Mitch Rales: The Art of Compounding

**SPEAKER_1** (0:00)
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Today, we are excited to share a great conversation with Mitch Rales, the co-founder of Danaher and one of the living legends in the world of business and investing. This is Mitch's first long form interview of this type and he covers his entire history and business philosophy. Interviewing Mitch are Paul Buser and Rick Berman, who host the Art of Investing podcast on the Colossus Network. If you enjoyed this interview, be sure to check out their whole feed via the link in the show notes.
Let's get to it. Please enjoy this comprehensive discussion with Mitch. We're thankful to him for his time and his insights.

**Paul Buser** (2:14)
Hello and welcome to the Art of Investing, the podcast devoted to helping you more fully experience the joys of compounding in all its forms. I'm Paul Buser.

**Rick Berman** (2:23)
And I'm Rick Berman.

**Paul Buser** (2:24)
We are your hosts. In each session, our teachers will be some of the world's most compelling people from across the vast range of human achievement.
Take your seats. Class is in session.

**SPEAKER_4** (2:37)
This show is brought to you by Pine Grove Studios in collaboration with Colossus.
The hosts of the show, Rick Berman and Paul Buser, are the co-founders and co-CEOs of Seda Grove Holdings and co-CEOs of Seda Grove Management Company. All opinions expressed by any of Rick, Paul or the podcast guests are solely their own and do not reflect the opinion of either Seda Grove Holdings or Seda Grove Management Company. This podcast is intended for informational purposes only and should not be relied upon as the basis for investment decisions. Seda Grove Holdings or clients of Seda Grove Management Company may maintain positions and securities discussed in this podcast.

**Rick Berman** (3:07)
Our teacher today is Mitch Rales, one of the most iconic business builders and philanthropists of our time. Having co-founded Danaher 40 years ago alongside his brother and best friend, Steve, the Rales boys have strung together a track record of compounding that might even make Buffett blush. Consider that Danaher has annualized at over 21% for four decades, resulting in an 1800 times multiple uninvested capital.
And while the numbers are mind-blowing, the story of how it all went down is even more remarkable. In this conversation, you'll learn from Mitch about the key inputs to his outlier success. Why greatness is a journey that takes an unusual time horizon. The role that benchmarking plays in standing up any winning organization. Why it's essential to cultivate learning agility and embrace transformational pivots over time in order to adapt and thrive in an ever-changing landscape. How an uncommon commitment to continuous improvement and long-term thinking both at the individual and corporate level have fueled one of the most impactful companies of our time. And also the qualities that Mitch looks for both in leaders and businesses he looks to support.
More recently, Mitch has turned his focus to Glenstone. The foundation and museum he co-founded with his wife Emily, with a vision that emerged from their shared passion for three fundamental elements, art, architecture and landscape. And seeks to be the preeminent foundation devoted to the visual arts in the world. Having signed the giving pledge, they've committed to building and investing for the benefit of mankind. And you'll hear how this stewardship orientation started with Danaher and now permeates through to every pursuit that Mitch takes on.