William Thorndike

The Outsiders

1. IDEA 1

   Unusual leaders outperformed

   Thorndike studies eight chief executives who achieved outstanding long-term results, far better than their peers. Many were outsiders, new to their industries or to management, and they ran their companies differently.

2. IDEA 2

   Capital allocation is crucial

   Thorndike argues that these leaders excelled at capital allocation, deciding how to use the company's money: investing, buying businesses or buying back shares. This skill drove their results. They treated it as their main job.

3. IDEA 3

   Singleton was a master allocator

   Thorndike describes Henry Singleton of Teledyne, who bought back large amounts of stock when prices were low. His decisions created great value. Thorndike presents this as an example of a leader who acted differently from others and was willing to be unpopular.

All 8 ideas from The Outsiders →