Garantia

"John H. Patterson —National Cash Register Simon Marks —Marks & Spencer Sol Price —FedMart & Price Club Les Schwab —Les Schwab Tire Centers Herb Kelleher —Southwest Airlines Chester Cadieux —QuikTrip F. Kenneth Iverson—Nucor 3G partners —Garantia, Lojas Americanas, and Anheuser-Busch InBev"

"The first key to the success of Garantia, and of each business that the 3G partners have run since, is what they call creating a big dream. A big dream is important because it brings everyone together; everyone is connected with the same higher cause. But the dream must be attainable, and then, when the dream is achieved, a company needs to evolve and find another goal to achieve."

"The key here is that the partner will buy shares loaned by, in Garantia’s case, the bank’s treasury, and then pay for them with future bonuses."

"Candor Transparency and free information flow ease decision-making and minimize conflicts. - Garantia’s 18 Commandments We believe common sense and simplicity are usually better guidelines than unnecessary sophistication and complexity. - AB InBev’s 10 Principles In big companies, only good news arrives at the top. - Carlos Brito, Endeavor CEO Summit"

"MBAs AB InBev and the other companies owned by the trio also hire top-tier MBAs. It all started with Carlos Brito, who was the first student to have his MBA financed by Jorge Paulo Lemann, in the 1980s. After his Stanford program ended, Brito was hired at Garantia, and went on to Brahma after the acquisition. Lemann and his two main partners then founded Fundação Estudar, a charity focused on handing out merit-based loans to promising graduate and undergraduate Brazilian students. Fundação Estudar gave the trio an unprecedented pipeline of high-quality postgraduate students (since then, the NGO has extended its program to undergrads), a great number of which were hired within the trio’s companies. MBAs from the world’s top business schools are selected for summer internships, and the top performers are then extended full-time offers, very much like what happens at Wall Street firms."

"In no time, he had to face a riot within the company’s management, who threatened to quit if the status quo wasn’t reinstated. After a few hours of reflection (and maybe a couple of calls to his partners at Garantia), Beto fired the rebellious subordinates, arguing that acting quickly and decisively was paramount in (re)building the company’s culture. Under his rule, Americanas’s payroll went from more than 14,000 employees to around 8,000."

"The trio’s timeline 1971: Jorge Paulo Lemann buys the Garantia broker dealer in Rio, with financing from private individuals 1976: Garantia earns a banking license with the Brazilian Central Bank 1982: Garantia partners acquire a controlling stake in Lojas Americanas, a retailer. Beto becomes its CEO 1989: Garantia partners acquire a controlling stake in Cervejaria Brahma, a beer brewing company. Marcel becomes its CEO 1998: Banco Garantia is sold to Credit Suisse First Boston. Most of its executives won’t work with the trio anymore on a full-time basis (although many remain co-investors in many of their deals) 1999: Brahma merges with (i.e., buys) Cervejaria Antartica, forming Ambev, Brazil’s largest beer brewing company 2004: The trio enters an agreement with Belgian giant Interbrew’s controlling shareholders where the two groups become controlling shareholders of Inbev, the resulting company 2008: Inbev buys Anheuser-Busch, America’s most iconic brewery, on the brink of the subprime mortgage crisis, forming Anheuser-Busch Inbev, AB Inbev, for short 2010: 3G Capital, the trio’s private equity firm, does its largest deal to date, buying Burger King from another private equity fund…"

"A big dream The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark. - Michelangelo A big and challenging dream makes everyone row in the same direction. - Garantia’s 18 Commandments Our shared dream energizes everyone to work in the same direction. To be the Best Beer Company Bringing People Together for a Better World. - AB InBev’s 10 Principles"

"Ownership mindset Everything has to have an owner with authority and accountability. Debating is good, but in the end, someone has to decide. - Garantia’s 18 Commandments We are a company of owners. Owners take results personally. We are never completely satisfied with our results, which are the fuel of our company. Focus and zero complacency guarantee lasting competitive advantage. - AB InBev’s 10 Principles"

"the trio was frustrated with their employees’ lack of commitment to a life of hard work and purpose. This is made evident by the fact that few of Garantia’s partners ever took part at the trio’s other businesses."