Building Blackstone, Backing Costco, with Tony James
5/5/20261 hr 24 min
David Haber speaks with Tony James about building enduring firms across multiple eras of finance. From joining DLJ when it was a subscale firm to helping grow Blackstone into one of the largest asset managers in the world, James reflects on the decisions, structures, and cultural principles that enabled long-term success.
They discuss the origins of leveraged buyouts, the evolution of private markets, and how identifying structural opportunities early can create lasting competitive advantage. James also shares lessons from backing companies like Costco, where culture, customer focus, and long-term thinking drove exceptional outcomes.
The conversation covers leadership, talent development, and the challenges of scaling organizations while maintaining performance. James also reflects on succession, firm-building, and why culture, incentives, and alignment ultimately determine whether an organization compounds or stagnates.
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Clips
Showing 10 of 12Transcript preview
First 90 secondsTony James· Guest0:00
If you think about the development of a successful company, there's kind of an S-curve. It starts off small and entrepreneurial. Then there's this kind of escalation where you create a lot of value and a lot of size.
David Haber· Host0:09
People know Blackstone today, a trillion dollars in AUM.
Tony James· Guest0:12
Right.
David Haber· Host0:12
It did not look anything like that when you joined.
Tony James· Guest0:14
Running an investment organization like Blackstone, I think you almost have to be a really good investor. If you're gonna catch the signals early, they're never obvious. By the time they're obvious, it's priced in.
David Haber· Host0:24
You led the Series A into Costco. Charlie Munger was still on the board, and you guys served together for thirty years. What did you learn?
Tony James· Guest0:30
Focus, focus, focus, flawless execution of details, build for the long term.
David Haber· Host0:35
Everybody that I spoke with literally attribute the success that they've had in their careers to you. If a young person came to you today, what would you tell them about building a career?
Tony James· Guest0:42
Um...
David Haber· Host0:42
What does it take to build a firm that lasts across decades? In finance, most success is measured in funds, but a small number of people have built firms, organizations that compound talent, capital, and culture over time. Tony James is one of them. From joining DLJ when it was a subscale firm to helping transform Blackstone into a trillion-dollar asset manager, his career traces the evolution of modern private markets. The question is not just how to generate returns, but how to build systems that keep generating them. a16z general partner David Haber sits down with Tony James to talk through the decisions, inflection points, and principles behind that kind of enduring success. Tony, thank you