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10 Traits Of A Great CEO
A
on how I judge management
A
on how I judge management
1/ Track Record Of Outperformance
Winners keep on winning
Ask: Has the business outperformed under this CEO?
Market share growing?
Revenue increasing?
New products/services selling?
Invest in CEOs with a proven track record of success
Winners keep on winning
Ask: Has the business outperformed under this CEO?
Market share growing? Revenue increasing? New products/services selling?Invest in CEOs with a proven track record of success
2/ Great Communicator
Do they explain their decisions?
Do they teach when they speak?
Do they use industry jargon or plain English?
Do they have an investor presentation?
Do they provide a shareholder letter?
Do they speak clearly?
Communication skills matter
Do they explain their decisions?Do they teach when they speak?Do they use industry jargon or plain English?Do they have an investor presentation?Do they provide a shareholder letter?Do they speak clearly?Communication skills matter
3/ Skin in the game
Do they own a lot of company stock?
You want the CEO to be hurt financially if the stock price goes down (just like you will)
Check out the proxy statement (DEF 14A) & recent insiders filings to find out
Do they own a lot of company stock?
You want the CEO to be hurt financially if the stock price goes down (just like you will)
Check out the proxy statement (DEF 14A) & recent insiders filings to find out
4/ Great Employee Ratings
Who knows a CEO better than the company's own employees?
Check out @Glassdoor / @Comparably / @indeed to see what the employees think of the CEO
Even if you've never heard of $ADBE's CEO Shantanu Narayen, it's clear that his employees LOVE him
Who knows a CEO better than the company's own employees?
Check out @Glassdoor / @Comparably / @indeed to see what the employees think of the CEO
Even if you've never heard of $ADBE's CEO Shantanu Narayen, it's clear that his employees LOVE him
5/ Young
I love investing in CEOs that will be at the helm for decades
That's much more likely to happen when the CEO is under 40 instead of over 60
I love investing in CEOs that will be at the helm for decades
That's much more likely to happen when the CEO is under 40 instead of over 60
6/ Delivers Results
Great CEOs consistently blow past Wall Street's targets
If they issue guidance, they have a habit of beating it
Great CEOs consistently blow past Wall Street's targets
If they issue guidance, they have a habit of beating it
7/ Mission-Driven
Great CEOs are energized by the company’s mission
Not by their own compensation
Don't think mission statements matter? This thread might change your mind https://twitter.com/BrianFeroldi/status/1346812390613127170?s=20
Great CEOs are energized by the company’s mission
Not by their own compensation
Don't think mission statements matter? This thread might change your mind https://twitter.com/BrianFeroldi/status/1346812390613127170?s=20
8/ Founder (or long tenure)
I love investing behind founder-led management teams
Marcos Galperin at $MELI
@jefftgreen at $TTD
@reedhastings at $NFLX
@jack at $SQ
If not the founder, I want the CEO to be at the company for 5+ years
I love investing behind founder-led management teams
Marcos Galperin at $MELI @jefftgreen at $TTD @reedhastings at $NFLX @jack at $SQIf not the founder, I want the CEO to be at the company for 5+ years
9/ Great Capital Allocator
Do their R&D investments pay off?
Do they pay a dividend?
Buyback stock?
Paydown debt?
Make tuck-in acquisitions?
Do they get high returns on their investments?
Capital allocation skills matter!
Do their R&D investments pay off?Do they pay a dividend? Buyback stock? Paydown debt?Make tuck-in acquisitions?Do they get high returns on their investments?Capital allocation skills matter!
10/ Shares credit. Admits mistakes. Accepts blame.
Great leaders credit THEIR TEAMS for their success
Great leaders ACCEPT BLAME for their mistake
@WarrenBuffett recent shareholder letter shows this in spades
Great leaders credit THEIR TEAMS for their success
Great leaders ACCEPT BLAME for their mistake
@WarrenBuffett recent shareholder letter shows this in spades
If you enjoyed this thread, you may enjoy my other threads
Here is a list of all the other threads that I’ve written https://twitter.com/BrianFeroldi/status/1386309937597321218?s=20
Here is a list of all the other threads that I’ve written https://twitter.com/BrianFeroldi/status/1386309937597321218?s=20
I regularly tweet about money, investing, and self-improvement
If those topics interest you, follow me
@BrianFeroldi
If those topics interest you, follow me
@BrianFeroldi
If you want to learn more about how to invest
I teach beginners how to research stocks on my YouTube Channel https://www.youtube.com/c/brianferoldiyt
I teach beginners how to research stocks on my YouTube Channel https://www.youtube.com/c/brianferoldiyt
To summarize, great CEOs:
1: Track record of outperformance
2: Great communicator
3. Skin in the game
4: Great employee ratings
5: Young
6: Deliver results
7: Mission-driven
8: Founder (or long-tenured)
9: Great capital allocator
10: Shares credit / accepts blame
1: Track record of outperformance
2: Great communicator
3. Skin in the game
4: Great employee ratings
5: Young
6: Deliver results
7: Mission-driven
8: Founder (or long-tenured)
9: Great capital allocator
10: Shares credit / accepts blame
