Terry Crews and Richard Koch | The Tim Ferriss Show

05 Jul 2024 (2 months ago)

Terry Crews' Journey as an Artist

Terry Crews, a former NFL player and actor, grew up in Flint, Michigan during challenging times.
He saw art and athletics as ways to escape his circumstances but didn't believe he could make a living as an artist.
One of his art teachers, Mr. Eichelberg, recognized his talent and helped him apply for a scholarship to Interlochen Arts Academy.
Attending Interlochen and studying with diverse students changed his life.
He emphasizes the importance of letting people believe in you, even when you don't believe in yourself.
Terry received validation for his art when a gallery owner chose two of his pieces as the best in a competition.
He earned an art scholarship to Western Michigan University and joined the football team.
After his mother passed away, Terry remembered her advice to never forget that he is an artist.
In college, Terry used his art skills to make money by painting portraits of football players.
He devised a strategy to get good grades in his art classes by submitting intentionally bad paintings at the beginning of the semester and then gradually improving them.

Overcoming Challenges and Embracing Courage

Terry experienced a significant failure in high school when he missed a crucial shot during a basketball game.
Despite criticism and disappointment, Terry learned from this experience and decided to take risks and make decisions on his own terms.
He shares a personal story about missing a game-winning shot and how he reframed the experience to learn from it.
The speaker emphasizes the importance of taking risks and not being afraid to fail, as you often get what you desire in life.
He opens up about a dark period in his life when his father abused his mother in front of their children.
Terry describes the intense physical altercation he had with his father and the feelings of emptiness and guilt that followed.
After years of therapy, he found healing and forgiveness by confronting his father and expressing gratitude for the positive aspects of their relationship.
The speaker highlights the difference between shame and guilt, emphasizing the importance of admitting mistakes and developing discipline for change.
He concludes by sharing his favorite quote, "God will not have his work made manifest by cowards," and explains its significance in overcoming fear and pursuing courage.

Vulnerability, Fear, and the Pursuit of Excellence

The speaker discusses overcoming his fear of swimming by repeatedly diving into the deep end of his pool.
Vulnerability is a part of courage, and it is necessary to be willing to let people judge your work and creations.
He shares an experience from his first movie, where he felt immense self-doubt but pushed through and received positive feedback from Arnold Schwarzenegger.
Despite years of acting, the speaker still experiences nervousness before every role, but he emphasizes the importance of facing fear and pushing through it.
The speaker describes a state of "flow" where everything feels effortless and enjoyable, which can be achieved through practice and facing fear.

Investing Principles and Strategies

The speaker introduces guest Richard Koch, a renowned investor and author, and expresses admiration for his work.
Richard Koch discusses his reinvention of the talk show format on podcasts and compares it to the chat shows of Michael Parkinson.
He explains the Bodleian Library in Oxford and its significance as a place where he could find almost any book he wanted.
Richard discovered the 80/20 principle (Pareto principle) from a book written by Vilfredo Pareto.
He realized that he could use this principle to his advantage in his Oxford examinations by focusing on a few frequently asked questions and becoming an expert in those areas.
Richard also mentions a similar strategy he used in undergrad, where he would ask professors for hints on what to focus on for exams.
He found that having a few pints of beer in the afternoon helped him perform better on his exams.
Richard advises smart kids in high school to discover and develop their unique talents, rather than focusing on what everyone else is doing.
He emphasizes the importance of honing one's skills and making them exceptionally strong.
Richard's peculiar talent lies in analyzing non-quantitative aspects of history, such as structures, trends, and overlooked connections.
Despite his self-deprecating attitude towards numbers, Richard has a successful track record in investing by following the "star principle."
The star principle involves investing in businesses that are market leaders in defensible niches with high market growth rates.
Richard's investment in Betfair, a betting exchange company, turned out to be highly successful, and he eventually made a significant profit when he sold his shares.
Richard emphasizes the importance of principles and compound growth rate in investing, rather than relying solely on numerical analysis.
He highlights the fact that he is the only investor of his scale who operates without employing staff and makes investment decisions based on his own principles and analysis.
Richard's approach to investing is centered around identifying and investing in star businesses, with a focus on retaining and enhancing their dominant market positions.

Career Journey and Lessons Learned

Richard was fired from BCG because he wasn't good at analysis, but he was good at charming clients and understanding strategic issues.
He went to other consulting firms to see if they would hire him, but they didn't.
McKinsey & Company rejected Richard due to their belief that he was better suited for an advisory role rather than decision-making.
Egon Zender, a leading European headhunter, offered Richard a job, but he declined after realizing that he still wanted to work in consulting.
Richard met with Bill Bane, the founder of Bain & Company, who was impressed by his listening skills and offered him a job.
Bain & Company appreciated and utilized Richard's interest in the theology of business, which involves understanding a firm's business model.
Despite initial struggles and unhappiness at BCG, Richard persevered and eventually succeeded, earning a significant pay increase when he joined Bain & Company.
Richard advises individuals in similar situations to recognize when their talents are not being fully utilized and to seek opportunities where they can be better appreciated.
BCG was a decentralized company with autonomous profit centers and a focus on billability, while Bain & Company was a highly controlled organization with a tight formula for success.
Bain & Company only worked with the top executives of a company and offered a "secret formula" for increasing market value.
Bain & Company relied on personal recommendations from one CEO to another to get clients and had a military-like operation within client organizations.
Bain & Company's work was pre-wired from the top down but validated from the bottom up, ensuring consensus and agreement on all recommendations.
Bain & Company focused on getting growth from existing clients rather than acquiring new ones.
Richard was made a partner at Bain & Company after only 18 months due to his successful work and the recommendation of a satisfied client.
Bill Bain, the founder of Bain & Company, offered Richard a partnership in the firm on the condition that he behave like a partner for nine months before the official announcement.
This request changed Richard's behavior, making him more loyal to the organization and more direct with his colleagues.