Georges Doriot

Strong work ethic is a character trait worth building into organizational culture and evaluating in people.

Doriot believed his students needed to understand what an honest day's work means. He intentionally hired hardworking people (like Scandinavians who work very hard), modeled extreme work hours himself, and made work ethic a core value.

“I do believe that the men leave my class, they have a definitive notion of what an honest day's work means.”

Patient capital that nurtures companies over a decade or more generates greater returns than short-term speculation.

Doriot referred to his portfolio companies as his children and often worked with companies for 10+ years before realizing returns. While this approach created pressure from public markets wanting immediate earnings, it proved far more profitable in the long term.

“George often worked with the company for a decade or more before realizing any return. That is why he often referred to his company as his children.”

Raise money when you do not need it, because opportunities appear when credit is scarce or expensive.

Doriot emphasized maintaining financial firepower during good times to capitalize on opportunities when markets contract and others cannot access capital. This allowed ARD to continue investing when competitors withdrew.

“You should always raise money when you do not need it. Having learned through hard experience that when you do not need money, chances are you are unlikely to get it.”

Accumulate and concentrate your wealth in a few high-conviction positions rather than diversifying broadly.

Doriot's greatest wealth came not from ARD's many investments, but from his concentrated stake in Digital Equipment Corporation, following the pattern of Rockefeller with Standard Oil and the Rothschilds with gold. Focused accumulation in truly valuable assets beat diversification.

Recruit talented people from your extended network of former students and mentees built over decades.

Doriot maintained relationships with thousands of Harvard students over 40 years, detailed records of their careers, and directly recruited the best into ARD and his portfolio companies. This network proved invaluable for staffing ventures.

When you have multiple opportunities, choose to work with the smartest, most capable people you know.

Doriot had several military offers during WWII but chose the Quartermaster Corps because he considered General Gregory the most intelligent officer he knew. He believed capability of people was the limiting factor in any endeavor.

“I had several other offers, but the only reason I went to the Quartermasters is that I considered General Gregory the most intelligent officer I knew.”

Look for resourceful people who can make ideas practical rather than just creative people with ideas.

Doriot distinguished between creative people (who have ideas) and resourceful people (who make them practical). He actively sought resourceful individuals like Ken Olson who could translate vision into executable reality.

“A creative man merely has ideas. A resourceful man makes them practical. I look for resourceful men.”

An average idea executed by an able person outperforms an outstanding idea executed by an average person.

Doriot emphasized that talent and capability matter more than the brilliance of the initial concept. This shaped his investment philosophy and hiring practices, leading him to focus relentlessly on finding resourceful, capable individuals rather than chasing trendy ideas.

“An average idea in the hands of an able man is worth much more than an outstanding idea in the possession of a person with only average ability.”

Always remember that new products will make your current products obsolete. Embrace disruption.

Doriot taught this maxim to students at Harvard, understanding that complacency was death. This principle informed his investment in companies specifically designed to disrupt existing industries.

“Always remember that someone somewhere is making a product that will make your product obsolete.”

Use teaching as your primary leadership tool to develop people's thinking rather than simply directing them.

Doriot framed his entire career as teaching: at Harvard, in the military, and at ARD. He believed effective leadership was about asking questions that made people think, not dictating answers. Students and employees describe him as Yoda-like in dispensing wisdom.

Form close personal bonds between teacher and student rather than maintaining institutional distance.

Doriot rejected the traditional model of professorial aloofness. He formed personal relationships with each student, provided individualized attention, and continued mentoring relationships for life.

People are more important than ideas or financial returns. Build relationships and nurture talent above all else.

Doriot famously said he was building men and companies, not just seeking returns. He maintained detailed files on students and mentees for decades, directly recruited talented individuals into ventures, and prioritized loyalty and character over short-term profits.

“I am building men and companies. If a man is good and loyal and does not achieve a so-called good rate of return, I will stay with him.”

Develop a personal philosophy of business and life that is uniquely yours and reflects your values.

