TIP555: Lessons from the World's Greatest Capital Allocators

We Study Billionaires - The Investor’s Podcast Network

On today’s episode, Clay reviews one of Warren Buffett’s favorite investment books called The Outsiders by William Thorndike Jr.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

01:56 - How we should evaluate the performance of a CEO during their tenure.

03:01 - How Henry Singleton led Teledyne to deliver a 20.4% average annual return to shareholders during his 30 year tenure.

09:18 - How most CEOs think like foxes, while Outsider CEOs think like hedgehogs.

22:15 - What it means to be an exceptional capital allocator.

26:17 - How Katherine Graham from The Washington Post delivered a 22.3% average return to shareholders from 1971 through 1993.

32:40 - The unconventional decisions that led Warren Buffett to become known as the world’s greatest capital allocator.

52:55 - How Buffett thinks about constructing a stock portfolio.

57:24 - The most common themes in studying Outsider CEOs.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• William Thorndike’s book – The Outsiders.
• Check out our newly released TIP Mastermind Community.
• Check out our recent episode covering the 2023 Berkshire Hathaway Shareholder Meeting or watch the video.
• Clay’s previous episodes covering Warren Buffett’s full story – Part 1 & Part 2, or watch the video here & here.
• Follow Clay on Twitter.

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