TIP679: Quality Shareholders by Lawrence Cunningham w/ Clay Finck
We Study Billionaires - The Investor’s Podcast Network
Building Trust with Quality Shareholders
This chapter explores the differences between short-term traders and long-term quality shareholders, focusing on how effective communication can attract and retain the latter. It emphasizes the importance of executive letters and authentic messaging in fostering trust and showcasing strong leadership, with examples from renowned CEOs.
Anyone can buy a stock in a public company, but not all shareholders are equally committed to a company’s long-term succes. Today’s companies need quality shareholders, or shareholders who buy large stakes and hold for long periods.
Lawrence Cunningham explains why in his book — Quality Shareholders: How the Best Managers Attract and Keep Them.
When it comes to corporate governance, there is no one better to learn from than Lawrence. He’s the Director of the John Weinberg Center for Corporate Governance at the University of Deleware. He’s also the vice chairman of the board of Constellation Software and a Director at Markel and Kelly Partners Group.
Cunningham has also written a number of other excellent books, including Quality Investing, Berkshire Beyond Buffett, Margin of Trust, and The Essays of Warren Buffett.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
02:33 - What constitutes a quality shareholder versus other types of shareholders?
17:18 - The edge that quality shareholders bring in terms of their investment approach.
24:37 - How quality shareholders impact the share prices of public companies.
43:02 - What managers can do to attract and retain such shareholders.
43:02 - How quality shareholders view executive compensation.
54:52 - The number one job of the board in delivering value to shareholders.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Cunningham’s books: Quality Shareholders, Berkshire Beyond Buffett, Dear Shareholder, Margin of Trust, Quality Investing, and The Essays of Warren Buffett.
- Email Shawn at shawn@theinvestorspodcast.com to attend our free events in Omaha or visit this page.
- Related Episode: Listen to MI305: Exploring the DNA of Quality Businesses w/ Lawrence Cunningham, or watch the video.
- Related Episode: Listen to TIP330: Warren Buffett w/ Lawrence Cunningham, or watch the video.
- Related Episode: Listen to RWH013: Move Slow, Win Big w/ Thomas Russo, or watch the video.
- Related Episode: Listen to TIP626: Intelligent & Rational Long-term Investing w/ François Rochon, or watch the video.
- YouTube Interview with Brett Kelly.
- Alex Morris’s new book: Buffett & Munger Unscripted.
- Follow Clay on Twitter.
- Check out all the books mentioned and discussed in our podcast episodes here.
- Enjoy ad-free episodes when you subscribe to our Premium Feed.
NEW TO THE SHOW?
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Check out our We Study Billionaires Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
The AI-powered Podcast Player
