm talk about is so when is enough is enough I mean when you sort of look in an organization or a company that says I'm not gonna give things free I'm alright discountable house come home when is that right balance of growth versus profitability and when you have some of those intelligent conversations but more or less when you say enough is enough to yourself even before you invest hello man to not wait for your investor to tell you anything that is the worst thing ever I tried like think of building a business is playing chess or something like that board 3 dimensional chess I sort of figured out exactly what that is but you're playing chess and you should you're doing it 80 hours a week and so's you should know the lay out of the board and how you should be 5 or 6 moves ahead in the investor that comes in once a month or once a quarter or whatever one wants to give you advice give very good listener but like they can't just come in and look at the chessboard have any friggin idea what the right move is because they don't even play chess right they don't even they show getting money not even that kind of blows but it's all right it's all good okay they don't play chess and they're coming in giving advice on what the next move should be and so I think your job as an Oscar winner is to be an expert chess player in to see the move so far had that when you do get the question from the investor you basically got a that's interesting I thought about it but here's the 1800 reasons why it doesn't work here is the move that for 3650 reasons is the right models and when you explain the full complexity other and you do it for like an hour and 20 minutes you'll never get a question from an industry so that's why you need the Obama that's going to the communication for everybody that I know that the introvert in server can explain that that's not from the 18 the hot the the this is the hustler co founder is the one that got the investor in the first place and coming back then 45 the first one of the only one which was so when is enough is enough in a business cycle when you actually sort of interest back on that I mean look we see I like to say subsidies when it comes to cocking calmer stuff subsidies and large burning of cash is a Chinese invention and it's a it's a pretty interesting innovation I am one I had to learn about I know how to build profitable businesses but China is fiercely competitive and because of that you have to just put everything you got and plus all the cash you guys because well that upsides gonna be very huge and I think in some ways India's become fiercely competitive as well and that way and so you have to ask yourself well well first born entrepreneur that's used to building a profitable business that is an uncomfortable place and so you can try to in order to compete you have to do it and so if so so what I try to do is I try to contain the irrational when I try to do as I say well I guess I have to spend this much because my competitors spending that much what I'm gonna do is I'm gonna spend every single one of those dollars say it was 10000000 or 100000000 or 0 whatever it is I'm gonna spend every single one of those dollars for every single one of those movies and spend it more efficiently than the other guy and if you do that if you go in your you make sure you have more cash than them all ace and you go and spend every dollar more efficiently in the and the world will become rash and you say well how much do you spend like because the other guy might spend a lot more more quickly and you have to think about in terms of well there's like it's a very complex game that gets played but essentially if you're on your own and you say how much do I put in and and when do I stop and has to be there has been investment pieces you have to say what is mine are like going to be on this investment capital which sounds very PC like but the game at the end of the day then does he give you that you need to get funded over and over again because that's a different cycle from travel different but you don't want to spend money that doesn't have are a why at the end of it like I'm not gonna put money on the table if I know I'm gonna lose it or lose a percentage of it right and so it's not worth competing if the investment you're making doesn't have a positive or a wider than a chance of possible so let me ask you the on demand button you can you committed $1000000000 to India and I think I would have you're pretty much nearing the end of he's not so as an entrepreneur when you finish that are you going to double up you're gonna pull back and see how everyone else digest that and go forward if I could get the full return spending 0.5000000000 instead of 0 I will if I can get to access the return spending 2000000000 instead of sorry if I get if I could get 5 X. the return spending 2000000000 instead of one I most definitely well and so you have to constantly ask yourself what is the nature of the the the chess game is being played in one of the returns for winning and what is the likelihood of winning and you have the costly ask yourself that you have to have a strategy for how you're going to win and how you essentially going to have a a positive expected value that comes out of it the statistical probabilistic approach plus some some guys and some vision and some swell right there so so talk about investors and I think you know you had your your read your fashion a run in with some of them the right reasons and I think you've been quite cryptic about saying let's put them all for 1.5 I was given that the tour of the 3000 reasons why one what was the lovely reasons why 18 and the 3 and over 3000 for why this move will and I think that that would change that enough times your board meetings little become updates it's amazing okay they're much worse so I think the skeptics will say that's fine because you've reached a certain success level so you can tell your investors to stay at bay but that's not what everybody else can do across the board but another move when you're getting started when you have a board and things aren't going well at another and that is so you still do like these you still do the chessboard thing but because you're not succeeding you can't really like drop a line you know I mean you like this is great it's amazing is like but you still stock and so then when they ask questions what you do is you get the email which is a question and the move is you don't answer right away you just sort of sit on the email for like 