Ep 91: "I whooped his ass!" Legendary Investor & Home Depot Founder Ken Langone on Leadership, Courage & Defeating the Bad Guys
Jul 3, 2024
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Ken Langone, a legendary investor and Home Depot founder, shares his investment philosophy, leadership lessons, and battles against corruption. He highlights the success of Home Depot employees turned millionaires, the impact of philanthropy on education, and the importance of standing up for justice. The podcast explores capitalism, healthcare sector leadership, and challenges in society and education.
Ken Langone emphasizes the value of hard work and loyalty in creating multi-millionaires from entry-level positions at Home Depot.
Langone's successful battle against corruption exemplifies the importance of fighting for justice and defending colleagues' honor.
Philanthropy plays a significant role in Langone's life, with notable donations to NYU Medical School and advocacy for education reform.
Fostering a culture of free speech, critical thinking, and addressing financial challenges are crucial for America's sustainable future according to Langone.
Deep dives
Fostering Successful Entrepreneurs and American Values
The podcast features Ken Langone, a successful entrepreneur and co-founder of Home Depot. He emphasizes the importance of recognizing the value of individuals who started at entry-level positions and became multi-millionaires through hard work. Langone shares his experience of overcoming legal challenges and highlights the significance of American values, expressing gratitude to his grandparents for coming to America.
Long-term Investment and Loyalty in Companies
Langone discusses his investment philosophy, focusing on loyalty and patience in holding stocks long-term. He shares his 42-year average holding period and emphasizes the importance of understanding company management. He highlights his initial involvement with Eli Lilly and the evolution of the company's key leadership over time.
Empowering Employees and Creating a Positive Work Culture
Langone emphasizes the importance of honesty and wisdom in leadership while discussing the culture at Home Depot. He mentions his practice of annually hosting store managers and district managers for open discussions, focusing on improving employee morale and fostering a positive work environment. Langone also points out the success of transforming employees who started by pushing carts into multimillionaires.
Philanthropy and Educational Reform
The episode reveals Langone's philanthropic endeavors, including donating $200 million to NYU Langone Medical School for tuition-free education. Langone stresses the need for reform in public education, advocating for accountability and quality instruction. He also emphasizes the importance of addressing the looming shortage of physicians in critical specialties through strategic investments.
Challenges in the American Education System and Calls for Optimism
Langone speaks about the challenges in the American education system, particularly the need for merit-based evaluations and avoiding ideologically-driven educational trends. He expresses optimism for the future of America through addressing critical issues like education reform and fostering a culture of free speech to encourage diverse perspectives and critical thinking.
Concerns about National Debt and the Importance of Strategic Spending
In discussing the macroeconomic outlook, Langone highlights the escalating national debt and the need for strategic spending cuts to address financial challenges. He underscores the importance of prioritizing areas like public education and defense while emphasizing the responsibility of all citizens to contribute to necessary reforms for a sustainable future.
Reflection on History and the Greatest Generation
Langone reflects on history and the sacrifices of the Greatest Generation, emphasizing the need for present-day citizens to learn from their resilience and dedication to the country. He underscores the importance of addressing contemporary challenges to honor the legacy of those who fought for freedom and prosperity.
Fostering a Culture of Optimism and Continuous Improvement
The podcast concludes with Langone's call for optimism and continuous improvement to address societal issues. He advocates for parental involvement in education, promoting equality in learning opportunities for all students. Langone's commitment to philanthropy and belief in the transformative power of education serve as a beacon of hope for the future of America.
Ken Langone's father was a plumber and his mother a cafeteria worker — neither made it past 8th grade — yet Ken became a multi-billionaire investor, builder, and philanthropist. And he did so as an outspoken patriot, defender of capitalism, and man of honor, famously taking on one of the most corrupt politicians of our time — and winning!
In our conversation, we begin with Ken's investment philosophy, including how he became the largest shareholder in Eli Lilly. Next, we dive into leadership lessons and how he co-founded and grew Home Depot into an American icon valued at over $400 billion. But Ken is most proud of the fact that 3,000 associates who began pushing carts in the parking lot have gone on to become multi-millionaires within the company — a feat only possible under capitalism he says.
In the 2000s, Ken had a front-page showdown with then-NY Attorney General Eliot Spitzer. Most of the Wall Street bigwigs in Spitzer's crosshairs cowered and ran, but not Ken. He fought back and won, exposing Spitzer's abuse of power. Ken hilariously recounts his epic battles and demonstrates the importance of fighting for justice and defending the honor of your colleagues, no matter the cost.
Finally, we discuss the impact of Ken's prolific philanthropy, such as his recent $200 million donation to help make NYU Medical School tuition-free. For decades, he's also been a leader in education reform, including one of the greatest urban success stories: Harlem Children's Zone. They have proven that kids from the most difficult areas and family backgrounds can succeed, and have revealed the failings of the teachers' unions and education establishment.
I'm fortunate to call Ken a friend and mentor. There will never be another quite like him, but we should do our best to follow his lead!
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit blog.joelonsdale.com
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