Before we turn the page on 2024, we wanted to shine one more light on the man behind our most popular class of the last year. And that's Mitch Rales, co-founder of Danaher, one of the most impressive businesses to have been built anywhere in the world this past century. 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 on invested capital! 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 benchmarking plays in standing up any winning organization, why it is essential to cultivate learning agility and embrace transformational pivots over time, and also the qualities Mitch looks for both in the leaders and businesses he looks to support. While Mitch is a natural teacher, this is actually his first recorded, long-form interview of any kind, and so we feel especially honored to share with you our candid conversation with someone who has shaped and transformed us and the business world in so many positive ways. Please enjoy today’s class with Mitch Rales. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- Joys of Compounding is a property of Pine Grove Studios in collaboration with Colossus, LLC. For more episodes of Art of Investing, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) - Welcome to Joys of Compounding (00:04:32) - The Philosophy Behind Glenstone's Creation (00:11:57) - Benchmarking and Continuous Improvement: Lessons from Danaher and Glenstone (00:20:22) - The Influence of Mitch’s Father and Upbringing (00:27:43) - Transforming Danaher During The George Sherman (00:29:39) - Embracing Long-Term Vision and Patience (00:35:47) - The Role of Leadership in Navigating Change (00:41:21) - Danaher's Evolutionary Journey: From 1.0 to 4.0 (00:55:37) - Building a Culture of Internal Growth and External Innovation (00:57:42) - The Art of Successful Acquisitions and Integration Strategies (01:02:03) - Seeking Leadership Qualities and Business Traits for Long-Term Success (01:05:14) - The Journey from Personal Experience to Philanthropy (01:12:10) - Investment Philosophy: Concentration vs. Diversification (01:28:46) - Operational Expertise as a Catalyst for Company Growth (01:33:17) - Identifying and Supporting Talent in Business (01:42:02) - The Impact of Secular Trends on Long-Term Investments (01:48:53) - Revitalizing the Washington Commanders (01:56:36) - Engaging with Fans and Building a Winning Culture (02:04:16) - The Importance of Long-Term Vision