In 'Systemantics', John Gall provides a unique perspective on systems design by highlighting how complex systems inherently tend to fail. He introduces key concepts such as Gall's Law, which states that a complex system that works is invariably found to have evolved from a simple system that worked. The book also discusses how systems often oppose their own proper function, and how the introduction of a system does not reduce the total number of problems but merely changes their form and relative importance. Gall's work is characterized by witty observations and critiques on the failures of system design, advocating for a bottom-up approach to building systems[3][4][5].
In 'The Man Who Beat the Market', Gregory Zuckerman delves into the strategies and philosophies of successful hedge fund managers such as Ray Dalio and David Swensen. The book provides insights into how these managers navigated and profited from the financial crisis, and offers lessons for individual investors on how to make informed investment decisions.
Set in a future where humanity is threatened by the Formics, an insect-like alien species, the novel follows Ender Wiggin, a child prodigy who is drafted into Battle School at the age of six. Ender undergoes intense military training, including zero-gravity battles and psychological manipulation, to prepare him to lead the human fleet against the Formics. The book explores themes of war, leadership, and the moral complexities of using children as soldiers. It is known for its deep and complex sensibilities, and its ability to pose profound questions about the nature of war and humanity.
This book tells the story of John Boyd, a fighter pilot who had a profound impact on military strategy and aviation. Boyd is credited with saving fighter aviation from the Strategic Air Command, developing the 'Energy–maneuverability theory' that influenced the design of fighter planes like the F-16, and creating the 'Aerial Attack Study,' which became the standard tactics manual for air forces worldwide. He also developed the OODA (Observe-Orient-Decide-Act) loop, a strategic concept that has been applied in various fields beyond military aviation. The book details Boyd's abrasive yet principled personality, his challenges against Pentagon bureaucracy, and his lasting legacy in military and business strategy[1][3][4].
In this autobiography, Sam Walton shares his life story and business philosophy, detailing how he transformed a small dime store into the global retail giant Walmart. The book is rich with anecdotes and insights into Walton's leadership style, entrepreneurial spirit, and the 'rules of the road' that guided him on both Main Street and Wall Street. It highlights his humility, frugality, and commitment to customer service, as well as the challenges and setbacks he faced along the way. The narrative provides a deep understanding of Walmart's culture and foundational principles, making it a valuable resource for entrepreneurs and business leaders.
This week’s guest is, Zack Kanter, the founder and CEO of the Stedi. Zack and I decided not to talk much about his business on this podcast and opted instead to explore more generally, so a bit of an introduction to what they do may be helpful here for some extra context. Stedi is a platform for exchanging and automating 300+ types of business-to-business transactions - transactions like purchase orders, invoices, etc. It’s a modern take on an archaic protocol called EDI - electronic data interchange, something I’d never even heard of until several months ago. Learning about EDI is a bit like finding out about the Matrix - every physical object you come across, from the food you ate for breakfast to the clothes you’re wearing and consumer electronics you use - anything with a barcode on it - was likely touched by EDI, often dozens of times before making it into your hands. Stedi is the first update to this messaging later in decades.
Our conversation in this podcast is about business in general, starting with Zack’s fascination with Walmart and Amazon. I should also not that my family is a recent investor in Stedi, and I’m thankful to have learned a great deal from him over the past few months. Please enjoy our conversation.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
1:52 - (First Question) – Interest in Walmart and Amazon
4:02 – Sam Walton: Made In America
4:49 – What from their success can be applied elsewhere
11:07– The idea of tempo with a business
17:17 – Ability for a business to expand laterally
24:33 - Magic of Amazon as a constitution
26:24 – The concept of the OODA loop
26:40 – Boyd: The Fighter Pilot Who Changed the Art of War
31:51 – Orientation within software businesses
32:24 – The Systems Bible: The Beginner's Guide to Systems Large and Small
38:03 – Lessons in building software
38:37– Certain to Win: The Strategy of John Boyd, Applied to Business
41:51 – Setting a common vision for a company
44:14 – Changing the dynamic of teams and how different size teams can accomplish different things
48:00 – How leaders should think about build vs buy
51:07 – The different types of value propositions
53:07 – Utility for companies
57:31 – Concept of network health and the best question from VCs
1:04:04 – Massive projects are less frequent in a world where we can do a lot quickly
1:04:08 – Wait but Why
1:09:37 – Just in time vs just in case learning framework
1:11:55 – His favorite question
1:13:39 – Why is most commonly heard advice wrong
1:18:06 – Kindest thing anyone has done for Zack
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
Invest Like the Best with Patrick O'Shaughnessy 
