What does great CEO need to create long term returns?

One of the books recommended by Buffett to be read by investors dealing with fundamental analysis is The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint For Success

In it, the author highlights just like the investors in Graham and Doddsvile what these CEOs with vastly great long term results have:

Capital allocation is a CEO’s most important job
What counts in the long run is the increase in per share value, not overall growth or size
Cash flow, not reported earnings, is what determines long term value
Decentralized organizations release entrepreneurial energy and keep both costs and "rancor"down
Independent thinking is essential to long term success, and interactions with outside advisers (Wall street, the press, etc.) can be distracting and time-consuming
Sometimes the best investment opportunity is your own stock
With acquisitions, patience is a virtue… as is occasional boldness

Author
Recent Posts

Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.

Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.

You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.

Share this: