Podcast Summary:

How I Invest with David Weisburd – E245: From $0 to Billions in a Regulated Market

Guest: Pete Kadens (Co-Founder & Former CEO of Green Thumb Industries)
Date: November 18, 2025

Episode Overview

In this episode, David Weisburd interviews Pete Kadens, the first-generation wealth creator and co-founder of Green Thumb Industries, the world’s largest cannabis company by revenue. The conversation dives deep into how Pete built a $6 billion cannabis business in a heavily regulated and stigmatized market, the importance of pursuing “unsexy” opportunities, his philosophies on leadership, wealth, and moral imperative, and how his journey transformed him from a hard-nosed entrepreneur to a more generous, mission-driven philanthropist.

Key Discussion Points & Insights

Building Green Thumb: Unsexy Discipline Beats Glamour

• Genesis of Green Thumb ([00:00]–[02:46]):

  • Pete describes his entrepreneurial journey, including early exits and how a friend's question about the cannabis business led him into the industry.
  • Strategic focus: While others aimed to become the "Apple Store or Starbucks of weed," Green Thumb targeted less obvious locations and opportunities.
  • Quote [01:53]: "We sort of zigged while everyone else was zagging. And I think that's why we were able to take this thing to… the moon, so to speak." – Pete

• Choosing Unsexy Markets ([02:46]–[05:20]):

  • The company prioritized profitability and market dominance by focusing on underserved, non-glamorous markets (e.g., Erie, PA; Joliet, IL).
  • Targeted new demographics–not just traditional users, but women aged 30–50, leading product development for where the market was going rather than where it was.
  • Quote [04:24]: "We went after the customer that was not yet the customer and pulled them over from that glass of wine… to a gummy." – Pete

Operational Discipline & Complementary Partnerships

• Sticking to Unsexy Strategies ([05:20]–[07:43]):

  • The importance of operational discipline, driven by Pete’s business partner, Ben Kovler, and a visionary-integrator partnership dynamic.
  • The blend allowed for balancing short-term temptations with a long-term profit-driven focus.
  • Quote [06:23]: "If you’re in a good complementary partnership, you can stay disciplined…we had the visionary integrator balance going quite well." – Pete

• Practical To-Dos for Discipline ([07:43]–[10:29]):

  • Manifestation, roadmap-building, and autonomy within a disciplined framework are essential.
  • Transparency is crucial—weekly KPIs displayed on a whiteboard for total alignment.
  • Reference to Jack Stack’s "The Great Game of Business" and open-book management.
  • Quote [09:39]: "When you blow up the hierarchy and give people agency and autonomy, magic happens…but it has to be done with a disciplined framework." – Pete

Equity and Owner Mentality

• Ownership Culture ([10:29]–[13:52]):

  • Widespread equity grants were key; not just the executive team but far downstream employees became millionaires.
  • Ownership is more about employees feeling their contribution matters and understanding the business—not simply being given shares.
  • Quote [12:09]: "Employees don't feel ownership based upon what you give them, they feel ownership in the company based upon what they give you." – Pete

• Purpose, Wealth, and Sleep-at-Night Quotient ([13:06]–[15:35]):

  • Building an organization around a bigger purpose (self-actualization, wealth creation for all) outshines superficial perks.
  • Non-greedy generosity, both moral and practical, leads to collective success and fulfillment.
  • Quote [14:08]: "The more generous I am, the wealthier I get. And that's not just about money…there are lots of forms of generosity." – Pete

Finding Fulfillment Beyond Money

• Fulfillment, Generosity, and Scaling Teams ([15:35]–[18:33]):

  • Pete doesn’t decouple moral imperative from business—treating employees well, giving ownership, fosters a high-performance, high-commitment culture.
  • Real success is shared and reinforced through positive company culture and alignment.

• Industry Proof—KKR Case Study ([17:53]–[18:38]):

  • Shared ownership leads to outperformance: 3x EBITDA at KKR portfolio companies after implementing ESOPs and alignment strategies.
  • Quote [18:38]: "The data is very suggestive and supportive…providing ownership to your employees…and educating them…really important." – Pete

Pete’s Character Arc: Ruthless Operator to Philanthropist

• Gaining Perspective Through Wealth ([18:54]–[24:10]):

  • Wealth can be multidimensional: health, relationships, network, purpose.
  • Pete’s wealth milestone brought relief but also an acute awareness of relationship and moral debts—especially around cannabis legalization and its disparate impact.
  • Quote [21:00]: “If you became rich the way I did…by selling marijuana, you can’t look yourself in the mirror and not acknowledge that you did this on the backs of black and brown folk…So I became…guilty and needed to pay it backward.”

• The Path to Enlightenment ([22:38]–[24:10]):

  • True fulfillment and generosity came, in part, after achieving financial comfort. Pete admits he might not have prioritized giving and community impact earlier had he not met his business goals.
  • Quote [23:18]: “I wish I could say yes, but the truth is…that I had to hit my goals before I could sort of open up and become really enlightened.”

