Founders
Episode 384 #384: Ken Griffin: Founder of Citadel and Citadel Securities
Founders

Episode 384: #384: Ken Griffin: Founder of Citadel and Citadel Securities

Founders

Episode 384

#384: Ken Griffin: Founder of Citadel and Citadel Securities

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from the interviews and talks of Ken Griffin: Founder of Citadel and Citadel Securities.

Because of the podcast I get to meet a lot of super successful people. I'm always asking them "Who is the smartest person you know" and "Who do you think has the best business?". "Ken Griffin" is a very common answer. I've heard Ken described in two ways: "Winner" and "Killer".  For years I've come across interesting anecdotes about Ken. Like when he appears as a 19 year old kid in Ed Thorp's excellent autobiography A Man For All Markets. Or when John Arnold describe Ken's intense competitive drive following the blowup of Enron. And then consider the fact that I'm obsessed with people who run their business for decades (Ken founded Citadel 35 years ago and Citadel Securities 23 years ago) — and I knew I had to make an episode about his life and work. The only problem was there's no great biography of Ken. So to make this episode I transcribed this talk that Ken gave at Yale. And for additional context I read the book Ken recommends: Hardball: Are You Playing to Play or Playing to Win.

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Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work.  Get access to Founders Notes here.

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#384: Ken Griffin: Founder of Citadel and Citadel Securities

Introduction

As head trader at Enron when it filed for bankruptcy, I received many calls from firms that were recruiting. I was busy trying to close out the trading book and wanted to take some time to decide my future. So I didn't take any meetings.

But Citadel was by far the most aggressive. Other companies set up a few interviews with Enron's senior people. Citadel interviewed everyone in the trading operation at all functions and all levels. Citadel's team called me twice, but I declined to meet.

It was apparent to me that their intent was to reverse-engineer their business and I wasn't going to help them. They knew that people looking for a job, particularly if they didn't have a fiduciary responsibility to a current employer, would be very free with info. Interviewing everyone gives you a 360-degree perspective of the industry—how the business makes money, its competitive edge, who the best employees are, etc. Citadel probably interviewed several hundred Enron employees.

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