📃The Accompanying PDF
🔖How would I describe this book in 1 sentence?
This book describes unconventional (at the time of execution) managerial approaches used by 8 exceptionally successful CEOs of US-based companies in the mid-late 20th century and key decisions made by them to lead companies to extraordinary success.
🗺️What was the role of this book in my journey?
In this book, I discovered several powerful techniques and approaches that you as an entrepreneur or manager can take to develop your own company or business unit. This book opened my eyes to what the role of a CEO in big corporations really is.
I now understand the way of thinking, strategy, priorities, and key activities of a CEO role in a successful growing company.
Although at the moment I cannot fully utilize the knowledge acquired from this book, it confirmed my belief that I should continue developing myself as an investor in my career journey.
- An extraordinary CEO must have an investor mindset
- Capital allocation and asset management are key activities of a CEO to ensure a company's growth
- Decentralized organizational structure is one of the keys to company's operational success
- Company financial value assessment process is often overcomplicated
- Hire well - manage little
- Run organizations in a decentralized manner
- Be greedy when everyone is afraid, be cautious when everyone is excited
- Seek the most efficient ways of capital allocation
- Prioritize cashflow over reported net income
Outsider CEOs performance compared to peers and S&P 500
Matrix of 8 Outsider CEOs and shared management approaches
Outsider CEO vs Peer CEO approach comparison
Outsider CEO Characteristics
- Low-frequency media appearance
- Analytical thinking
- Contrarian mindset
Key Decisions Made By Outsider CEOs
- Cut dividends
- Make disciplined occasional large acquisitions
- Leverage selectively
- Buy back a lot of stock
- Minimize taxes
- Run decentralized organizations
- Cashflow over reported net income