Invest Like the Best with Patrick O’Shaughnessy
Business:Investing
Today, we're running a replay of my 2019 conversation with legendary investor Chuck Akre. Chuck founded Akre Capital Management in 1989, which now manages approximately $14B dollars. We discuss his investing style and his “three-legged stool” for evaluating companies. Please enjoy this great conversation.
Listen to Founders Podcast
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes:
[00:00:00] Welcome to Invest Like the Best
[00:01:06] First Question – Advantage of being in Middleburg, Virginia
[00:02:11] What a day looks like for Chuck
[00:03:06] Why imagination is more important than knowledge
[00:03:38] Difference between curiosity and imagination
[00:04:38] The origins of the Nirvana Three-Legged Stool concept
[00:10:14] First leg of the stool, extraordinary business and ROE’s with a focus on Bandag
[00:14:36] How his evaluations of value have changed over the last 10-15 years
[00:16:10] A look at recent businesses that he’s bought and why they are interesting
[00:19:56] Why they keep things simple
[00:21:35] Second leg of the stool, the people involved and characteristics of managers he has invested in
[00:23:20] Role of capital allocation in the people he focuses on
[00:29:34] Third leg of the stool, reinvestment
[00:21:09] How does he think about diversifying across an investment area
[00:33:32] Great businesses wrapped in a bad balance sheet
[00:37:35] What would cause him to sell
[00:38:52] What does he look for in people
[00:43:27] How curiosity has impacted his interest in land conservation
[00:43:51] Advice for investors, especially younger ones
[00:46:14] Kindest thing anyone has done for him
Bill Gurley & Michael Mauboussin - Putting Theory into Practice - [Invest Like the Best, EP.370]
Tim Ferriss - Curating Curiosities - [Invest Like the Best, EP.369]
Ken Langone - The American Dream - [Invest Like the Best, EP.368]
Robin Dunbar - Optimizing Human Connection (Dunbar's Number) - [Invest Like the Best, EP.367]
Sean Feeney - Reinventing the Restaurant Business - [Invest Like the Best, EP.366]
Dave Fontenot - The Monastery of Code - [Invest Like the Best, EP.365]
Anne-Marie Peterson - The Capital System - [Invest Like the Best, EP.364]
Aravind Srinivas - Building An Answer Engine - [Invest Like the Best, EP.363]
Ali Hamed - Building an Investment Firm - [Invest Like the Best, EP.362]
Cyan Banister - Investing for a Higher Purpose - [Invest Like the Best, EP.361]
Danny Meyer - The Power of Hospitality - [Invest Like the Best, REPLAY]
Alex Telford - Unlocking Innovation in Pharma - [Invest Like the Best, EP.360]
Madhavan Ramanujam - How to Price Products - [Invest Like the Best, REPLAY]
Daryl Morey - Systems Thinking in Sports - [Invest Like the Best, REPLAY]
Michael Ovitz - Knowledge Is Power - [Invest Like the Best, EP.359]
Erik Serrano - Investing in Investment Firms - [Invest Like the Best, EP.358]
Doug Leone - Lessons from a Titan - [Invest Like the Best, REPLAY]
Justin Ishbia - Lessons from Acquiring 586 Companies - [Invest Like the Best, EP.357]
Gavin Uberti - Real-Time AI & The Future of AI Hardware - [Invest Like the Best, EP.356]
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