2 or 3 days like almost to the point where they forget and when they remind me now then you and so then they get in this sort of learned this learns thing where it takes where they they basically start asking fewer and fewer questions like what what's the worst thing you can do and literally in Silicon Valley haven't had like really high profile CEOs that run multi $0 companies and they're like having issues with their board and I'm like did you just do this this the like no one is asking where they do the like just respond right away I'm like no because then it's just another question comes in another question and then you're not working you're just explaining the chest and you think I'm from that perspective that's the you had a good interesting experience with with Michael Ovitz and then with mark Cuban at different stages in your area and you can buy cryptic about them in public for auto like you know but now you're at this stage of the life moves on or the point is is like man when when you are in tough times as an Oscar things our way harder than when it's 10 years ago right one is 10 years ago I'm just got the swagger I'm like telling funny stories and it sounds great but when you're in it your sweat and so you know I make it sound easy and fun but guys it's only fun after 5 years of therapy or something okay so I like I like to say like you is it it is money does not buy happiness but it will pay for therapy so everybody I have a a body you told me that overs testing some a nap with helicopters as with Airbus is that something that the announcement is that something that I think that somehow got out there I mean the point is is like you know if you can push a button and get a ride one of which is why not a heck up when I push a button and get a ride that's more for fun I mean it's not like we're like a beach ball out well maybe we can blow it out and it's amazing but that come out of a need to wear one of your best you needed to get it and I know that was just like that was the Glen your honor like that with the whole area would it be hilarious if I push the buttons 7 minutes later I was in a helicopter that would be pretty cool that was it it just does not a start up like the anybody wants to do is start like go to work I'd I decrease this idea to you anyone can try that and see how it goes this is like push a button and go to Mars it's like okay cool all right so just another anecdote and that was that you've got sort of moved out of written out of a scene in the social networks of there's one on one of your one of your proudest moments or was that a fun moment or was that just I don't mind being written out of okay so who's here so how did that happen okay and have you guys seen the social network the movie I think so okay so there's a scene there's a scene where Sean Parker's meetings are covered at a restaurant Zuckerberg this is when they first meet soccer Berg has his co founder and Parker greens like is like one of his friends girlfriends or something like that and why was the girl for in the early hours right now is saying and I was the and you when I was a pretty girlfriend and while I was there and and you know I mean basically we met we mess up when he was still at when he was still in the harbor it was only a few weeks old it was done Facebook it was only a few weeks old and yet the time and I I had a had a girlfriend is fine and and and we would always talk about what are the interesting ideas and things like this and of course I didn't have money I moved in with my girlfriend because I didn't have and I didn't tell her that the oh my god what am I saying okay C. mobile camera okay so so then I I the base it would send any money to invest anything like this does do my own thing I would just call out and I told her I left at dinner and I told her and I said I just met this March 20 year old on the planet she she's not my girlfriend today she'll still vouch for it so okay sounds good all too much information TMI we're gonna break out for some questions I just wanted to chat on a couple more things I think one of my sense is that a lot of people have success plan or a plan that everything's going to go right that's your plan I mean you got to be confident that your thing works and that it's going to work if you don't have a plan for success and cheese and my sense is that I just want your sort of an issue and that is that sometimes you need a survival plan along with the success and I think it's something that kind of balance things off because whatever success plan is the cost always stays the cost of the room is always come down and in the way I look at that the success plan versus survival plan I just look it is you're just playing chess is like there's different plans there's different strategic approach like I'm gonna try this risky approach but if it works I can really kick some **** or I'm gonna try this one which is conservative and I'll get out a lot but you know when you talk about a test ban it almost sounds like you're the master mind sitting there but as you build an organization logic teams not everyone is going to be in such thing with you and your 300 people 0 people and then more so how does that translate itself down because it's your chest plan but it's not everybody so that part of the chess match is how to do that part part of the part of the game there I called 3 dimensional or 6 dimensional chess but the point is is just a problem that needs to be solved everything's a problem in these be solved and that's why I'm just so pro engineer because the engineering curriculum is all about rate fault lines down and then building it back up and so we are the master problem solvers and if you should be the best entrepreneurs in the world all right and they usually are exactly just so so then I only remember one question of that was that was a but I think it's more the success Lambesis survival on here but okay deciding about the questions and the last one is really on both phones because I think you started advising it funny I know that your first companies started to 6 co founders internet as sort of a a moment in the middle somewhere and there's 2 co founders I'm sure some of the leading bald averages for you but so here's the way to think about it don't have don't have 6 co founders don't do it on to it we would basically have like 6 hour meetings on what color the pain should be it was insane if you can have a co founder but it depends on your personal style like if you do it alone it will be in