Psychological age is determined not by how is is the company, but by its openness to new ideas, by willingness to take risks and to learn.
Dec 10, 2022 • 5 tweets • 2 min read
On indexing/passive bubble in late 90s
Nov 29, 2022 • 6 tweets • 2 min read
Measuring corporate culture (1/n)
2/n
Oct 4, 2022 • 6 tweets • 1 min read
Sometimes I find management compensation policies that are certifiably crazy (a short thread)
here is 2017 compensation policy for Marc Bitzer, CEO of $WHR (since Oct 2017) - policy has not changed since then
Oct 4, 2022 • 5 tweets • 2 min read
The high quality bank
Sep 15, 2022 • 4 tweets • 1 min read
My simplistic view on Adobe deal: they can’t innovate organically so plugging the lack of innovation with capital. Not good looking for their culture and leadership which are core LT value drivers 🤷♂️
What a good company does: Microsoft organically built Teams and annihilated competition
Eight attributes of corporate excellence (from In Search of Excellence: Lessons from America's Best-Run Companies):
Feb 2, 2022 • 4 tweets • 1 min read
One small observation: I used to be quite skeptical to glassdoor reviews and recently changed my view a bit. There is certanly value in glassdoor reviews like in any information, the problem is - how do you filter out noise and find gold nuggets?
the goal is to find reviews that are (1) objective; (2) genuine; (3) actionable (or at least relevant)
Jan 11, 2022 • 11 tweets • 2 min read
Some random thoughts on a possibility we are in the process of market regime change
Based on analysis of the past 30-40 years market regimes change every 10 years or so.
Dec 9, 2021 • 4 tweets • 1 min read
I think management longevity is a quite underappreciated concept in investing
What is important is you need to understand how they make money: is it mostly from compensation or from stock appreciation?
Dec 7, 2021 • 4 tweets • 1 min read
CEO ownership at some founder led tech companies over time (since founding)
Given that TEAM has two co-CEOs with equal stakes, numbers are for one of them
Dec 6, 2021 • 7 tweets • 1 min read
Here is a simple framework for analysing professional CEOs (it's different from founder CEOs framework). You need a confluence of all 4 elements to get truly outstanding results.
Skill: they should have a good track record, have a strategy/plan, have a team, being able to learn fast; possess all qualities of a great leader etc
Dec 5, 2021 • 6 tweets • 2 min read
You probably have not heard before about former Graco CEO Pat McHale. But he is an interesting person and a true leader. During his time as a CEO of Graco (2007-21) stock delivered 500% return, having materially outperformed S&P 500. Some lessons from him are below.
McHale was a vocal critic of outsourcing manufacturing jobs
Aug 19, 2021 • 4 tweets • 1 min read
Home Unimprovement: Was Nardelli's Tenure at Home Depot a Blueprint for Failure? knowledge.wharton.upenn.edu/article/home-u…
LOL, it's like management can't artificially inflate stock price
Been studying management as a value driver for the past year. One of key takeaways - what really matters is not how good management team is in absolute terms, but how good management team is RELATIVE to management teams of competitors.
Potentially great setup: outstanding management vs mediocre management (example: Lisa Su vs Krzanich/Swan)
Feb 2, 2021 • 11 tweets • 3 min read
Been reading a lot of shareholder letters recently. My personal Hall of Fame letters:
Amazon 1997 letter s2.q4cdn.com/299287126/file…