PROGRESSION: Just Keep Buying, Why You Shouldn’t Optimize Everything, and the Making of McDonald’s
June 2022
10 years ago, back when I was a featured columnist at Bleacher Report (my I-banking side hustle), I wrote a piece about how I’d never step foot in Dodger Stadium again.
Well, two nights ago I made myself a liar when I joined my father-in-law and son to see the Dodgers beat the Cubs 4-2. And I’m still alive. ¯\_(ツ)_/¯
Okay, I needed to get that off my chest. Let’s jump in.
Books, articles, etc.
Grinding It Out: The Making of McDonald's by Ray Kroc (Book)
Not really a McDonald’s fan here, and while their fries are not good, this book is. 😉
In all seriousness, I have a massive amount of respect for Ray Kroc. Grinding It Out shares how McDonald's grew to be one of the biggest companies in the world. Kroc did it through seizing the right opportunity, perfecting the details of the business over time, focusing on growth, and never ever giving up.
Interestingly, McDonald’s didn’t become a thing until Kroc was in his 50s. He was a milkshake mixer salesman who met the McDonald brothers after they purchased eight of his mixers for their San Bernardino, California restaurant. Similar to Shoe Dog (Phil Knight’s bio), this is a fun tale about an entrepreneur’s journey from humble beginnings to massive success. Excellent book.
Some Extra Perspective by Kevin Delaney (Article)
Here’s a short story on the importance of perspective from my friend and mentor, Kevin Delaney. Check out his newsletter for the full story. Or better yet, subscribe to it.
A number of years ago, there was a royal kerfuffle over a photograph published of Prince William flipping the bird to a crowd of onlookers.
There was a litany of outrage and commentary on behavior so unbecoming of the future King. It turns out, it was all much ado about nothing.
Photographs taken at the same moment, but from another angle, showed the more accurate story. William wasn’t making a rude gesture to the crowd. He was holding up three fingers as he exited the hospital following the birth of his third child, saying, “Number three has arrived!”
Our experience can dramatically change when we get a little extra perspective.
Just Keep Buying: Proven Ways to Save Money and Build Your Wealth by Nick Maggiuli (Book)
I heard about this book’s author, Nick Maggiuli, from Morgan Housel (author of my fave finance book, The Psychology of Money). Nick is a great twitter follow (@ofdollarsanddata) and I really enjoyed the lessons he shared in Just Keep Buying. Here are a few that standout:
When deciding between investing all your money now or over time, it is almost always better to invest now. This is true across all asset classes, time periods, and nearly all valuation regimes. Generally, the longer you wait to deploy your capital, the worse off you will be. Just Keep Buying is a statistically better strategy than saving up cash to buy the dip.
Lifestyle creep is the idea that the more money you make, the more you tend to spend. Your goal is to keep your “lifestyle creep” spending to 50% or less of your additional income. Spending more than 50%, and you risk your retirement.
Despite the fear of running out of money in retirement, most people die with money in the bank. You probably need to save less than you think.
Fund the life you need before you risk it for the life you want.
Observations
Why You Shouldn’t Optimize Everything
When I was at DoorDash, Tony Xu regularly taught a key lesson that was counterintuitive: Do things that don’t scale.
Want to know what challenges restaurants are facing? Pick up the phone and call a hundred of them. Want to know why NPS has slipped in Omaha? Well, start reaching out to customers in Nebraska.
Too often we seek to optimize when in reality we don’t even know what we’re optimizing for. This has obvious application to building startups, but it’s even truer in our relationships.
It’s taken me too long to learn that I can’t *scale* my relationship with my kids. Going to dance concerts, attending baseball games, and reading books takes time. Last night, we sat at the dinner table for hours playing card games, laughing, arguing, and making memories.
Whether you’re growing a startup or growing a child, you can’t optimize everything.
Do things that don’t scale.
Just Got Laid Off? This Is The Two-Month Plan You Need To Follow
Five years ago I wrote this piece for Fast Company. Given the uptick in layoffs, I thought it was time to re-share it.
Bouncing back from getting laid off is just as much of an internal game as it is an external one. If you’re thriving but know someone who’s been hit by a layoff, send this to them.
Gratitudes
I’ve found power in regularly expressing gratitude so I’ll continue the habit. I’m grateful for vacations. I’m fresh off a week-long trip to Newport Beach with my family and really enjoyed spending time with loved ones. My kids look forward to this trip every year and it didn’t disappoint.
If you've read anything worth sharing I'd love to hear about it. And do let me know if there's anything I can do to help you.