Explore the concept of infinite games and how trust and systems allow people to operate in their zone of genius. Discover the difference between finite and infinite games and how Goldman Sachs has maintained dominance. Delve into the history and evolution of East Rock and the importance of playing offense and taking risks. Learn about the significance of trust and shared values in relationships and achieving success in the infinite game.
Infinite games have no end goal or specific rules, adapting and persisting over time without a central authority.
Building trust and nurturing strong relationships in an investment firm fosters success in the infinite game.
Deep dives
The Concept of Infinite Games
In this episode, the host explores the concept of infinite games discussed in 'The Infinite Games' by Graham Duncan. These games have no end goal or specific rules, and their boundaries can change. Finite games, in contrast, have fixed rules and defined boundaries. Examples of infinite games include Buddhism and Judaism, which have adapted and persisted over time without a central authority. The host also discusses how investment firm Goldman Sachs is hard to define because it consistently morphs to seize new opportunities, prioritizing recruiting valuable players over short-term gains.
Building Trust and Playing the Infinite Game
The host shares personal experiences from his investment firm, East Rock Capital, highlighting the importance of building trust and playing the infinite game. He emphasizes the value of finding partners who excel in areas where the host may lack expertise. By constructing systems where everyone operates in their zone of genius, the host nurtures trust and abundance within his team. He believes that through adversity and shared values, strong relationships are formed, creating a comparative advantage in partnering with families and managers.
Expanding Trust and Playing the Infinite Game at East Rock Capital
The host describes the evolution of East Rock Capital through three eras, each representing a different phase of their infinite game. The first era focused on building credibility and trust with founding family clients. In the second era, the team grew and faced adversity during a financial crisis, leading to even stronger bonds. The current third era is characterized by expanding trust through diverse relationships, globally recruiting new players, and establishing a web of trust with shared values. The host sees East Rock Capital as an infinite game where rules change to sustain its growth and success.
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