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:
Excelsior GP Website
LinkedIn
YouTube
Connect with me:
LinkedIn
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