October 2012
Beginner
240 pages
5h 7m
English
Warren Buffett has proposed a simple test of capital allocation ability: has a CEO created at least a dollar of value for every dollar of retained earnings over the course of his tenure? Buffett’s metric captures in a single number the collective wisdom and folly of decision-making over the course of an entire career. Sadly, it is a tougher test than it sounds and not surprisingly, these outsider CEOs passed with flying colors, as table A-1 demonstrates.
TABLE A-1
Outsider CEOs and the Buffett test |
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Berkshire Hathaway |
General Cinema/ Harcourt General* |
Teledyne |
Capital Cities/ABC |
Washington Post |
TCI** |
Ralston Purina |
General Dynamics |
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Target period |
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Start date |
June 30, 1965 |
January 31, 1966 |
May 31, 1963 ... | |||||
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