#289 Brunello Cucinelli

In this insightful discussion, the host delves into the life and business philosophy of Brunello Cuccinelli, a paradigm of entrepreneurial persistence and humanistic capitalism. Cuccinelli, akin to Ralph Lauren, exemplifies the rare breed of founders who dedicate their lives to a single business venture, with Cuccinelli's focus on high-quality cashmere fashion. Emphasizing the importance of solitude and reflection, Cuccinelli's journey from a humble peasant to a successful entrepreneur is marked by his respect for craftsmanship, ethical profit-making, and his investment in the revitalization of his beloved hamlet, Solomeo. The conversation also touches upon Cuccinelli's approach to leadership, his decision to go public with his company, and his advice to the new generation on listening and building an extraordinary reality. Additionally, the host shares insights from the autobiography of Cuccinelli, "The Dream of My Life," and the challenge of finding an English translation, highlighting the significance of his story in the realm of business and personal development.

• Founders often spend their entire lives working on their first successful business.
• Ralph Lauren and Brunello Cuccinelli are examples of entrepreneurs dedicated to their life's work.
• The journey of an entrepreneur often involves starting multiple businesses to find their true calling.
• The sponsor, Tiny, is highlighted for simplifying the process of selling a business.

"A big part of being a founder, a big part of being an entrepreneur is searching for your life's work, and that usually means starting more than one business."

• This quote emphasizes the entrepreneurial journey of searching for a fulfilling business venture, which may involve multiple attempts.

• Brunello Cuccinelli values solitude, reflection, and the importance of ideas over material production.
• He sees his early life experiences as formative, equating them to a personal university in life and human knowledge.
• Cuccinelli's passion for books, especially philosophy, is a cornerstone of his personal and professional development.
• He believes in the power of writing and reflection to understand one's life and motivations.
• The autobiography of Brunello Cuccinelli, "The Dream of My Life in the Idea of Humanistic Capitalism," is rare and expensive in English translation.

"I value ideas because I consider them more important than the things that they produce."

• Cuccinelli prioritizes the conceptual genesis of ideas over the tangible products they may lead to, underscoring a philosophical approach to entrepreneurship.

• Brunello Cuccinelli cherishes the quiet moments of solitude for deep thinking and reflection.
• He draws parallels between his own desire for solitude and the monastic lifestyle he once admired.
• Cuccinelli believes that solitude is essential for entrepreneurs, as it allows for uninterrupted contemplation and the nurturing of ideas.
• His upbringing without modern conveniences taught him the value of simplicity, silence, and observation.

"Our task is first to discover the nature of our summons, then to follow it."

• This quote captures Cuccinelli's belief in a personal mission or calling that individuals must identify and pursue with conviction and joy.

• Cuccinelli grew up in a poor farming family, living in a simple house with no modern amenities.
• He learned to appreciate silence and the simple pleasures of life from a young age.
• His childhood experiences taught him to listen, observe, and use his imagination.
• Cuccinelli emphasizes the importance of giving oneself time to think, a practice he continues to value highly.

"In my family, there was always a quiet silence."

• This quote reflects the serene and contemplative environment of Cuccinelli's upbringing, which played a significant role in shaping his values and outlook on life.

• Brunello Cuccinelli speaks of the strong bond within his family and the lessons he learned from his parents.
• He believes in being a teacher to one's children during their early years, a father during their adolescence, and a friend for life.
• Cuccinelli strives to impart values of justice and humanity to his grandchildren, even when they are asleep.
• He reflects on the challenges and responsibilities that come with wealth, emphasizing the importance of living modestly and being prepared for life's uncertainties.

"Try to be your son's teacher until he's ten years old, his father until he's 20, and his friend for the rest of his life."

• This quote underscores Cuccinelli's philosophy on the evolving roles of a parent in a child's life, highlighting the importance of guidance, support, and friendship.

• Warren Buffett and Charlie Munger emphasize that the downfall of a successful business is often not competitors, but the owner's own actions.
• Charles Munger's maxim: "The problem is not getting rich, it's staying sane."
• Brunello Cucinelli echoes this sentiment in his autobiography, recognizing the challenges of managing success.

"The problem is not getting rich, it's staying sane."

• This quote encapsulates the idea that maintaining mental stability and good judgment is more challenging than achieving wealth.

• Brunello Cucinelli values solitude and silent reflection, akin to the spiritual lives of religious individuals.
• Solitude is seen as a precious state that allows for deeper thinking and personal growth.
• Brunello repeatedly mentions his desire for solitude in his autobiography.