Balancing Ambition and Family

• Polarity of Drives ([25:14]–[28:33]):

  • Everyone has internal competing drives—success vs. family, work vs. fulfillment.
  • The business rocket-ship years demanded sacrifice (e.g., 200 nights/year on the road), leading to personal and relational imbalances.

• Tradeoffs Without Regret ([29:18]–[31:32]):

  • Pete does not regret missing early years with his kids because it set him up for present-day involvement and flexibility.
  • He stresses honesty about necessary sacrifices and being present in family life after achieving career milestones.

• Modeling Values as a Parent ([31:43]–[35:07]):

  • The importance of being an engaged "playmate" rather than a mere "roommate" to his children.
  • Quote [33:08]: “They don’t give a shit about how much money I made…they just want their dad to be present and to be fun. And I’ve really endeavored to do that.”

• Legacy of Kindness ([35:20]–[36:51]):

  • Pete wants his legacy to be about kindness, generosity, and treating everyone with dignity—values modeled consistently in his family.
  • Quote [34:36]: “I am going to be judged…and so are you, by the way we treat people who can do absolutely nothing for us.”

Raising Resilient, Disciplined Children

• Modeling Hard Work, Discipline ([36:51]–[39:10]):

  • Children learn resilience and toughness from observing parental work ethic, not just from lectures.
  • In the Kadens household: “How you do anything is how you do everything.”

• Pursuit of Excellence ([39:10]–[39:43]):

  • The household focuses on consistent, world-class standards and continuous improvement, not perfection.
  • Quote [39:43]: "I say to myself all the time, Pete, you’re better than that…every single day you got to be a little bit better than the day before."

Learning From Top-Performers & Embracing Neurodivergence

• Aspen Institute Experience ([40:20]–[42:52]):

  • Humility and the power of being non-judgmental; suspending assumptions to truly learn from others, regardless of differences.
  • Stop thinking about your response, start listening to others deeply.

• Counterintuitive Excellence ([42:52]–[44:39]):

  • Sometimes the key to elite performance isn’t what you expect—rest, idiosyncratic strengths, neurodivergence.
  • Pete shares his own neurodivergent journey and how thinking differently, feeling underestimated, and embracing being “contrarian” actually built his success.

Timeless Advice for Entrepreneurs

• From ‘Should’ to ‘Did’ ([47:41]–[51:09]):
  • Quote [47:55]: “The biggest gap in the world is the gap between ‘I should’ and ‘I did.’”
  • Action beats intention—most never actualize ideas. Moving from idea to execution is what sets the exceptional apart.
  • Celebrate imperfect, “version one” outputs and focus on iterating from there.

Notable Quotes & Memorable Moments

• On market focus:
  "We built this thing by just doing the unsexy things well, while everyone else was trying to be the Apple store of weed." ([01:19], Pete)

• On unconventional strategy:
  "We sort of zigged while everyone else was zagging." ([01:53], Pete)

• On ownership and alignment:
  "Employees don’t feel ownership based upon what you give them. They feel ownership in the company based upon what they give you." ([12:09], Pete)

• On wealth and generosity:
  "The more generous I am, the wealthier I get. And that's not just about money, and that's not just about equity." ([14:08], Pete)

• On leadership discipline:
  "When you blow up the hierarchy and you give people agency and autonomy, magic happens...but again, it has to be done with a disciplined framework." ([09:39], Pete)

• On regret and parenting:
  "Would I have been able to take my kids to Spain or Italy or Costa Rica or Panama…if I hadn’t pushed the envelope when they were younger? No, I wouldn’t." ([30:20], Pete)

• On life lessons:
  "How you do anything is how you do everything." ([38:43], Pete)

• On pursuing action over intention:
  "The biggest gap in the world is the gap between ‘I should’ and ‘I did.’" ([47:55], Pete)

Timestamps for Important Segments

• [00:00] Origins and business model of Green Thumb
• [02:46] What makes the strategy “unsexy” and why it works
• [05:20] Operational discipline and partnership dynamics
• [10:29] Employee ownership and culture
• [18:54] Character arc: From profit focus to philanthropy
• [24:10] Enlightenment and fulfillment after achieving wealth
• [29:18] Balancing business success and family life
• [33:08] Parenting: Being a playmate, not a roommate
• [35:20] Teaching kindness and modeling behavior for kids
• [40:20] Lessons from the Aspen Institute, suspending judgment
• [45:35] Neurodivergence as an entrepreneurial superpower
• [47:55] The ‘should’ vs. ‘did’ gap and advice for entrepreneurs

Conclusion

This episode offers an insightful, candid look into the mindset and methods behind building a successful, disciplined business in a stigmatized and heavily regulated market, and the personal growth that comes with entrepreneurship. Pete Kadens exemplifies the power of operational discipline, alignment, and generosity—not just for business, but for leading a fulfilled and impactful life.

How to connect with Pete:

• LinkedIn (best for reaching out)
• Warmers.com (his new venture in social media)

This summary preserves the tone and key messages of both host and guest, highlighting practical takeaways for entrepreneurs and investors focused on building resilient companies and meaningful legacies.