#30 William Thorndike: The Outsiders

Investing by the Books

Will Thorndike is the co-founder of Housatonic Partners and host of the 50X podcast. In this episode, we discuss Will’s masterpiece “The Outsiders” and the lessons he brings from writing it. The book covers eight CEOs who excelled at capital allocation and describes the strategies underlying their success. "The Outsiders" was published ten years ago, and recommended by Warren Buffett in his 2012 annual shareholder letter.

We welcome all suggestions of interesting authors, books, investors, and voracious readers. For more info about the podcast, go to the episode page and follow us on Twitter. This episode was recorded on August 17, 2022.

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Episode Chapters

(00:00) Intro by Eddie & Niklas

(03:16) How Will’s passion for investing started

(08:13) Common traits of the outsiders

(19:49) Holding on to high-quality companies

(26:06) The importance of corporate culture

(34:49) When M&A becomes value-destroying

(38:53) How to think about share issues

(41:41) How to find outsider CEOs

(50:19) The outsiders of tomorrow

(56:03) Thoughts on valuation

(1:02:39) Book recommendations

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Books Mentioned

• Money Masters of Our Time - John Train
• Sam Walton: Made in America - Sam Walton
• Shoe Dog - Phil Knight
• Fortune’s Formula - William Poundstone
• Buffett: The Making of an American Capitalist - Roger Lowenstein
• The Snowball - Alice Schroeder
• You Can Be a Stock Market Genius - Joel Greenblatt
• The Warren Buffett Portfolio - Robert Hagstrom
• Elusive - Frank Close

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Companies Mentioned

• Capital Cities Broadcasting
• Teledyne
• General Dynamics
• TCI
• The Washington Post
• Ralston Purina
• General Cinema
• Berkshire Hathaway
• Danaher
• Prosus
• Arch Reinsurance
• RCI Hospitality
• Constellation Software
• Brookfield Asset Management
• Lifco

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More on Will Thorndike

50X Podcast - Will's podcast where he discusses and dissects extraordinary investments

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se