The Outsiders：Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

WhatmakesasuccessfulCEO?Mostpeoplecalltomindafamiliardefinition:“aseasonedmanagerwithdeepindustryexpertise.”Othersmightpointtothequalitiesoftoday’sso-calledcelebrityCEOs—charisma,virtuosocommunicationskills,andaconfidentmanagementstyle.Butwhatreallymatterswhenyourunanorganization?WhatisthehallmarkofexceptionalCEOperformance?Quitesimply,itisthereturnsfortheshareholdersofthatcompanyoverthelongterm.Inthisrefreshing,counterintuitivebook,authorWillThorndikebringstobeartheanalyticalwisdomofasuccessfulcareerininvesting,closelyevaluatingtheperformanceofcompaniesandtheirleaders.YouwillmeeteightindividualisticCEOswhosefirms’averagereturnsoutperformedtheS&P500byafactoroftwenty—inotherwords,aninvestmentof$10,000witheachoftheseCEOs,onaverage,wouldhavebeenworthover$1.5milliontwenty-fiveyearslater.Youmaynotknowalltheirnames,butyouwillrecognizetheircompanies:GeneralCinema,RalstonPurina,TheWashingtonPostCompany,BerkshireHathaway,GeneralDynamics,CapitalCitiesBroadcasting,TCI,andTeledyne.InTheOutsiders,you’lllearnthetraitsandmethods—strikingfortheirconsistencyandrelentlessrationality—thathelpedtheseuniqueleadersachievesuchexceptionalperformance.Humble,unassuming,andoftenfrugal,these“outsiders”shunnedWallStreetandthepress,andshiedawayfromthehottestnewmanagementtrends.Instead,theysharedspecifictraitsthatputthemandthecompaniestheyledonwinningtrajectories:alaser-sharpfocusonpersharevalueasopposedtoearningsorsalesgrowth;anexceptionaltalentforallocatingcapitalandhumanresources;andthebeliefthatcashflow,notreportedearnings,determinesacompany’slong-termvalue.Drawingonyearsofresearchandexperience,Thorndiketellseye-openingstories,extractinglessonsandrevealingacompellingalternativemodelforanyoneinterestedinleadingacompanyorinvestinginone—andreapingextraordinaryreturns.