#291 David Packard (Founder of HP)

**David Senra** (0:00)
I want to tell you about a one-time only limited event that I don't think you're going to want to miss. I am doing a live show with Patrick O'Shaughnessy from the Invest Like the Best podcast in New York City on October 19th. Patrick has interviewed over 300 of the world's best investors and founders for his podcast. I've read over 300 biographies of history's greatest entrepreneurs for my podcast. We'll be talking about what we learned from seven years of podcasting, sharing our favorite ideas and stories, and doing a live Q&A. There will also be special event-only swag. If you live in New York City, I think it's a no-brainer. But if not, I think it's a great excuse to fly in. I've already heard from a bunch of people that bought tickets, they're flying in from other cities. Some people are flying in from other countries. That's setting the bar really high, so I will have at least four shots of espresso or four energy drinks before or during the show so we can make it a night that you'll never forget. If you're interested in attending this unique live event, I will leave a link down below. I highly recommend you get your tickets today, and I hope I get to see you in New York on October 19th. The presenting sponsor of this episode is Tiny. Tiny is the easiest way for you to sell your business. They provide straightforward cash exits for founders. They can do deals of all sizes. They've bought businesses in the past for as little as a million dollars, and some businesses for over $100 million. Tiny has been called the Berkshire Hathaway of the internet. The founders, Andrew and Chris, have spoken about how the thinking of Warren Buffett and Charlie Munger has influenced the way that they are building Tiny. Stick around to the end of this episode. The last six minutes is actually a masterclass on product differentiation from Warren Buffett. I compare the ideas that Warren writes about in his shareholder letters to Tiny's approach to building their business. Selling a business is usually a headache and a hassle. Selling to Tiny is the opposite. The process of selling your business is very straightforward. You get in touch with Tiny by going to tiny.com. You get a response within 48 hours. They'll make an offer within seven days, and they close within a month, and you get a bag full of cash. If you have a business that you want to sell now or in the future, make sure you go to tiny.com.
And one more thing before we jump into today's episode, do me a favor, whatever podcast player you're listening to this on, do me a favor and search for Invest Like The Best and follow that show. Invest Like The Best is one of my favorite podcasts. My friend Patrick is a world-class interviewer. I was just listening to his podcast yesterday with Dan Rose. It's episode 316 It's called How Stunning Founders Operate. Dan worked directly with both Jeff Bezos and Mark Zuckerberg at the beginning of Amazon and at the beginning of Facebook. He shares a lot of lessons, what he learned from both Zuckerberg and Bezos on the episode. It's absolutely excellent. And if you want to listen to the episode that I did with Patrick, it is David Senra, Passion and Pain, episode 292
David Packard rejected the idea that a company exists merely to maximize profits.
I think many people assume wrongly that a company exists simply to make money, Packard said.
While this is an important result of a company's existence, we have to go deeper to find the real reason for our being.
Do our products offer something unique?
Are people's lives improved because of what we do?
If the answer to any of these questions is no, then Packard would deem HP a failure. Most entrepreneurs pursue the question, how can I succeed? From day one, Packard pursued a different question. What can we contribute?
As a result, HP attained extraordinary success. This success, in turn, enabled them to invest more in making a contribution, which produced even greater success, which led to increased contribution, which created even greater success. This virtuous cycle eventually enabled Packard and Hewlett to personally contribute at levels far beyond what they would have dared to imagine as young men. In 1995, Packard attended a dinner at Stanford University. The Dean of Engineering mentioned to Packard that he and Hewlett had donated on a present value basis as much to Stanford as Jane and Leland Stanford had given to fund the university.
Upon his death, Packard bequeathed nearly all of his $5.6 billion estate to charity. But if you were to think of David Packard and the HP Way as being all about benevolence and charity, you would be terribly mistaken. Packard and Hewlett demanded performance, and if you could not deliver, HP held no place for you.