One of the most interesting things that Nick Slieb writes about is the importance of understanding the underlying reality of a company.
He calls this the engine of its success.
What I actually found most interesting in these letters is Nick's analysis of the engine of success of Costco, Amazon and Walmart, and how those three founders, Jim Senegal, Jeff Bezos, and Sam Walton, designed their business in a way that ensure that they would survive over the long term.
All three of them were what Nick Sleep calls honestly run compounding machines.
This emphasis that all three founders placed on the long term success of their business allowed them to never make the fatal mistake of interrupting the compounding.
And to do so, Bezos, Senegal, and Walton all adopted a key trait.
They were, in the words of Warren Buffett, a demon on costs.
Having a lower cost structure than any of their competitors was a competitive advantage that compounded over the decades.
And Nick is going to mention that several times, including one time when he realizes back in 2006 that Amazon's costs are so low and they're so efficient that the game was already over.
Everybody else just didn't know it yet.
This is something that I was talking about with my friend Eric, who's the co founder and CEO of Ramp.
Ramp is now a partner of this podcast.
I've gotten to know all the co founders of Ramp and spent a bunch of time with them over the last year or two, and they all listen to the podcast.
So they've picked up on the fact that the main theme from the podcast, one that recurs over and over again, is the importance of watching your costs and controlling your spend.
The managers that are able to do so develop a massive competitive advantage, and that is the reason that ramp exists.
Ramp exists to give your business everything you need to control your spend and watch your cost.
All of history's greatest entrepreneurs made cost control an obsession.
Ramp helps you control costs all in a single platform.
Ramp gives you easy to use corporate cards for your entire team, automated expense reporting, and cost control.
In his autobiography, Sam Walton said, our money was made by controlling expenses.