Guest Schwab711 Posted June 3, 2015 Posted June 3, 2015 We all know about Berkshire and Fairfax, but I couldn't find a thread like this so I thought it would be nice to have a place to discuss the best management teams out there. No restrictions on re-hashing the outsiders or large multinational execs (Jamie Dimon's of the world) but I think it would be more interesting to discuss managers of less-followed or small companies. Also, I don't necessarily have any specific rating criteria in mind as long as there's a justifiable reason for the choice. Finally, no need to use my format, I just figured I should contribute if I want responses. AWH: Huge fan of their conservative underwriting approach and capital allocation. By far the best overall insurer [maybe other than BRK] in my mind. MCO: I think Ray McDaniel is incredibly underrated CEO. I know the MBS/ABS ratings fiasco is a black eye, but MCO's ROE and capital allocation is impressive when compared to MHFI. He has also done an excellent job lobbying as the appetite to reform the NRSROs has vanished JPM: Jamie Dimon is a banking god WFC: Nothing new but had to include them OTCM: Awesome name (R Cromwell Coulson) and they have made a ton of changes to improve the perception of the OTC market and list dozens of major foreign companies with standards similar to NYSE for the first time BF-A/B: Paul Vargas has shown impressive control of product demand and the brand SLP: former CEO Walt Woltosz had incredible focus and found creative ways to prove his company's product to the market ELDO: Huge fan TDG: They make a difficult business look so easy that this board is constantly searching for similar companies only to be disappointed by what they find! Multiple C-execs have retired in past year could affect future results UFPT: Not a great industry or investment option but management is very opportunistic and efficient operators
jschembs Posted June 3, 2015 Posted June 3, 2015 Great post, I'd echo the idea of also discussing relevant metrics. I find it so difficult to segregate who's good from who's riding favorable industry tailwinds.
wknecht Posted June 4, 2015 Posted June 4, 2015 CACC (Brett Roberts; a subprime auto lender): Fantastic track record: Have compounded EPS 20.4% since 1992 (multiple cycles), and have done even better since Brett Roberts took over (26.6% since 2001). This is in a cyclical business where a lot of people have gone broke. Very disciplined underwriting, and generally very rational and focused Strong capital allocation: have bought back 26%/43% of the stock the last 5y/10y, while maintaining a pretty conservative balance sheet Shareholder friendly with clear and transparent communication USB (Richard Davis): extremely well run bank with a fantastic track record through cycles Possibly PSG Group in South Africa (Jannie Mouton; an investment holding company): I don't own this yet, so am going out on a bit of a limb. But based on what I've seen so far, they seem like a strong candidate. They've grown their intrinsic value (management's sum of parts calculation based mainly on listed equity prices of subs) around 50% annually for 20 years. Very friendly from a shareholder interest and communication standpoint. Edit: I own CACC and USB, though I have trimmed my CACC quite a bit recently as it has risen a bit lately. I do not own PSG.
KCLarkin Posted June 4, 2015 Posted June 4, 2015 CSU.to constellation software - CEO gets no salary, no bonus, no options, AND he pays his own travel expenses QSR, Heinz, BUD - anything 3G buys is well run
loganc Posted June 4, 2015 Posted June 4, 2015 CSU.to - CEO gets no salary, no bonus, no options, AND he pays his own travel expenses QSR Heinz, BUD - anything 3G buys is well run +1. Not a shareholder of CSU (unfortunately), but Leonard is incredible. QSR/BKW performance blows my mind. I'll go ahead and make the obvious, while controversial, nomination: VRX - Pearson. Flame away.
ourkid8 Posted June 4, 2015 Posted June 4, 2015 PMI - Louis C. Camilleri who is the chairman of the Board. He is by far the most knowledgeable tobacco exec period and absolutely committed to creating shareholder value.
buylowersellhigh Posted June 4, 2015 Posted June 4, 2015 CSU.to - CEO gets no salary, no bonus, no options, AND he pays his own travel expenses QSR Heinz, BUD - anything 3G buys is well run Are you a buyer of KRFT?
