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	REMARKS TO STUDENTS & FACULTY Claremont McKenna College 2 February 1989

Thank you, Fred (Balitzer).
I enjoy speaking to young people... I've talked with them at universities on the East Coast, the West Coast and various points in between.
The enthusiasm I've seen in the 70,000 to 80,000 students I've spoken to in the past 5 years is reassuring.
You are the future of this country, and I feel optimistic about where you're headed.

Looking around in my travels, I've noticed a few common denominators among today's young people:
—Willing to work hard
—Want to make money
—Want to avoid big bureaucratic companies
—Want to make their own decisions
—And they don't want government involvement

For over two hundred years, people have moved to the U.S. for the same reason:
—The freedom to succeed... or to fail and be able to try again
America's greatest asset is an abundance of opportunity.
For the faculty here today, your role is to give students the knowledge they need to capitalize on those opportunities.
Education is the key to success. You must make sure all students get a chance to obtain the key that will open the door they choose.
The entrepreneurial spirit seen on college campuses and in growth companies is good news for American business and good news for America:
— The Good 0l' Boys Club is on the way out (Explain the 4 Ps)[Handwritten addition: Pay, Power, Perks, Prestige ]
— New breed coming in

Record numbers of young people want to start their own businesses... Entrepreneurship is the battle cry for the newer generation.
For example, a recent Wall Street Journal article reported that almost half of the college students surveyed said they thought starting their own business was a good way to succeed.
When older people were asked the same question, only 20% said it was a good idea.
I get asked frequently, "How can I do what you've done?"
First, get a good education... get prepared.
[Handwritten addition: Qback Cowboys—may want to play.]
[Handwritten addition: —Football Quarterback Story ]

Another important point: stay fit... it makes a big difference on your outlook, your ability to think clearly.
Learn to analyze well:
—Assess the risks
—Assess the prospective awards
There's a lot said about instincts and gut feelings, but those won't work if you don't have the background to make a decision.
The next step is very important. Once you've made your analysis, don't be afraid to make a decision.
One of the most common problems in American business is the "Ready-aim-aim-aim-aim" syndrome:
— You must be willing to fire
This doesn't mean you should get in a rush; it took me more than 20 years to build Mesa Limited Partnership... (Opportunities, like trains, come by regularly).
Always be realistic. Entrepreneurs are dreamers, yes, but dreams don't generally come true without planning:
— Don't get caught daydreaming
Don't get too emotionally involved; emotions will often override common sense.

Another important point is, don't forget what drives people in business:
— Profit is the key motivator; don't ever apologize for making money honestly
The profit motive is why people buy Mesa stock or any other stock. My role as General Partner is to maximize shareholder returns.
That leads me to the biggest problem in Corporate America today.
The incentives of entrepreneurship do not exist in our large corporations.
Managements don't always have the shareholders' interests at heart.
We must reestablish that shareholders are the owners of public companies, and managers are employees.
Accountability to owners is the key to restoring America's competitiveness.
[Handwritten addition: And I can assure we are on out way but the job isn't finished. (Restructure) ]

The expansion of inefficient corporate bureaucracies has stifled entrepreneurship and destroyed morale.
[Handwritten addition: In my day (1950s) ] Young people used to flock to large corporations for job security. Today, they are avoiding the bureaucracies and taking risks, which is leading to a more competitive business climate.
The secret to attracting and keeping the best employees is to challenge them, give them as much responsibility as they can handle and reward them for their efforts.

To illustrate the concepts I've been talking about, let's look at Mesa's structure:
—95% of employees are stockholders
—90% of my net worth is in Mesa (5% ownership)
—We all know who we work for... the stockholders [Handwritten addition: —$310 mm a year ]
—Our people move fast; either up or out. We can make mistakes, but we learn from them and we're not afraid to make decisions
—Average age; 36 (Would be lower if I left)

The most important thing you need to remember is, always play by the rules:
—Never think you have to cheat to win; you don't even need to bend your principles
There's been a lot of talk about an ethics crisis in Corporate America.
We don't have an ethics crisis: We have a leadership crisis... It all goes back to the top.
You must lead by example. If you cheat anywhere along the line, you'll end up paying dearly for it.
Success comes from hard work. You're going to have to come early and stay late.
But that doesn't mean you have to give up your personal life.
Learn to organize your time, and you'll find there's time for everything.
Have your fun, but do everything in moderation.
Keep success as well as failure in perspective:
[Text stricken: —Don't ever get to the point where you can't go back to eating hamburger]
In a nutshell, if you keep fit, work hard, analyze well, and play by the rules, I promise you you'll make money and have [Text stricken: a ball ][Handwritten addition: fun ] doing it.

Thank you.

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