Life Lessons and Investing Strategies with Grant Johnson - Managing Director Benevolent Capital
May 3, 2023
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Grant Johnson, Managing Director of Benevolent Capital, discusses his career journey and the importance of character in hiring. He shares a personal story of learning resilience and highlights the significance of tenacity. The podcast also touches on Warren Buffet's approach to investing and the success of investing in non-alcoholic brands. Throughout the episode, Grant emphasizes the value of open dialogue, empowering daughters, and the unique aspects of their investment strategy.
Creating a healthy and robust boardroom debate is essential for business success.
Teaching children to think critically and independently is crucial for their intellectual development.
In a society that often values conformity, it is important to teach children the courage to question consensus and challenge prevailing norms.
Independent thinking is a valuable quality in both personal and professional life.
Deep dives
Importance of a Healthy Boardroom Debate
Creating a healthy and robust boardroom debate is essential for business success. According to the book 'Blueprint to a Billion,' successful companies have a strong independent board that encourages open dialogue and differing opinions. This allows for the exploration of different ideas and the emergence of the best solutions. The presence of healthy debate ensures that decisions are thoroughly vetted and risks are properly assessed. It is important to foster an environment where dissenting opinions are welcomed and respected.
Encouraging Free Thinking in Children
Teaching children to think critically and independently is crucial for their intellectual development. By encouraging open dialogue, debate, and the exploration of different viewpoints, parents can instill in their children the importance of free thinking. This can be achieved through activities such as engaging in thought-provoking discussions at home, exposing them to diverse perspectives, and providing them with opportunities to participate in activities that promote critical thinking, such as martial arts or debate clubs. The goal is to empower children to form their own opinions and make informed decisions.
Fostering Courage to Buck Consensus
In a society that often values conformity, it is important to teach children the courage to question consensus and challenge prevailing norms. This can be done by encouraging them to think critically, question information presented to them, and explore alternative viewpoints. By fostering an environment that celebrates diversity of thought and respects individual perspectives, children learn to value their own opinions and express them even when they go against the grain. Teaching them that it is okay to have differing opinions and encouraging them to speak up respectfully helps them build the confidence to stand up for themselves.
The Importance of Independent Thinking
Independent thinking is a valuable quality in both personal and professional life. By teaching children to think independently and question the status quo, parents help them develop their own voice and opinions. This prepares them to navigate a world that can be filled with biases and groupthink. Encouraging them to seek out diverse perspectives, engage in critical analysis, and make informed decisions based on rational thinking fosters their intellectual growth and equips them to face the challenges of the world with confidence.
Investing in Soccer and Non-Alcoholic Beer
Grant Johnson discusses his investments in professional soccer teams and the booming market for non-alcoholic beer. He shares his passion for soccer and the reasons behind his investments in USL teams in Phoenix and Rhode Island, as well as a Premier League team in the UK. Johnson also explains how these investments offer non-correlated returns and long-term potential. Additionally, he highlights the growing popularity of sports gambling and the role it plays in the sports industry.
Setting Up a Unique Investment Firm
Grant Johnson talks about the unique approach of his investment firm, Benevolent Capital, which focuses on aligning interests with their investors. He explains how they don't charge management fees or take a percentage of profits until investors have seen a 100% return on their investments. Johnson emphasizes the importance of believing in the product and having a passionate and dedicated team for a successful investment. He also discusses the goal of finding opportunities with potential for a significant exit by attracting big players in the industry.
The Motto of Good, Better, Best
Grant Johnson shares the motto of 'good, better, best' and how it applies to various aspects of life. He emphasizes the importance of growth and improvement, starting from being good at something, striving to be better, and ultimately aiming to be the best. Johnson encourages embracing the journey and process of development, learning from failures, and staying humble. He concludes with a message of humility and continuous self-improvement in all areas of life.
Show Notes: Grant is a graduate of Brown University and is finishing his executive program at Harvard Business School. He is a Young President’s Organization (YPO) Member. He is the managing director of Benevolent Capital.
“Sometimes it is about timing. Sometimes it is about who you know more than anything else!”
Venture Capital is for very early-stage companies to help them get off the ground.
Private Equity is generally for later-stage companies looking to grow or transition.
Grant became a “Sherpa” at Montgomery Securities
(9:00) One of his first tests early in his career was to see if he had the ability to tell people that he didn’t know the answer. Always tell the truth and be honest.
Don’t be afraid to apply for jobs where you don’t have all the skills. Skills can be taught. Hiring managers are looking for character, integrity, honesty, interpersonal skills, and communication skills.
(12:45) Grant highlights a learning experience as the captain of his crew team when he lost a position in the first boat.
“Sometimes out of the bad comes the great!”
You really learn about yourself and life when things go wrong.
Covid presented a learning and growing opportunity for us all.
(17:45) Why is tenacity so important?
Why did Montgomery Securities start by only hiring Athletes?
(24:00) When Warren Buffet is wrong he is barely wrong but when he is right BIG and for a long time.
Why did Grant leave Greenwich, Connecticut, and New York City?
(34:45) Grant’s advice to his daughters “Free to be you, free to be me.”
(40:00) “Our country needs the ability to have more debate.”
(43:10) “You feel like we are fighting and arguing and I feel like we are finally communicating.” Grant uses a quote from the movie Jerry McGuire to help demonstrate a point on modern-day politics.
Do we believe in free speech and diversity and inclusion or do we not? Today many only believe in this as long as you agree with them.
(54:00) How to build a company with a billion in revenue?
The importance of a robust board
Your customers are raving evangelists for your product or service
“Culture Eats Strategy for Breakfast.” – Peter Drucker
(55:00) How is Grant training his daughters to have success in life?
Plus they give all investors a 100% preferred return before they get paid.
This is very different from most investment firms.
For us to make an investment in a company we need to believe in the company and we have to want to be an evangelist for the product or service.
Brett Johnson was running the family business (Targus Computer Accessory Company) and during that time frame after working with PE firms they decided when it was time for them to start their own investment firm they would do it differently.
“We don’t need the management fees to be motivated to be successful.”
