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The Next 8 Unconventional CEOs?


Guest ajc
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http://brooklyninvestor.blogspot.co.uk/2013/10/a-really-great-book-outsiders.html

 

 

Tom Murphy (Capital Cities Broadcasting):

+19.9%/year over 29 years versus +10.1%/year for the S&P 500 index

Henry Singleton (Teledyne):

+20.3%/year over 27 years versus +8.0%/year for the S&P 500 index

Bill Anders (General Dynamics)

+23.3%/year over 17 years versus +8.9%/year for the S&P 500 index

John Malone (TCI)

+30.3%/year over 25 years (up to ATT acquisition) versus +14.3%/year for the S&P 500 index

Katharine Graham (The Washington Post)

+22.3%/year over 22 years (since IPO) versus 7.4%/year for the S&P 500 index

Bill Stiritz (Ralston Purina)

+20.0%/year over 19 years versus +14.7%/year for the S&P 500 index

Dick Smith (General Cinema)

+16.1%/year over 43 years versus +9%/year for the S&P 500 index

Warren Buffett (Berkshire Hathaway)

+20.7%/year over 46 years (through 2011) versus 9.3% for the S&P 500 index

 

 

Maybe we could create a new list, for the next two decades or so?

One of the 'safer' picks perhaps, but I'd put Jeff Bezos in there.

 

Amazon stock seems fairly overvalued to me right now by any conventional measure, but I think he's someone who you could invest with at the right price and earn around 20% per year for some time to come.

 

 

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I am not precisely sure what "unconventional" means but to get the ball rolling again...

 

To start, Melrose Industries, a bit like Danaher but they sell after they have turned something around and give back to shareholders. They listed in early 2003 on AIM and are now worth ~£3.5bn and have returned around £1bn since their listing (so they have created about £2bn). The key guys (David Roper, Simon Peckham, and Christopher Miller) were all at smaller UK company called Wassall in the 90s, they did something similar although the scale was (I believe) much smaller, they compounded earnings at 18%/year for twelve years there though. The FD at Melrose Industries has a good turnaround background too (Royal Doulton) but wasn't at Walsall.

 

A much more off-the-wall pick...Henry Engelhardt and David Stevens of Admiral (a car insurer listed in London). These two are CEO and COO at the moment, they own about 37% of the company still. It was founded in 1992 (I think) and was bought back by management in 1999 (again, roughly). The business was started from nothing and is now worth £3.5bn and their average combined ratio for the twenty years is 84%. The record is a bit more cloudy though as the company was private for a while.

 

Either way, both groups have outperformed over multi-decade periods.

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