Invest Like the Best with Patrick O'Shaughnessy Chuck Akre – The Three-Legged Stool - [Invest Like the Best, EP.135]
19 snips
Jun 18, 2019 
In this episode, Chuck Akre, founder of Akre Capital Management and a seasoned investor managing $10 billion, unveils his unique 'three-legged stool' framework for evaluating companies. He emphasizes the importance of imagination over mere knowledge in investing. Chuck shares insights on identifying extraordinary businesses, effective leadership traits, and the critical role of capital allocation. He also illustrates his investment philosophy with real-world examples like Bandag and shares thoughts on the significance of reinvestment in long-term success.
AI Snips
Chapters
Books
Transcript
Episode notes
Imagination and Curiosity
- Knowledge alone doesn't guarantee investment success; imagination and curiosity are essential.
- Curiosity fuels the search for exceptional businesses, while imagination helps connect seemingly unrelated ideas.
Target Above-Average Returns
- Seek above-average investment outcomes by focusing on businesses with above-average returns on owner's capital.
- Prioritize companies with a history of high returns and a long runway for future growth.
Bandag's Unique Model
- Chuck Akre discovered Bandag, a tire retreading company, through an intern's research.
- Despite being in the tire industry, Bandag's exceptionally high returns indicated a unique business model.