Doriot called his Harvard course Manufacturing, but it was really his philosophy of life and business. He spent decades refining a set of principles around hard work, integrity, self-improvement, and contribution to society that he taught to thousands of students.

Courage is doing something difficult when no one is watching or when society isn't celebrating it.

Doriot taught that real courage wasn't public heroism but private integrity. This reflected his own behavior: maintaining conviction in ventures that were publicly ridiculed, fighting regulations no one else challenged, pursuing opportunities others abandoned.

“A real courageous man is a man who does something courageous when no one is watching him.”

Balance perfectionism and high standards with the ability to move forward despite imperfection.

Doriot was trained by his father to never settle for second place and to see contentment as stagnation. Yet he also understood that endless perfectionism prevented action. The balance was pursuing excellence while remaining pragmatic about execution.

Study deep business and human history to understand that principles repeat even when circumstances change.

Doriot observed patterns across centuries of human enterprise: the Rothschilds creating the bond market, Rockefeller accumulating Standard Oil stock, Ford revolutionizing manufacturing. Understanding these patterns informed his belief that history repeats in human nature, revealing where future opportunities lie.

Bypass bureaucratic channels to get unfiltered information directly from frontline sources.

Doriot encouraged employees to write him directly rather than going through chain of command, believing managers filter and distort information. He wanted raw, immediate feedback from people closest to the problems.

“He wanted us to violate all kinds of rules and regulations and just write a letter and put a stamp on it.”

Pay attention to details others miss, especially those affecting frontline execution and user experience.

During WWII, Doriot measured foot space in tanks to ensure soldiers' shoes would fit comfortably, and requisitioned water-repellent fabrics and cold-weather uniforms. These small details determined whether soldiers survived in harsh conditions.

Invest in people and companies you believe in despite market skepticism and short-term returns.

ARD's stock price was destroyed for years while the company was actually building successful ventures and a new industry. Doriot maintained conviction in his strategy despite external pressure to sell out or produce immediate earnings.

Recognize that beginning endeavors are always misunderstood by outsiders and maintain conviction despite criticism.

Wall Street called ARD a philanthropic enterprise, a financial mouse, and a freak. Fortune magazine mocked it. Doriot maintained conviction that venture capital was important even when all external signals suggested failure.

Be willing to defy conventional wisdom and break the rules when pursuing something important.

Doriot fought with the SEC and IRS, lobbied to change investment laws that precluded new ventures, resisted military orders to ensure soldiers had proper equipment, and upset Wall Street by proving small unproven companies could generate huge returns.

Apply scientific and engineering thinking to solve problems in any domain, not just technical fields.

Doriot brought systematic problem-solving from engineering and science to military logistics, education, and finance. His father's engineering background and his observation of Henry Ford's manufacturing innovations showed him how to apply these principles across domains.

The riskiest investments in emerging technology hold the greatest potential for both financial returns and personal satisfaction.

After years of moderate success with safer investments, ARD discovered that early-stage investments in unproven technology companies generated the highest returns. They learned internally what outsiders called crazy that the most promising opportunities appeared as long-haired, risky projects.

“Now we realize that our best things are longhaired.”

Combine deep historical knowledge with close attention to the cutting edge of technology to identify emerging asset classes and opportunities.

Doriot's unique insight came from studying centuries of business history while observing emerging technologies and entrepreneurial ventures of his time. This combination allowed him to recognize that innovation and entrepreneurship were where future wealth would be created.

Believe in and invest in technology and innovation decades before mainstream acceptance.

Doriot recognized in the early 1940s that innovation was the key to economic progress and that value would flow to startups and entrepreneurs, not incumbents. This was counterintuitive when all value appeared concentrated in established corporations.

Create new asset classes by identifying market gaps and systemic deficiencies that prevent value creation.

Doriot observed that banks were ultra-conservative and unwilling to lend to unproven ventures, leaving entrepreneurs without capital. This gap inspired him to create ARD as the first professional venture capital firm, inventing an entirely new asset class that eventually grew into a $100+ trillion market.

“A commercial bank lends only on the strength of the past. I want money to do things that have never been done before.”