"This is perhaps also the reason why, whenever I can, I spend part of my days alone, as I long for solitude, as if it was a distant but beloved and precious friend."

• Brunello cherishes his alone time, which he compares to a treasured friendship, highlighting the importance he places on solitude for personal well-being.

• Words of encouragement can have a profound impact, particularly for young individuals striving for success.
• The story of Henry Ford meeting Thomas Edison illustrates the power of positive reinforcement from a respected mentor.
• Brunello's uncle played a similar role in his life, encouraging him to achieve greatness.

"Young man, that's the thing. You have it, keep at it."

• Edison's enthusiastic support of Ford's idea provided him with motivation and validation, which Ford remembered during tough times.

• Brunello has a deep love for literature, which influences his business approach.
• He finds inspiration in re-reading books and passages that moved his uncle, demonstrating the timeless connection through written words.
• Carl Sagan's quote on books reflects the magic of literature in connecting people across time.

"A book is proof that humans are capable of working magic."

• Sagan's quote highlights the extraordinary ability of books to transcend time and connect readers with the thoughts of others, including those long passed.

• The relationship between a father and son is pivotal, with the father's story often reflected in the son.
• Brunello's father emphasized the importance of repetition in instilling values and lessons.
• Key phrases from his father, such as "You must be a good man" and "Remember that debt works on Sundays, too," have guided Brunello throughout his life.

"You can always understand the son by the story of his father."

• This quote suggests that a son's character and life can be better understood by examining the life and teachings of his father.

• Brunello's father taught him to appreciate beauty and order in their work on the farm.
• The ancient Greek philosophy that cleanliness and order are foundational to society influenced Brunello's values.
• These lessons of tidiness and aesthetics have stayed with Brunello and influenced his approach to his fashion house.

"If your doorstep is clean, then your city will be clean. Order is the first law of heaven."

• This ancient Greek expression emphasizes the importance of order and cleanliness, starting from the smallest unit (the doorstep) and extending to the larger society (the city).

• Brunello's experiences with death in the family taught him about dignity in sorrow and the human capacity for adaptation.
• His grandfather's stories from the war highlighted the ability to endure and adapt to difficult circumstances.
• These lessons of resilience have had a lasting impact on Brunello's outlook on life.

"Grandpa loved to tell me stories about what he had experienced in the war. He told me anecdotes that in the end emphasize man's ability to adapt even to the worst circumstances."

• Brunello's grandfather's war stories underscore the remarkable human ability to adjust and survive in even the most challenging situations.

• Brunello learned the value of patience and long-term thinking from his experiences on the farm.
• He views investments, like planting a tree, as contributions to future generations rather than immediate gratification.
• This perspective on delayed reward and legacy informs his business philosophy and life choices.

"Postponing the reward increases its appreciation, a fact that has been forgotten in the current culture of impatience."

• Brunello believes that the anticipation of a reward enhances its value, contrasting with a culture that often seeks instant gratification.

• Despite a lack of wealth, Brunello's family was happy, teaching him that contentment is a form of wealth.
• His father's teachings on dreaming, sacrifice, and work ethic contributed significantly to Brunello's entrepreneurial success.
• These values are seen as timeless and enduring, shaping Brunello's approach to business and life.

"From my father, I learned the courage to dream and to choose."

• Brunello credits his father for instilling in him the courage to pursue his dreams and make choices that have led to his success as an entrepreneur.

• Brunello's family experienced a weakening of human relationships with the introduction of television in the home.
• He believes in using technology effectively in business without letting it dominate personal interactions.
• This belief is reflected in his company's culture, where technology serves as a tool rather than a distraction.

"Our human relationships weakened."

• The introduction of television into Brunello's family life led to less interaction and a perceived decline in the strength of their relationships.

• Brunello's family's move to the city reflects a common aspiration for wealth, but also brings about a sense of loss.
• He cites Rousseau's view on the negative impact of city life on people's well-being.
• Brunello's experiences in the city inform his decision to invest in and develop his hometown of Solomeo rather than seeking opportunities solely in urban areas.

"Rousseau thought that living in the city was one of the worst evils for the people of his time."

• Rousseau's perspective on urban living aligns with Brunello's experiences, highlighting the potential downsides of city life on spiritual and economic well-being.

• Technology should be a tool, not something people become slaves to.
• Ohm's company policy restricts group emails and mobile phones in meetings to foster direct communication and knowledge retention.
• Emphasis on the importance of eye contact and knowing things by heart in meetings.

