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The Outsiders

William N. Thorndike · 2012-10-23

Thorndike profiles eight unconventional public-company CEOs — from Henry Singleton at Teledyne to Tom Murphy at Capital Cities, John Malone at TCI, Katharine Graham at the Washington Post, and Warren Buffett at Berkshire Hathaway — whose long-run shareholder returns dramatically outpaced their peers. The unifying lesson is not strategy or charisma but capital allocation: each operator faced the same five choices (reinvest, acquire, pay dividends, buy back stock, repay debt) and made decisions guided by ROIC versus cost of capital — not quarterly optics. The book is the concrete case-study companion to anyone thinking seriously about management quality as a fundamental input to long-run intrinsic value.

The Oxford Ledge takeaway

Eight unconventional CEOs who beat Welch's GE on capital allocation by 20x. The portrait of capital allocation as the single most undervalued executive skill.

Level IntermediateFirst published 2012

Tagged intermediate in the Ledge Reads catalog: assumes working familiarity with market and accounting basics.

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ISBN-10: 1422162672

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