Invest Like the Best with Patrick O'Shaughnessy
Description
My guest today is Chuck Akre, a now widely famous investor who founded Akre Capital Management in 1989, which now manages approximately $10B dollars. We discuss his investing style and his “three-legged stool” for evaluating companies. Please enjoy this great conversation.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Show Notes
1:06 - (First Question) – Advantage of being in Middleburg, Virginia
2:11 – What a day looks like for Chuck
3:06 – Why imagination is more important than knowledge
3:38 – Difference between curiosity and imagination
4:38 – The origins of the Nirvana Three-Legged Stool concept
10:14 – First leg of the stool, Extraordinary business and ROE’s with a focus on Bandag.
14:36 – How his evaluations of value has changed over the last 10-15 years
16:10 – A look at recent businesses that he’s bought and why they are interesting
19:56 – Why they keep things simple
21:35 – Second leg of the stool, the people involved and characteristics of managers he has invested in
23:20 – Role of capital allocation in the people he focuses on
28:03 – Favorite biographies
29:34 – Third leg of the stool, reinvestment
21:09 – How does he think about diversifying across an investment area
33:32 – Great businesses wrapped in a bad balance sheet
37:35 – What would cause him to sell
38:52 – What does he look for in people
43:27 – How curiosity has impacted his interest in land conservation
43:51 – Advice for investors, especially younger ones
46:14 – Kindest thing anyone has done for him
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag