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How to Invest in the Stock Market
How do investors like Peter Thiel have Roth IRAs worth billions? Well the investment secret is something called a self-directed IRA, which has all the tax advantages we love but with a twist. Next, Thorndike turns his attention to the capital allocation decisions made at Berkshire Hathaway. The right financial intelligence platform can make or break your quarter.
On today’s episode, Clay reviews one of Warren Buffett’s favorite investment books called The Outsiders by William Thorndike Jr.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
01:56 - How we should evaluate the performance of a CEO during their tenure.
03:01 - How Henry Singleton led Teledyne to deliver a 20.4% average annual return to shareholders during his 30 year tenure.
09:18 - How most CEOs think like foxes, while Outsider CEOs think like hedgehogs.
22:15 - What it means to be an exceptional capital allocator.
26:17 - How Katherine Graham from The Washington Post delivered a 22.3% average return to shareholders from 1971 through 1993.
32:40 - The unconventional decisions that led Warren Buffett to become known as the world’s greatest capital allocator.
52:55 - How Buffett thinks about constructing a stock portfolio.
57:24 - The most common themes in studying Outsider CEOs.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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