Invest Like the Best with Patrick O'Shaughnessy

Ken Langone - The American Dream - [Invest Like the Best, REPLAY]

31 snips

Oct 30, 2025

Ken Langone, a seasoned businessman and co-founder of Home Depot, shares his extraordinary journey and thoughts on loyalty, culture, and leadership. He recounts his early work with Ross Perot, highlighting the value of trust and integrity in negotiations. Ken emphasizes the importance of prioritizing employees in company culture and discusses how Home Depot’s unique upside-down hierarchy fosters loyalty and success. He also reflects on the essence of capitalism in creating opportunities, demonstrating that people are the key to investment success.

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ANECDOTE

Landing The Perot IPO

Ken Langone won Ross Perot's IPO mandate by speaking bluntly and sizing the company at 100x earnings based on observed doubling growth.
Perot rewarded honesty and loyalty, and the deal launched Langone's reputation on Wall Street.

ADVICE

Overdeliver In Negotiations

Do negotiate to give the other side more than they expect so trust and future relationships strengthen.
If the other party feels fairly treated, you'll avoid burned bridges and gain long-term partners.

INSIGHT

Flip The Hierarchy

Home Depot flipped the corporate pyramid, putting frontline employees at the top as the most important asset.
Empowered hourly workers who help customers create the store's lasting competitive advantage.

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Today I am replaying my conversation with Ken Langone. Ken is a legendary American businessman best known for his co-founding of Home Depot. He is also a former director of the New York Stock Exchange and a passionate philanthropist. He shares with us a lifetime worth of wisdom, building Home Depot into a powerhouse and prioritizing his employees above all else. He says he still “bleeds orange” to this day. You’ll hear as he recounts his business endeavors, his strict belief in keeping your word and his true pride in his country, what he knows to be the land of opportunity. We discuss his work with Ross Perot, the idea of an upside down hierarchy, and the power of loyalty. For anyone who may find it easier to follow along, we have a transcript of the episode on joincolossus.com. Please enjoy this conversation with Ken Langone.

For the full show notes, transcript, and links to mentioned content, check out the episode page here.

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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.

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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:

(00:00:00) Welcome to Invest Like the Best

(00:004:00) The Unforgettable Pitch to Ross Perot

(00:08:37) Winning Over Perot with Honesty and Insight

(00:16:08) The Art of Negotiation and Trust

(00:19:31) Loyalty, Integrity, and the Power of Keeping Your Word

(00:23:51) Home Depot's Culture of Service and Empowerment

(00:29:16) Frank's Authentic Leadership and Its Impact

(00:31:00) Transforming NYU Medical Center

(00:33:45) Ken’s Investment Philosophy: Long Hold Only

(00:39:56) The Power of Resilience in Business

(00:45:37) The Kindest Thing Anyone Has Ever Done For Ken