For this episode, we’re joined by Chris Cerrone. He is a Partner at Akre Capital Management. Prior to joining Akre in 2012, Chris served as an equity research analyst for Goldman Sachs & Co. in New York from 2010 to 2012. In that position, he covered restaurant and retail companies.

He began his investment management career in 2007 as a junior equity research analyst with Century Capital Management in Boston. Chris graduated Summa Cum Laude with a B.A. in Economics from Tufts University.

[00:01 – 07:13] Chris and Akre Capital

I welcome our guest for the episode, Chris Cerrone
Chris talks about his background and Akre Capital
Been a partner for 9 years
Founded in 1989
The 3 legged stool of Akre
The focus of Akre
Building a portfolio of high-quality businesses
Sector alignments

[07:14 – 26:20] The Art of Not Selling

The Art of Not Selling
Impact of Politics, Economy, and Valuation on their Portfolio
Focusing on businesses that are not as sensitive to political regime changes
Selling businesses not based on Valuation
The Enemies of Compounding
An illustrative riddle that shows the power of compounding
Building and maintaining relationships with the right people in the industry
One of the biggest mistakes Chris made

[26:21 – 32:35] Investment Advice from Chris

How to train ourselves to be better disciplined and hold long term
Achieve deep understanding
Simplifying everything
Chris’ thoughts on the “Robin Hood’s” of the Market and the whole GameStop situation

[32:36 – 41:04] Quick Hitting Questions with Chris

Chris’ view on the trajectory of the Stock Market for the rest of the year
Tests to base their decisions in their stock investments
Recommendations from Chris

[41:05 - 43:15] Closing Segment

Connect with Chris. See Links Below.
Final words

Tweetable Quotes:

“We don’t sell businesses on the basis of valuation.” - Chris Cerrone

“There’s nothing worse than underestimating your management teams, moving on from the business and watching them do terrific things, and you are not there to participate.” - Chris Cerrone

“Compound Interest is the 8th wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” - Albert Einstein

“The simpler ideas tend to do better in time. Simplicity to me is one of my guiding principles, and I think it really does help.” - Chris Cerrone

Resources Mentioned:

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Connect with Chris, visit https://www.akrecapital.com/

Connect with Excelsior GP:

Connect with me:

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