"There's no group emailing inside the company. And he says, no emails can be sent to more than two addresses. Just one or two. No group mailing."

• This quote highlights the company's policy to limit email communication to individual or one-on-one interactions, avoiding group emails.

"You must look me in the eye. You must know things by heart."

• This quote emphasizes the importance of personal interactions and direct communication in meetings, as well as the value of memorization and understanding.

• The article suggests a confusion between information and knowledge, with a preference for the latter.
• The speaker interprets a quote from the article, suggesting that society has prioritized information over knowledge.

"We have now swapped information for knowledge."

• This quote, as interpreted by the speaker, suggests that society has replaced deep understanding (knowledge) with superficial data (information).

• The speaker values the education received in Italian cafes, discussing a wide range of topics.
• Cafes are seen as places of rich human diversity and learning, often more so than universities.

"Perhaps cafes had a slightly richer human diversity than universities."

• This quote reflects the speaker's belief that cafes provided a broader spectrum of human interaction and learning opportunities compared to the academic environment of universities.

• The speaker's father's experience of humiliation at work inspired his philosophy of entrepreneurship.
• The concept of humanistic capitalism is introduced, prioritizing moral and economic dignity.

"I knew that I would live and work in order to foster the moral and economic dignity of man."

• This quote encapsulates the speaker's commitment to upholding human dignity through his work and business practices.

• The speaker recounts various jobs before starting his company at 25.
• The speaker's love for books and the impact of reading on his entrepreneurial mindset is emphasized.
• A book by Theodore Levitt, "The Marketing Imagination," influenced his business philosophy.

"The underlying idea of the book was that developed countries would have to specialize in high quality products if they did not want to be ousted by emerging countries which were learning to manufacture average products at much lower cost."

• This quote summarizes the key business insight gained from Levitt's book that informed the speaker's entrepreneurial strategy.

• The speaker's initial product was women's cashmere sweaters.
• Emphasis on creating products that satisfy both consumers and manufacturers, as well as fostering a pleasant and ethical work environment.

"I would manufacture colored cashmere sweaters for women."

• This quote reveals the speaker's decision to focus on a specific product niche that would become the foundation of his business.

• The speaker acknowledges the role of instinct and recklessness in the early stages of his business.
• Reflecting on the importance of acting despite uncertainty and the role of hope in entrepreneurship.

"I have to confess that my initial motivation arose out of recklessness and instinct."

• This quote shows the speaker's admission that his early business decisions were driven by instinct rather than calculated planning.

• The speaker's business was supported by generous suppliers and customers who believed in his vision.
• Trust and upfront payments from customers were critical for financing the nascent business.

"You will pay me when you get your first money. I know that you're a good guy."

• This quote from a supplier illustrates the trust placed in the speaker and the supportive relationships that helped launch his business.

• Convincing a skilled dyer to color cashmere was a pivotal moment in the speaker's career.
• This innovation marked the transition from a struggling background to successful entrepreneurship.

"It is crazy to dye cashmere in these colors."

• This quote from the dyer reflects the initial skepticism and the unconventional thinking that led to the speaker's breakthrough in the cashmere industry.

• The speaker's success allowed him to pursue the restoration of the hamlet of Solomeo.
• Solomeo's restoration was part of a larger vision for the business and the community.

"I thought of Solomeo... I regretted the state of neglect of that ancient, small hamlet."

• This quote reveals the speaker's emotional connection to Solomeo and his desire to restore and preserve its historical significance.

• Humanistic capitalism is further defined as a system where profit does not harm people or things and part of the earnings improve human life.
• The speaker donates a significant portion of earnings to improve humanity and Solomeo.

"It is a form of contemporary capitalism rooted in strong ancient values, where making a profit should never harm or offend people or things, and where part of the earnings should be earmarked to concretely improving the condition of human life."

• This quote defines humanistic capitalism and outlines the speaker's commitment to ethical business practices and social responsibility.

• Brunello Cuccinelli pays wages 20% higher than average, emphasizing the importance of improving human conditions.
• No wage difference between workers and clerks; a flat structure in terms of pay.
• Standard work hours are from 08:00 a.m. to 5:30 p.m., promoting a balanced work-life structure.

"The human being should be at the center. There's no difference in wages between workers and clerks. Employees are paid more than the average of the market."

