This collection of stories of 8 terrific CEOs proves that the outsider approach to resource allocation offers a proven method for navigating the unpredictable, untidy world of business. These outsiders have generated exceptional results across a wide variety of industries and market conditions.
It’s a known fact that Warren Buffett reads hundreds of books every year but when it comes to making book recommendation publicly, he’s very conservative. However, every once in a while he comes out with few book recommendations in his annual letters.
In his 2013 letter to shareholders, Buffett recommended –
“The Outsiders, , by William Thorndike, Jr., is an outstanding book about CEOs who excelled at capital allocation. It has an insightful chapter on our director, Tom Murphy, overall the best business manager I have ever met.
One of the most important questions that an investor needs to answer while making an investment decision is – How to measure a CEO’s performance? Conventional wisdom says, it’s active oversight of business operations, regular communication with research analysts, and an intense focus on stock price. But is it right?
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