MI360: The Outsiders w/ Shawn O'Malley

In today’s episode, Patrick Donley (@JPatrickDonley) sits down with Shawn O’Malley, Chief Editor of our newsletter, We Study Markets, to discuss what his main takeaways were from doing a deep dive into The Outsiders by William Thorndike. Learn how CEOs operate like stock investors, why capital allocation is unintuitive for most company leaders, what factors lead to poor capital allocation, how to identify leaders that will be extraordinary capital allocators, which Outsider CEO most stood out to Shawn, how you can apply the lessons in The Outsiders to your own investing, plus so much more! William N. Thorndike is founder and a managing director of Housatonic Partners, a private equity firm. He is a graduate of Harvard College and the Stanford Graduate School of Business. IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 02:36 - How CEOs operate like stock investors 05:01 - Why is capital allocation is unintuitive to most CEOs 09:37 - What factors lead to poor capital allocation by CEOs 11:36 - What is in a CEOs toolkit to allocate capital effectively and how can they be evaluated 16:28 - How to identify extraordinary CEOs that will be great capital allocators 20:18 - How the Outsider’s CEOs were able to resist the institutional imperative  24:29 - Which of the Outsider’s CEOS most stood out to Shawn 29:30 - How Henry Singleton masterfully allocated capital at Teledyne 34:05 - What lessons can be learned from The Outsiders for today’s investor *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Lawrence Cunningham's book, The Essays of Warren Buffett. Benjamin Graham's book, The Intelligent Investor. William Thorndike's book, The Outsiders. Check out the books mentioned in the podcast here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Toyota Public Fundrise Facet NetSuite Connect with Patrick: Twitter | Email Connect with Shawn: Twitter | LinkedIn | Email Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm