10 Traits Of A Great CEO
A
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đź§µ" title="Thread" aria-label="Emoji: Thread">on how I judge management
A
1/ Track Record Of Outperformance
Winners keep on winning
Ask: Has the business outperformed under this CEO?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔️" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen">Market share growing?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔️" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen">Revenue increasing?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔️" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen">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?
Invest in CEOs with a proven track record of success
2/ Great Communicator
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they explain their decisions?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they teach when they speak?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they use industry jargon or plain English?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they have an investor presentation?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they provide a shareholder letter?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they speak clearly?
Communication skills matter
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& #39;s own employees?
Check out @Glassdoor / @Comparably / @indeed to see what the employees think of the CEO
Even if you& #39;ve never heard of $ADBE& #39;s CEO Shantanu Narayen, it& #39;s clear that his employees LOVE him
Who knows a CEO better than the company& #39;s own employees?
Check out @Glassdoor / @Comparably / @indeed to see what the employees think of the CEO
Even if you& #39;ve never heard of $ADBE& #39;s CEO Shantanu Narayen, it& #39;s clear that his employees LOVE him
5/ Young
I love investing in CEOs that will be at the helm for decades
That& #39;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& #39;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& #39;s targets
If they issue guidance, they have a habit of beating it
Great CEOs consistently blow past Wall Street& #39;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& #39;t think mission statements matter? This thread might change your mind https://twitter.com/BrianFeroldi/status/1346812390613127170?s=20">https://twitter.com/BrianFero...
Great CEOs are energized by the company’s mission
Not by their own compensation
Don& #39;t think mission statements matter? This thread might change your mind https://twitter.com/BrianFeroldi/status/1346812390613127170?s=20">https://twitter.com/BrianFero...
8/ Founder (or long tenure)
I love investing behind founder-led management teams
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Marcos Galperin at $MELI
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat"> @jefftgreen at $TTD
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat"> @reedhastings at $NFLX
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat"> @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
If not the founder, I want the CEO to be at the company for 5+ years
9/ Great Capital Allocator
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do their R&D investments pay off?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they pay a dividend?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Buyback stock?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Paydown debt?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Make tuck-in acquisitions?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▪️" title="Schwarzes kleines Quadrat" aria-label="Emoji: Schwarzes kleines Quadrat">Do they get high returns on their investments?
Capital allocation skills matter!
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
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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