60North Investments Posted June 4, 2015 Posted June 4, 2015 Thumbs up for the topic, though I also agree with jschembs. That said, I think the below three are ones that have done the right things and done them well, without having huge industry tailwinds behind them. KTCC: Key Tronic's CEO Gates and his team has done a remarkable job, especially in the past few years I'd say. Latest example, the CDR acquisition couple Qs earlier, which I believe will turn out to be a home-run. Read/listen to the CCs. They also seem to have ethics/morale that looks healthy. STRA: Strayer Education, obvious struggles lately, but from what I've gathered the management team seems ethical. Running the business for the long-term. SAMAS: Sampo is a Finnish company, and the main guys, Wahlroos and Stadigh are well-known here. Wahlroos is a controversial person with his strong opinions, but there's no denying he and his "right hand" are heck of a deal makers (in 2006/7 sold Sampo bank @ 3.5x BV) and operators. Edit. Added names of companies as gio suggested.
giofranchi Posted June 4, 2015 Posted June 4, 2015 Not a shareholder of CSU (unfortunately), but Leonard is incredible. So, why aren't you a shareholder of CSU? Too expensive right now? Thank you, Gio
giofranchi Posted June 4, 2015 Posted June 4, 2015 Very good thread! :) Could you please also specify the name of the companies? Instead of their symbol only? Thank you, Gio
giofranchi Posted June 4, 2015 Posted June 4, 2015 Possibly PSG Group in South Africa (Jannie Mouton; an investment holding company): I don't own this yet, so am going out on a bit of a limb. But based on what I've seen so far, they seem like a strong candidate. They've grown their intrinsic value (management's sum of parts calculation based mainly on listed equity prices of subs) around 50% annually for 20 years. Very friendly from a shareholder interest and communication standpoint. Interesting! I'll take a serious look at PSG Group! ;) Cheers, Gio
giofranchi Posted June 4, 2015 Posted June 4, 2015 I find it so difficult to segregate who's good from who's riding favorable industry tailwinds. Ah!... I thought those that are good are also the ones who position themselves to ride favorable industry tailwinds! ;) Gio
KCLarkin Posted June 4, 2015 Posted June 4, 2015 Are you a buyer of KRFT? I bought a big position after the announcement but sold. As a Canadian, I would prefer to hold QSR long term.
Guest longinvestor Posted June 4, 2015 Posted June 4, 2015 Toyota The management system most admired. And most copied. Attempted at least. Long enduring
xo 1 Posted June 4, 2015 Posted June 4, 2015 Transdigm Group Incorporated - TDG. They keep hitting it out of the park, year after year. Great business model well executed. Brookfield Asset Management - BAM. Flatt and his entire team are hard working and super smart.
Ross812 Posted June 4, 2015 Posted June 4, 2015 Liberty Media - Malone Kinder Morgan - Richard Kinder Bidvest - Brian Joffe
merkhet Posted June 4, 2015 Posted June 4, 2015 LBTYA - Mike Fries CHTR - Thomas Rutledge LMCA - Greg Maffei
Guest notorious546 Posted June 4, 2015 Posted June 4, 2015 RRX on TSX, Neil Roszell/Jerry Saphiea. DNOW, Pete Miller/Robert Workman
berkshire101 Posted June 4, 2015 Posted June 4, 2015 I would add Howard Hughes (HHC) - David Weinreb, Grant Herlitz, and Bill Ackman. Kennedy Wilson (KW) - William McMorrow and Mary Ricks Ross Stores (ROST) - Barbara Rentler and Michael Balmuth The TJX Companies (TJX) - Bernard Cammarata and Carol Meyrowitz Scripps Networks Interactive (SNI) - Kenneth Lowe Core Laboratories (CLB) - David Demshur Realty Income (O) - Management in general
berkshire101 Posted June 4, 2015 Posted June 4, 2015 Also Sun Hydraulics (SNHY) - Allen Carlson Amphenol (APH) - Adam Norwitt Factset (FDS) - Philip Hadley
KJP Posted June 4, 2015 Posted June 4, 2015 Good senior managers should: (i) run the business well; (ii) allocate capital well; and (iii) treat minority shareholders fairly. Here are some lesser known managers who I think have hit all three points: Character Group (CCT): Richard King (he's winding down now) Judges Scientific (JDG): Alex Hambro Armanino Foods (AMNF): Edmond Pera
Liberty Posted June 5, 2015 Posted June 5, 2015 Why is Jamie Dimon a banking god? Don't know about god, but he seems to be good at what he's doing. http://brooklyninvestor.blogspot.ca/2015/06/jamie-dimon-for-dummies.html http://brooklyninvestor.blogspot.ca/search/label/JPM
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