cruel radically lonely so you got to be up for that is specially the hard times so if you can get one you say for me there's 2 or 3 but definitely not 6 you should have one co founder and then if he I think 2 is ideal because then you know you still got 50 percent pretty good definitely having a co founder seems to be pretty critical I you know it's not necessary absolutely necessary depends on your style it depends on your personality it depends on it just depends on a lot of things but I think it's mostly about the being lonely at the top I think it's mostly about so hard times yes somebody to to jam with and that's helpful especially when it's small and it's hard times when it's big you're gonna have lieutenants and whatnot that you're gonna have a really good relationship with but when it's small and it's tough that's when that is really nice and it's in my last company I start with the co founder but things got a little weird and then it was just me on my own and and that was that got really hard in the hardest moments so you just have and how important is culture in an organization that and I've I've been checked with some of your colleagues here I I have to say the culture in the brief conversation we've had it right here just by itself completely with fascinating team did you ever hear them and I know you've been vocal about them too but how important is culture because most people think it's concept when your 500 people I strongly believe conscious that's ready when they well the what it really is about is it's about whether you talk about your culture when you're smaller when your date and so we were never talked about its culture when we were small because we're just on a room just talking to each other it was just right there the culture of uber is really about the culture of the entrepreneur all the things I'm saying right now are all the things that we live by it over because I'm trying to create an entrepreneurial culture place where even when we get a get still feel small because that's how I believe you continue to innovate that's how that's how I believe that you can that you can adapt as the world changes and that's what I believe is just the most fun when you're small you don't talk about it's just right there in front of you but when you get a big you have to talk about it because otherwise people will not know what it's like to be in that room with you with 6 people and so when you get into it I I'd say if you get into the hundreds you probably should if you get in the thousands you absolutely have to start talking about a you have to have a strong sort of what what we did is that I guess I spent hundreds of hours are developing when I call philosophy of work and it's ends up it's a philosophy of creating and that's basically our cultural Eisenberg exact fundamentally a lot of people say actually got you can determine success was a great success you can actually have double the value creation I'm just like we talked about you got in right and I had a D. I. Angie I know but our cultural values always be hustling right that's one of them and that's just going to get things done and it's taken the white space out it's all the things already said about that and so that's one of 14 so so that's right over the questions and I think a lot of the got a form to fill in before you came in here so we have been able to sort of take about 7 people that we're going to stop with that send in their farms and some of the questions but there I think it was given a list of names and I'm gonna stop it then I can go first out to rule on who wanted to lead a question I hope you're the right role on because I'm not pulling up about staying on and so go ahead with the question hi Terry this morning my question today was a role on real quick what are you studying what year I'm doing my master's in management and I do it was graduation management when you when you graduate are you guys ready 2017 the one drop out the question she's a little antsy all right my question tonight this is what you did you make it into the plan that is right now what does that do to and so you know I think we can you know I answered some of that in this discussion is that I wanted to push a button and get a ride and that was the initial idea and when we first got started was for me my co founder and our 0 friends it wasn't even meant to be a big thing and then it just started becoming big I really got passionate about uber in a deep way when it was clear to me that NASA matter that's when it mattered to me and it became a big brands just because people wanted to it's it just turned out that a lot of people want to do the same thing wanted to push a button and get a ride and so again find what gets you passionate I know this is is may not be exactly what you're looking for but finally catching passionate what problem out there exist they get you passing that has a wow factor to it if you solve it goes all that and then the brand will take care of itself and you know you want to make it something that you respect and that the world is excited about that's part of what a brand is but just focus on solving the problem and and some of those bigger things calm when it succeeds great location is the next one so can we get Mike out to have the drive is hello Rani I I'm a graduate student ID because this would drive it 2019 when I'm not thinking of dropping out you want to drop out no I'm just kidding no no you don't feel you said that I was a graduate you see like just you guys know I was a drop out just you know for the faculty here is like my head Dr is if I have a basement but you're having trouble when I listen I lost that's it again if I have a decent opportunity from what I've read about okay well I've got a test for you after this okay so since over has now successfully stated to be in India what for them major challenges if any you freeze but expansion to India okay well this is interesting right so you'll be I think we all know the economy of India is really a band sort of flourishing in a pretty big way 8 the last let's call the last decade something something like this I believe is can you reflection point I feel like there's just so much big growth ahead and the growth that scale but what it means is that overcame in 13 in in 2013 and we had we had this issue is people didn't have cards they didn't have cars and let's see was cars cards in front of them right and so all of that though is changing and so those were the big challenges is that how many people