Episode
#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
2:49:56
Published: Tue Sep 22 2020
Description
Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling | Brought to you by Boll & Branch, Vuori Clothing, and Athletic Greens. Richard Koch (@RichardKoch8020) is an entrepreneur, investor, former strategy consultant, and author of several books on business and ideas, including four on how to apply the 80/20 principle in all walks of life.His investments have grown at 22 percent compounded annually over 37 years and have included Filofax, Plymouth Gin, Belgo, Betfair (the world’s largest betting exchange), FanDuel, and Auto1. He has worked for Boston Consulting Group and was a partner at Bain & Co. before joining Jim Lawrence and Iain Evans to start LEK, which expanded from three to 350 professionals during the six years Richard was there.In 1997, Richard’s book The 80/20 Principle reinterpreted the Pareto Rule, which states that most results come from a small minority of causes, and extended it beyond its well-known application in business into personal life, happiness, and success. The book, substantially updated in 2017, has sold more than a million copies, been translated into roughly 40 languages, and become a business classic. It was named by GQ magazine as one of the top 25 business books of all time.His new book, published on August 13, 2020, and available in the US in December, is Unreasonable Success and How to Achieve it. In it, Richard charts a new map of success, which he says can propel anyone to new heights of accomplishment. High success, he says, does not require genius, consistency, all-round ability, a safe pair of hands, or even basic competence — but it does require the nine key attitudes and strategies he has identified.Please enjoy! This episode is brought to you by Boll & Branch! When I decided to overhaul my life for better sleep, I landed on Boll and Branch for linens. They are incredible, and you’ll feel the difference immediately. They are the softest and most comfortable, pure organic cotton sheets available. They’re thousand-dollar quality for a fraction of the price, starting at just one hundred and sixty dollars.And right now, you, my dear listeners, can get $50 off any sheet set using promo code TIMTIM. Restrictions may apply.*This episode is also brought to you by Vuori Clothing! Vuori is a new and fresh perspective on performance apparel. Perfect if you are sick and tired of traditional, old workout gear. Everything is designed for maximum comfort and versatility so that you look and feel as good in everyday life as you do working out.Get yourself some of the most comfortable and versatile clothing on the planet at VuoriClothing.com/Tim. Not only will you receive 20% off your first purchase, but you’ll also enjoy free shipping on any U.S. orders over $75 and free returns.*This podcast is also brought to you by Athletic Greens. I get asked all the time, “If you could only use one supplement, what would it be?” My answer is usually Athletic Greens, my all-in-one nutritional insurance. I recommended it in The 4-Hour Body in 2010 and did not get paid to do so. I do my best with nutrient-dense meals, of course, but AG further covers my bases with vitamins, minerals, and whole-food-sourced micronutrients that support gut health and the immune system. Right now, Athletic Greens is offering you their Vitamin D3/K2 Liquid Formula free with your first purchase—two vital nutrients for a strong immune system and strong bones. Visit AthleticGreens.com/Tim to claim this special offer today and receive the free D3/K2 bundle with your first purchase! That’s up to a one-year supply of Vitamin D as added value when you try their delicious and comprehensive all-in-one daily greens product.***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Chapters
Entrepreneur and author Richard Koch talks about his book "The 80/20 Principle" and shares the nine key attitudes and strategies to achieve high success in life.
00:00 - 03:15 (03:15)
Summary
Entrepreneur and author Richard Koch talks about his book "The 80/20 Principle" and shares the nine key attitudes and strategies to achieve high success in life.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker promotes Viori clothing, claiming it is the only brand they have bought in the past year for yoga, running, and lounge wear that looks and lasts.
03:15 - 06:58 (03:42)
Summary
The speaker promotes Viori clothing, claiming it is the only brand they have bought in the past year for yoga, running, and lounge wear that looks and lasts. They provide a website link for the audience to discover the versatility of Viori clothing.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Listen to learn about Athletic Greens' special offer for a free vitamin D supplement and travel packs, as well as Tim Ferriss' popular weekly newsletter Five Bullet Friday featuring cool finds from around the world.
