Jump to content

What companies have the best management teams?


Guest Schwab711
 Share

Recommended Posts

Guest Schwab711

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

 

Link to comment
Share on other sites

  • Replies 62
  • Created
  • Last Reply

Top Posters In This Topic

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

Link to comment
Share on other sites

Guest longinvestor

Toyota

 

The management system most admired. And most copied. Attempted at least. Long enduring

Link to comment
Share on other sites

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. 

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share




×
×
  • Create New...