have financial instruments how many people have smartphones where they can order a car how many people own vehicles that they want to do the right thing with right and so so those were big challenges I said the financial instruments one is probably the most challenging of all of them and but I think those are changing and they're changing rapidly and that's also the thing that gives me so much optimism about our business here I mean we're already doing really I think really well right now we we but but I think the opportunity job training in 161718 is going to be off the charts as 1000000000 people with phones 150000000 have smartphones but my guess is by 2019 2020 is just 1000000000 smartphones right and so that's the kind of thing that that works I I I just think that that Travis because I think a lot of that is the market place but I think today in India the level of optimism is updated best capital them because I think the use in India actually believes that tomorrow is better than yes and I think that's going to see as well I agree but I think the thing is you see it right in front of him right I didn't you know the you know the first time I was here is 8 years ago and the changes I've seen even in those 8 years is is phenomenal it are you tell a story that I tell the story of our call I'll go first time in India and we'll get our questions but this is kind of kind of awesome so the first time in India and the guy was a 6 person start up this is in 19008 and we could code from anywhere because we're just 6 percent starters coding and so we got on a plane we flew to Trivandrum and then we took a standing room only busts of our calling coated there for a month for one most beautiful beaches in the world right and so that's sort of in the sense of adventure of what is needed entrepreneurs have that sense of adventure this is like being into your work right our city is you mentioned that the curiosity in the wow factor if you are going to code code from the beach okay I think we've got a question Nixon said that I was about 30 got the Mike okay go for it hello running I so I'm a voice in the undergraduate student ID woman so I won last I was as you have said there you never thought it would be like in 60 plus countries in the bus and that this is your final 5 years what do you think what would be the next 5 years so I get I get this question a lot you know I the the the short answer is I don't know the way the way to describe the Newburgh journey is it's like you're in a car and you're driving down the road pretty fast but it's far and now you're going fast and it's foggy and you're you're holding on the steering wheel a little tired anywhere before and it is a little a little abuse what coming down you definitely don't have time to look back and see where you were and you can only see so far had I love driving the car it's a lot of fun but I can only see so far but the big vision for Hoover or like what's our mission today I don't know where it's going to be in 5 years but our mission today is is reliable transportation we we like to say transportation as reliable as running water everywhere for everyone right and so just super reliable that's the aspiration of at a push of a button and so we got a long way to go and that's how we look at it cemetery actually on that I think 5 years back when everyone said what's your vision statement ideas include optically that saying I'm gonna be a number one with I think today it's actually more kosher and and a bigger vision to say I don't know what I could be because the whole in front of you does that make sense it does and you know if you can be an entrepreneurial company like I think uber is and you are continuing to innovate you can let the innovation happen and see where it goes now we're not just you know I made it clear were there is a direction there's there's a wrenching today but who knows what we become okay well let's move on to 9:00 AM if you've already got the Mike and it's what a driver so hate on me I have a question for Travis of your 7 menu cations opposed to graduate the question is you said on many occasions that but you started over you're not you're doing what is going to change or end by Tony laser technologies would be doing something like this Christian woman to restore what do you read your fan that is going to do just that so I've got a bit of an echo here did you John I didn't get this can you just pick the bank a little wave is is this going to be we don't get this because it is we're getting an echo from the high I would think that hard to hear it's beautiful arrest I'm just gonna walk up on a conversation and maybe maybe this is come up what so come on up all right that's the secret lets you without question and then you can call up right this nation all right yes selfie okay but he got my question is when you start your certifications that do not realize that it is going to impact so many nice but could you share with us a moment or an instance where you've been which is going to do that is going to change what's the moment okay thanks what was the moment I mean that's the thing right is once you once you say well this is a journey and it's foggy and I can't see my head I can't really look back you know it's sort of like you're just waking up every day and solving problems just like you were when you were 5 people and so I don't know if there was a moment they're certainly hard moments in new Bruce you know number you know any members sort of journey but there were I don't know if there's a moment ago this is a thing that everybody you know was it was the moment getting out of his going going through the rest of his days moment going out of the first country you know now it's just the the thing is the way we do it is that we're we're always pushing me to the point at which it hurts and when you push that hard what happens is you're always a little bit and it should always a little bit earlier and like your start like your small start up you're always to the point and I'm not sure and when you do that you always kind of feel small you don't feel like Dan you just don't ever get to that moment because you're like am I don't know right and so I just never had them loneliness because I'm always pushing to the next thing and I'm always pushing to a place from like maybe the lighthouse contracts and I don't know ray even today so there's not that moments so I guess my answer is there is no answer to that question",
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