06:58 - 14:01 (07:02)
Summary
Listen to learn about Athletic Greens' special offer for a free vitamin D supplement and travel packs, as well as Tim Ferriss' popular weekly newsletter Five Bullet Friday featuring cool finds from around the world.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The guest shares his experience of asking his teachers about the topics to be on the exam indirectly, during his undergrad.
14:01 - 19:38 (05:37)
Summary
The guest shares his experience of asking his teachers about the topics to be on the exam indirectly, during his undergrad. He then explains how he utilized his algebraic knowledge in Oxford.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The definition of a star business according to BCG is being the market leader in a defendable niche with high market growth, and this is where successful investments should be made.
19:38 - 29:02 (09:24)
Summary
The definition of a star business according to BCG is being the market leader in a defendable niche with high market growth, and this is where successful investments should be made.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker discusses the disadvantages of investing in football or horse racing if one is not well-versed in the sports.
29:02 - 36:47 (07:45)
Summary
The speaker discusses the disadvantages of investing in football or horse racing if one is not well-versed in the sports. He also talks about the importance of compound growth rate in investing and the use of research, citing an example of someone who had 50 employees for tracking football matches to make betting decisions.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The key to successful investing is to identify and invest in companies that have a unique competitive advantage in their respective markets such as Apple's ability to create their own segments with devices like iPod, iPhone, and iPad.
36:47 - 44:28 (07:40)
Summary
The key to successful investing is to identify and invest in companies that have a unique competitive advantage in their respective markets such as Apple's ability to create their own segments with devices like iPod, iPhone, and iPad. It is important to invest in companies that are not competing against low cost competitors, as this allows them to get a big price premium.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Richard shares how Phil Hume advised him that he was running out of road and needed to improve.
44:28 - 54:48 (10:19)
Summary
Richard shares how Phil Hume advised him that he was running out of road and needed to improve.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker advises individuals who are not succeeding in their job to move on to a firm where their talents can be better appreciated or where their talents fit in better; either in the same industry or with a competitor.
54:48 - 59:59 (05:10)
Summary
The speaker advises individuals who are not succeeding in their job to move on to a firm where their talents can be better appreciated or where their talents fit in better; either in the same industry or with a competitor.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Bain and Company's business model included generating all their business from a relationship with the CEO, having someone work alongside the top members of the company, and only working for one company in an industry.
59:59 - 1:07:05 (07:06)
Summary
Bain and Company's business model included generating all their business from a relationship with the CEO, having someone work alongside the top members of the company, and only working for one company in an industry.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Bill Bain's management strategy for his company, Bain and Company, was to ensure that all procedures and initiatives were initiated by him to maximize profits.
1:07:05 - 1:13:50 (06:44)
Summary
Bill Bain's management strategy for his company, Bain and Company, was to ensure that all procedures and initiatives were initiated by him to maximize profits. They also used satisfied clients to showcase their work and made acquisitions to strengthen existing businesses or enter new areas.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The podcast briefly discusses the book "Good Strategy, Bad Strategy" by Richard Rumelt, and mentions how it offers a better approach to strategy than typical customer interviews.
1:13:50 - 1:21:12 (07:21)
Summary
The podcast briefly discusses the book "Good Strategy, Bad Strategy" by Richard Rumelt, and mentions how it offers a better approach to strategy than typical customer interviews. The speaker also shares a personal anecdote about using a silent phone during interviews.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
In this podcast, the speaker explains how he hired a researcher to find out everything about the 80/20 principle on the internet, and talks about the basic idea behind the principle.
1:21:12 - 1:30:43 (09:31)
Summary
In this podcast, the speaker explains how he hired a researcher to find out everything about the 80/20 principle on the internet, and talks about the basic idea behind the principle.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker explores the times when one feels fulfilled and loses track of time, whether that be through hobbies, relationships, or personal growth, and highlights the importance of spending time with the people who truly matter in your life.