• This quote highlights the company's focus on human-centric policies, equality in pay regardless of position, and above-market wages to improve employee well-being.

• Brunello Cuccinelli's unique approach to business garnered international press, increasing awareness and interest in the company.
• The company did not expand beyond its initial product for 22 years, indicating a focused and steady growth strategy.

"The fact that this is so different from how most people are building the companies, it gets a ton of attention."

• This quote underscores the impact of distinct business practices on media interest and the resulting exposure that can drive company growth.

• Following customer interest, Cuccinelli expanded the product line to include a total look collection for men and women.
• The expansion into fine clothing for both genders was a significant business decision at the turn of the century.

"International market started asking us to design a total look collection for men and women to complement our cashmere sweaters with clothing bags, shoes, and accessories."

• This quote describes the company's response to market demand and the strategic decision to diversify product offerings in response to customer requests.

• Brunello Cuccinelli and Ralph Lauren both relied on their personal taste to design products they personally wanted.
• The approach underscores the importance of authenticity and personal connection in product design.

"He borrowed ideas from my own personal wardrobe... Both Ralph and Brunello are actually relying on their personal taste."

• This quote suggests that personal style and preferences can be a valuable source of inspiration for product design, as seen with both Cuccinelli and Lauren.

• Cuccinelli believes in meritocracy over inheritance in business leadership.
• He shares a philosophy similar to Sam Walton's regarding not pushing children into the family business.

"You can't inherit the ability to run a business just as you inherit the company ownership."

• This quote emphasizes the idea that business acumen is not automatically transferred through family lines and that leadership should be based on capability.

• During the 2008 financial crisis, Cuccinelli reassured employees of job security and urged them to be more organized, creative, and brilliant.
• The crisis response highlights the importance of transparency and motivation during challenging economic times.

"Today, our company employs 500 people, but I can assure you that we have the money to carry on for another two years."

• This quote reflects the company's financial stability and the reassurance provided to employees during a period of economic uncertainty.

• Significant media coverage led to international recognition of the company's corporate philosophy.
• A visit from the editor of an influential international magazine marked a turning point for the company.

"That coverage marked the beginning of a true media celebration."

• This quote indicates the pivotal role media coverage can play in elevating a company's profile and validating its business philosophy.

• Cuccinelli advocates for maintaining enthusiasm and a degree of youthful recklessness even as one gains experience.
• He warns against losing joy in life by relying solely on reason and wisdom.

"I understood then how useful and beneficial enthusiasm and a bit of youthful recklessness can be."

• This quote encourages embracing spontaneity and enthusiasm, suggesting that they contribute to a fulfilling life and can be beneficial in business decisions.

• Cuccinelli's concern for preserving craftsmanship led to the creation of a school of arts and crafts in Salomeo.
• The school aims to teach old crafts, make them contemporary, and pay students during training.

"This concern for the future contributed to shaping the idea of a school of arts and crafts in Salomeo."

• This quote reveals the company's commitment to preserving traditional skills and investing in the future of craftsmanship.

• The decision to list the company on the Milan stock exchange was driven by the desire to become more international and financially sound.
• Cuccinelli believes that managerial ability cannot be inherited, which influenced the decision to go public.

"We decided to list our company on the Milan stock exchange... the ability to run a company cannot be inherited."

• This quote explains the strategic rationale behind taking the company public and the belief in merit-based leadership succession.

• Cuccinelli emphasizes simplicity in work and communication, avoiding work that produces a "malaise of the soul."
• He advocates for fair work that leads to physical tiredness but not inner tension.
• The concept of "having enough" is seen as a form of wealth, promoting a balanced approach to work and life.

"Simplify your work and your words... Fair work may be exhausting, but it should just be a matter of healthy physical tiredness."

• This quote advises on the importance of simplicity and finding satisfaction in one's work without causing undue stress or inner discontent.

• Cuccinelli encourages building an extraordinary reality each day and not allowing others to limit one's ambitions.
• He highlights the importance of ambition and the pursuit of a fulfilling life.

"Enthusiastically build an extraordinary reality day after day."

• This quote is a call to action, encouraging individuals to actively create a remarkable life and to ignore naysayers.

• Cuccinelli advises the new generation to learn to listen, emphasizing its beauty and fruitfulness.
• He believes that listening to the elderly and preserving memories can lead to a better life.

"Learn to listen because it is beautiful, pleasant and fruitful... The past is the essential nourishment of the future."

• This quote underscores the importance of listening as a way to learn from the past and enrich one's future experiences.