1:30:43 - 1:39:07 (08:23)
Summary
The speaker explores the times when one feels fulfilled and loses track of time, whether that be through hobbies, relationships, or personal growth, and highlights the importance of spending time with the people who truly matter in your life.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker talks about the different types of time management approaches they use, from spending time on unimportant tasks to being deliberate and objective-driven with an 80-20 analysis, to taking time to reflect on a fish pond with a notebook.
1:39:07 - 1:43:22 (04:15)
Summary
The speaker talks about the different types of time management approaches they use, from spending time on unimportant tasks to being deliberate and objective-driven with an 80-20 analysis, to taking time to reflect on a fish pond with a notebook.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The author of the book 'The Success Equation' discusses the arbitrary nature of success and introduces his new book 'Unreasonable Success and How to Achieve It' which highlights 20 people who changed the world and the factors that can contribute to achieving unreasonable success.
1:43:22 - 1:55:29 (12:07)
Summary
The author of the book 'The Success Equation' discusses the arbitrary nature of success and introduces his new book 'Unreasonable Success and How to Achieve It' which highlights 20 people who changed the world and the factors that can contribute to achieving unreasonable success.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Best-selling author Richard Koch discusses the transformational experiences of historical figures, including Paul of Tarsus, who he believes achieved "unreasonable success" by changing their outlook on life and becoming more effective.
1:55:29 - 2:08:05 (12:36)
Summary
Best-selling author Richard Koch discusses the transformational experiences of historical figures, including Paul of Tarsus, who he believes achieved "unreasonable success" by changing their outlook on life and becoming more effective. He also shares his definition of success in this insightful conversation.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The founder of a successful firm shares the importance of having rare knowledge and transforming experiences.
2:08:05 - 2:18:16 (10:10)
Summary
The founder of a successful firm shares the importance of having rare knowledge and transforming experiences. The company provides opportunities for young people to grow and develop in their careers.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Lenin intentionally separated himself from the Mensheviks at a conference in 1903 to establish his own party, believing that with a dedicated group of followers he could lead a revolution in Russia.
2:18:16 - 2:24:52 (06:35)
Summary
Lenin intentionally separated himself from the Mensheviks at a conference in 1903 to establish his own party, believing that with a dedicated group of followers he could lead a revolution in Russia. This move ultimately led to the Bolsheviks rise to power in 1917.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The reality distortion field is a term used to describe a person's ability to convince others to believe their version of reality or future vision.
2:24:52 - 2:32:17 (07:25)
Summary
The reality distortion field is a term used to describe a person's ability to convince others to believe their version of reality or future vision. It requires both a deep understanding of a specific area and a willingness to trust one's intuition.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
Being in prison on Robben Island for 17 years gave Nelson Mandela the ability to size up the leaders of South Africa, including P.W.
2:32:17 - 2:38:53 (06:35)
Summary
Being in prison on Robben Island for 17 years gave Nelson Mandela the ability to size up the leaders of South Africa, including P.W. Botha, and ultimately contributed to his ability to negotiate an end to apartheid without violent revolution.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker is considering working with successful individuals to take them through a process to generate unreasonable success.
2:38:53 - 2:46:28 (07:34)
Summary
The speaker is considering working with successful individuals to take them through a process to generate unreasonable success. They share their admiration for the interviewee's written words and offer to send a weekly email with interesting tidbits.
Episode#466: Richard Koch on Mastering the 80/20 Principle, Achieving Unreasonable Success, and The Art of Gambling
PodcastThe Tim Ferriss Show
The speaker recommends the Men's Core Short K-O-R-E for athletic wear and the Ponto Performance Pant for yoga, running and lounge wear.
2:46:28 - 2:49:40 (03:12)
Summary
The speaker recommends the Men's Core Short K-O-R-E for athletic wear and the Ponto Performance Pant for yoga, running and lounge wear. Both made from recycled material.